"Beverage Container Deposit Act"; requires use of returnable beverage containers in NJ and establishes deposit and refund system to facilitate return of such containers to manufacturers for reuse or proper disposal.

S3391

SENATE, No. 3391

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED FEBRUARY 9, 2026

Sponsored by:

Senator� RAJ MUKHERJI

District 32 (Hudson)

SYNOPSIS

���� �Beverage Container Deposit Act�; requires use of
returnable beverage containers in NJ and establishes deposit and refund system
to facilitate return of such containers to manufacturers for reuse or proper
disposal.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act

concerning the establishment of a container
deposit and refund system to facilitate the reuse, recycling, and proper
disposal of beverage containers sold in the State, supplementing Title 13 of
the Revised Statutes, and repealing section 5 of P.L.2007, c.311.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� This act shall be known,
and may be cited as, the �Beverage Container Disposal Act.��

���� 2.��� As used in this act:

���� �Account-based bulk processing
program� means a beverage container recycling program implemented by a
redemption center or pick-up agent that meets the requirements of rules adopted
by the department, is approved by the department, consolidates beverage containers
subject to the requirements of this chapter through bulk sorting, collects data
regarding each container sorted, provides electronic data reports specifying
the number of containers sorted by universal product code along with
information regarding the container brand, redemption location and container
material type to support an accounting of deposits, fees, and material weight
and prepares the sorted containers for sale to recyclers. An account-based bulk
processing program may include a bag drop program as a program component.

���� �Bag drop program" means
a beverage container recycling program implemented by a redemption center that
meets the requirements of rules adopted by the department and that allows a
person to drop off beverage containers subject to the requirements of this
chapter in a bag or other receptacle at one or more identified locations
and to have the corresponding refund placed into an account to be held for the
benefit of the person in a manner that allows the person to obtain the
refund or a refund receipt within 10 calendar days following the drop-off.� A
bag-drop program may be implemented as part of, or in conjunction with an
account-based bulk processing program.

���� �Beverage� means any drinkable
liquid intended for human oral consumption.� �Beverage� does not include:� a
drug regulated under the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 301 et
seq.); infant formula; a meal replacement liquid; or dairy products derived
from animal milk.

���� �Beverage container� or
�container� means a prepackaged container, such as a bottle, can, carton,
pouch, or aseptic packaging which:� is made of any material or combination of
materials, including, but not limited to, glass, plastic, paper, cardboard, or
metal; contains a beverage; and has a volume of not more than one gallon.�
�Beverage container� or �container� shall not include a beverage cup.

���� �Brand� means a word, name,
symbol, trademark, group of letters, or any combination thereof, which is
adopted and used by a manufacturer to identify a specific flavor or type of
beverage, and to distinguish that flavor or type from another beverage being
produced or marketed by that manufacturer or by another manufacturer.

���� �Certified as reusable� means
that a beverage container is officially recognized, by the department, as being
reusable in nature.

���� �Container deposit� or
�deposit� means a $0.10 deposit surcharge, equaling the refund value of a
container, which surcharge:� is originated by a distributor on each filled
beverage container sold or offered for sale in this State; is paid by the
dealer and by the consumer of the beverage, upon sale and delivery of the
filled beverage container thereto; and may be refunded to the consumer and the
dealer, as appropriate, upon the consumer�s or dealer�s return of the empty
beverage container.

���� �Container refund� or �refund�
means a cash reimbursement of the $0.10 container deposit that was previously
paid on a filled beverage container, which is granted to a consumer or dealer,
as appropriate, upon the consumer�s or dealer�s return of the empty container.

���� �Dealer� means a person who
sells, or offers for sale, one or more filled beverage containers directly to
consumers in this State.� �Dealer� includes the owner or operator of a vending
machine that dispenses filled beverage containers, or any other person,
including the owner or lessee of the property upon which a vending machine is
located, who accepts deliveries of filled beverage containers to the vending
machine.

���� �Department� means the
Department of Environmental Protection.

���� �Designated container� means a
beverage container that has a symbol, mark, label, or other distinguishing
characteristic that enables a reverse vending machine to determine whether the
container is a returnable beverage container for which a refund is warranted.

���� �Distributor� means a
manufacturer or other person who sells, or offers for sale, one or more filled
beverage containers to a dealer in the State.� �Distributor� includes a
non-profit organization which a group of distributors has elected to
create or appoint, pursuant to section 12 of this act, to fulfill their
obligations under the �Beverage Container Deposit Act.�

���� �Empty� means that a beverage
container contains nothing inside except the residue of its original contents.

���� �Filled� means that a beverage
container is unopened and contains a beverage.

���� �Manufacturer� means a person
who bottles, cans, or otherwise places beverages in beverage containers for
sale to distributors, dealers, or consumers.

���� �Metal beverage container�
means a beverage container composed primarily of metal.

���� �Off-site consumption� means
consumption of a beverage while outside of a sale and consumption area.

���� �On-site consumption� means
consumption of a beverage while inside of a sale and consumption area.

���� �Over-redeemer� means a
distributor who, in a single year, expends more money through the issuance of
container refunds than the distributor collects in container deposits.

���� �Over-redemption credit� means
a credit offered by the Department of the Treasury to a distributor who, in a
single year, expends more money through the issuance of container refunds than
the distributor collects in container deposits.

���� �Person� means an individual,
partnership, corporation, association, or other legal entity.

���� �Previously redeemed beverage
container� or �previously redeemed container� means an empty beverage container
that a consumer is attempting to return for redemption, but which, at the time
of such consumer return, is no longer eligible for a refund of the container�s
deposit value because the appropriate refund has already been issued on the
container.� �Previously returned container� does not include a beverage
container for which a refund of the deposit value has already been issued, in
any case where such beverage container was returned to the distributor,
following the prior issuance of a refund thereon, and was refilled and
returned, by the distributor, to the stream of commerce as a new beverage
container prior to the current redemption attempt.

���� �Previously rejected beverage
container� or �previously rejected container� means a beverage container,
whether empty or filled, which a consumer is attempting to return for
redemption, but which has previously been rejected for redemption and refused a
refund of the container�s deposit value, regardless of the basis for such
rejection.

���� �Redeem� or �redemption� means
the act of returning an empty returnable container to a dealer or distributor
for a refund of the $0.10 container deposit previously paid on the filled
container.

���� �Redeemed empty returnable
container� or �redeemed container� means an empty returnable container that has
been returned, by both a consumer and a dealer, for a refund, and which is
returned to the manufacturer for the purposes of reuse, recycling, or proper
disposal in accordance with all applicable laws and regulations.

���� �Redemption center� means a
facility established pursuant to section 10 of this act, which is approved by
the department to engage in the bulk collection of redeemable containers being
returned by consumers, for redemption, pursuant to this act.

���� �Redemption channel� means a
dealer, a redemption center, a bag drop program, or an account-based bulk
processing program.

