Bill Text"Handling fee" (paid by the program to the redemption center): 2¢ max
"Administrative fee" (paid to processor by the program): .001¢
| Bill Number and Name | HB 1167 and SB 1404, Tennessee Deposit Beverage Container Recycling Act of 2009 Bill Text |
|---|---|
| Primary Sponsor | Michael Ray McDonald |
| Containers Covered | All sealed containers of glass, aluminum, steel, bimetal, or plastic containing eligible beverages (up to and including 2 liters) |
| Beverages Covered | All ready-to-drink beverages excluding milk, unmixed wine and liquor, medicines, and liquid food |
| Deposits | 5¢ |
| Handling Fees | "Container-recovery fee" (paid by the distributor to the program): 1¢ "Handling fee" (paid by the program to the redemption center): 2¢ max "Administrative fee" (paid to processor by the program): .001¢ |
| Reclamation System | Certified redemption centers redeem the containers and sell the scrap directly to certified processors |
| Unredeemed Deposits | Used to compensate redemption centers; fund program operations; fund state/county litter programs |
Tennessee's 2009 container deposit legislation will be filed by early February 2009.
Several key features distinguish the 2009 bill:
Returns will be handled exclusively by certified redemption centers. These may be operated by individuals, businesses, retailers, local governments and nonprofit groups such as homeless shelters.
Distributors are not involved in the post-redemption process. Certified processors will pick up containers directly from the redemption centers, verify quantities/weights and pay market rates. In return for filing required transaction reports, the processors will receive from the program an administrative fee equal to 2 percent of the containers' refund value.
The redemption process is streamlined. Under Tennessee's bill, containers are sorted not by brand, only by material/color; and quantities may be determined by weight as well as by piece count. Under certain conditions, containers may be "cancelled" (crushed or shredded) prior to shipping, which increases market value while reducing transportation costs.
Redemption centers will no longer rely entirely on distributors' fees. Under the 2009 bill, centers will be compensated in part by the scrap value of the empty containers; in part by a portion (up to 1¢) of the unclaimed deposits; and in part by the distributors' 1¢ container-recovery fee. In addition, some redemption centers may choose to accept other recyclables from the public, boosting local recycling rates while increasing their income potential.
The program, not the distributors, handles the money. The program collects the initial 5-cent deposit and 1-cent container-recovery fee from the distributors, then disburses payments to the redemption centers via the processors. All program costs will be covered by program revenues. The program will be administered by the Tennessee Department of Environment and Conservation and Division of Solid Waste Management, with accounting functions provided by the Department of Revenue.
The program funds comprehensive litter control. A portion of the unclaimed deposits (approximately $5 million a year) will be used to continue to fund the popular "county litter grants" program, which uses county jail inmates to pick up litter and funds litter education by counties and Keep Tennessee Beautiful. Existing "litter taxes" on beer and soft drinks, which have funded the litter grants since 1981, will be eliminated.
February 12, 2009: HB1167 and SB 1404 introduced
February 19, 2009: HB 1167 referred to State & Local Government Operations
April 22, 2009: Taken off notice for the remainder of the session. To be reintroduced in 2010
Marge Davis
Scenic Tennessee
Coordinator, Tennessee Bottle Bill Project
www.tnbottlebill.org
[email protected]
(615) 758-8647
Sen. Doug Jackson
Primary sponsor of 2008 Senate bill
[email protected]
Rep. Mike Turner,
Primary sponsor of 2008 House bill
[email protected]