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H.B. 368

             1     

BOTTLING AMENDMENTS

             2     
2003 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Sponsor: Ty McCartney

             5      This act relates to Environmental Quality. This act requires a deposit on the purchase of
             6      specified beverage containers, provides for a refund of the container deposit, provides
             7      labeling requirements for deposit containers, and provides standards for containers.
             8      This act authorizes redemption centers. This act takes effect on June 1, 2003.
             9      This act affects sections of Utah Code Annotated 1953 as follows:
             10      ENACTS:
             11          19-9-101, Utah Code Annotated 1953
             12          19-9-102, Utah Code Annotated 1953
             13          19-9-103, Utah Code Annotated 1953
             14          19-9-104, Utah Code Annotated 1953
             15          19-9-105, Utah Code Annotated 1953
             16          19-9-106, Utah Code Annotated 1953
             17          19-9-107, Utah Code Annotated 1953
             18          19-9-108, Utah Code Annotated 1953
             19          19-9-109, Utah Code Annotated 1953
             20          19-9-110, Utah Code Annotated 1953
             21          19-9-111, Utah Code Annotated 1953
             22      Be it enacted by the Legislature of the state of Utah:
             23          Section 1. Section 19-9-101 is enacted to read:
             24     
CHAPTER 9. CONTAINER DEPOSIT ACT

             25          19-9-101. Definitions.
             26          As used in this chapter:
             27          (1) "Beverage" means:



             28          (a) soda water or similar carbonated drinks commonly known as soft drinks;
             29          (b) mineral water, including naturally sparkling water; and
             30          (c) beer, ale, and other malt beverages.
             31          (2) "Container" means each sealable bottle, can, jar, or carton:
             32          (a) composed primarily of glass, metal, plastic, or any combination of these materials;
             33          (b) produced for the purpose of containing a beverage; and
             34          (c) that has a capacity of one gallon or less.
             35          (3) (a) "Dealer" means any person, including the operator of a vending machine, who
             36      engages in the sale of beverages in containers to consumers in the state.
             37          (b) "Dealer" does not include persons selling beverages to be consumed on the
             38      premises under Section 19-9-104 .
             39          (4) "Distributor" means any person, including manufacturers, who engages in the sale
             40      of beverages in containers to dealers in the state.
             41          (5) "Manufacturer" means any person who bottles, cans, or otherwise fills beverage
             42      containers for sale to distributors or dealers.
             43          (6) "Refillable" means a container designed and constructed so it is structurally capable
             44      of being refilled and resold by a manufacturer at least ten times after its initial use.
             45          Section 2. Section 19-9-102 is enacted to read:
             46          19-9-102. Container deposit.
             47          Every beverage container sold or offered for sale in this state, except those offered for
             48      sale on interstate passenger carriers, is subject to a deposit:
             49          (1) of at least 5 cents for beverage containers that hold a maximum of 24 ounces at the
             50      time of sale; and
             51          (2) of at least 10 cents for containers that hold more than 24 ounces at the time of sale.
             52          Section 3. Section 19-9-103 is enacted to read:
             53          19-9-103. Container labeling.
             54          (1) (a) Every beverage container, except permanently labeled glass containers under
             55      Subsections (2) and (3), shall clearly indicate in type, not less than 1/4 inch in size, the legend:
             56          (i) "UT 5¢" or "UT 10¢" according to container size; or
             57          (ii) "UT" followed by any other amount specified by the manufacturer or distributor.
             58          (b) The legend shall be placed on the container by embossing, stamp, label, or other