���� �Returnable beverage
container� or �returnable container� means a beverage container upon which a
deposit of at least $0.10 has been originated by a distributor, and for which a
cash refund of at least $0.10 is payable, by a dealer or distributor of the beverage
in the State, upon the return of the empty container thereto.

���� �Reusable beverage container�
or �reusable� means that a beverage container, once emptied and redeemed, is
capable of being sanitized and refilled by a manufacturer and reinserted into
the stream of commerce as a new, filled beverage container.

���� �Reuse� means the sanitizing
and refilling of an empty redeemed container, and the reinsertion of that
sanitized and refilled container back into the stream of commerce as a new,
filled beverage container.

���� �Reverse vending machine�
means an automated device that uses a laser scanner, microprocessor, or other
technology to accurately recognize the universal product code on containers to
determine whether a container is redeemable, and which accumulates information
regarding the containers redeemed, including the number of such redeemed
containers, thereby enabling the device to:� accept containers from redeemers; issue
a receipt for the refund value thereof; transmit data for reconciliation
purposes; sort and compact redeemed containers; and cancel a redemption
transaction upon request of the redeemer.

���� �Sale and consumption area�
means the premises within the property of a dealer, or within the property of a
dealer�s lessor, where the sale of a filled, returnable beverage container is
made, and within which, if authorized by the dealer, a consumer may drink the
beverage without paying a container deposit.

���� �Unclaimed container deposit�
or �unclaimed deposit� means a $0.10 container deposit collected by a
distributor, which deposit has not yet been refunded to a dealer.

���� �Under-redeemer� means a
distributor who, in a single year, collects more money in container deposits
than the distributor expends through the issuance of container refunds.�

���� 3.��� a.� Every filled
beverage container sold or offered for sale in this State:

���� (1)�� shall be a returnable
container;

���� (2)�� shall have a refund
value of $0.10 when empty;

���� (3)�� shall be clearly
identified by a stamp, label, or other mark securely affixed to the beverage
container, bearing the inscription �New Jersey� or �N.J.,� and indicating the
refund value of the beverage container; and

���� (4)�� if a metal beverage
container, shall not have any part that becomes detached from the container
when opened.

���� b.��� Commencing on the
effective date of this act, a manufacturer shall not manufacture for sale in
this State, a distributor shall not sell, offer for sale, or give to a dealer in
this State, and a dealer shall not sell, offer for sale, or give to a consumer
in this State, any filled beverage container that fails to comply with the
provisions of subsection a. of this section.

���� c.���� (1) In addition to any
other penalties provided by law, a person who violates the provisions of
subsection b. of this section shall be subject to the payment of a civil
penalty of not less than $100 and not more than $1,000 and restitution in an
amount to that is equal to the loss resulting from the violation, as determined
and ordered by the court.

���� (2)�� Penalties and
restitution payments authorized pursuant to this subsection shall be collected,
by the department, in a summary proceeding commenced thereby pursuant to the
�Penalty Enforcement Law of 1999,� P.L.1999, c.274 (C.2A:58-10 et seq.).� The
Superior Court and municipal court shall have jurisdiction to enforce the
�Penalty Enforcement Law of 1999� for the purposes of this subsection.

���� d.��� Any penalty amounts
imposed and collected pursuant to this section shall be payable to the State
and credited to the Clean-Up and Redevelopment Trust Fund, established pursuant
to section 15 of this act.

���� 4.��� a.� A distributor who
sells a filled beverage container to a dealer in this State shall originate a
$0.10 refundable container deposit surcharge on that container, which deposit
shall be paid by the dealer, upon the sale and delivery of the container
thereto, and collected by the distributor.� The distributor shall maintain a
record of all container deposits collected pursuant to this paragraph.

���� b.��� (1)� A dealer who sells a
filled returnable beverage container to a consumer in this State, for the
purposes of off-site consumption, shall require the consumer, at the time of
sale, to pay the dealer the $0.10 container deposit originated on the container
pursuant to subsection a. of this section.

���� (2)�� A dealer who sells a
filled returnable beverage container to a consumer in this State, for the
purposes of on-site consumption, may either:� (a) require the consumer, at the
time of sale, to pay the $0.10 container deposit originated on the container
pursuant to subsection a. of this section; or (b) authorize the consumer to
consume the beverage on-site, within the sale and consumption area, without
paying the $0.10 container deposit.� If the dealer authorizes on-site
consumption of the beverage without requiring payment of a deposit at the time
of sale, the dealer shall require the consumer of the beverage to return the
empty container to the dealer before leaving the sale and consumption area or,
if the container is not so returned, to pay the requisite $0.10 container deposit
upon leaving the sale and consumption area with the container.

���� c.���� (1)� A distributor or
dealer who fails to originate or impose a container deposit surcharge on a
returnable container, in violation of the provisions of subsection a. or b. of
this section, as appropriate, shall be subject to the payment of a civil penalty
of not less than $100 and not more than $1,000 and restitution in an amount
that is equal to the loss resulting from the violation, as determined and
ordered by the court.� Each day on which a violation continues, pursuant to
this section, shall constitute a separate and distinct offense.�

���� (2)�� Penalties and
restitution payments authorized pursuant to this subsection shall be collected,
by the department, in a summary proceeding commenced thereby pursuant to the
�Penalty Enforcement Law of 1999,� P.L.1999, c.274 (C.2A:58-10 et seq.).� The
Superior Court and municipal court shall have jurisdiction to enforce the
�Penalty Enforcement Law of 1999� for the purposes of this subsection.

���� d.��� Any penalty amounts
imposed or restitution payments ordered pursuant to this section shall be
payable to the State and credited to the Clean-Up and Redevelopment Trust Fund,
established pursuant to section 15 of this act.

���� 5.��� a.� No person shall pay,
claim, or receive any container deposit, processing payment, or handling fee
for any of the following:

���� (1)�� a beverage container
that the person knew, or should have known, was imported from out of State;

���� (2)�� a previously redeemed
beverage container;

���� (3)�� a previously rejected
beverage container; or

���� (4)�� any other vessel, cup,
non-beverage container, or other material that is ineligible for redemption
pursuant to this act.

���� b.��� No person shall, within
intent to defraud, do any of the following:

���� (1)�� redeem or attempt to
redeem an out-of-state container, a previously redeemed container, a previously
rejected container, or any other ineligible container or material;

���� (2)�� return a previously
redeemed container to the marketplace for redemption purposes;

���� (3)�� bring an out-of-state
container, a previously rejected container, or any other ineligible container
or material to the marketplace for redemption purposes; or

���� (4)�� receive, store,
transport, distribute, or otherwise facilitate or aid in the redemption of an
out-of-state container, a previously redeemed container, a previously rejected
container, or other ineligible material.

