Tennessee 2007-2008 bill text

SB 1408

Tennessee Beverage Container Deposit Act of 2007

The following text was found at http://www.tnbottlebill.org/Assets/SB1408.pdf.
The identical House bill can be found at http://www.tnbottlebill.org/Assets/HB1829.pdf

Filed for intro on 02/08/2007

HOUSE BILL 1829

By Turner M

SENATE BILL 1408

By Jackson

AN ACT to enact the “Tennessee Deposit Beverage

Container Act of 2007”. This act makes

appropriations for land preservation, litter

prevention, and recycling for an indefinite period of

time.

WHEREAS, the general assembly finds that reducing roadside litter is important for the

promotion of tourism and to increase the quality of life for the residents of this state; and

WHEREAS, the general assembly finds that recycling is also an important element of an

integrated solid waste management system, which can protect and preserve environmental

resources and reduce economic costs to residents and businesses within the state; and

WHEREAS, the general assembly finds a need to reduce both roadside litter and overall

litter, as well as a need to expand participation in recycling programs and to minimize costs to

those participating in such programs and to government; and

WHEREAS, the purposes of this act are to reduce roadside litter and overall litter, to

increase participation and recycling rates for specified deposit beverage containers, and to

provide a connection between manufacturing decisions and recycling program management;

now, therefore,

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:

SECTION 1. This act shall be known as and may be cited as the “Tennessee Deposit

Beverage Container Act of 2007”.

SECTION 2. As used in this act, unless the context requires otherwise:

(1) “Centralized processing facility” means an automated, high-volume facility

that receives and processes containers collected at satellite drop-off sites, then issues

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refunds to the customer via cash, check or direct deposit to a designated bank account,

store account, or charity;

(2) “Commissioner” means the commissioner of environment and conservation;

(3) “Comptroller” means the office of the comptroller;

(4) “Consumer” means a person who buys a beverage in a deposit beverage

container for use or consumption and pays the deposit;

(5) “Dealer” means a person who engages in the sale of beverages in deposit

beverage containers to a consumer for off-premises consumption in the state;

(6) “Department” means the department of environment and conservation;

(7) “Deposit beverage” means beer, ale, or other drink produced by fermenting

malt; mixed spirits; mixed wine; tea and coffee drinks regardless of dairy-derived product

content; soda; carbonated and noncarbonated water, and all nonalcoholic drinks in liquid

form and intended for internal human consumption that are contained in a deposit

beverage container;

The term “deposit beverage” excludes the following:

(A) A liquid which is:

(i) A syrup;

(ii) In a concentrated form; or

(iii) Typically added as a minor flavoring ingredient in food or drink,

such as extracts, cooking additives, sauces, or condiments;

(B) A liquid which is a drug, medical food, or infant formula as defined by

the Federal Food, Drug, and Cosmetic Act (21 U.S.C. § 301 et seq.);

supplement and not as a beverage as defined in the Dietary Supplement Health

and Education Act of 1994 (Public Law 103-417);

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(D) Products frozen at the time of sale to the consumer, or, in the case of

institutional users such as hospitals and nursing homes, at the time of sale to the

users;

(E) Products designed to be consumed in a frozen state;

(F) Instant drink powders;

(G) Seafood, meat, or vegetable broths, or soups, but not juices;

(H) Milk and all other dairy-derived products, except tea and coffee drinks

containing such products; and

(I) Unmixed wine and liquor;

(8) “Deposit beverage container” means an individual, separate, sealed container

made of glass, aluminum, steel, bimetal, or plastic (including polyethylene terephthalate

(PET), high-density polyethylene (HDPE) and all other plastic types and grades) in sizes

less than or equal to two (2) liters, and used for containing, at the time of sale to the

consumer, a deposit beverage intended for use or consumption in this state;

(9) “Deposit beverage distributor” means a person who is a manufacturer of

beverages in deposit beverage containers in this state, or who imports and engages in

the sale of filled deposit beverage containers to a dealer or consumer. The term includes

federal agencies and military distributors, but does not include airlines and shipping

companies that merely transport deposit beverage containers;

