Bill Text: NY S00237 | 2023-2024 | General Assembly | Amended


Bill Title: Relates to returnable bottles; adds noncarbonated soft drinks, certain noncarbonated fruit or vegetable juices, coffee and tea beverages, carbonated fruit beverages and cider to the definition of "beverage"; provides that beginning April 1, 2026, the handling fee will be six cents for each beverage container accepted by a deposit initiator from a dealer or operator of a redemption center.

Spectrum: Partisan Bill (Democrat 17-0)

Status: (Introduced) 2024-05-03 - PRINT NUMBER 237C [S00237 Detail]

Download: New_York-2023-S00237-Amended.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                         237--C

                               2023-2024 Regular Sessions

                    IN SENATE

                                       (Prefiled)

                                     January 4, 2023
                                       ___________

        Introduced  by  Sens. MAY, BRESLIN, BRISPORT, CLEARE, GONZALEZ, HINCHEY,
          HOYLMAN-SIGAL, JACKSON, KAVANAGH,  KRUEGER,  RAMOS,  RIVERA,  SALAZAR,
          SEPULVEDA, WEBB -- read twice and ordered printed, and when printed to
          be  committed  to  the  Committee  on  Environmental  Conservation  --
          reported favorably from said committee and committed to the  Committee
          on Finance -- committee discharged, bill amended, ordered reprinted as
          amended  and  recommitted  to  said committee -- committee discharged,
          bill amended, ordered reprinted as amended  and  recommitted  to  said
          committee  --  recommitted to the Committee on Environmental Conserva-
          tion in accordance with Senate Rule 6, sec. 8 -- committee discharged,
          bill amended, ordered reprinted as amended  and  recommitted  to  said
          committee

        AN  ACT  to  amend  the  environmental  conservation law, in relation to
          returnable bottles; and to repeal section 27-1018 of such law relating
          to the beverage container assistance program

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  Subdivision  1  of  section  27-1003 of the environmental
     2  conservation law, as amended by section 2 of part SS of  chapter  59  of
     3  the laws of 2009, is amended to read as follows:
     4    1. "Beverage" means carbonated soft drinks, noncarbonated soft drinks,
     5  noncarbonated fruit or vegetable juices containing less than one hundred
     6  percent  fruit  or vegetable juice, coffee and tea beverages, carbonated
     7  fruit beverages, water, beer, other malt beverages, cider as defined  in
     8  section three of the alcoholic beverage control law, and [a] wine [prod-
     9  uct]  products as defined in [subdivision thirty-six-a of] section three
    10  of the alcoholic beverage control law. "Malt beverages" means any bever-
    11  age obtained by the alcoholic fermentation or infusion or  decoction  of
    12  barley, malt, hops, or other wholesome grain or cereal and water includ-
    13  ing,  but  not  limited  to ale, stout or malt liquor. "Water" means any