���� c.���� The department, and
each dealer or distributor participating in the beverage container deposit
system established pursuant to this act, shall take all reasonable steps to
exclude from the container deposit system, and to prevent the redemption of,
all out-of-State beverage containers and all previously redeemed beverage
containers, previously rejected beverage containers, and other ineligible
containers and materials, as necessary to effectuate the provisions and
purposes of subsection a. of this section.

���� d.��� Any person who violates
the provisions of this section shall be subject to the payment of restitution
in an amount equal to the loss resulting from the violation, as determined and
ordered by the court in a summary proceeding pursuant to the �Penalty Enforcement
Law of 1999,� P.L.1999, c.274 (C.2A:58-10 et seq.).� The Superior Court and
municipal court shall have jurisdiction to enforce the �Penalty Enforcement Law
of 1999� for the purposes of this subsection.

���� e.���� Any restitution
payments ordered, by the court, pursuant to this section shall be payable to
the State and credited to the Clean-Up and Redevelopment Trust Fund,
established pursuant to section 15 of this act.

���� 6.��� a.� (1) Except as
otherwise provided by this section, a dealer shall accept for return, from any
person, an empty returnable container of any kind, size, and brand that is sold
or offered for sale by the dealer.� Upon the dealer�s receipt of such empty returnable
container, the dealer shall pay the full refund value of the container, in
cash, to the person returning the empty container, regardless of whether such
person is the original customer who purchased the filled container or whether
the filled beverage container was originally sold by the dealer.� A dealer
shall be authorized, but shall not be required, to limit, to $25 per day, the
total dollar amount of refunds that may be daily issued by the dealer to a
single person under this paragraph.�

���� (2)�� The use or presence of a
reverse vending machine shall not relieve a dealer of any obligation imposed thereon
pursuant to this act. �If a dealer uses a reverse vending machine to redeem
containers for the purposes of this act, the dealer shall also provide for the manual
redemption of beverage containers whenever such reverse vending machine is
full, is broken, is under repair, or does not accept a type of beverage
container being sold or offered for sale by such dealer, upon redemption
thereof.

���� (3)�� A distributor shall
accept for return, from any dealer, an empty returnable container of any kind,
size, and brand that is sold or offered for sale by the distributor, and shall
pay to the dealer the full refund value of the container, in cash.� Upon receipt
of a redeemed empty returnable container, pursuant to this paragraph, the
distributor shall return the redeemed container to the manufacturer or, if the
distributor is the manufacturer of the container, shall retain possession of
the container, for the purposes specified in paragraph (4) of this subsection.�
The distributor shall maintain a record of all container refunds that are
issued pursuant to this paragraph.

���� (4)�� Upon a manufacturer�s
receipt of an empty redeemed container, the manufacturer shall reuse, recycle,
or otherwise properly dispose of the container in accordance with this act and
all other applicable laws and regulations.

���� b.��� A consumer shall be
authorized to return for a refund, and a distributor or dealer shall be
authorized to accept for return, and to issue a refund on, an empty container,
in accordance with this section, only if the empty container was originally
sold in this State as a filled returnable container, as indicated by a mark
affixed to the container pursuant to paragraph (3) of subsection a. of section
3 of this act.� A consumer or dealer shall not return or attempt to return for
a refund, and a distributor or dealer shall not accept for redemption and issue
a refund on, any beverage container that the person knows, or should know, was
not purchased in this State as a filled returnable beverage container.

���� c.���� Notwithstanding the
provisions of this section to the contrary:

���� (1)�� if a dealer authorizes a
consumer to engage in on-site consumption of a beverage in a returnable
container without paying a container deposit, as provided by paragraph (2) of
subsection b. of section 4 of this act, and the consumer returns the container to
the dealer before leaving the sale and consumption area, the dealer shall not
be required to pay the consumer a refund upon the consumer�s return, and the
dealer�s acceptance, of the empty container; and

���� (2)�� a distributor or dealer
shall not issue more than one refund on the same empty returnable container
following a single use; however, nothing in this paragraph shall prohibit a
distributor or dealer from issuing more than one refund on the same empty returnable
container if the returnable container is a reusable container for which a
refund was previously issued and, in the time since the issuance of the prior
refund, the reusable container has been sanitized and refilled by the
manufacturer, returned to the stream of commerce for sale as a new, filled
beverage container, and newly emptied by another consumer.

���� d.��� In addition to any other
penalties provided by law, a consumer or dealer who returns or attempts to
return for a refund, and a dealer or distributor who accepts for redemption, an
out-of-State or non-returnable container, in violation of the provisions of
subsection b. of this section, shall be subject to the payment of restitution
in an amount equal to the loss resulting from the violation, as determined and
ordered by the court in a summary proceeding pursuant to the �Penalty
Enforcement Law of 1999,� P.L.1999, c.274 (C.2A:58-10 et seq.).� The Superior
Court and municipal court shall have jurisdiction to enforce the �Penalty
Enforcement Law of 1999� for the purposes of this subsection.

���� e.���� Any restitution
payments ordered, by the court, pursuant to this section shall be payable to
the State and credited to the Clean-Up and Redevelopment Trust Fund,
established pursuant to section 15 of this act.

���� 7.��� a.� (1) Each dealer who
sells filled returnable beverage containers for off-site consumption shall
provide, on the premises where such sales are made, or within 100 yards
thereof, a reverse vending machine or other convenient means by which empty
returnable containers of any kind, size, and brand sold or offered for sale by
the dealer may be returned by, and the refund value of the container refunded
in cash to, the person who is returning the empty container, regardless of
whether such person is the original customer who purchased the filled container
or whether the container was originally sold by the dealer.

���� (2)� A dealer shall post, in
that portion of the dealer�s premises where returnable containers are redeemed,
a written notice stating the following:� �A person who returns out-of-State or
nonreturnable beverage containers for a refund may be subject to the payment of
restitution.�

���� b.��� A dealer who violates
the provisions of subsection a. of this section shall be subject to a civil
penalty of not more than $50 for each offense, to be collected in a summary
proceeding pursuant to the �Penalty Enforcement Law of 1999,� P.L.1999, c.274
(C.2A:58-10 et seq.).� Each day on which a violation continues shall constitute
a separate and distinct offense.� The Superior Court and municipal court shall
have the jurisdiction to enforce the provisions of the �Penalty Enforcement Law
of 1999� in connection with this section.

���� c.���� (1) In order to
facilitate the consumer use of reverse vending machines for the purposes of
this act, each manufacturer, to the greatest extent practicable, shall use
returnable containers that have a designated symbol, mark, or other
distinguishing characteristic sufficient to enable a reverse vending machine to
determine whether the container is a returnable container necessitating a
refund.

���� (2)�� Any symbol, mark, or
other distinguishing characteristic placed on a designated container, pursuant
to this subsection, shall be approved by the department, and shall be unique to
this State or authorized for use only in this State and in one or more other
states having laws substantially similar to this act.

