HB-6694, As Passed House, December 4, 2008

SUBSTITUTE FOR

HOUSE BILL NO. 6694

     A bill to provide state payments to reverse vending machine

manufacturers for the cost of retrofitting certain reverse vending

machines; to provide money to certain dealers for the purchase of

certain new reverse vending machines; to create the beverage

container redemption antifraud fund; and to provide for the powers

and duties of certain state governmental officers and entities.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 1. This act shall be known and may be cited as the

"beverage container redemption antifraud act".

     Sec. 3. As used in this act:

     (a) "Beverage container law" means 1976 IL 1, MCL 445.571 to

445.576.

     (b) "Dealer" means that term as defined in section 1 of the

beverage container law, MCL 445.571.

     (c) "Department" means the department of treasury.

     (d) "Designated metal container" means that term as defined in

the reverse vending machine antifraud act.

     (e) "Fund" means the beverage container redemption antifraud

fund created in section 7.

     (f) "Install vision technology" means to equip an existing or

replacement reverse vending machine with vision technology for

designated metal containers, including all reasonable and necessary

technology, equipment, hardware, software, and labor, and 1 year of

service directly related to the vision technology by the reverse

vending machine vendor.

     (g) "Overredeemer" means that term as defined in section 3b of

the beverage container law, MCL 445.573b.

     (h) "Retrofit" means to install vision technology for

designated metal, plastic, or glass beverage containers in an

existing, new, or replacement reverse vending machine.

     (i) "Reverse vending machine" means that term as defined in

the reverse vending machine antifraud act.

     (j) "Reverse vending machine manufacturer" means that term as

defined in the reverse vending machine antifraud act.

     (k) "Vision technology" means that term as defined in the

reverse vending machine antifraud act.

     Sec. 5. (1) The department shall pay reverse vending machine

manufacturers to retrofit reverse vending machines to comply with

the reverse vending machine antifraud act.

     (2) A reverse vending machine manufacturer that has agreed to

retrofit a dealer's reverse vending machines to comply with the

reverse vending machine antifraud act shall submit a written

application to the department for payment to retrofit the dealer's

reverse vending machines. All of the following apply to the

application for payment described in this subsection:

     (a) The department shall prescribe the form of the

application.

     (b) A reverse vending machine manufacturer may only submit an

application for retrofitting a dealer's reverse vending machines

and receive payment under this act if the dealer is required to

retrofit those reverse vending machines under the reverse vending

machine antifraud act.

     (c) An application submitted to the department shall include

all of the following:

     (i) Contact information for the reverse vending machine

manufacturer, the number of reverse vending machines to be

retrofitted by the manufacturer, the serial numbers of those

machines, where those machines are located, the name and contact

information of the dealer that owns or leases those machines, a

copy of the dealer's purchase order for the retrofitting of those

machines, the street address and county where those machines will

be in operation after they are retrofitted, and any other

information required by the department.

     (ii) The total cost of updating each reverse vending machine

described in the application to install vision technology.

     (iii) The signature of a designated agent of the reverse vending

machine manufacturer, certifying that all of the contents of the

application are correct.

     (iv) The signature of a designated agent of the dealer whose

reverse vending machines are to be retrofitted by the reverse

vending machine manufacturer, certifying that all of the contents

of the application are correct.

     (d) A reverse vending machine manufacturer shall submit a

separate application for each location where a dealer operates

reverse vending machines.

     (3) A reverse vending machine manufacturer that receives

payment under this act for retrofitting a reverse vending machine

manufacturer shall accept that payment as full payment for the

retrofitting of that machine.

     (4) When a reverse vending machine manufacturer completes the

retrofitting of the reverse vending machine at a dealer's location,

the reverse vending machine manufacturer shall submit proof to the

department, in a form and manner prescribed by the department and

signed by a designated agent of the dealer, that the retrofitting

is complete.

     (5) The department shall not require that a dealer or reverse

vending machine manufacturer retrofit a reverse vending machine to

meet the dealer requirements imposed in section 7(1) or 9(1) of the

reverse vending machine antifraud act unless the department first

establishes under this act that the dealer must install or retrofit

the reverse vending machines at a retail location in order to meet

the requirements of section 7(1) or 9(1) of the reverse vending

machine antifraud act and makes money available for that retrofit

under this act.

House Bill No. 6694 (H-1) as amended December 4, 2008

     Sec. 7. (1) The beverage container redemption antifraud fund

is created in the state treasury. All of the following apply to the

fund:

     (a) The state treasurer may receive money appropriated to the

fund or money or other assets from any other source for deposit

into the fund. The state treasurer shall direct the investment of

the fund. The state treasurer shall credit to the fund interest and

earnings from fund investments.

     (b) Money in the fund at the close of the fiscal year shall

remain in the fund and shall not lapse to the general fund.

     (c) The department is the administrator of the fund for

auditing purposes.

     (d) The department shall expend money from the fund, upon

appropriation, only for purposes of this act.