(10) “Import” means to buy, bring, or accept delivery of deposit beverage

containers from an address, supplier, or any entity outside of the state;

(11) “Importer” means any person who buys, brings, or accepts delivery of

deposit beverage containers from outside the state for sale or use within the state;

(12) “Mobile redemption center” means a traveling certified redemption center

that offers on-site container redemption to residences and/or businesses, either on a

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one-time or regular basis. Such centers may or may not be associated with a dealer or a

permanent (i.e., storefront) redemption center;

(13) “On-premises consumption” means to consume deposit beverages by a

consumer immediately and within the area under control of the establishment, including

bars, restaurants, passenger ships, and airplanes;

(14) "Person” means an individual, partnership, firm, association, public or private

corporation, federal agency, the state or any of its political subdivisions, trust, estate, or

any other legal entity;

(15) “Recycling facility” means all contiguous land and structures and other

appurtenances, and improvements on the land used for the collection, separation,

recovery, and sale or reuse of secondary resources that would otherwise be disposed of

as municipal solid waste, and is an integral part of a manufacturing process aimed at

producing a marketable product made of post-consumer material;

(16) “Redeemer” means a person, other than a dealer or distributor, who

demands the refund value in exchange for the empty deposit beverage container;

(17) “Redemption center” means an operation that accepts from consumers and

provides the refund value for empty deposit beverage containers intended to be recycled

and ensures that the empty deposit beverage containers are properly recycled;

(18) “Refillable beverage container” means any deposit beverage container

which ordinarily would be returned to the manufacturer to be refilled and resold;

(19) “Reverse vending machine” means a mechanical device that accepts one

(1) or more types of empty deposit beverage containers and issues cash, electronic

credit or a redeemable credit slip with a value not less than the container's refund value.

The refund value payments shall be aggregated and then paid if more than one (1)

container is redeemed in a single transaction; and

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(20) “Satellite drop-off site” means a designated site where participating

consumers bring empty containers for processing at a centralized processing facility.

Such sites shall be capable of scanning the consumer’s convenience card and printing

out a bar-coded label for consumers.

SECTION 3.

(a) Beginning on January 1, 2008, every deposit beverage distributor shall pay to

the department a deposit beverage container fee on each glass, plastic, aluminum, steel

or bimetal deposit beverage container manufactured in or imported into the state. The

fee shall be imposed only once on the same beverage container. In 2008, the fee for the

months of January, February and March shall be one half of one cent (0.5¢) per

beverage container. Payment of the deposit beverage container fee shall be made

monthly based on inventory reports of the deposit beverage distributors.

(b) Payment shall be made by check or money order payable to the "Department

of Environment and Conservation, State of Tennessee." All inventory reports and

payments shall be made no later than the fifteenth day of the month following the end of

the payment period of the previous month.

paid to the department shall increase to two and one-half cents (2.5¢) per container.

(d) Beginning on July 1, 2008, the amount of the deposit beverage container fee

paid to the department shall increase to three cents (3¢), and will remain at that level

until changed by an act of the general assembly.

(e) No county shall impose or collect any assessment or fee on deposit beverage

containers for the same or similar purpose that is the subject of this act.

SECTION 4.

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(a) By September 1, 2008, all deposit beverage distributors operating within the

state shall register with the department, using forms prescribed by the department, and

shall notify the department of any change in address or other information previously

submitted. After September 1, 2008, any person who desires to conduct business in the

state as a deposit beverage distributor shall register with the department no later than

one (1) month prior to the commencement of the business.

(b) All deposit beverage distributors shall maintain records reflecting the

manufacture of their beverages in deposit beverage containers as well as the

importation and exportation of deposit beverage containers. The records shall be made

available, upon request, for inspection by the department; provided, that any proprietary

information obtained by the department shall be kept confidential and shall not be

disclosed to any other person, except:

(1) As may be reasonably required in an administrative or judicial

proceeding to enforce any provision of this act or any rule adopted pursuant to

this act; or

(2) Under an order issued by a court or administrative agency hearings

officer.