���� d.��� (1)� Commencing 90 days
after the effective date of this act, a manufacturer shall not sell, offer for
sale, or give to a distributor, dealer, or consumer in this State, a beverage
container that is not a designated container, if the Department of the Treasury
determines that:

���� (a)�� at least 500,000 cases
or case-equivalents of that brand of beverage, in that type of container, were
sold in this State in the preceding calendar year; or

���� (b)�� less than 500,000 cases
or case-equivalents of that brand of beverage, in that type of container, were
sold in this State in the preceding calendar year, but more than 600,000 cases
or case-equivalents of that brand of beverage, in that type of container, were
redeemed for container refunds in the preceding calendar year.

���� (2)�� A manufacturer who
violates the provisions of this subsection shall be subject to a civil penalty
of not more than $2,000.

���� e.���� Any penalty amounts
imposed and collected pursuant to this section shall be payable to the State
and credited to the Clean-Up and Redevelopment Trust Fund, established pursuant
to section 15 of this act.

���� 8.��� a.� In order to promote
the use, in this State, of reusable beverage containers of uniform design, and
in order to facilitate the return of such containers to manufacturers for reuse
as new, filled beverage containers, the department, in consultation with the
Division of Alcoholic Beverage Control in the Department of Law and Public
Safety, shall certify beverage containers as reusable, in accordance with
subsection b. of this section, either upon application of the manufacturer, as
provided by subsection c. of this section, or based upon the department�s own
independent determinations.

���� b.��� (1) A beverage container
of any type or composition shall be certified as reusable if the department
determines both that that type of beverage container satisfies the requirements
of section 3 of this act and that more than one manufacturer has the capacity,
in the ordinary course of business, to accept, sanitize, and refill that type
of beverage container, for reinsertion into the stream of commerce as a new,
filled beverage container, after it has been emptied and returned to the
manufacturer in accordance with this act.

���� (2)�� A beverage container
shall not be certified as reusable if the department determines that:

���� (a)�� by reason of its shape
or design, or by reason of words or symbols embossed, engraved, painted, or
otherwise permanently inscribed thereon, the container is reusable as a
beverage container only by a single manufacturer of a beverage sold under a
specific brand name; or

���� (b)�� the type of beverage
container is available for reuse by multiple manufacturers, but the reuse of
that type of beverage container by more than one manufacturer will not occur at
sufficient volume to fully effectuate the purposes set forth in subsection a.
of this section.

���� c.���� A manufacturer may
submit a written application to the department seeking to have a specific
beverage container, used by the manufacturer, certified as reusable.� Unless
such application is rejected by the department within 60 days after the date on
which it is filed, the application shall be deemed approved, and the beverage
container identified in the application shall be deemed to have been certified
as reusable.

���� d.��� (1)� Each beverage
container certified as reusable, pursuant to this section, shall be capable of
holding a minimum of three liquid ounces.� The department shall establish, by
rule or regulation, appropriate size classifications for the beverage containers
being certified under this section, and shall not certify more than one
beverage container of any one particular manufacturer in each size
classification.

���� (2)�� The department may
require that any beverage container certified as reusable, pursuant to this
section, be clearly identified as such by a stamp, label, or other mark
securely affixed to the beverage container.� The department may require that
such demarcation be separate from, or included as a part of, the label or other
mark that is required to be affixed to the container pursuant to paragraph (3)
of subsection a. of section 3 of this act.

���� e.���� The department may, at
any time, review a certification previously granted pursuant to this section.�
If, upon review, and after providing written notice and affording a hearing to
the person, if any, who filed the original application for certification, the
department determines that the beverage container is no longer qualified for
certification, it shall withdraw the certification.� Withdrawal of
certification shall become effective on the date specified by the department,
but not less than 30 days after written notice of the decertification has been
provided both to the person who filed the original application for
certification, if any, and to any other manufacturer who accepts the beverage
container for refilling and reuse in the ordinary course of business.

���� f.���� The department shall
publish and regularly update, on its Internet website, a list of the types of
containers that are certified as reusable pursuant to this section.

���� 9.��� a.� A distributor who,
in a single year, collects more money in container deposits than the
distributor expends in container refunds shall pay to the Department of the
Treasury, in accordance with a schedule adopted by the State Treasurer, the
value of the unclaimed deposits, less the value of any over-redemption credit
authorized pursuant to subsection b. of this section.

���� b.��� (1)� An under-redeemer
who makes a payment pursuant to subsection a. of this section, and who becomes
an over-redeemer in a subsequent year, may obtain a credit for the value of the
over-redemption occurring in that year in order to reduce the amount of money
owed to the Department of the Treasury, pursuant to this section, in one or
more subsequent years as a result of that person again becoming an
under-redeemer.� Any such over-redemption credit, once obtained and until
depleted, may be carried forward for a period of not more than three years.

���� (2)�� Notwithstanding the
provisions of this subsection to the contrary, an over-redeemer who is not
planning to continue to originate container deposits in subsequent years,
pursuant to subsection a. of section 4 of this act, shall be authorized by the
Department of the Treasury, on a one-time basis, to carry the value of an
over-redemption credit back into prior years in order to realize the value of
the credit.

���� c.���� The Department of the
Treasury shall be authorized to audit, assess, and collect the amount of money
reflecting unclaimed container deposits, as provided by this section, and to
take any other appropriate action to enforce the requirements of this section.

���� d.��� (1)� In order to reduce
the costs that are owed by an under-redeemer under subsection a. of this
section, and in order to reduce the total amount of funds expended by an
over-redeemer for excess refunds issued under this act, an under-redeemer shall
be authorized to purchase empty redeemed containers from another distributor
who is an over-redeemer in the same year.� The consideration paid by an
under-redeemer to an over-redeemer for each empty redeemed container shall
equal the refund value of the container.

���� (2)�� For the purposes of
reporting pursuant to subsection e. of this section, purchases made by an
under-redeemer pursuant to this subsection shall be reported as container
refunds, and sales made by an over-redeemer pursuant to this subsection shall
be reported as container deposits.�

���� e.���� Not later than one year
after the effective date of this act, and annually thereafter, a distributor
who originates container deposits pursuant to subsection a. of section 4 of
this act shall submit, to the Department of the Treasury, a written report identifying:

���� (1)�� the total value of
container deposits that were collected by the distributor during the year,
including, as appropriate, the value of container deposits collected through
the sale of unredeemed containers to an under-redeemer, pursuant to subsection
d. of this section, and the name and address of each under-redeemer to whom
such sales were made;

���� (2)�� the total value of
container refunds that were issued by the distributor during the year,
including, as appropriate, the value of container refunds made through the
purchase of unredeemed containers from an over-redeemer, pursuant to subsection
d. of this section, and the name and address of each over-redeemer from whom
such purchases were made;

���� (3)�� the difference between
the total value of container deposits collected, as reported under paragraph
(1) of this subsection, and the total value of container refunds issued, as
reported under paragraph (2) of this subsection;

���� (4)�� the value of any
over-redemption credit previously granted to the distributor pursuant to
subsection b. of this section, and the date on which the over-redemption credit
was granted; and

���� (5)�� the total amount owed to
the Department of the Treasury, pursuant to subsection a. of this section.