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00531-17-4

        S. 237--C                           2

     1  beverage identified through the use of letters, words or symbols on  its
     2  product label as a type of water, including any flavored water or nutri-
     3  tionally  enhanced  water[,  provided,  however,  that  "water" does not
     4  include  any beverage identified as a type of water to which a sugar has
     5  been added].
     6    § 2. Subdivision 1 of section 27-1003 of the  environmental  conserva-
     7  tion  law,  as amended by section one of this act, is amended to read as
     8  follows:
     9    1.  "Beverage"  means  [carbonated  soft  drinks,  noncarbonated  soft
    10  drinks, noncarbonated fruit or vegetable juices containing less than one
    11  hundred  percent  fruit  or  vegetable  juice, coffee and tea beverages,
    12  carbonated fruit beverages, water, beer, other malt beverages, cider  as
    13  defined  in  section  three of the alcoholic beverage control law, and a
    14  wine product as defined in  section  three  of  the  alcoholic  beverage
    15  control  law.  "Malt beverages" means any beverage obtained by the alco-
    16  holic fermentation or infusion or decoction of barley,  malt,  hops,  or
    17  other  wholesome grain or cereal and water including, but not limited to
    18  ale, stout or malt liquor. "Water" means any beverage identified through
    19  the use of letters, words or symbols on its product label as a  type  of
    20  water, including any flavored water or nutritionally enhanced water] any
    21  drinkable  liquid intended for human oral consumption. The term beverage
    22  does not include: a drug regulated under the  Federal  Food,  Drug,  and
    23  Cosmetic  Act, 21 U.S.C. 301 et seq.; infant formula; a meal replacement
    24  liquid; dairy products  derived  from  animal  milk;  plant-based  dairy
    25  alternatives; and noncarbonated fruit or vegetable juices containing one
    26  hundred percent fruit or vegetable juice.
    27    §  3.  Subdivisions  8  and 12 of section 27-1003 of the environmental
    28  conservation law, subdivision 8 as added by chapter 200 of the  laws  of
    29  1982  and  subdivision 12 as added by section 3 of part SS of chapter 59
    30  of the laws of 2009, are amended and five new subdivisions 14,  15,  16,
    31  17 and 18 are added to read as follows:
    32    8. "Redeemer" means every person who demands the refund value provided
    33  for  herein  in exchange for the empty beverage container, regardless of
    34  personal purchase of the beverage container, but  shall  not  include  a
    35  dealer as defined in subdivision four of this section.
    36    12.  "Reverse  vending  machine" means an automated device that uses a
    37  laser scanner, microprocessor, or other technology to accurately  recog-
    38  nize  the universal product code (UPC) on containers to determine if the
    39  container is redeemable and accumulates information regarding containers
    40  redeemed, including the number  of  such  containers  redeemed,  thereby
    41  enabling the reverse vending machine to accept containers from redeemers
    42  and  to  issue  legal  tender or a scrip [or], receipt, or other form of
    43  credit for their refund value.  Such  definition  shall  also  apply  to
    44  alternative technology approved by the commissioner pursuant to subpara-
    45  graph  (iii)  of  paragraph (b) of subdivision one of section 27-1007 of
    46  this title.  Nothing in this definition shall be construed to relieve  a
    47  dealer  specified  in subparagraph (iii) of paragraph (b) of subdivision
    48  one of section 27-1007 of this title of the requirement  to  provide  an
    49  immediate  form  of  deposit repayment if the reverse vending machine or
    50  alternative technology does not provide such.
    51    14. "Refillable beverage container" means any beverage container which
    52  is so constructed and designed that it is structurally capable of  being
    53  refilled and resold at least fifty times by a beverage manufacturer, and
    54  which  the beverage manufacturer requires to be returned for the purpose
    55  of refilling and resale.

        S. 237--C                           3

     1    15. "Return and reusable system" means a refillable beverage container
     2  reuse system that features an operational and financial  arrangement  in
     3  which refillable beverage containers are collected for washing and reus-
     4  ing.  The distances between each point of the system shall be no greater
     5  than two hundred miles.
     6    16. "Redemption rate" means the percentage of beverage containers sold
     7  that are redeemed for deposit value.
     8    17. "Recycling" means to separate, dismantle or process the materials,
     9  components  or  commodities  contained  in  discards  for the purpose of
    10  preparing the materials, components, or commodities for use or reuse  in
    11  new products or components. "Recycling" shall not include:
    12    (a)  energy recovery or  energy generation by any means, including but
    13  not limited to,  combustion,  incineration,  pyrolysis,    gasification,
    14  solvolysis, or waste-to-fuel;
    15    (b)  any  chemical  conversion  process; or
    16    (c) landfill disposal.
    17    18.  "Recycling  rate"  means  the  percentage  of  redeemed  beverage
    18  containers that are ultimately recycled. The  recycling  rate  shall  be
    19  calculated  as the total weight of beverage containers that are recycled
    20  in a given year divided by  the  total  weight  of  beverage  containers
    21  generated by a distributor in that year.
    22    §  4.  Section 27-1007 of the environmental conservation law, as added
    23  by section 4 of part SS of chapter 59 of the laws of 2009, paragraph (b)
    24  of subdivision 1 as amended by chapter 459 of  the  laws  of  2011,  and
    25  subdivision 12 as added by section 3 of part F of chapter 58 of the laws
    26  of 2013, is amended to read as follows:
    27  § 27-1007. Mandatory acceptance.
    28    Except as provided in section 27-1009 of this title:
    29    1.  (a)  A  dealer shall accept at [his or her] such dealer's place of
    30  business from a redeemer any empty beverage containers  of  the  design,
    31  shape,  size,  color,  composition and brand sold or offered for sale by
    32  the dealer, and shall pay to the redeemer the refund value of each  such
    33  beverage  container  as  established  in  section 27-1005 of this title.
    34  Redemptions of refund value must be in  legal  tender,  or  a  scrip  or
    35  receipt  from  a  reverse  vending  machine,  provided that the scrip or
    36  receipt can be exchanged for legal tender for a period of not less  than
    37  sixty  days without requiring the purchase of other goods.  In the event
    38  such scrip or receipt expires, such scrip or receipt must  indicate  any
    39  expiration  date  and the dealer must post a conspicuous sign indicating
    40  how many days a redeemer has to exchange the scrip or receipt for  legal
    41  tender.  If  such notification is not provided, a dealer must redeem the
    42  full refund value indicated on any legible scrip or receipt. The use  or
    43  presence  of a reverse vending machine shall not relieve a dealer of any
    44  obligations imposed pursuant to this section. If  a  dealer  utilizes  a
    45  reverse  vending  machine to redeem containers, the dealer shall provide
    46  redemption of beverage containers when the reverse  vending  machine  is
    47  full,  broken,  under  repair  or  does  not  accept  a type of beverage
    48  container sold or offered for sale by such dealer and may not limit  the
    49  hours  or  days of redemption except as provided by subdivision three of
    50  this section.  All dealers and redemption centers shall provide  consum-
    51  ers the ability to recycle any containers deemed unredeemable.
    52    (b)  Beginning  March first, two thousand ten, a dealer whose place of
    53  business is part of a chain engaged in the same general field  of  busi-
    54  ness  which operates ten or more units in this state under common owner-
    55  ship and whose business has at least: (i) forty thousand but  less  than
    56  sixty  thousand  square  feet  devoted to the display of merchandise for