SECTION 5.

(a) There is established in the state treasury the “Deposit Beverage Container

Fund”, into which shall be deposited:

(1) All revenues generated from the deposit beverage container fee as

described under sections 3 and 6 of this act;

(2) All revenues generated from the deposit beverage container deposit

as described under sections 6 and 10 of this act; and

(3) All accrued interest from this fund; and

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(4) All fines and penalties assessed for violations of this act.

(b) Moneys in the fund shall be used to:

(1) Reimburse refund values;

(2) Pay handling fees to redemption centers;

(3) Pay redemption centers their share of fines collected pursuant to

Section 25 of this act;

(4) Fund administrative, audit, and compliance activities associated with

collection and payment of the deposits and handling fees of the deposit beverage

container fee and deposit program;

(5) Hire personnel to oversee the implementation of the deposit beverage

container fee and deposit program, including permitting and enforcement

activities; and

(6) Fund associated office expenses.

(1) Fund the County Litter Grants program administered by the

department of transportation pursuant to Tennessee Code Annotated, Sections

41-2-123, 57-5-201, and 67-4-402;

(2) Distribute fifty percent (50%) of the remaining unclaimed deposits to

distributors in the same proportion as they paid deposits into the fund; and

(3)

(A) Reimburse cities and counties for property tax revenue lost

pursuant to an increase, if any, in acreage eligible for classification as

agricultural, forest, or open space land under title 67, chapter 5, part 10

from one thousand five hundred (1,500) acres to two thousand (2,000)

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acres. Such reimbursement to be paid from the property tax

reimbursement fund established pursuant to subdivision (3)(B).

(B) There is hereby created a special agency account in the state

general fund to be known as the property tax reimbursement fund. The

fund shall be composed of moneys allocated from the deposit beverage

container fund pursuant to this section and Section 26. Expenditures

from such fund shall only be made to implement and effectuate the

purposes of this subdivision (3). Moneys deposited in such fund shall not

revert at the end of any fiscal year and all interest accruing on

investments and deposits of the fund shall be returned to and made a part

of the fund.

(C)

(i) On or before January 1 of each year, the assessor of

property of each county shall certify to the comptroller of the

treasury such information as is necessary to identify the parcels of

property which have qualified for use value classification pursuant

to an increase in acreage eligible for such classification from one

thousand five-hundred (1,500) acres to two thousand (2,000)

acres under the provisions title 67, chapter 5, part 10. The

comptroller of the treasury shall determine the assessed value of

each such parcel of property and, on or before March 1 of each

year, shall certify to the commissioner of finance and

administration the amount of property tax revenue lost by each

affected city or county the prior tax year. Upon a request by an

affected city or county prior to August 1 of each year, the

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commissioner of finance and administration shall reimburse the

amount so determined from funds available in the property tax

reimbursement fund; provided, however, that no city or county

shall be reimbursed for any parcel that becomes ineligible for use

value classification within the prior tax year.

(ii) If the amount requested by cities and counties exceeds

the amount available for reimbursement in the reimbursement

fund, then the amount reimbursed to each city and county shall be

allocated proportionately in a manner to be determined by the

comptroller. The comptroller shall certify to the commissioner of

finance and administration the amount of property tax revenue to

be allocated to each requesting city and county.

(d) The department may also use the money to:

(1) Conduct recycling education and demonstration projects;

(2) Promote recyclable market development activities; and

(3) Support the handling and transportation of the deposit beverage

containers to end-markets.

(e) Moneys deposited in the deposit beverage container fund may be expended

to fund activities authorized by this act. Any revenues deposited in such fund shall

remain in reserve until expended for purposes consistent with this act, and shall not

revert to the general fund on any June 30. Any excess revenues from interest earned by

such revenues shall not revert on any June 30, but shall remain available for

appropriation in subsequent fiscal years. Any unexpended appropriation from such

reserve shall not revert to the general fund on any June 30, but shall remain available for

expenditure in subsequent fiscal years.

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SECTION 6.