���� f.���� Notwithstanding the
payments required and credits authorized pursuant to this section, an unclaimed
deposit on a returnable container shall be deemed to be the property of the
person who returns the empty container for redemption.� Unclaimed deposits shall
not be deemed to be the property of the distributor or the manufacturer, and a
distributor shall continue to refund unclaimed deposit amounts to each person
who redeems an empty returnable container, regardless of any under-redemption
payments that are made by the distributor, or any over-redemption credits that
are provided to the distributor, pursuant to this section.

���� 10.� a.� The Department shall
authorize and provide for the establishment, licensure, and operation of
beverage container redemption centers in the State, for the purposes of this
act.

���� b.��� A beverage container
redemption center shall be authorized to collect redeemable containers via an
account-based bulk processing program, a bag-drop program, or both.

���� c.���� Each redemption center
established and licensed pursuant to this section shall:

���� (1)�� accept all redeemable
containers for redemption;

���� (2)�� ensure that reusable
containers are handled, at the redemption center, in a manner that allows for
their reuse;

���� (3)�� be clean, safe, and well
lit;

���� (4)�� be stationed inside of a
building or other closed shelter, including a stand, but not including a tent
or other type of shelter made of textile material;

���� (5)�� contain sufficient
space, in an area not visible to redeemers or other clientele, for the storage
of redeemed containers; and provide for and ensure the prompt and continued
storage of redeemed containers collected by the redemption center, pending
their transport to another facility in accordance with the provisions of this
act;

���� (6)�� be accessible, by road,
on a year-round basis;

���� (7)�� be accessible to persons
with reduced mobility;

���� (8)�� be clearly marked with
signage bearing the redemption center�s name or logo, which signage shall be
installed in a prominent position on the facade of, or near to, the site at
which redeemable containers may be deposited, by redeemers, for a refund;

���� (9)�� be clearly marked and
readily identifiable as a licensed partner in the State�s container
deposit and refund system, operated pursuant to this act;

���� (10)� if the redemption center
is associated with more than one retail establishment, be clearly marked, and
readily identifiable, as being associated with each such establishment; and

���� (11)� accept redeemable
containers for redemption, pursuant to this act, on the days, and during the
hours, required by subsection d. of this section, and display the redemption
center�s days and hours of operation in a location that is clearly visible from
the outside of the redemption center;

���� (12) �refund the deposit value
of redeemable containers returned to the redemption center, either by providing
the redeemer with legal tender or by providing the redeemer with a receipt or
script dispensed from a reverse vending machine, which receipt or script may
then be exchanged, by the redeemer, for legal tender, over a period of not less
than 60 days following the date of the issuance of the receipt or script
thereto; and

���� (13)� in any case where the
redemption center uses an electronic process to facilitate the refund of
deposit values on redeemed containers, ensure that such electronic process is
secure and is completed not more than seven days after the redemption center
receives the redeemable containers for which a refund is authorized.

���� d.��� (1)� Except as otherwise
provided by paragraph (2) of this subsection, a redemption center established
and operating in this State shall remain open and available to accept
redeemable containers, for redemption purposes, on a daily basis, seven days a
week, for at least 10 hours a day from Monday through Saturday, and for at
least six hours a day on Sunday.

���� (2)�� Notwithstanding the
provisions of paragraph (1) of this subsection to the contrary:

���� (a)�� Whenever a redemption
center is established and operated, by a single retailer, either inside or
outside of a retail establishment operated thereby, the redemption center shall
remain open and available to accept redeemable containers, for the purposes of
this act, during the same business hours as are applicable to the retail
establishment with which it is associated; and

���� (b)� Whenever a redemption
center is collectively established and operated, by a group of retailers,
outside of more than one retail establishment operated thereby, and all of such
retail establishments have business hours shorter than the hours of operation
required by paragraph (1) of this subsection, the redemption center shall
remain open and available to accept redeemable containers, for the purposes of
this act, during the same business hours as are applicable to the retail
establishment, associated therewith, which has the longest hours of operation.

���� e.���� The network of
redemption centers established and operated, pursuant to this section, shall
supplement, but shall not supplant, the return of beverage containers to
dealers as authorized by section 6 of this act.

���� f.���� A redemption center may
refuse to accept, from a redeemer, any empty beverage container that is broken,
is not clean, or contains material that is foreign to the normal contents of
the container.

���� 11.� a.� A distributor, unless
otherwise specified in a contract executed with a dealer, shall offer to
provide, to each dealer or other establishment that allows for the on-site
consumption of beverages, a collection service for redeemable containers.� Such
collection service shall provide for the distributor to facilitate the regular
collection of all redeemable containers stored by such dealers and other
establishments, in accordance with the following collection schedule:

���� (1)�� if the dealer or other
establishment has an on-site consumption capacity of 50 or more persons at a
time, the collection system shall provide for all redeemable containers stored
by such dealer or other establishment to be collected, by the distributor, at
least once per week; and

���� (2)�� if the dealer or other
establishment has an on-site consumption capacity of fewer than 50 persons at a
time, the collection system shall provide for all redeemable containers stored
by such dealer or other establishment to be collected, by the distributor, at
least twice per month.

���� b.��� A distributor operating
a collection system, pursuant to this section, shall provide all of the
equipment and accessories, including, but not limited to, compactors, bins,
crates, or other types of receptacles, which are needed to facilitate the
collection of redeemable containers under the system, and shall take
appropriate and necessary steps to ensure that redeemable beverage containers
are fully emptied and sorted on site, if possible.

���� c.���� (1) Not more than seven
consecutive business days after a distributor collects redeemable containers
from a dealer or other establishment, pursuant to this section, the distributor
shall refund, to such dealer or other establishment, the deposit value of those
redeemed containers.

���� (2)�� In any case where a
distributor requires the use of a digital application to facilitate the
issuance of a refund pursuant to this subsection, the distributor shall assign
a unique identification code to each dealer or other establishment from
which redeemable containers are collected under the distributor�s collection
system, and shall require each such dealer or other establishment to attach, to
each redeemable container received and stored thereby, a label containing that
identification code.� The distributor shall provide each such dealer or other
establishment with a sufficient quantity of pre-coded labels, or with a
device that can be used by the dealer or other establishment to print its own
labels, for the purposes of this paragraph.

���� d.��� A distributor shall
provide, to each dealer or other establishment in the State which allows for
the on-site consumption of beverages, a fact sheet or other guidance document
describing the parameters of the distributor�s collection service, including, but
not limited to:

���� (1)�� the frequency at which
redeemed containers are, or will be, collected from relevant dealers and other
establishments electing to participate in the collection service;

���� (2)�� the types of redeemable
beverage containers targeted for collection by the distributor; and

���� (3)�� any rules that are to be
observed or requirements that are to be satisfied, by dealers and other
relevant establishments, as a condition of their participation in the
collection service.

