LD 1703 LR 2632(02)
An Act To Create Equity for Wine and Spirits Container Deposits
Fiscal Note for Bill as Amended by Committee Amendment " "
Committee: Environment and Natural Resources
Fiscal Note Required: Yes
Fiscal Note
FY 2017-18 FY 2018-19 Projections FY 2019-20 Projections FY 2020-21
State Alcoholic Beverage Fund $0 $60,000 $0 $0
Fiscal Detail and Notes
This bill would create a uniform refund value of 5 for all returnable beverage containers starting March 1, 2019. Because the bottle redemption program is included in the spirits administration contract with Pine State Trading Company, this change would require an addendum to the current contract. As a result of the new redemption value, the spirits contract vendor would be required to phase in new redemption stickers and to affix new redemption stickers to any remaining inventory in stock that was purchased prior to, and that remained unsold on, March 1, 2019. Additionally, because the Bureau of Alcoholic Beverages and Lottery Operations acts as the initiator of deposits on Spirits purchased under the spirits contract, the bureau will be required to reimburse agency liquor stores for the cost difference between the deposits on spirits purchased before March 1, 2019 and the refund value on those same purchases still unsold or returned after that date. The bill includes a one-time allocation of $60,000 in fiscal year 2018-19 to reimburse agency liquor stores. It is anticipated that the Alcoholic Beverages Fund will have sufficient revenue to fund the allocation.
Any additional costs to the Department of Environmental Protection as a result of changes to the redemption value are anticipated to be minor and can be absorbed within existing budgeted resources.