        S. 237--C                           4

     1  sale to the public shall install and maintain at least two reverse vend-
     2  ing machines at the dealer's place of business; (ii) sixty thousand  but
     3  less  than  eighty-five  thousand  square feet devoted to the display of
     4  merchandise  for  sale to the public shall install and maintain at least
     5  three reverse vending machines at the dealer's  place  of  business;  or
     6  (iii)  eighty-five  thousand  square  feet  devoted  to  the  display of
     7  merchandise for sale to the public shall install and maintain  at  least
     8  four  reverse  vending  machines  at the dealer's place of business. The
     9  requirements of [paragraph (b) of] this subdivision to install and main-
    10  tain reverse vending machines shall not apply  to  a  dealer  that:  (i)
    11  sells  only  beverage  containers  of  twenty  ounces or less where such
    12  beverage containers are packaged in  quantities  fewer  than  six;  (ii)
    13  sells  beverage  containers and devotes no more than five percent of its
    14  floor space to the display and sale of consumer commodities, as  defined
    15  in section two hundred fourteen-h of the agriculture and markets law; or
    16  (iii)  obtains  a  waiver  from  the commissioner authorizing dealers to
    17  provide consumers with an alternative technology that: (A) determines if
    18  the container is redeemable,  (B)  provides  protections  against  fraud
    19  through  a  system that validates each container redeemed by reading the
    20  universal product code and, except with respect to  refillable  contain-
    21  ers,  renders  the  container  unredeemable, (C) accumulates information
    22  regarding containers redeemed, and (D) issues legal tender, or a  scrip,
    23  receipt,  or  other  form  of  credit  for the refund value, that can be
    24  exchanged for legal tender for a period of  not  less  than  sixty  days
    25  without  requiring  the purchase of other goods and includes any expira-
    26  tion date on the scrip, receipt, or other form of credit.  Notwithstand-
    27  ing  the foregoing, if the alternative technology does not allow consum-
    28  ers to immediately obtain the refund value of the redeemed container,  a
    29  dealer  shall be permitted to deploy such alternative technology only if
    30  it also offers an alternative that allows consumers to conveniently  and
    31  immediately  obtain  such refund value through a reverse vending machine
    32  or other alternative method.
    33    (c) A dealer to which paragraph (b) of this subdivision does not apply
    34  and whose place of business is at least forty thousand square feet which
    35  does not utilize reverse vending  machines  to  process  empty  beverage
    36  containers  for redemption shall: (i) establish and maintain a dedicated
    37  area within such business to accept beverage containers for  redemption;
    38  (ii)  adequately  staff such area to facilitate efficient acceptance and
    39  processing of such containers during business hours; and (iii) post  one
    40  or  more conspicuous signs conforming to the size and color requirements
    41  described in subdivision two of this section at each public entrance  to
    42  the  business  which describes where in the business the redemption area
    43  is located. The commissioner may  establish  in  rules  and  regulations
    44  additional standards for the efficient processing of beverage containers
    45  by such dealers.
    46    (d)  For  the purposes of this subdivision on any day that a dealer is
    47  open for less than twenty-four hours, the dealer may restrict or  refuse
    48  the  payment  of refund values during the first and last hour the dealer
    49  is open for business.
    50    2. A dealer shall post a conspicuous sign, at the point of sale,  that
    51  states:
    52                       "NEW YORK BOTTLE BILL OF RIGHTS

