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--- version:Edition 1+++ version:Filed@@ -1,20 +1,17 @@GENERAL ASSEMBLY OF NORTH CAROLINASESSION 2025-H 1-HOUSE BILL 344+H D+HOUSE BILL DRH30136-MHa-55Short Title: Litter Reduction Act of 2025. (Public)-Sponsors: Representatives K. Brown, von Haefen, Hawkins, and Harrison (Primary-Sponsors).-For a complete list of sponsors, refer to the North Carolina General Assembly web site.-Referred to: Agriculture and Environment, if favorable, Appropriations, if favorable, Rules,-Calendar, and Operations of the House-March 11, 2025-*H344-v-1*+Sponsors: Representative K. Brown.+Referred to:++*DRH30136-MHa-55*A BILL TO BE ENTITLED 1-AN ACT TO REDUCE ROA DSIDE AND OTHER LITT ERING AND TO ENCOURA GE 2-RECYCLING BY REQUIRI NG A DEPOSIT ON BEVE RAGE CONTAINERS AND 3-REQUIRING REDEMPTION CENTERS TO ACCEPT R ETURNED BEVERAGE 4+AN ACT TO REDUCE ROADSIDE AND OTHER LITTERING AND TO ENCOURAGE 2+RECYCLING BY REQUIRING A DEPOSIT ON BEVERAGE CONTAINERS AND 3+REQUIRING REDEMPTION CENTERS TO ACCEPT RETURNED BEVERAGE 4CONTAINERS AND REFUND THE DEPOSITS. 5The General Assembly of North Carolina enacts: 6SECTION 1. Article 9 of Chapter 130A of the General Statutes is amended by 7@@ -44,394 +41,397 @@retailers, and consumers of beverages in beverage containers to recycle and reuse beverage 31containers. 32"§ 130A-309.246. Definitions. 33-General Assembly Of North Carolina Session 2025-Page 2 House Bill 344-First Edition-Unless a different meaning is required by the context, the following definitions apply 1-throughout this Part: 2-(1) Beverage. – Any ready-to-drink liquid intended for human oral consumption. 3-Beverage includes any malt beverage; spirituous liquor; fortified wine; 4-unfortified wine; wine cooler; soda or noncarbonated water; and any 5-nonalcoholic carbonated or noncarbonated drink in liquid form. The term does 6-not include any drug regulated under the federal Food, Drug, and Cosmetic 7-Act (Title 21 U.S.C. § 301 et seq.; 52 Stat. 1040 et seq.), infant formula, meal 8-replacement liquids, or dairy products derived from animal milk. 9-(2) Beverage container. – A prepackaged container designed to hold a beverage 10-that is made of any material, including glass, plastic, and metal . Beverage 11-container does not include cartons, pouches, or aseptic packaging su ch as a 12-drink box. 13-(3) Consumer. – An individual who purchases a beverage in a beverage container 14-for his or her use or consumption with no intent to resell the beverage . 15-Consumer includes a lodging, eating, or drinking establishment. 16-(4) Contracted agent. – A public or private company or individual who enters into 17-an agreement with a distributor or deposit initiator to pick up empty beverage 18-containers from redemption centers and dealers. 19-(5) Curbside recycling program. – A recycling program that meets all of the 20-following criteria: 21-a. The program picks up recyclables from individual residences. 22-b. The program is operated by, or pursuant to a contract with, a city, 23-county, or other public agency. 24-c. The program accepts empty beverage containers from consumers with 25-the intent to recycle them. 26-(6) Curbside recycling program entity. – A material recovery facility or any other 27-person or establishment contracted to receive beverage containers collected 28-through a curbside recycling program for the purposes of processing, sorting, 29-or preparation for recycling. 30-(7) Dealer. – A person who sells beverages in beverage containers, including 31-beverage containers sold through vending machines, to a consumer at the 32-retail level. Dealer does not include any of the following: 33-a. Establishments who sell less than 250,000 beverage containers in a 34-calendar year. 35-b. Establishments that provide on-premises consumption of beverages in 36-beverage containers, such as hotels, restaurants, or bars. 37-(8) Deposit initiator. – The first distributor to collect the deposit on beverage 38-containers sold to any person within the State. 39-(9) Distributor. – A person who engages in the sale of beverages in beverage 40-containers to a dealer in this State . A manufacturer of beverages who also 41-engages in the sale of beverages is also a distributor. 42-(10) Downcycling. – Methods of sorting, processing, and aggregating materials 43-from solid waste that do not preserve the original material quality and, as a 44-result, render the aggregated material no longer usable for manufacturing into 45-the same or a substantially similar product. 46-(11) Environmental justice community . – A community determined by the 47-Department to include a concentration of low -income households, people of 48-color – including indigenous peoples, or households lacking English language 49-proficiency. 50-General Assembly Of North Carolina Session 2025-House Bill 344-First Edition Page 3-(12) Processing payment. – The amount of money paid by a distributor to a 1-curbside recycling entity as determined by the Department pursuant to 2-G.S. 130A-309.255. 3-(13) Producer responsibility organization. – A nonprofit organization organized 4-under section 501(c) or section 501(d) of the Internal Revenue Code (26 5-U.S.C. § 501(c), § 501(d)) and created by a group of distributors to fulfill their 6-obligations under this Part. 7-(14) Recyclable. – With respect to beverage containers, a type of beverage 8-container that can be technically recycled in current United States market 9-conditions without the consumer needing to remove an attached component 10-of the beverage container, such as a shrink sleeve, label, or filter. 11-(15) Recycle, recycling, or recycled. – The series of activities by which a covered 12-product is collected, sorted, processed, and converted into a raw material with 13-minimal loss in material quality for use in the production of a new produc t, 14-including a new version of the covered product . These terms do not include 15-any of the following: 16-a. Downcycling. 17-b. The use of materials as fuel, a fuel substitute, or for energy production. 18-c. The use of materials for repurpo sing into infrastructure or 19-construction, including, but not limited to, pavement for streets, 20-sidewalks, or roads, building materials, or other infrastructure 21-products, as the Department may specify by rule. 22-d. The disposal of materials within a solid waste disposal facility or the 23-use of materials for alternative daily cover for a solid waste disposal 24-facility. 25-e. The processing of materials through advanced recycling, chemical 26-recycling, combustion, gasification, i ncineration, pyrolysis, 27-solvolysis, thermal desorption, waste-to-energy, waste-to-fuel, or any 28-other chemical or molecular conversion process. 29-(16) Recycling rate. – With res pect to a category of beverage container, the 30-percentage of that category of beverage container that is recycled. 31-(17) Redeemer. – Any person other than a dealer who demands the refund value 32-provided for herein in exchange for an empty beverage container. 