(a) Beginning March 1, 2008, every deposit beverage distributor shall pay to the

department a deposit of five cents (5¢) on each glass, plastic, aluminum, steel or bimetal

deposit beverage container manufactured in or imported into the state. Payment of the

deposit shall be simultaneous with, and according to the same terms as, payment of the

deposit beverage container fee as described in Section 3 of this act. All deposit

beverage distributors shall submit to the department documentation in sufficient detail

that identifies:

(1) The number of beverages in deposit beverage containers, by

container size and type, manufactured in or imported to the state; and

(2) The number of such deposit beverage containers, by container size

and type, exported and intended for consumption out of the state during the

reporting period.

(b) The amount due from deposit beverage distributors shall be the net number

of deposit beverage containers manufactured or imported into the state (the total number

of containers manufactured or imported into the state minus the total number of

containers exported for consumption outside the state) multiplied by the sum of the

prevailing deposit beverage container fee and the refund value of five cents (5¢).

Payment shall be made by check or money order payable to the “Department of

Environment and Conservation, State of Tennessee”. All inventory reports and payments

shall be made no later than the fifteenth day of the month following the end of the

payment period of the previous month.

SECTION 7. The program shall be administered by the division of solid waste

management within the department of environment and conservation. The commissioner shall

create a separate administrative entity within the division of solid waste management, with

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dedicated positions funded by the deposit beverage container fund. No existing positions or

personnel may be reassigned or reallocated to staff this new entity.

SECTION 8. The comptroller shall conduct a management and financial audit of the

program for fiscal years 2008-2009 and 2009-2010, and for each fiscal year thereafter ending in

an even-numbered year. The comptroller shall submit the audit report, including the amount of

unredeemed refund value and recommendations, to the general assembly and the department

no later than twenty (20) days prior to the convening of the next regular session. The costs

incurred by the comptroller for the audit shall be reimbursed by the deposit beverage container

fund. The comptroller may contract the audit services of a third party to conduct the audit.

SECTION 9. The commissioner is authorized to promulgate rules and regulations to

effectuate the purposes of this act. All such rules and regulations shall be promulgated in

accordance with the provisions of Tennessee Code Annotated, Title 4, Chapter 5. Full

implementation of the deposit beverage container fee and deposit program shall commence on

April 1, 2008.

SECTION 10.

(a) Beginning April 1, 2008, every deposit beverage container sold in this state

shall have a refund value of five cents (5¢). Each container shall have the refund value

clearly indicated on it as provided in Section 12 of this act. In addition, each container

shall encode the refund information within the UPC bar code. This information shall be

readable by reverse vending machines and other electronic scanning equipment.

(b) Inventory already in circulation on April 1, 2008, shall be affixed with an

adhesive sicker bearing the refund value of the container, the words "Tennessee" or the

letters "TN," and a bar code bearing the redemption information. These stickers shall be

purchased from the state by the beverage distributors, who will pay the state the deposit

value of five cents (5¢) per sticker.

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has been applied to a deposit beverage container, the deposit on that container may not

be changed, but shall be paid to the state.

(d) The deposit on each filled deposit beverage container shall be paid by the

deposit beverage distributor who manufactured or imported the beverage in such deposit

beverage container. Payment and reporting of the deposits shall be in accordance with

Section 6 of this act. The deposits shall be deposited into the deposit beverage container

fund as described in Section 5 of this act.

(e) Deposit beverage distributors who are required under subsection (d) to pay a

deposit shall also pay a deposit beverage container fee and register with the state.

SECTION 11.

(a) Beginning April 1, 2008, every deposit beverage distributor shall charge the

dealer or consumer a deposit equal to the refund value for each deposit beverage

container sold in Tennessee. The deposit charge may appear as a separate line item on

the invoice.

(b) Beginning April 1, 2008, every dealer shall charge the consumer at the point

of sale a deposit equal to the refund value for each deposit beverage container sold in

Tennessee, except on beverages intended for on-premises consumption as defined in

Section 2(13) of this act. The deposit charge may appear as a separate line item on the

invoice.