    53   STATE LAW REQUIRES US TO REDEEM EMPTY RETURNABLE BEVERAGE CONTAINERS OF
    54           THE SAME TYPE AND BRAND THAT WE SELL OR OFFER FOR SALE

        S. 237--C                           5

     1  YOU  HAVE  CERTAIN  RIGHTS UNDER THE NEW YORK STATE RETURNABLE CONTAINER
     2  ACT:
     3    THE  RIGHT  to  return your empties for refund to any dealer who sells
     4  the same brand, type and size, whether you bought the beverage from  the
     5  dealer  or  not.  It is illegal to return containers for refund that you
     6  did not pay a deposit on in New York state.
     7    THE RIGHT to get  your  deposit  refund  in  cash,  without  proof  of
     8  purchase.
     9    THE  RIGHT  to  return  your empties any day, any hour, except for the
    10  first and last hour of the dealer's business day (empty  containers  may
    11  be redeemed at any time in 24-hour stores).
    12    THE  RIGHT  to  return  your  containers if they are empty and intact.
    13  Washing containers is not required by law, but is  strongly  recommended
    14  to maintain sanitary conditions.
    15    The New York state returnable container act can be enforced by the New
    16  York  state department of environmental conservation, the New York state
    17  department of agriculture and markets, the New York state department  of
    18  taxation and finance, the New York state attorney general and/or by your
    19  local government."
    20    Such  sign must be no less than eight inches by ten inches in size and
    21  have lettering a minimum of one quarter inch high, and of a color  which
    22  contrasts with the background. The department shall maintain a toll free
    23  telephone number for a "bottle bill complaint line" that shall be avail-
    24  able from 9:00 a.m. to 5:00 p.m. each business day to receive reports of
    25  violations  of  this  title. The telephone number shall be listed on any
    26  sign required by this section.
    27    3. On or after June first, two thousand nine, a dealer may  limit  the
    28  number of empty beverage containers to be accepted for redemption at the
    29  dealer's  place  of  business to no less than seventy-two containers per
    30  visit, per redeemer, per day, provided that:
    31    (a) The dealer has a written agreement with a redemption center, be it
    32  either at a fixed physical location within the same  county  and  within
    33  [one-half]  one  mile  of  the  dealer's  place of business, or a mobile
    34  redemption center, operated by a  redemption  center,  that  is  located
    35  within  one-quarter  mile of the dealer's place of business. The redemp-
    36  tion center must have a written agreement  with  the  dealer  to  accept
    37  containers on behalf of the dealer; and the redemption center's hours of
    38  operation  must cover at least [9:00 a.m. through 7:00 p.m.] eight hours
    39  daily or in the case of a mobile redemption center, the hours of  opera-
    40  tion  must  cover  at least four consecutive hours between 8:00 a.m. and
    41  8:00 p.m.  daily. The dealer must post a  conspicuous,  permanent  sign,
    42  meeting  the  size and color specifications set forth in subdivision two
    43  of this section, open to public view, identifying the location and hours
    44  of operation of the affiliated redemption center  or  mobile  redemption
    45  center; and
    46    (b)  The  dealer provides, at a minimum, a consecutive two hour period
    47  between 7:00 a.m. and 7:00 p.m. daily whereby the dealer will accept  up
    48  to  two  hundred  forty  containers,  per redeemer, per day, and posts a
    49  conspicuous, permanent sign, meeting the size and  color  specifications
    50  set forth in subdivision two of this section, open to public view, iden-
    51  tifying  those  hours. The dealer may not change the hours of redemption
    52  without first posting a thirty day notice; and
    53    (c) The dealer's primary business is the sale of food or beverages for
    54  consumption off-premises, and the dealer's place  of  business  is  less
    55  than ten thousand square feet in size.