33-(18) Redemption center. – An operation certified by the Department that engages 34-in any of the following activities: 35-a. Accepts empty beverage containers from consumers of beverages and 36-pays, or provides the refund value, for empty beverage containers. 37-b. Collects and sorts empty beverage containers from dealers. 38-(19) Redemption location. – A place, mobile unit, reverse vending machine, or 39-other device where a certified redemption center accepts one or more types of 40-empty beverage containers from consumers and pays, or provides the refund 41-value, for one or more types of empty beverage containers. 42-(20) Retailer. – A person who sells or offers for sale in this State to consumers a 43-beverage in a beverage container, including an operator of a vending machine 44-containing a beverage in a beverage container. 45-(21) Reusable. – With respect to beverage containers, means that the container is 46-capable of being refilled a number of times that the Department shall establish 47-by rule under current market conditions in the United States. 48-(22) Reverse vending machine . – An automated device that can accurately 49-recognize the universal product code on containers to determine if the 50-container is redeemable and accumulates information regarding containers 51-General Assembly Of North Carolina Session 2025-Page 4 House Bill 344-First Edition-redeemed, including the number of such containers redeemed, thereby 1-enabling the device to a ccept containers from redeemers, issue a receipt for 2-their refund value, transmit data for reconciliation, sort, and compact the 3-container to cancel it. 4-(23) Single-use beverage container. – A beverage container that is not designed or 5-placed in commerce to be reusable. 6-(24) Supermarket. – A full-line, self-service retail store with gross annual sales of 7-two million dollars ($2,000,000) or more that sells dry goods, canned goods, 8-nonfood items, and perishable items. 9-(25) Universal product code (UPC). – A standard for encoding a set of lines and 10-spaces that can be scanned and interpreted into numbers to identify a product. 11-Universal product code includes any industry accepted barcode used for 12-product identification purposes in a manner similar to a UPC, such as a 13-European Article Number. 14-(26) Use or consumption . – The exercise of any right or power over a beverage 15-incident to the ownership thereof, other than the sale, storage, or retention for 16-the purposes of sale of a beverage. 17-"§ 130A-309.247. Department to administer program; adoption of rules. 18-(a) The Department shall administer this Part. 19-(b) The Department and the Commission for Health Services may adopt any rules 20-necessary or useful to implement this Part, and the Department may adopt any rules necessary or 21-useful to carry out any of its duties imposed under this Part. The Department shall determine, by 22-rule, all of the following: 23-(1) The method for calculating the redemption rate and recycling rate for beverage 24-containers. 25-(2) The method for calculating the amount of reusable beverage containers sold 26-or refilled. 27-(3) The process for information collection necessary to ensure distributor and 28-dealer compliance with the requirements of this Part. 29-(4) The method for determining compliance with the performance standards set 30-forth in G.S. 130A-309.256. 31-(5) The designation of environmental justice communities in this State. 32-(6) The number of cycles for a beverage container to qualify as reusable. 33-(7) The process for determinin g t he handling fee payable to dealers and 34-redemption centers under G.S. 130A-309.254 and the applicable processing 35-payment under G.S. 130A-309.255. 36-(8) The process for licensing of redemption centers. 37-(9) The process for soliciting, reviewing , and awarding gr ants from the 38-Unredeemed Beverage Container Deposits Account established in 39-G.S. 130A-309.257(c). 40-"§ 130A-309.248. Deposit and refund value; requirements concerning beverage containers. 41-(a) Every consumer who purchases a beverage in a beverage container shall pay a deposit 42-equal to the refund value under subsection (b) of this section. 43-(b) Subject to the adjustment set forth in subsection (d) of this section, every beverage 44-container sold or offered for sale to a consumer in this State that has a volume which is not less 45-than 50 milliliters nor greater than 3 liters of a beverage shall have a refund value of ten cents 46-(10¢). 47-(c) Every beverage container that contains a beverage that is sold or offered for sale in 48-this State shall (i) clearly indicate by embossing or imprinting on the normal product label, or in 49-the case of metal beverage containers, on the top of the container the words "North Carolina" or 50-the initials "N.C." and the refund value of the container in not less than 1/4 inch type size and (ii) 51-General Assembly Of North Carolina Session 2025-House Bill 344-First Edition Page 5-include a UPC barcode to identify and validate participation in the refund program as set forth in 1-this section. 2-(d) Every five years, beginning July 1, 2028, the Department shall do all of the following: 3-(1) Determine the percentages of each category of beverage containers, based on 4-the composition of the container: aluminum, nonaluminum metal, glass, 5-plastic, or other materials or combination of materials, that are being returned. 6-If the Department finds that the return rate for any category is less than 7-seventy-five percent (75%), the Department may increase the deposit value 8-for that category of beverage containers by five cents (5¢). 9-(2) Update the deposit value to reflect changes in the Consumer Price Index 10-computed by the United States Bureau of Labor Statistics over the previous 11-five years. 12-"§ 130A-309.249. Duties of retailers. 13-(a) Every retailer shall pay to the distributor deposits equal to the value of the refunds 14-under G.S. 130A-309.248 when the retailer purchases beverages from a distributor and shall 15-receive deposits from consumers at the time of sale. 16-(b) Every retailer shall identify, by a clear and conspicuous sign at the retailer 's place of 17-business, the address of at least the redemption center or redemption location nearest to the 18-retailer that redeems all types of empty beverage containers at one location during at least 30 19-hours per week with a minimum of five hours of operation occurring during periods other than 20-from Monday to Friday, from 9:00 A.M. to 5:00 P.M. 21-"§ 130A -309.250. Regulation and reporting requirements for distribut ors of beverage 22+Unless a different meaning is required by the context, the following definitions apply 34+throughout this Part: 35+H.B. 344+Mar 10, 2025+HOUSE PRINCIPAL CLERK+General Assembly Of North Carolina Session 2025+Page 2 DRH30136-MHa-55+(1) Beverage. – Any ready-to-drink liquid intended for human oral consumption. 