SECTION 12.

(a) Every deposit beverage container sold in this state shall clearly indicate the

refund value of the container and the word “Tennessee” or the letters “TN”. The names

or letters representing the names of other states with comparable deposit legislation may

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also be included in the indication of refund value. Other indications may be required as

specified in rules.

(b) This section does not apply to any type of refillable glass beverage container

which has a brand name permanently marked on it and which has the equivalent of a

refund value of at least five cents (5¢) which is paid upon receipt of such container by a

dealer or distributor.

SECTION 13.

(a) All dealers, regardless of the square footage of the dealer's place of business,

shall post a clear and conspicuous sign at each public entrance to the dealer's place of

business, which specifies the name, address, and hours of operation of the closest

redemption center locations.

(b) If there is no redemption center within a two-mile radius of a dealer, and the

dealer is located in a high-density population area as defined by the commissioner by

rule, then the department, in consultation with the affected county, shall determine the

need for a redemption center in that area. If a redemption center is deemed necessary,

then the department, in cooperation with the affected county, shall establish the

redemption center with funding from the deposit beverage container fund.

SECTION 14.

(a) Prior to operation, redemption centers shall be certified by the department.

(b) Applications for certification as a redemption center shall be filed with the

department on forms prescribed by the department.

and individual persons are eligible to apply for certification to operate an independent

redemption center.

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(d) The department shall consult with the respective counties to determine the

number of independent redemption centers needed to adequately serve each county,

based on population density, distribution, number of retailers and other factors. The

department shall use these findings to determine the optimum number of certifications

that may be issued for each county.

(e) The department, at any time, may review the certification of a redemption

center. After written notice to the person responsible for the establishment and operation

of the redemption center, the department, after it has afforded the redemption center

operator a hearing in accordance with Tennessee Code Annotated, Title 4, Chapter 5,

may withdraw the certification of the center if it finds that there has not been compliance

with applicable laws, rules, permit conditions, or certification requirements.

(f) Redemption centers, including mobile redemption centers, shall:

(1) Accept all types of empty deposit beverage containers for which a

deposit has been paid;

(2) Verify that all containers to be redeemed bear a valid Tennessee

refund value;

(3) Pay to the redeemer the full refund value for all beverage containers,

except as provided in Section 16 of this act;

(4) Ensure each container collected is recycled through a contractual

agreement with an out-of-state recycler or an in-state recycling facility permitted

by the department; provided, that this subdivision shall not apply if the

redemption center is operated by a recycler permitted by the department; and

(5) Forward the documentation necessary to support claims for payment

as stated in Section 18 of this act.

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(g) Redemption centers' redemption areas shall be maintained in full compliance

with applicable laws and with the orders and rules of the department, including

permitting requirements.

SECTION 15. Reverse vending machines may be used by redemption centers to satisfy

the requirements of Section 13 of this act; provided, that the reverse vending machines shall

accept any type of empty deposit beverage container and pay out appropriate refunds via cash,

electronic credit, or a redeemable voucher for those containers that bear a valid Tennessee

refund value. If the reverse vending machines are unable to read the Tennessee refund value,

then the department shall specify a delayed date after which the reverse vending machines may

be used. Redemption centers using reverse vending machines shall ensure that such reverse

vending machines are routinely serviced to ensure proper operation and continuous acceptance

of containers and payment of refunds.

SECTION 16. Redemption centers shall refuse to pay the refund value on any broken,

corroded, dismembered, flattened deposit beverage container, or any deposit beverage

container which:

(1) Contains a free flowing liquid;

(2) Does not properly indicate a refund value; or

(3) Contains a significant amount of foreign material.

SECTION 17.

(a) The department shall pay to each certified redemption center a handling fee

of not less than the prevailing beverage container fee for each deposit beverage

container redeemed by a consumer which is transported out-of-state or received by an

approved in-state company for an approved end use for recycling or received by a

department-permitted recycling facility.