             59      method that securely affixes the legend to the container. The legend may not be placed on the
             60      bottom of the container.
             61          (2) Refillable glass beverage containers on which the brand name is embossed in
             62      clearly legible type, other than on the bottom of the container, are not subject to the
             63      requirements of Subsection (1) but are subject to the deposit and refund requirements of this
             64      section.
             65          (3) Beginning on January 1, 2004, all newly manufactured refillable glass beverage
             66      containers produced in this state or imported into this state for sale in this state shall have the
             67      legend required under Subsection (1) embossed on the container.
             68          Section 4. Section 19-9-104 is enacted to read:
             69          19-9-104. Deposit collection -- Dealers -- Exception.
             70          (1) A dealer who sells beverages in containers in this state shall charge the consumer
             71      the deposit required under this section, except under Subsection (2).
             72          (2) A dealer who operates a business for the sale of prepared food or alcoholic
             73      beverages, or both, for immediate consumption in the area under the dealer's control is not
             74      required to charge a deposit under this section.
             75          Section 5. Section 19-9-105 is enacted to read:
             76          19-9-105. Deposit collection -- Manufacturers.
             77          A manufacturer or distributor who sells beverages in containers to dealers shall charge
             78      the dealer the deposit required under this section.
             79          Section 6. Section 19-9-106 is enacted to read:
             80          19-9-106. Redemption of containers -- Conditions.
             81          (1) Except under Subsections (2) and (3), a dealer during his business hours shall
             82      accept from any person any empty beverage container of the type, size, and brand sold by the
             83      dealer within the past 60 days for redemption if the container is labeled according to this
             84      section, the label is readable, and the container meets the following conditions:
             85          (a) if the container is refillable glass, the container is able to hold liquid, is resealable,
             86      holds its original shape, and is not chipped or cracked;
             87          (b) if the container is nonrefillable glass, the container may be chipped, but may not
             88      have the bottom broken out or the neck broken off;
             89          (c) if the container is a metal can or plastic bottle, the container must be identifiable


             90      and reasonably intact; and
             91          (d) the container does not contain any free flowing liquid or any other material except
             92      the minimal residue left after the container has been emptied of the beverage that was sold in it.
             93          (2) If the dealer is the operator of a vending machine, the dealer is not obligated to
             94      accept containers for redemption if the vending machine is clearly and conspicuously posted
             95      with a notice that a refund of 5 cents or 10 cents, as applicable, is available on each container
             96      purchased, and locations where the refund may be obtained.
             97          (3) A dealer may refuse to refund container deposits totaling more than $25 to any
             98      person in a 24-hour period.
             99          Section 7. Section 19-9-107 is enacted to read:
             100          19-9-107. Discontinuance of sale of container.
             101          (1) If a dealer discontinues sale of a container, the dealer shall refund deposits for the
             102      container for not less than 60 days after the dealer has discontinued sale of the container.
             103          (2) The dealer shall conspicuously post at the place where the container to be
             104      discontinued is sold a clearly legible notice stating the last date the container will be sold and
             105      also the last date when refunds on the container deposits will be made.
             106          (3) The notice shall be posted no later than the last date of sale of the container.
             107          Section 8. Section 19-9-108 is enacted to read:
             108          19-9-108. Refunds by distributors.
             109          (1) Distributors shall refund container deposits to the dealers for containers that meet
             110      the conditions under Subsection 19-9-106 (1).
             111          (2) The distributor shall remove the containers from the premises of a dealer serviced
             112      by the distributor if the dealer is located within the territory of the distributor.
             113          (3) The distributor shall pay the refund value to the dealer in accordance with the
             114      schedule for payment by the dealer to the distributor or manufacturer for full beverage
             115      containers.
             116          Section 9. Section 19-9-109 is enacted to read:
             117          19-9-109. Handling fee.
             118          The distributor or manufacturer shall pay the dealer for each beverage container a
             119      handling fee of not less than 2 cents.
             120          Section 10. Section 19-9-110 is enacted to read:


             121          19-9-110. Redemption centers.
             122          (1) Redemption centers for containers described in this part may be established by
             123      dealers, distributors, manufacturers, or independent third parties.
             124          (2) A distributor or manufacturer may not refuse to accept or redeem from the operator
             125      of a redemption center any beverage container that:
             126          (a) meets the conditions under Section 19-9-106 ; and
             127          (b) is of the type sold by any dealer serviced by that distributor or of the type produced
             128      by that manufacturer.
             129          (3) The distributor or manufacturer shall pay the operator of the redemption center for
             130      each beverage container he returns under this section:
             131          (a) the redemption value for the container under this chapter; and
             132          (b) a handling fee of not less than 2 cents for each beverage container.
             133          Section 11. Section 19-9-111 is enacted to read:
             134          19-9-111. Penalties.
             135          (1) A violation of this section is subject to a civil penalty of not more than:
             136          (a) $100 for the first violation;
             137          (b) $200 for a second violation within six months of the first violation; and
             138          (c) $300 for any subsequent violation within six months of the second violation.
             139          (2) Each violation involving a container is a separate violation.
             140          Section 12. Effective date.
             141          This act takes effect on June 1, 2003.




Legislative Review Note
    as of 2-17-03 2:25 PM


A limited legal review of this legislation raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel


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