1+Beverage includes any malt beverage; spirituous liquor; fortified wine; 2+unfortified wine; wine cooler; soda or noncarbonated water; and any 3+nonalcoholic carbonated or noncarbonated drink in liquid form. The term does 4+not include any drug regulated under the federal Food, Drug, and Cosmetic 5+Act (Title 21 U.S.C. § 301 et seq.; 52 Stat. 1040 et seq.), infant formula, meal 6+replacement liquids, or dairy products derived from animal milk. 7+(2) Beverage container. – A prepackaged container designed to hold a beverage 8+that is made of any material, including glass, plastic, and metal . Beverage 9+container does not include cartons, pouches, or aseptic packaging su ch as a 10+drink box. 11+(3) Consumer. – An individual who purchases a beverage in a beverage container 12+for his or her use or consumption with no intent to resell the beverage . 13+Consumer includes a lodging, eating, or drinking establishment. 14+(4) Contracted agent. – A public or private company or individual who enters into 15+an agreement with a distributor or deposit initiator to pick up empty beverage 16+containers from redemption centers and dealers. 17+(5) Curbside recycling program. – A recycling program that meets all of the 18+following criteria: 19+a. The program picks up recyclables from individual residences. 20+b. The program is operated by, or pursuant to a contract with, a city, 21+county, or other public agency. 22+c. The program accepts empty beverage containers from consumers with 23+the intent to recycle them. 24+(6) Curbside recycling program entity. – A material recovery facility or any other 25+person or establishment contracted to receive beverage containers collected 26+through a curbside recycling program for the purposes of processing, sorting, 27+or preparation for recycling. 28+(7) Dealer. – A person who sells beverages in beverage containers, including 29+beverage containers sold through vending machines, to a consumer at the 30+retail level. Dealer does not include any of the following: 31+a. Establishments who sell less than 250,000 beverage containers in a 32+calendar year. 33+b. Establishments that provide on-premises consumption of beverages in 34+beverage containers, such as hotels, restaurants, or bars. 35+(8) Deposit initiator. – The first distributor to collect the deposit on beverage 36+containers sold to any person within the State. 37+(9) Distributor. – A person who engages in the sale of beverages in beverage 38+containers to a dealer in this State . A manufacturer of beverages who also 39+engages in the sale of beverages is also a distributor. 40+(10) Downcycling. – Methods of sorting, processing, and aggregating materials 41+from solid waste that do not preserve the original material quality and, as a 42+result, render the aggregated material no longer usable for manufacturing into 43+the same or a substantially similar product. 44+(11) Environmental justice community . – A community determined by the 45+Department to include a concentration of low -income households, people of 46+color – including indigenous peoples, or households lacking English language 47+proficiency. 48+(12) Processing payment. – The amount of money paid by a distributor to a 49+curbside recycling entity as determined by the Department pursuant to 50+G.S. 130A-309.255. 51+General Assembly Of North Carolina Session 2025+DRH30136-MHa-55 Page 3+(13) Producer responsibility organization . – A nonprofit organization organized 1+under section 501(c) or section 501(d) of the Internal Revenue Code (26 2+U.S.C. § 501(c), § 501(d)) and created by a group of distributors to fulfill their 3+obligations under this Part. 4+(14) Recyclable. – With respect to beverage containers, a type of beverage 5+container that can be technically recycled in current United States market 6+conditions without the consumer needing to remove an attached component 7+of the beverage container, such as a shrink sleeve, label, or filter. 8+(15) Recycle, recycling, or recycled. – The series of activities by which a covered 9+product is collected, sorted, processed, and converted into a raw material with 10+minimal loss in material quality for use in the production of a new produc t, 11+including a new version of the covered product . These terms do not include 12+any of the following: 13+a. Downcycling. 14+b. The use of materials as fuel, a fuel substitute, or for energy production. 15+c. The use of materials for repurposing into infrastructure or 16+construction, including, but not limited to, pavement for streets, 17+sidewalks, or roads, building materials, or other infrastructure 18+products, as the Department may specify by rule. 19+d. The disposal of materials within a solid waste disposal facility or the 20+use of materials for alternative daily cover for a solid waste disposal 21+facility. 22+e. The processing of materials through advanced recycling, chemical 23+recycling, combustion, gasification, incineration, pyrolysis, 24+solvolysis, thermal desorption, waste-to-energy, waste-to-fuel, or any 25+other chemical or molecular conversion process. 26+(16) Recycling rate. – With res pect to a category of beverage container, the 27+percentage of that category of beverage container that is recycled. 28+(17) Redeemer. – Any person other than a dealer who demands the refund value 29+provided for herein in exchange for an empty beverage container. 30+(18) Redemption center. – An operation certified by the Department that engages 31+in any of the following activities: 32+a. Accepts empty beverage containers from consumers of beverages and 33+pays, or provides the refund value, for empty beverage containers. 34+b. Collects and sorts empty beverage containers from dealers. 35+(19) Redemption location. – A place, mobile unit, reverse vending machine, or 36+other device where a certified redemption center accepts one or more types of 37+empty beverage containers from consumers and pays, or provides the refund 38+value, for one or more types of empty beverage containers. 39+(20) Retailer. – A person who sells or offers for sale in this State to consumers a 40+beverage in a beverage container, including an operator of a vending machine 41+containing a beverage in a beverage container. 42+(21) Reusable. – With respect to beverage containers , means that the container is 43+capable of being refilled a number of times that the Department shall establish 44+by rule under current market conditions in the United States. 45+(22) Reverse vending machine . – An automated device that can accurately 46+recognize the universal product code on containers to determine if the 47+container is redeemable and accumulates information regarding containers 48+redeemed, including the number of such containers redeemed, thereby 49+enabling the device to accept containers from redeemers, issue a receipt for 50+General Assembly Of North Carolina Session 2025+Page 4 DRH30136-MHa-55+their refund value, transmit data for reconciliation, sort, and compact the 1+container to cancel it. 2+(23) Single-use beverage container. – A beverage container that is not designed or 3+placed in commerce to be reusable. 