     (e) [The

] department

shall allocate at least the first $500,000.00 in the fund to

retrofitting reverse vending machines located in those counties

that border another state.

     (2) When money is first appropriated and paid to the fund, the

department shall immediately begin to arrange with reverse vending

machine manufacturers for the retrofitting of reverse vending

machines located in counties that border another state and in

counties in the Lower Peninsula that are contiguous with a county

of this state that borders another state. Subject to subsection

(1)(e), the department shall give priority to retrofitting reverse

vending machines at locations it determines have the greatest

potential benefit for reducing the redemption of nonreturnable

containers. Beginning 1 year after the effective date of this act,

the department by September 1 of each year shall report to the

legislature on the progress it has made in reducing the redemption

of nonreturnable containers, including the total number of

distributors who were overreedemers in the immediately preceding

calendar year, before trading, as well as the average amount of

overredemption.

     Sec. 9. (1) The amount of payment a reverse vending machine

manufacturer may receive under section 7 for retrofitting a single

reverse vending machine is the total cost of retrofitting that

reverse vending machine or $5,000.00, whichever is less.

     (2) A dealer that operates a reverse vending machine at a

location in a county of this state that borders another state, or

in a county in the Lower Peninsula that is contiguous with a county

of this state that borders another state, may elect to purchase a

new reverse vending machine that meets the requirements of the

reverse vending machine antifraud act to replace that existing

reverse vending machine rather than have that existing reverse

vending machine retrofitted under section 7. All of the following

apply if a dealer purchases a new reverse vending machine from a

reverse vending machine manufacturer under this subsection:

     (a) The reverse vending machine manufacturer shall submit an

application for payment in the form prescribed by the department.

The reverse vending machine manufacturer shall include with the

application a copy of the dealer's purchase order for the new

reverse vending machine.

     (b) A reverse vending machine manufacturer may not apply money

received under this subsection to the purchase price of a new

reverse vending machine that does not meet the requirements of the

reverse vending machine antifraud act.

     (c) The dealer shall operate the new reverse vending machine

at the same location as the reverse vending machine it replaces.

However, if the dealer ceases retail sale of beverages in beverage

containers at that location, the dealer may move that reverse

vending machine to another location and operate the reverse vending

machine at that different location.

     (d) The amount of a payment to a reverse vending machine

manufacturer under this section shall not exceed that part of the

price of the new reverse vending machine attributable to the cost

of the machine's vision technology or $5,000.00, whichever is less.

The reverse vending machine manufacturer must reduce the purchase

price of the new reverse vending machine to the dealer by the

amount of any payment to the reverse vending machine manufacturer

under this subdivision.

     (e) The reverse vending machine manufacturer may not apply for

or receive payment under this act for retrofitting a reverse

vending machine if the reverse vending machine manufacturer

received money for a new reverse vending machine to replace that

existing reverse vending machine under this subsection.

     (f) The department shall consider the replacement of a reverse

vending machine with a new reverse vending machine under this

section as a retrofitting of a reverse vending machine under

section 7.

     Sec. 11. If the department determines that it has paid the

reverse vending machine manufacturers for retrofitting all of the

reverse vending machines located in the counties described in

section 7(2), and the total of those payments is less than the

amount in the fund, the department shall distribute the money

remaining in the fund to dealers for the purchase of new reverse

vending machines. All of the following apply to a payment of money

under this section:

     (a) A dealer requesting money under this section shall submit

an application for payment, in the form prescribed by the

department.

     (b) A dealer shall only use money received under this section

to purchase a new reverse vending machine that meets the

requirement of the reverse vending machine antifraud act and that

the dealer will operate that reverse vending machine at a location

in this state.

     (c) The amount of a payment to a dealer under this section

shall not exceed that part of the price of the new reverse vending

machine attributable to the cost of the machine's vision

technology, as determined by the department.

     (d) The department shall disburse money from the fund under

this section in the order in which it receives applications for

payment under this section.

     Sec. 13. (1) No later than 60 days after the effective date of

this act, each dealer that operates reverse vending machines that

are located in any county of this state that borders another state,

or any county in the Lower Peninsula that is contiguous with a

county of this state that borders another state, shall submit a

report to the department.

     (2) The report described in subsection (1) shall contain all

of the following information:

     (a) Contact information for the dealer.

     (b) The street address and county of each location in the

counties described in subsection (1) where the dealer uses reverse

vending machines.

     (c) The number of reverse vending machines used by the dealer

at each location described in subdivision (b).

     (d) The number of beverage containers sold and the number of

beverage containers redeemed by the dealer under the beverage

container law in the preceding calendar year at each of the

locations described in subdivision (b).

     (3) The department shall prescribe the form of the report

described in subsection (1).

     Enacting section 1. This act takes effect on the date that

deposits into the beverage container redemption antifraud fund

created in this act from money appropriated by the legislature

equal or exceed $1,000,000.00.

     Enacting section 2. This act does not take effect unless all

of the following bills of the 94th Legislature are enacted into

law:

     (a) Senate Bill No. 1532.

     (b) House Bill No. 5147.