LANSING – State Representatives Kate Ebli (D-Monroe) and Kathy Angerer (D-Dundee) today announced a plan to crack down on the smuggling of out-of-state bottles and cans illegally redeemed at Michigan stores, a practice that robs Michigan of much-needed environmental cleanup funds, threatens jobs and hurts businesses.
"Every single out-of-state can and bottle that's illegally redeemed in a Michigan store shortchanges our state of a dime," Ebli said. "That adds up quickly – over the course of a year, we're talking about Michigan taxpayers being robbed of about $10 million. Funds from bottle returns go toward paying for critical environmental cleanup programs that protect our land, air and water. With this plan, we will be able to take quick, decisive action to end this serious problem."
Under the nation's most successful bottle bill, Michigan pop and beer bottles have a 10-cent deposit that can be redeemed; neighboring states do not. Yet cans and bottles from Ohio, Indiana, Wisconsin, Illinois and other states are smuggled into Michigan and redeemed, meaning Michigan businesses pay out money that they never collected in the first place. That reduces the unclaimed deposit fund that pays for environmental cleanup programs. A 2000 study estimates that fraudulent returns cost Michigan $10 million each year.[1]
"Michigan can't afford to lose one dime at a time with illegally redeemed out-of-state bottles and cans," Angerer said. "This fraudulent practice creates a domino effect – our state is cheated out of vital funds, our businesses lose customers and our workers lose jobs. This plan will keep containers from Ohio, Indiana and other states that have no deposits from crossing into Michigan's borders. Cracking down on this fraud is another way we can protect small businesses in Michigan and the people who work for them."
A 2006 operation involving law enforcement and the Michigan Liquor Control Commission found rampant violations of Michigan's importation law, which limits imports of beer to about one case in a 24-hour period. The smuggling of cheaper beer and pop from neighboring states has caused Michigan border businesses to lose sales, lay off workers and even go out of business.
The plan unveiled by Ebli and Angerer takes a two-pronged approach to fighting the problem:
- Drink manufacturers must have a Universal Product Code or add-on bar code that identifies the container as returnable in Michigan, or
- Reverse vending machine manufacturers must upgrade their devices to be able to identify cans and bottles that come from other states.
A bipartisan group of more than 70 legislators is cosponsoring the proposal, which also has the support of the Michigan Environmental Council, Clean Water Action and the Sierra Club.
"As a wholesaler, I know first-hand how much the problem of fraudulent can-and-bottle redemption hurts businesses in our state – and how that in turn limits the revenue returned to the state of Michigan," said Mike Miller, CEO of Floral City Beverage in Monroe. "Our state's businesses and taxpayers can't afford the loss of these crucial dollars. This legislation will put an end to this illegal smuggling practice."