4+(24) Supermarket. – A full-line, self-service retail store with gross annual sales of 5+two million dollars ($2,000,000) or more that sells dry goods, canned goods, 6+nonfood items, and perishable items. 7+(25) Universal product code (UPC). – A standard for encoding a set of lines and 8+spaces that can be scanned and interpreted into numbers to identify a product. 9+Universal product code includes any industry accepted barcode used for 10+product identification purposes in a manner similar to a UPC, such as a 11+European Article Number. 12+(26) Use or consumption . – The exercise of any right or power over a beverage 13+incident to the ownership thereof, other than the sale, storage, or retention for 14+the purposes of sale of a beverage. 15+"§ 130A-309.247. Department to administer program; adoption of rules. 16+(a) The Department shall administer this Part. 17+(b) The Department and the Commission for Health Services may adopt any rules 18+necessary or useful to implement this Part, and the Department may adopt any rules necessary or 19+useful to carry out any of its duties imposed under this Part. The Department shall determine, by 20+rule, all of the following: 21+(1) The method for calculating the redemption rate and recycling rate for beverage 22containers. 23-(a) No distributor shall sell a beverage container in the State without the distributor 24-registering the beverage container with the Department prior to the sale. This registration shall 25-take place on a form provided by the Department and include all of the following: 26-(1) The name and principal business address of the distributor. 27-(2) The name of the beverage and the container size. 28-(3) The material type of the beverage container. 29-(4) Documentation of the presence and type of UPC on the beverage container. 30-(5) Methods the distributor intends to use to prevent the fraudulent sale and 31-redemption of beverage containers not sold within the State. 32-(6) The name of the person picking up the empty beverage containers from 33-dealers, redemption centers, and curbside recycling entities, if that person is 34-different from the distributor. 35-(7) Any other information required by the Department to enforce the provisions 36-of this Part. 37-(b) The Department may request that a distributor provide a copy of the container label, 38-or a picture of any beverage container sold or offered for sale in the State on which it initiates a 39-deposit. 40-(c) A distributor shall place a deposit as determined by G.S. 130A-309.248 on all 41-beverage containers sold, offered for sale, or distributed into the sale. 42-"§ 130A-309.251. Establishment of redemption centers. 43-(a) The Department shall allow for the establishment, operation, and licensure of 44-redemption centers. Redemption centers shall accept all types of beverage containers. 45-(b) These redemption centers shall supplement, but not supplant, the return of beverage 46-containers to dealers as required by G.S. 130A-309.252. 47-"§ 130A-309.252. Acceptance of beverage containers by dealers. 48-(a) A dealer shall accept at their place of business from a redeemer any empty beverage 49-container during any period that the dealer is open for business, regardless of whether the specific 50-beverage container was sold by the dealer, as long as the beverage container is made of the same 51-General Assembly Of North Carolina Session 2025-Page 6 House Bill 344-First Edition-type of material as the beverage containers sold by the dealer . The dealer shall pay to the 1-redeemer the deposit value for each beverage container redeemed. 2-(b) A dealer or redemption center may refuse to accept from a redeemer an y empty 3-beverage container that is not clean, is broken, or contains foreign material or other contaminants. 4-(c) Redemptions of the deposit value must be in legal tender, or a script or receipt from 5-a reverse vending machine, providing that the script or receipt can be exchanged for legal tender 6-for a period of not less than 60 days without requiring the purchase of other goods. The use or 7-presence of a reverse vending machine shall not relieve a dealer of any obligation imposed 8-pursuant to this Part. If a dealer utilizes a reverse vending machine to redeem containers, the 9-dealer shall provide for redemption of beverage containers when the reverse vending machine is 10-full, broken, under repair, or does not accept a type of beverage container material sold or offered 11-for sale by such dealer. 12-(d) Each dealer shall establish and maintain a dedicated area within their place of business 13-to accept beverage containers for redemption. 14-"§ 130A-309.253. Acceptance of beverage containers by distributors. 15-(a) A distributor shall accept from a dealer or redemption center any empty beverage 16-containers of the design, shape, size, color, composition, and brand sold, distributed, or offered 17-for sale by the distributor in the State and shall pay the dealer or redemptio n center a handling 18-fee as established by the Department pursuant to G.S. 130A-309.254 for each such beverage 19-container. 20-(b) A distributor shall accept and redeem all such empty beverage containers from a 21-dealer or redemption center. 22-(c) A distributor's failure to pick up empty beverage containers, including containers 23-processed in a reverse vending machine, from a redemption center, dealer, or the operator of a 24-reverse vending machine shall be a violation of this Part. 25-(d) A group of distributors may ele ct to create or appoint a p roducer responsibility 26-organization to fulfill their obligations under this Part. The Department shall not delegate to any 27-producer responsibility organization the authority to oversee, enforce, or manage the 28-requirements of this Part. 29-"§ 130A-309.254. Handling fee. 30-(a) A dealer or redemption center who redeems beverage containers shall be reimbursed 31-by the distributor of such beverage containers a handling fee set by the Department. 32-(b) The Department shall set the handling fee to be paid by distributors to dealers or 33-redemption centers in a manner that covers the costs of collecting, sorting, processing, and 34-transporting empty beverage containers for recycling, reuse, or refilling. 35-(c) The Department shall update the handling fee every five years to reflect changes in 36-the Consumer Price Index computed by the United States Bureau of Labor Statistics over the 37-previous five years. 38-(d) Beginning three years after the effective date of this act, the Department shall increase 39-the handling fee by one cent (1¢) if there is less than one point of redemption for every 3,000 40-persons in each county within the State or there is less than one point of redemption for every 41-3,000 persons in an environmental justice community. For purposes of this subsection, a point of 42-redemption is either a dealer or redemption center redeeming beverage containers. 43-"§ 130A-309.255. Curbside collection of beverage containers. 