LANSING – State Rep. Joan Bauer (D-East Lansing) today threw her support behind proposals to crack down on the smuggling of illegal out-of-state bottles and cans redeemed at Michigan stores, which robs Michigan of environmental cleanup funds, threatens jobs and hurts businesses.
"Out-of-state cans and bottles are threatening our businesses, jobs and environment," said Bauer, a co-sponsor of the bill. "Bottle and can smuggling is a triple threat against Michigan – our businesses lose customers, our workers lose jobs and our state loses vital funding. It's time we put a stop to this harmful practice."
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 it never collected in the first place. Ultimately that reduces the unclaimed deposit fund that pays for the state's environmental cleanup programs. A 2000 study estimates that Michigan loses $10 million each year because of fraudulent bottle and can returns.[1] A 2006 operation involving law enforcement agencies and the Michigan Liquor Control Commission also found rampant violations of Michigan importation law, which limits imports of beer into Michigan 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.
"Containers from Indiana, Ohio and Wisconsin should stay on the other side of the border," Bauer said. "This plan will protect our businesses and our land, air and water, and will ensure that Michigan remains a great place to live, work and raise a family."
The proposals take a two-pronged approach to fighting the problem:
· Drinks 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.