���� 12.� a.� A group of
distributors may elect to create or appoint a nonprofit organization to fulfill
the distributors� duties and responsibilities under this act.

���� b.��� A consumer shall be
authorized to return a redeemable container, for the purposes of redemption
pursuant to this act, through the use of any authorized redemption channel.

���� 13.� a.� The Beverage
Container Deposit Fund is established as a non-lapsing revolving fund within
the Department of the Treasury.� The State Treasurer shall credit, to the fund,
any amounts that are paid by under-redeemers, pursuant to section 9 of this
act; any other money or assets that are made available, by any State, federal,
or private source, for the fund�s purposes; and any interest or earnings
achieved from the investment of existing moneys in the fund.�

���� b.��� Moneys in the Beverage
Container Deposit Fund shall be annually disbursed as follows:

���� (1)�� except as otherwise
provided by subsection c. of section 14 of this act, the first $1,000,000 in
the fund shall be disbursed to the Beverage Container Deposit Enforcement Fund
established pursuant to section 14 of this act; and

���� (2)�� of the amounts remaining
in the fund:� (a) 75 percent shall be disbursed to the Clean-Up and
Redevelopment Trust Fund established pursuant to section 15 of this act; and
(b) 25 percent shall be apportioned to each dealer in the State, as determined
by the Department of the Treasury, based on the number of empty returnable
containers handled annually by each dealer.

����

���� 14.� a.� The Beverage
Container Deposit Enforcement Fund is established as a non-lapsing revolving
fund in the Department of the Treasury.� The State Treasurer shall credit, to
the fund, any amounts that are disbursed thereto, pursuant to paragraph (1) of
subsection b. of section 13 of this act; any other money or assets that are
made available, by any State, federal, or private source, for the fund�s
purposes; and any interest or earnings achieved from the investment of existing
moneys in the fund.

���� b.��� Moneys in the Beverage
Container Deposit Enforcement Fund shall be annually disbursed to the Division
of State Police in the Department of Law and Public Safety, for use in
enforcing the provisions of this act and investigating violations thereof.

���� c.���� If the balance
remaining in the Beverage Container Deposit Enforcement Fund, at the end of a
fiscal year, is greater than $3,000,000, disbursements to the fund, as required
by paragraph (1) of subsection b. of section 13 of this act, shall be suspended
until the balance in the fund falls below $2,000,000.

���� d.��� Three years after the
effective date of this act, and triennially thereafter, the Division of State
Police in the Department of Law and Public Safety shall submit a written report
to the Legislature, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1),
evaluating the efficacy of law enforcement efforts that have been undertaken
pursuant to this act.� Each such report shall:�

���� (1)�� identify the number of
beverage containers seized in the State in each year, pursuant to this act, and
the total refund value of those containers;

���� (2)�� identify any significant
problems in law enforcement efforts undertaken pursuant to this act, describe
the efforts that have been undertaken by the division to address those
problems, and provide recommendations for legislative or other actions that may
be necessary to facilitate ongoing, effective law enforcement in this area; and

���� (3)�� include any other
information that is deemed, by the Superintendent of State Police, to be
relevant to the evaluation of law enforcement efficacy in the implementation of
this act.

����

���� 15.� a.� The Clean-Up and
Redevelopment Trust Fund is established in the Department of the Treasury.� The
State Treasurer shall credit, to the fund, any amounts that are disbursed
thereto, pursuant to paragraph (2) of subsection b. of section 13 of this act;
any penalty or restitution amounts that are collected for violations of this
act; any other money or assets that are made available, by any State, federal,
or private source, for the trust fund�s purposes; and any interest or earnings
achieved from the investment of existing moneys in the trust fund.�

���� b.��� Moneys in the trust fund
shall be annually disbursed as follows:

���� (1)�� for each of the first
three fiscal years next following the effective date of this act:� (a) the
first $15,000,000 in the fund shall be annually disbursed, in equal amounts, to
the New Jersey Redevelopment Investment Fund established pursuant to section 27
of P.L.1996, c.62 (C.55:19-46), the Hazardous Discharge Site Remediation Fund
established pursuant to section 26 of P.L.1993, c.139 (C.58:10B-4), the
Brownfield Site Reimbursement Fund established pursuant to section 38 of
P.L.1997, c.278 (C.58:10B-30), the Municipal Landfill Closure and Remediation
Fund established by section 6 of P.L.1996, c.124 (C.13:1E-116.6), the New
Jersey Spill Compensation Fund established pursuant to section 10 of P.L.1976,
c.141 (C.58:10-23.11i), the Clean Water Enforcement Fund established pursuant
to section 12 of P.L.1990, c.28 (C.58:10A-14.4); the Pollution Prevention Fund
established pursuant to section 16 of P.L.1991, c.235 (C.13:1D-50), and the
�Clean Stormwater and Flood Reduction Fund� established by section 17 of P.L.2019,
c.42 (C.40A:26B-17); (b) 80 percent of the moneys annually remaining in the
fund, following the disbursements made pursuant to subparagraph (a) of this
paragraph, shall be disbursed, in equal amounts, to each of the funds
identified in subparagraph (a) of this paragraph; and (c) 10 percent of the
moneys annually remaining in the fund, following the disbursements made
pursuant to subparagraph (a) of this paragraph, shall be disbursed to the
Community Pollution Prevention Grant Fund established pursuant to section 16 of
this act; and

���� (2)�� for the fourth, and each
subsequent, fiscal year following the effective date of this act:� (a) 80
percent of the moneys in the fund shall be disbursed, in equal amounts, to each
of the funds identified in subparagraph (a) of paragraph (1) of this subsection;
and (b) 10 percent of the moneys in the fund shall be disbursed to the
Community Pollution Prevention Grant Fund established pursuant to section 16 of
this act.

���� c.���� Any moneys remaining in
the trust fund at the close of a fiscal year shall remain in the trust fund and
shall not lapse into the General Fund unless the trust fund reaches a total
accumulated principal of $200,000,000.� At such time, moneys in excess of
$200,000,000 in the trust fund, including any new interest and earnings on
moneys in the trust fund, shall lapse into the General Fund.

���� 16.� a.� The Community
Pollution Prevention Grant Fund is established as a non-lapsing, revolving fund
within the Department of Environmental Protection.� The fund shall be credited
with any amounts that are disbursed thereto, pursuant to subsection b. of
section 15 of this act; any other money or assets that are made available, by
any State, federal, or private source, for the fund�s purposes; and any
interest or earnings achieved from the investment of existing moneys in the
fund.�

���� b.��� Moneys in the Community
Pollution Prevention Grant Fund shall be used by the department only for the
purposes of providing grants to eligible entities for the pollution prevention
programs and activities identified in subsection c. of this section.� Not more
than $100,000 in grants shall be awarded from the fund, in any year, to a
single recipient.