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(b) The handling fee shall be paid in addition to the refund value of each such

empty beverage container. The department may choose to pay the handling fee and

refund value on the basis of the total weight of the containers received by material type

and the average weight of each container type.

within ten (10) business days after receipt of invoice.

(d) A handling fee and refund value may only be paid once for each container

redeemed by a consumer and claimed by a redemption center in accordance with

Section 14 of this act.

SECTION 18.

(a) The department shall pay certified redemption centers handling fees and

refund values as described in Section 17 of this act, based on collection reports

submitted by the redemption centers. All redemption centers shall submit to the

department information on forms prescribed by the department. Information shall include

at a minimum:

(1) The amount and type of containers accepted and rejected;

(2) The amount of refunds paid out;

(3) The amount and weight of each type of container transported out of

state, or to a permitted recycling facility; and

(4) Copies of transport and weight receipts from recycling facilities. If the

redemption center and the recycling facility are the same entity, receipts shall be

independently verified. Such documentation shall be used for periodic, random

audits of redemption centers.

(b) The requests for payment by the redemption center shall be no more frequent

than two (2) times per month.

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SECTION 19. Recycling facilities, in addition to any other requirements under this act or

any other provision of law, shall prepare or maintain the documents involving empty beverage

containers, as required by the department.

SECTION 20. The records of the deposit beverage distributor, redemption center, and

recycling facility shall be made available, upon request, for inspection by the department, a duly

authorized agent of the department, or the auditor. Any proprietary information obtained by them

shall be kept confidential and shall not be disclosed to any other person, except:

(a) As may be reasonably required in an administrative or judicial proceeding to

enforce any provision of this act or any rule adopted pursuant to this act; or

(b) Under an order issued by a court or administrative agency hearings officer.

SECTION 21. The department shall convene an advisory committee to assist it in

developing any rules needed to implement this act. The department shall select members of the

committee so as to obtain input on the state level, as well as assess the impact on each

individual county, consumers, recyclers, and the beverage industry. Members of the committee

shall be appointed by the commissioner and shall serve at the commissioner’s pleasure. A

simple majority of the committee members shall constitute a quorum for the purposes of

recommending rules and providing input to the commissioner.

SECTION 22. Except as provided otherwise in Section 25, any person who violates any

provision of this act or any rule adopted pursuant to this act shall be fined not more than ten

thousand dollars ($10,000) for each separate offense. Each day of each violation shall

constitute a separate offense. Any action taken to impose or collect the penalty provided for in

this section shall be made through administrative, civil, or criminal actions.

SECTION 23.

(a) If the commissioner determines that any person has violated or is violating

any provision of this act, any rule adopted pursuant to this act, or any term or condition

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of a certification or permit issued pursuant to this act, the commissioner may do any one

(1) or more of the following:

(1) Issue a field citation assessing an administrative penalty and ordering

corrective action immediately or within a specified time;

(2) Issue an order assessing an administrative penalty for any past or

current violation;

(3) Require compliance immediately or within a specified time; and

(4) Commence a civil action in circuit court in the county in which the

violation occurred or where the person resides or maintains the person’s principal

place of business for appropriate relief, including a temporary, preliminary, or

permanent injunction, the imposition and collection of civil penalties or other

relief.

(b) Any order issued pursuant to this section may include a suspension,

modification, or revocation of a certification or permit issued pursuant to this act and

shall state with reasonable specificity the nature of the violation.

twenty (20) days after the notice of order is served, the person or persons named therein

request in writing a hearing before the commissioner. Any penalty imposed pursuant to

this act shall become due and payable twenty (20) days after the notice of penalty is

served, unless the person named therein requests in writing a hearing before the

commissioner. Whenever a hearing is requested on any penalty imposed pursuant to

this act, the penalty shall become due and payable only upon completion of all review

proceedings and the issuance of a final order confirming the penalty in whole or in part.

Upon request for a hearing, the commissioner shall require that the alleged violator or

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violators appear before the commissioner for a hearing at a time and place specified in

the notice and answer the charges.