44-(a) The Department may approve procedures allowing for curbside recycling entities to 45-be paid a processing payment for beverage containers collected, processed, sorted, and delivered 46-to distributors for recycling, so long as the beverage containers collected are clean, sorted, and 47-baled. The processing payment shall not exceed t he value of the handling fee set by the 48-Department pursuant to G.S. 130A-309.254. 49-General Assembly Of North Carolina Session 2025-House Bill 344-First Edition Page 7-(b) Beverage containers collected, processed, sorted , and delivered to distributors by 1-entities that collect curbside recycling shall not be included in the calculations of the performance 2-requirements set in G.S. 130A-309.256. 3-"§ 130A-309.256. Performance standards. 4-(a) The following performance standards apply with respect to redemption of beverage 5-containers: 6-(1) Beginning July 1, 2027, at least eighty percent (80%) of beverage containers 7-sold in the State shall be redeemed. 8-(2) Beginning July 1, 2029, at least ninety percent (90%) of beverage containers 9-sold in the State shall be redeemed. 10-(3) Beginning July 1, 203 1, at least ninety-five percent ( 95%) of beverage 11-containers sold in the State shall be redeemed. 12-(b) The following performance standards apply with respect to recycling of single-use 13-containers: 14-(1) Beginning July 1, 2027, at least seventy percent (70%) of single-use beverage 15-containers sold in the State shall be recycled. 16-(2) Beginning July 1, 2029, at least eighty percent (80%) of single -use beverage 17-containers sold in the State shall be recycled. 18-(3) Beginning July 1, 203 1, at least eighty -five percent (85%) of sing le-use 19-beverage containers sold in the State shall be recycled. 20-(c) The Department shall require each distributor, and any producer responsibility 21-organization, to work with dealers within the State to develop a plan that ensures that the 22-distributor and any producer responsibility organization meet the following standards for reuse 23-and refilling: 24-(1) Beginning July 1, 2029, at least ten percent (10%) of all beverage containers 25-sold by the distributor or the distributors that are members of the producer 26-responsibility organization are returned and refilled. 27-(2) Beginning July 1, 203 1, at least twenty percent ( 20%) of all beverage 28-containers sold by the distributor or the distributors that are members of the 29-producer responsibility organization are returned and refilled. 30-"§ 130A-309.257. Management of deposits. 31-(a) Each deposit initiator who received deposits under this act shall segregate the deposits 32-in a deposit transaction fund maintained separately from all other revenues. Each deposit initiator 33-shall place in the fund each deposit for all beverage containers the deposit initiator sells. 34-(b) The revenue in the deposit transaction fund may only be expended to pay the refund 35-to consumers for the return of an empty beverage container. 36-(c) At the end of each month, any amounts that are or should be in the deposit initiator's 37-deposit transaction fund that are in excess of the sum of (i) interest income earned on amounts in 38-the fund during that month and (ii) t he total amount of refund values received by the deposit 39-initiator for beverage containers that month and the two preceding months shall be deemed to 40-constitute unredeemed deposits. 41-(d) No later than the tenth day of each month, each deposit initiator shall remit to the 42-Department from its deposit transaction fund any deposit amounts deemed to be unredeemed at 43-the close of the preceding month, pursuant to subsection (c) of this section. 44-(e) If in any month the authorized payments from the deposit transaction fund by a 45-deposit initiator exceed the funds that are or should be in the deposit transaction fund, the 46-Department shall reimburse the deposit initiator the amount of excess funds remitted to it under 47-this section. 48-"§ 130A-309.258. Beverage Container Litter Reduction Account. 49-(a) The Beverage Container Litter Reduction Account is created in the Department, to be 50-administered by the Department. The Beverage Container Litter Reduction Account is a 51-General Assembly Of North Carolina Session 2025-Page 8 House Bill 344-First Edition-nonreverting fund that consists of unredeemed refund values remitted by di stributors to the 1-Department under G.S. 130A-309.257 and credited to the account. Interest earned shall accrue 2-to the account. 3-(b) The Beverage Container Litter Reduction Account shall be used to fund the 4-following: 5-(1) The costs to the Department for administering this Part. 6-(2) A reserve for contingencies in a reasonable and prudent amount determined 7-by the Department, not to exceed one million dollars ($1,000,000). 8-(c) The Unredeemed Beverage Container Deposits Account is created in the Department, 9-to be administered by the Department. After all expenditures under subsection (b) of this section 10-have been made, the balance remaining in the Beverage Container Litter Reduction Account shall 11-be credited to the Unredeemed Beverage Container Deposits Account. The Unredeemed 12-Beverage Container Deposits Account may be used by the Department to provide grants for all 13-of the following purposes: 14-(1) For urban, rural, and recreational litter abatement and recycling activities. 15-(2) For recycling information, education, and promotion. 16-(3) For incentive payments to encourage the establishment of redemption centers 17-in environmental justice communities or rural areas. 18-(4) For public education programs directed at reducing litter. 19-"§ 130A-309.259. Additional penalties. 20-(a) A person may be assessed a civil penalty not to exceed one thousand dollars ($1,000) 21-per violation if the person does any of the following: 22-(1) Sells or offers for sale beverages in containers not labeled in accordance with 23-G.S. 130A-309.248 or registered under G.S. 130A-309.250. 24-(2) Makes a report pursuant to G.S. 130A-309.260 that is false. 25-(b) The Department may examine the accounts and records of deposit initiators and may 26-assess a penalty of ten percent (10%) per year, plus interest, for underpayments of the refund 27-value for beverage containers to be credited to the Beverage Container Litter Reduction Account. 28-The Department may also impose a civil penalty of fifteen percent (15%) of the amount due for 29-payments up to a month late and a five percent (5%) additional penalty for each month the 30-payments continue to be unremitted. 31-"§ 130A-309.260. Reports. 32-(a) Every distributor who sells or offers for sale in this State beverage containers or 33-beverages in beverage containers shall report to the Department no later than April 15, 2026, and 34-quarterly thereafter, the number of beverage containers sold, categorized by material type and 35-size and weight, by whether the container is reusable or single -use, and by any other manner 36-prescribed by the Department. 