Introduced Version
HOUSE BILL No. 1505
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-2.5-14.
Synopsis: Payment for recycling plastic bottles. Provides that a person
may present an empty returnable plastic bottle to any retail merchant
for a five cent redemption. Requires a retail merchant to recycle any
empty returnable plastic bottles for which the retail merchant pays a
redemption. Makes an appropriation to pay refund claims to retail
merchants for credits accrued in paying redemptions for empty
returnable plastic bottles.
Effective: January 1, 2012.
January 20, 2011, read first time and referred to Committee on Environmental Affairs.
Introduced
First Regular Session 117th General Assembly (2011)
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HOUSE BILL No. 1505
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation and to make an appropriation.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 6-2.5-14; (11)IN1505.1.1. -->
SECTION 1. IC 6-2.5-14 IS ADDED TO THE INDIANA CODE
AS A
NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2012]:
Chapter 14. Recycling of Returnable Plastic Bottles
Sec. 1. As used in this chapter, "empty returnable plastic bottle"
means a returnable plastic bottle that contains nothing more than
the residue of its original contents.
Sec. 2. As used in this chapter, "fund" refers to the returnable
plastic bottle redemption fund established by section 8 of this
chapter.
Sec. 3. As used in this chapter, "recycler" means a person
engaged in the business of recycling empty returnable plastic
bottles.
Sec. 4. As used in this chapter, "returnable plastic bottle" means
a plastic bottle used by a manufacturer as a container for any of
the following:
(1) Alcoholic beverages.
(2) Dietary supplements.
(3) Food and food ingredients.
(4) Nonalcoholic beverages other than soft drinks.
(5) Soft drinks.
Sec. 5. Each returnable plastic bottle sold or offered for sale by
a retail merchant in Indiana must clearly indicate by embossing or
by a stamp, label, or other method securely affixed to the
returnable plastic bottle the redemption value of the returnable
plastic bottle and the name of the state of Indiana.
Sec. 6. (a) The redemption value of an empty returnable plastic
bottle is five cents ($0.05).
(b) A retail merchant shall accept an empty returnable plastic
bottle presented for redemption by any person and pay to that
person its full redemption value.
Sec. 7. (a) A retail merchant shall recycle empty returnable
plastic bottles collected by the retail merchant under this chapter.
(b) A retail merchant may use any of the following methods to
satisfy the retail merchant's duty to recycle empty returnable
plastic bottles under subsection (a):
(1) The retail merchant may itself deliver the empty
returnable plastic bottles collected by the retail merchant
under this chapter to the premises of a recycler under an
arrangement to have the empty returnable plastic bottles
recycled.
(2) A recycler may pick up the empty returnable plastic
bottles collected by the retail merchant under this chapter at
the retail merchant's premises under an arrangement to have
the empty returnable plastic bottles recycled.
(3) The retail merchant may hire a person to pick up the
empty returnable plastic bottles collected by the retail
merchant under this chapter and deliver the empty returnable
plastic bottles to a recycler under an arrangement to have the
empty returnable plastic bottles recycled.
(4) The retail merchant may itself perform the recycling
operation.
(c) A retail merchant who knowingly removes, or causes to be
removed, an empty returnable plastic bottle collected under this
chapter from the retail merchant's premises in a manner other
than a method described in subsection (b) commits a Class C
infraction for each empty returnable plastic bottle that the retail
merchant improperly removes or causes to be removed from the
retail merchant's premises.
(d) A recycler that:
(1) receives empty returnable plastic bottles from a retail
merchant under an arrangement to have the empty
returnable plastic bottles recycled; and
(2) knowingly disposes of the empty returnable plastic bottles
in a manner other than recycling;
commits a Class C infraction for each empty returnable plastic
bottle the recycler improperly disposes of.
(e) A person who:
(1) is hired to transport empty returnable plastic bottles from
the premises of a retail merchant to a recycler; and
(2) without good cause, knowingly fails to deliver the empty
returnable plastic bottles to the recycler;
commits a Class C infraction for each empty returnable plastic
bottle removed from the premises of the retail merchant and not
delivered to the recycler.
Sec. 8. (a) The returnable plastic bottle redemption fund is
established as a dedicated fund to pay refund claims by retail
merchants for redemptions made under this chapter.
(b) The fund shall be administered by the treasurer of state. Any
expenses incurred in administering the fund shall be paid from the
fund. The treasurer of state shall invest the money in the fund not
currently needed to meet the obligations of the fund in the same
manner as other public money may be invested.
(c) Interest earned on money in the fund shall be credited to the
fund.
(d) Refunds claimed for credits allowed under this chapter shall
be paid from the fund.
(e) There is annually appropriated to the treasurer of state an
amount sufficient to pay refund claims by retail merchants for
redemptions made under this chapter from the state general fund
for the treasurer of state's use in paying refund claims.
Sec. 9. At the time a retail merchant files a return under
IC 6-2.5-6-1, the retail merchant shall report the amount of
redemptions made by the merchant under this chapter for the
applicable period.
Sec. 10. (a) For any period, a retail merchant is entitled to a
credit against the retail merchant's state gross retail and use tax
liability for the amount of redemptions made by the merchant
under this chapter during the period.
(b) If the credit allowed by subsection (a) exceeds the amount of
the retail merchant's state gross retail and use tax liability for the
period, the retail merchant may carry the credit allowed by
subsection (a) forward for not more than three (3) years or until
the credit allowed by subsection (a) is completely depleted,
whichever occurs first.
(c) A retail merchant may claim a refund in accordance with the
procedure described in IC 6-8.1-9 for the remainder of any credit
to which the retail merchant is entitled under subsection (a),
reduced by any part of the credit applied against the retail
merchant's state gross retail and use tax liability under subsection
(b).