���� c.���� Municipal and county
governments, local health departments, regional planning agencies, and other
similar entities shall be eligible to receive a grant from the Community
Pollution Prevention Grant Fund in order to finance the following programs and
activities:

���� (1)�� programs and activities
related to the protection of groundwater or drinking water supplies, including
activities related to the delineation of drinking water wellhead protection
areas and the implementation of drinking water protection plans;

���� (2)�� the inspection of
facilities that engage in the storage or handling of hazardous waste or other
substances that may pose a risk to groundwater or drinking water supplies, or
the review of pollution prevention plans prepared by such facilities;

���� (3)�� programs and activities
related to the identification and plugging of abandoned wells other than oil
and gas wells;

���� (4)�� programs and activities
that are designed to prevent or clean-up litter; or

���� (5)�� programs and activities
that are designed to educate the general public or businesses, including
businesses that use, store, or handle hazardous waste or materials, about
various pollution prevention methods, technologies, and processes, and about
the importance of directly reducing toxic material discharges and ensuring the
use of proper waste disposal methods.

���� d.��� Each recipient of a
grant under this subsection shall provide a financial match that equals not
less than 25 percent nor more than 50 percent of the total grant amount awarded
pursuant to this subsection.�

���� e.���� The department shall
enter into a written contract with each recipient of a grant under this
section, which contract shall identify the programs or activities to be
conducted by the grant recipient, the objectives of those programs or
activities, the financial match being provided by the grant recipient pursuant
to subsection d. of this section, and any deliverables or reports required by
the department as a condition of the grant award.

���� f.���� One year following the
commencement of the grant program under this section, and annually thereafter,
the department shall prepare and submit, to the Governor and, pursuant to
section 2 of P.L.1991, c.164 (C.52:14-19.1), to the Legislature, a written report
that:�

���� (1)�� identifies the amount of
each grant award made pursuant to this section and the name of each grant award
recipient;

���� (2)�� summarizes the
contractual commitments made pursuant to this section and the extent to which
those commitments have been satisfied; and

���� (3)�� evaluates the
effectiveness of the grant program established pursuant to this section and
provides recommendations for the program�s improvement and expansion.

���� 17.� The Commissioner of
Environmental Protection and the State Treasurer shall each adopt rules and
regulations, pursuant to the �Administrative Procedure Act,� P.L.1968, c.410
(C.52:14B-1 et seq.), as may be necessary to implement the provisions of this
act.

���� 18.� Section 5 of P.L.2007,
c.311 (C.13:1E-96.6) is repealed.

���� 19.� This act shall take
effect two years after the date of enactment, except that the Department of
Environmental Protection and the Department of the Treasury shall be authorized
to take anticipatory administrative action, in advance of the effective date, as
may be necessary to implement the provisions of this act.

STATEMENT

���� This bill, to be known as the
�Beverage Container Deposit Act,� would establish a container deposit and
refund system in New Jersey to facilitate the return of used and empty beverage
containers to manufacturers for reuse, recycling, or proper disposal.

���� Commencing two years after the
date of the bill�s enactment, every filled beverage container sold or offered
for sale in the State would need to:� (1) be a returnable container; (2) have a
refund value of $0.10 when empty; (3) be clearly identified by a stamp, label,
or other mark securely affixed to the container, bearing the name of the State,
and indicating the container�s refund value; and (4) if composed primarily of
metal, have no part that becomes detached when opened.� Any manufacturer who
manufactures for sale in this State, any distributor who sells, offers for
sale, or gives to a dealer in the State, and any dealer who sells, offers for
sale, or gives to a consumer in this State, a filled beverage container that
fails to comply with these requirements will be subject to a civil penalty of
$100 to $1,000, for each day of violation, as well as the payment of
restitution in an amount equal to the loss resulting from the violation.

���� Under the container deposit
and refund system established in the bill, a distributor (including a
manufacturer or other person) who sells a filled beverage container to a dealer
in the State will be required to originate a $0.10 refundable container deposit
surcharge on that container, which is to be paid by the dealer and collected
and recorded by the distributor.� A dealer who sells a filled beverage
container to a consumer will then be required to charge the consumer the $0.10
deposit that was originated by the distributor on the container.� The bill
would not require a dealer to collect a deposit from a consumer who is
purchasing the beverage for on-site consumption in the dealer�s sale and
consumption area; however, if a dealer elects to authorize on-site beverage
consumption without payment of a deposit, the dealer will nonetheless be
required to collect a deposit if the consumer fails to return the container
upon leaving the sale and consumption area.

���� A distributor or dealer who
fails to originate or impose the $0.10 deposit on a beverage container, as
required by the bill, will be subject to a civil penalty of $100 to $1,000, for
each day of violation, as well as the payment of restitution in an amount equal
to the loss resulting from the violation.

���� The bill would require a
dealer to accept for return, from any person, an empty returnable container of
any kind, size, and brand that is sold or offered for sale by the dealer, and
to pay the container�s refund value, in cash, to the person returning the
container, regardless of whether that person is the original customer who
purchased the filled container or whether the filled container was originally
sold by the dealer.� A dealer may limit, to $25, the total dollar amount of
container refunds that may be daily issued to a single person.�

���� A distributor would similarly
be required to accept for return, from any dealer, an empty returnable
container of any kind, size, and brand that is sold or offered for sale by the
distributor, and to pay the dealer the full refund value of the container, in
cash.� The distributor would then be required to either return the redeemed
empty container to the manufacturer or, if the distributor is the manufacturer,
to retain possession of the redeemed container, for reuse, recycling, or proper
disposal in accordance with all applicable laws and regulations.

���� The bill would prohibit any
person from paying, claiming, or receiving any container deposit, refund,
processing payment, or handling fee for any of the following:� (1) a beverage
container that the person knows, or should know, was imported from out of State;
(2) a previously redeemed beverage container; (3) a previously rejected
beverage container; or (4) any other vessel, cup, non-beverage container, or
other material that is ineligible for redemption pursuant to this act.� The
bill would further prohibit any person from fraudulently:� (1) redeeming or
attempting to redeem an out-of-state container, a previously redeemed
container, a previously rejected container, or any other ineligible container
or material; (2) returning a previously redeemed container to the marketplace
for redemption purposes; (3) bringing an out-of-state container, a previously
rejected container, or any other ineligible container or material to the
marketplace for redemption purposes; or (4) receiving, storing, transporting,
distributing, or otherwise facilitating or aiding in the redemption of any such
ineligible container or material.� Any person who violates these provisions
would be subject to the payment of restitution in an amount equal to the loss
resulting from the violation.�

���� In order to facilitate the
return of beverage containers under the bill, the bill would require each
dealer who sells filled returnable beverage containers for off-site consumption
to provide, either on the premises where sales are made or within 100 yards
thereof, a reverse vending machine or other convenient means by which empty
returnable containers may be returned and a cash refund issued to the person
who is returning them.� The bill would additionally require a dealer to post
written notice, in the area where returnable containers are redeemed, notifying
consumers that they may be liable for the payment of restitution in association
with any improper container returns made thereby.� Any dealer who fails to
comply with either of these requirements would be subject to a civil penalty of
$50 per day of violation.� Certain manufacturers of large quantities of
beverages would also be required to use returnable containers that have a
designated symbol, mark, or other distinguishing characteristic, approved by
the Department of Environmental Protection (DEP), which is sufficient to enable
a reverse vending machine to determine whether the container is returnable and
is eligible for a refund.� A manufacturer who does not use designated
containers when required by the Department of the Treasury would be subject to
a civil penalty of up to $2,000.