37-(b) No later than July 1, 2026, and annually thereafter, the Department shall determine 38-and shall include in its report to the Environmental Review Commission all of the following: 39-(1) A summary of the information contained in the distributors ' reports under 40-subsection (a) of this section. 41-(2) The status of beverage container recycling opportunities throughout the State, 42-together with any recommendations on methods to enhance the opportunities 43-for all consumers in every region of the State to return empty beverage 44-containers conveniently, efficiently, and economically. 45-(3) An analysis of the total amount of funds used for program administration and 46-for reimbursement payments to redemption centers, nonprofit drop -off 47-programs, and curbside programs and an analysis of how funds in the 48-Unredeemed Beverage Container Deposit s Account are distributed and used 49-under G.S. 130A-309.258(c). 50-General Assembly Of North Carolina Session 2025-House Bill 344-First Edition Page 9-(4) The economic impact of this Part on North Carolina retailers, distributors, and 1-manufacturers of beverages and their containers. 2-(5) The problems, if any, incurred in the distribution, sale, and return of beverage 3-containers attributed to the enactment of this Part. 4-(6) The effectiveness of this Part in reducing the proportion of empty beverage 5-containers in litter found along the State 's roads and highways and along its 6-streams and rivers. 7-(7) The effectiveness of this Part in increasing recycling or reuse of beverage 8-containers. 9-(8) The costs incurred in the administration of this Part. 10-(9) Any recommendations or administrative or legislative proposals cons idered 11-appropriate to improving the effectiveness of this Part in achieving its 12-purposes. 13-(10) Any other information the Department determines is pertinent to achieving 14-the purposes of this Part. 15-(c) The Department may require any retailer, distributor, or certified redemption center 16-to provide that information concerning its compliance with this Part that will enable the 17-Department to prepare its report under this section." 18-SECTION 2. G.S. 130A-309.247, 130A -309.248(c), 130A -309.250(a), and 19-130A-309.258(a), as enacted in Section 1 of this act, become effective April 1, 2026. The 20-remainder of this act becomes effective January 1, 2026, and applies to beverage containers sold 21-or offered for sale on or after that date. 22+(2) The method for calculating the amount of reusable beverage containers sold 24+or refilled. 25+(3) The process for information collection necessary to ensure distributor and 26+dealer compliance with the requirements of this Part. 27+(4) The method for determining compliance with the performance standards set 28+forth in G.S. 130A-309.256. 29+(5) The designation of environmental justice communities in this State. 30+(6) The number of cycles for a beverage container to qualify as reusable. 31+(7) The process for determining t he handling fee payable to d ealers and 32+redemption centers under G.S. 130A-309.254 and the applicable processing 33+payment under G.S. 130A-309.255. 34+(8) The process for licensing of redemption centers. 35+(9) The process for soliciting, reviewing, and awarding grants from the 36+Unredeemed Beverage Container Deposits Account established in 37+G.S. 130A-309.257(c). 38+"§ 130A-309.248. Deposit and refund value; requirements concerning beverage containers. 39+(a) Every consumer who purchases a beverage in a beverage container shall pay a deposit 40+equal to the refund value under subsection (b) of this section. 41+(b) Subject to the adjustment set forth in subsection (d) of this section, every beverage 42+container sold or offered for sale to a consumer in this State that has a volume which is not less 43+than 50 milliliters nor greater than 3 liters of a beverage shall have a refund value of ten cents 44+(10¢). 45+(c) Every beverage container that contains a beverage that is sold or offered for sale in 46+this State shall (i) clearly indicate by embossing or imprinting on the normal product label, or in 47+the case of metal beverage containers, on the top of the container the words "North Carolina" or 48+the initials "N.C." and the refund value of the container in not less than 1/4 inch type size and (ii) 49+include a UPC barcode to identify and validate participation in the refund program as set forth in 50+this section. 51+General Assembly Of North Carolina Session 2025+DRH30136-MHa-55 Page 5+(d) Every five years, beginning July 1, 2028, the Department shall do all of the following: 1+(1) Determine the percentages of each category of beverage containers, based on 2+the composition of the container: aluminum, nonaluminum metal, glass, 3+plastic, or other materials or combination of materials, that are being returned. 4+If the Department finds that the return rate for any category is less than 5+seventy-five percent (75%), the Department may increase the deposit value 6+for that category of beverage containers by five cents (5¢). 7+(2) Update the deposit value to reflect changes in the Consumer Price Index 8+computed by the United States Bureau of Labor Statistics over the previous 9+five years. 10+"§ 130A-309.249. Duties of retailers. 11+(a) Every retailer shall pay to the distributor deposits equal to the value of the refunds 12+under G.S. 130A-309.248 when the retailer purchases beverages from a distributor and shall 13+receive deposits from consumers at the time of sale. 14+(b) Every retailer shall identify, by a clear and conspicuous sign at the retailer 's place of 15+business, the address of at least the redemption center or redemption location nearest to the 16+retailer that redeems all types of empty beverage containers at one location during at least 30 17+hours per week with a minimum of five hours of operation occurring during periods other than 18+from Monday to Friday, from 9:00 A.M. to 5:00 P.M. 19+"§ 130A -309.250. Regulation and reporting requirements for distribut ors of beverage 20+containers. 21+(a) No distributor shall sell a beverage container in the State without the distributor 22+registering the beverage container with the Department prior to the sale. This registration shall 23+take place on a form provided by the Department and include all of the following: 24+(1) The name and principal business address of the distributor. 25+(2) The name of the beverage and the container size. 26+(3) The material type of the beverage container. 27+(4) Documentation of the presence and type of UPC on the beverage container. 28+(5) Methods the distributor intends to use to prevent the fraudulent sale and 29+redemption of beverage containers not sold within the State. 30+(6) The name of the person picking up the empty beverage containers from 31+dealers, redemption centers, and curbside recycling entities, if that person is 32+different from the distributor. 33+(7) Any other information required by the Department to enforce the provisions 34+of this Part. 35+(b) The Department may request that a distributor provide a copy of the container label, 36+or a picture of any beverage container sold or offered for sale in the State on which it initiates a 37+deposit. 