(d) Any hearing conducted pursuant to this section shall be conducted as a

contested case. If after a hearing held pursuant to this section, the commissioner finds

that a violation or violations have occurred, the commissioner shall:

(1) Affirm or modify any penalties imposed or shall modify or affirm the

order previously issued; or

(2) Issue an appropriate order or orders for the prevention, abatement, or

control of the violation involved, or for the taking of such other corrective action

as may be appropriate.

If, after a hearing on an order or penalty contained in a notice, the commissioner finds

that no violation has occurred or is occurring, the commissioner shall rescind the order

or penalty. Any order issued after a hearing may prescribe the date or dates by which

the violation or violations shall cease and may prescribe timetables for necessary action

in preventing, abating, or controlling the violation.

(e) If the amount of any penalty is not paid to the department within thirty (30)

days after it becomes due and payable, the commissioner may institute a civil action in

the name of the state to collect the administrative penalty that shall be a government

realization. In any proceeding to collect the administrative penalty imposed, the

commissioner need only show that:

(1) Notice was given;

(2) A hearing was held or the time granted for requesting a hearing

expired without a request for a hearing;

(3) The administrative penalty was imposed; and

(4) The penalty remains unpaid.

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(f) In connection with any hearing held pursuant to this section, the commissioner

shall have the power to subpoena the attendance of witnesses and the production of

evidence on behalf of all parties.

SECTION 24. The department shall provide quarterly reports on the deposit beverage

container fee and deposit program to the general assembly and the governor for the period

beginning April 1, 2008, and ending December 31, 2009; and semiannually thereafter. The

reports shall contain, but not be limited to:

(1) Performance indicators;

(2) Measures of effectiveness, including impacts on litter, measured by volume or

weight;

(3) Organization charts; and

(4) Position descriptions of every type of position created and actual salaries paid

to each employee.

The reports shall include recommended legislation for statutory changes.

SECTION 25. The obligations to accept or take empty beverage containers and to pay

the refund value and handling fees for such containers as described in this act apply only to

containers originally sold in this state as filled beverage containers. A person who, during any

single transaction, tenders to a dealer, distributor, redemption center, or bottler more than

twenty-four (24) empty beverage containers that the person knows or has reason to know were

not originally sold in this state as filled beverage containers is subject to the enforcement action

and civil penalties set forth in this section. At each location where customers tender containers

for redemption, dealers and redemption centers must conspicuously display a sign in letters that

are at least one inch (1”) in height with the following information:

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WARNING: Persons tendering containers for redemption that were not originally

purchased in this state may be subject to a fine of the greater of one hundred dollars

($100) per container or twenty-five thousand dollars ($25,000) for each tender.

A person who violates the provisions of this section is subject to a civil penalty of the greater of

one hundred dollars ($100) for each container or twenty-five thousand dollars ($25,000) for

each tender of containers. Each fine collected pursuant to this provision shall be placed in the

deposit beverage container fund and disposed of as follows: fifty percent (50%) of the fine shall

remain in the fund to be expended for activities authorized by this act, and fifty percent (50%) of

the fine shall be returned to the redemption center at which the violation was committed as an

incentive to watch for and report fraudulent redemptions.

SECTION 26. At the end of each fiscal year, any refund moneys that remain unclaimed

in the fund created pursuant to Section 5 of this act shall escheat to the state, shall not revert to

the general fund, and shall be allocated annually as follows:

(1) Ten million dollars ($10,000,000) shall be allocated to the department of

transportation, to be used exclusively for the continued funding of the existing County

Litter Grants program provided for in Tennessee Code Annotated, Sections 41-2-123,

57-5-201, and 67-4-402;

(2) Five million dollars ($5,000,000) shall be allocated to the property tax

reimbursement fund;

(3) Fifty percent (50%) of the remaining unredeemed deposits shall be distributed

among deposit beverage distributors in the proportion in which the deposits were paid;

and

(4) Any remaining funds shall be available for purposes and programs otherwise

authorized by the provisions of this act.

SECTION 27. This act shall take effect July 1, 2007, the public welfare requiring it.

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Updated March 23, 2008