���� Under the bill�s provisions,
if a distributor, in a single year, is an under-redeemer of beverage
containers, meaning that the distributor has collected more money in container
deposits than the distributor has expended in container refunds, the distributor
will be required to pay, to the Department of the Treasury, the value of the
unclaimed deposits, less the value of any over-redemption credit authorized
under the bill.� An over-redemption credit may be issued, by the Department of
the Treasury, to any distributor who, in a single year, expends more money in
container refunds than the distributor collects through deposits, and this
credit may be carried forward for the next three years to offset any payments
owed by the distributor upon becoming an under-redeemer.� However, if an
over-redeemer is not planning to continue making container deposits in
subsequent years, the Department of the Treasury may allow the over-redeemer,
on a one-time basis, to carry the value of the credit back into prior years in
order to realize its value.� In order to reduce the costs owed by an
under-redeemer and reduce the amounts expended by an over-redeemer, the bill
would authorize an under-redeemer to purchase empty redeemed containers from
another distributor who is an over-redeemer in the same year.

���� The bill would require the DEP
to authorize and provide for the establishment, licensure, and operation of
beverage container redemption centers, throughout the State, for the bill�s
purposes.� Each such redemption center would be authorized to engage in the
bulk collection of redeemable containers, in accordance with various
requirements established in the bill, through the use of either or both an
account-based bulk processing program or a bag-drop program, as such programs
are defined in the bill.� Except as otherwise provided by the bill, each such
redemption center would be required to remain open and available to accept
redeemable containers on a daily basis, seven days a week, for at least 10
hours a day from Monday through Saturday, and for at least six hours a day on
Sunday.� The redemption centers established and operated, pursuant to the bill,
are to supplement, but not supplant, the consumer return of redeemable
containers to dealers under the bill.

���� The bill would further require
each distributor of beverages, unless otherwise specified in a contract
executed with a dealer, to offer to provide a collection service, for
redeemable containers, to each dealer or other establishment that allows for
the on-site consumption of beverages in the State.� Such collection service is
to provide for the regular collection of all redeemable containers stored by
such dealers and other establishments, in accordance with the following
collection schedule:

���� (1)�� if the dealer or other
establishment has an on-site consumption capacity of 50 or more persons at a
time, the collection system is to provide for all redeemable containers stored
thereby, at least once per week; and

���� (2)�� if the dealer or other
establishment has an on-site consumption capacity of fewer than 50 persons at a
time, the collection system is to provide for all redeemable containers stored
thereby to be collected, by the distributor, at least twice per month.

���� A distributor operating a
collection system, pursuant to the bill, would be required to:� (1) provide all
of equipment and accessories necessary to facilitate the collection of
redeemable containers under the system; (2) take appropriate and necessary steps
to ensure that redeemable beverage containers are emptied and sorted on site,
if possible; (3) issue appropriate refunds, for all redeemable containers
collected under the system, not more than seven consecutive business days after
such containers are collected; and (4) if the distributor requires the use of a
digital application to facilitate the issuance of requisite refunds, assign a
unique identification code to each participating dealer or other
establishment and require each such dealer or other establishment to attach, to
each container stored thereby, a label containing that identification code.�

���� The bill would establish four
new funds for the moneys that will be obtained through the implementation of
the bill�s provisions:� (1) the Beverage Container Deposit Fund; (2) the
Beverage Container Deposit Enforcement Fund; (3) the Clean-Up and Redevelopment
Trust Fund; and (4) the Community Pollution Prevention Grant Fund.�

���� Moneys that are paid by
under-redeemers, pursuant to the bill, are to be deposited into the Beverage
Container Deposit Fund.� The first $1 million in the BCD Fund is to be annually
disbursed to the Beverage Container Deposit Enforcement Fund for use by the
State Police in enforcing, and investigating violations of, the bill�s
provisions.� However, if the balance in the Enforcement Fund exceeds $3
million, disbursements to that fund will be suspended until the balance falls
below $2 million.� Of the amounts remaining in the Deposit Fund following the
requisite disbursement to the Enforcement Fund, 75 percent is to be disbursed
to the Clean-Up and Redevelopment Trust Fund, and 25 percent is to be
apportioned to each dealer in the State, based on the number of empty
returnable containers handled by each dealer.�

���� In addition to the moneys
disbursed thereto from the Beverage Container Deposit Fund, the Clean-Up and
Redevelopment Trust Fund would also be credited with all penalty and
restitution amounts that are imposed and collected by a court for violations of
the bill�s provisions.� For each of the three fiscal years next following the
bill�s effective date, the first $15 million annually deposited in the trust
fund is to be disbursed, in equal amounts, to eight different clean-up and
redevelopment funds currently existing in the State and identified in the
bill.� Of the moneys remaining in the trust fund in those first three fiscal
years, and of the total sum of moneys deposited in the trust fund in the fourth
and each subsequent fiscal year following the bill�s effective date, 80 percent
of such moneys are to be equally disbursed, on an annual basis, to the eight
different clean-up and redevelopment funds identified in the bill, and 10
percent of such moneys are to be disbursed to the Community Pollution Prevention
Grant Fund, newly established pursuant to the bill.�

���� Moneys in the Community
Pollution Prevention Grant Fund are to be used, by the DEP, to provide grants
to local governments, local health departments, regional planning agencies, and
similar entities (in amounts of up to $100,000 per year for each recipient) to
finance various programs and activities related to water pollution prevention
and litter clean-up, as specified in the bill.� Each grant recipient would be
required to provide a financial match equaling 25 to 50 percent of the grant
award.

���� Finally, this bill would
repeal section 5 of P.L.2007, c.311 (C.13:1E-96.6), which currently provides
for the State�s existing recycling tax to become inoperable if State or federal
law requires a deposit on, or establishes a refund value, for a beverage
container, as this bill would do.� This repeal will ensure that the State�s
existing recycling tax continues to remain in effect, notwithstanding this
bill�s enactment.