38+(c) A distributor shall place a deposit as determined by G.S. 130A-309.248 on all 39+beverage containers sold, offered for sale, or distributed into the sale. 40+"§ 130A-309.251. Establishment of redemption centers. 41+(a) The Department shall allow for the establishment, operation, and licensure of 42+redemption centers. Redemption centers shall accept all types of beverage containers. 43+(b) These redemption centers shall supplement, but not supplant, the return of beverage 44+containers to dealers as required by G.S. 130A-309.252. 45+"§ 130A-309.252. Acceptance of beverage containers by dealers. 46+(a) A dealer shall accept at their place of business from a redeemer any empty beverage 47+container during any period that the dealer is open for business, regardless of whether the specific 48+beverage container was sold by the dealer, as long as the beverage container is made of the same 49+type of material as the beverage containers sold by the dealer . The dealer shall pay to the 50+redeemer the deposit value for each beverage container redeemed. 51+General Assembly Of North Carolina Session 2025+Page 6 DRH30136-MHa-55+(b) A dealer or redemption center may refuse to accept from a redeemer any empty 1+beverage container that is not clean, is broken, or contains foreign material or other contaminants. 2+(c) Redemptions of the deposit value must be in legal tender, or a script or receipt from 3+a reverse vending machine, providing that the script or receipt can be exchanged for legal tender 4+for a period of not less than 60 days without requiring the purchase of other goods. The use or 5+presence of a reverse vending machine shall not relieve a dealer of any obligation imposed 6+pursuant to this Part. If a dealer utilizes a reverse vending machine to redeem containers, the 7+dealer shall provide for redemption of beverage containers when the reverse vending machine is 8+full, broken, under repair, or does not accept a type of beverage container material sold or offered 9+for sale by such dealer. 10+(d) Each dealer shall establish and maintain a dedicated area within their place of business 11+to accept beverage containers for redemption. 12+"§ 130A-309.253. Acceptance of beverage containers by distributors. 13+(a) A distributor shall accept from a dealer or redemption center any empty beverage 14+containers of the design, shape, size, color, composition, and brand sold, distributed, or offered 15+for sale by the distributor in the State and shall pay the dealer or redemption c enter a handling 16+fee as established by the Department pursuant to G.S. 130A-309.254 for each such beverage 17+container. 18+(b) A distributor shall accept and redeem all such empty beverage containers from a 19+dealer or redemption center. 20+(c) A distributor's failure to pick up empty beverage containers, including containers 21+processed in a reverse vending machine, from a redemption center, dealer, or the operator of a 22+reverse vending machine shall be a violation of this Part. 23+(d) A group of distributors may elect to create or appoint a p roducer responsibility 24+organization to fulfill their obligations under this Part. The Department shall not delegate to any 25+producer responsibility organization the authority to oversee, enforce, or manage the 26+requirements of this Part. 27+"§ 130A-309.254. Handling fee. 28+(a) A dealer or redemption center who redeems beverage containers shall be reimbursed 29+by the distributor of such beverage containers a handling fee set by the Department. 30+(b) The Department shall set the handling fee to be paid by distributors to dealers or 31+redemption centers in a manner that covers the costs of collecting, sorting, processing, and 32+transporting empty beverage containers for recycling, reuse, or refilling. 33+(c) The Department shall update the handling fee every five years to reflect changes in 34+the Consumer Price Index computed by the United States Bureau of Labor Statistics over the 35+previous five years. 36+(d) Beginning three years after the effective date of this act, the Department shall increase 37+the handling fee by one cent (1¢) if there is less than one point of redemption for every 3,000 38+persons in each county within the State or there is less than one point of redemption for every 39+3,000 persons in an environmental justice community. For purposes of this subsection, a point of 40+redemption is either a dealer or redemption center redeeming beverage containers. 41+"§ 130A-309.255. Curbside collection of beverage containers. 42+(a) The Department may approve procedures allowing for curbside recycling entities to 43+be paid a processing payment for beverage containers collected, processed, sorted, and delivered 44+to distributors for recycling, so long as the beverage containers collected are clean, sorted, and 45+baled. The processing payment shall not exceed the value of the handling fee set by the 46+Department pursuant to G.S. 130A-309.254. 47+(b) Beverage containers collected, processed, sorted , and delivered to distributors by 48+entities that collect curbside recycling shall not be included in the calculations of the performance 49+requirements set in G.S. 130A-309.256. 50+"§ 130A-309.256. Performance standards. 51+General Assembly Of North Carolina Session 2025+DRH30136-MHa-55 Page 7+(a) The following performance standards apply with respect to redemption of beverage 1+containers: 2+(1) Beginning July 1, 2027, at least eighty percent (80%) of beverage containers 3+sold in the State shall be redeemed. 4+(2) Beginning July 1, 2029, at least ninety percent (90%) of beverage containers 5+sold in the State shall be redeemed. 6+(3) Beginning July 1, 203 1, at least ninety-five percent ( 95%) of beverage 7+containers sold in the State shall be redeemed. 8+(b) The following performance standards apply with respect to recycling of single-use 9+containers: 10+(1) Beginning July 1, 2027, at least seventy percent (70%) of single-use beverage 11+containers sold in the State shall be recycled. 12+(2) Beginning July 1, 2029, at least eighty percent (80%) of single -use beverage 13+containers sold in the State shall be recycled. 14+(3) Beginning July 1, 203 1, at least eighty-five percent (85%) of single -use 15+beverage containers sold in the State shall be recycled. 16+(c) The Department shall require each distributor, and any producer responsibility 17+organization, to work with dealers within the State to develop a plan that ensures that the 18+distributor and any producer responsibility organization meet the following standards for reuse 19+and refilling: 20+(1) Beginning July 1, 2029, at least ten percent (10%) of all beverage containers 21+sold by the distributor or the distributors that are members of the producer 22+responsibility organization are returned and refilled. 23+(2) Beginning July 1, 203 1, at least twenty percent ( 20%) of all beverage 24+containers sold by the distributor or the distributors that are members of the 25+producer responsibility organization are returned and refilled. 26+"§ 130A-309.257. Management of deposits. 27+(a) Each deposit initiator who received deposits under this act shall segregate the deposits 28+in a deposit transaction fund maintained separately from all other revenues. Each deposit initiator 29+shall place in the fund each deposit for all beverage containers the deposit initiator sells. 30+(b) The revenue in the deposit transaction fund may only be expended to pay the refund 31+to consumers for the return of an empty beverage container. 32+(c) At the end of each month, any amounts that are or should be in the deposit initiator's 33+deposit transaction fund that are in excess of the sum of (i) interest income earned on amounts in 34+the fund during that month and (ii) t he total amount of refund values received by the deposit 35+initiator for beverage containers that month and the two preceding months shall be deemed to 36+constitute unredeemed deposits. 37+(d) No later than the tenth day of each month, each deposit initiator shall remit to the 38+Department from its deposit transaction fund any deposit amounts deemed to be unredeemed at 39+the close of the preceding month, pursuant to subsection (c) of this section. 40+(e) If in any month the authorized payments from the deposit transaction fund by a 41+deposit initiator exceed the funds that are or should be in the deposit transaction fund, the 42+Department shall reimburse the deposit initiator the amount of excess funds remitted to it under 43+this section. 44+"§ 130A-309.258. Beverage Container Litter Reduction Account. 45+(a) The Beverage Container Litter Reduction Account is created in the Department, to be 46+administered by the Department. The Beverage Container Litter Reduction Account is a 47+nonreverting fund that consists of unredeemed refund values remitted by distributors to the 48+Department under G.S. 130A-309.257 and credited to the account. Interest earned shall accrue 49+to the account. 50+General Assembly Of North Carolina Session 2025+Page 8 DRH30136-MHa-55+(b) The Beverage Container Litter Reduction Account shall be used to fund the 1+following: 2+(1) The costs to the Department for administering this Part. 3+(2) A reserve for contingencies in a reasonable and prudent amount determined 4+by the Department, not to exceed one million dollars ($1,000,000). 5+(c) The Unredeemed Beverage Container Deposits Account is created in the Department, 6+to be administered by the Department. After all expenditures under subsection (b) of this section 7+have been made, the balance remaining in the Beverage Container Litter Reduction Account shall 8+be credited to the Unredeemed Beverage Container Deposits Account. The Unredeemed 9+Beverage Container Deposits Account may be used by the Department to provide grants for all 10+of the following purposes: 11+(1) For urban, rural, and recreational litter abatement and recycling activities. 12+(2) For recycling information, education, and promotion. 13+(3) For incentive payments to encourage the establishment of redemption centers 14+in environmental justice communities or rural areas. 15+(4) For public education programs directed at reducing litter. 16+"§ 130A-309.259. Additional penalties. 17+(a) A person may be assessed a civil penalty not to exceed one thousand dollars ($1,000) 18+per violation if the person does any of the following: 19+(1) Sells or offers for sale beverages in containers not labeled in accordance with 20+G.S. 130A-309.248 or registered under G.S. 130A-309.250. 21+(2) Makes a report pursuant to G.S. 130A-309.260 that is false. 22+(b) The Department may examine the accounts and records of deposit initiators and may 23+assess a penalty of ten percent (10%) per year, plus interest, for underpayments of the refund 24+value for beverage containers to be credited to the Beverage Container Litter Reduction Account. 25+The Department may also impose a civil penalty of fifteen percent (15%) of the amount due for 26+payments up to a month late and a five percent (5%) additional penalty for each month the 27+payments continue to be unremitted. 28+"§ 130A-309.260. Reports. 29+(a) Every distributor who sells or offers for sale in this State beverage containers or 30+beverages in beverage containers shall report to the Department no later than April 15, 2026, and 31+quarterly thereafter, the number of beverage containers sold, categorized by material type and 32+size and weight, by whether the container is reusable or single -use, and by any other manner 33+prescribed by the Department. 34+(b) No later than July 1, 2026, and annually thereafter, the Department shall determine 35+and shall include in its report to the Environmental Review Commission all of the following: 36+(1) A summary of the information contained in the distributors ' reports under 37+subsection (a) of this section. 38+(2) The status of beverage container recycling opportunities throughout the State, 39+together with any recommendations on methods to enhance the opportunities 40+for all consumers in every region of the State to return empty beverage 41+containers conveniently, efficiently, and economically. 42+(3) An analysis of the total amount of funds used for program administration and 43+for reimbursement payments to redemption centers, nonprofit drop -off 44+programs, and curbside programs and an analysis of how funds in the 45+Unredeemed Beverage Container Deposit s Account are distributed and used 46+under G.S. 130A-309.258(c). 47+(4) The economic impact of this Part on North Carolina retailers, distributors, and 48+manufacturers of beverages and their containers. 49+(5) The problems, if any, incurred in the distribution, sale, and return of beverage 50+containers attributed to the enactment of this Part. 51+General Assembly Of North Carolina Session 2025+DRH30136-MHa-55 Page 9+(6) The effectiveness of this Part in reducing the proportion of empty beverage 1+containers in litter found along the State 's roads and highways and along its 2+streams and rivers. 3+(7) The effectiveness of this Part in increasing recycling or reuse of beverage 4+containers. 5+(8) The costs incurred in the administration of this Part. 6+(9) Any recommendations or administrative or legislative proposals considered 7+appropriate to improving the effectiveness of this Part in achieving its 8+purposes. 9+(10) Any other information the Department determines is pertinent to achieving 10+the purposes of this Part. 11+(c) The Department may require any retailer, distributor, or certified redemption center 12+to provide that information concerning its compliance with this Part that will enable the 13+Department to prepare its report under this section." 14+SECTION 2. G.S. 130A-309.247, 130A -309.248(c), 130A -309.250(a), and 15+130A-309.258(a), as enacted in Section 1 of this act, become effective April 1, 20 26. The 16+remainder of this act becomes effective January 1, 2026, and applies to beverage containers sold 17+or offered for sale on or after that date. 18
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