        S. 237--C                           6

     1    4.  A  deposit  initiator  shall accept from a dealer or operator of a
     2  redemption center any empty beverage container  of  the  design,  shape,
     3  size,  color,  composition  and  brand  sold  or offered for sale by the
     4  deposit initiator, and shall pay the dealer or operator of a  redemption
     5  center  the  refund value of each such beverage container as established
     6  by section 27-1005 of this title. A deposit initiator shall  accept  and
     7  redeem  all  such  empty beverage containers from a dealer or redemption
     8  center without limitation on quantity.
     9    5. A deposit initiator's or distributor's failure  to  pick  up  empty
    10  beverage containers, including containers processed in a reverse vending
    11  machine,  from  a redemption center, dealer or the operator of a reverse
    12  vending machine, in a timely manner and at reasonable times as  provided
    13  by  the  department  pursuant to the regulations promulgated pursuant to
    14  paragraph (c) of subdivision eight of this section shall be a  violation
    15  of this title.
    16    6.  In  addition to the refund value of a beverage container as estab-
    17  lished by section 27-1005 of this title, a deposit initiator  shall  pay
    18  to  any  dealer  or  operator  of  a redemption center a handling fee of
    19  [three and one-half] five cents for each beverage container accepted  by
    20  the  deposit  initiator  from  such  dealer  or operator of a redemption
    21  center.  Beginning April first, two thousand  twenty-six,  the  handling
    22  fee shall be six cents.  Beginning April first, two thousand thirty-one,
    23  the  handling fee shall be six and one-half cents. Payment of the handl-
    24  ing fee shall be as compensation for collecting, sorting  and  packaging
    25  of empty beverage containers for transport back to the deposit initiator
    26  or  its  designee. Payment of the handling fee may not be conditioned on
    27  the purchase of any goods or services, nor may such payment be made  out
    28  of  the  refund value account established pursuant to section 27-1012 of
    29  this title. A distributor who does not initiate deposits on  a  type  of
    30  beverage  container  is  considered  a  dealer  only  for the purpose of
    31  receiving a handling fee from a deposit initiator.
    32    7. A deposit initiator on a brand shall accept from a distributor  who
    33  does  not  initiate deposits on that brand any empty beverage containers
    34  of that brand accepted by the distributor from a dealer or operator of a
    35  redemption center and shall reimburse the distributor the  refund  value
    36  of  each  such  beverage container, as established by section 27-1005 of
    37  this title. In addition, the  deposit  initiator  shall  reimburse  such
    38  distributor  for  each  such  beverage container the handling fee estab-
    39  lished under subdivision six  of  this  section.  Without  limiting  the
    40  rights  of  the department or any person, firm or corporation under this
    41  subdivision or any other provision of this section, a distributor  shall
    42  have  a  civil  right  of action to enforce this subdivision, including,
    43  upon three days notice, the right to apply for temporary and preliminary
    44  injunctive relief against continuing violations, and until  arrangements
    45  for  collection  and return of empty containers or reimbursement of such
    46  distributor for such deposits and handling fees are made.
    47    8. It shall be the responsibility of the deposit initiator or distrib-
    48  utor to provide to a dealer or redemption center a sufficient number  of
    49  bags, cartons, or other suitable containers, at no cost, for the packag-
    50  ing,  handling  and  pickup  of  empty  beverage containers that are not
    51  redeemed through a  reverse  vending  machine.  The  bags,  cartons,  or
    52  containers must be provided by the deposit initiator or distributor on a
    53  schedule  that allows the dealer or redemption center sufficient time to
    54  sort the empty beverage containers prior  to  pick  up  by  the  deposit
    55  initiator or distributor. In addition:

        S. 237--C                           7

     1    (a)  When picking up empty beverage containers, a deposit initiator or
     2  distributor shall not require a dealer  or  redemption  center  to  load
     3  their  own  bags,  cartons or containers onto or into the deposit initi-
     4  ator's or distributor's vehicle or vehicles  or  provide  the  staff  or
     5  equipment  needed  to  do  so.  However,  where  pallets or skids, bags,
     6  cartons or containers are readily movable only by means of a forklift or
     7  similar equipment, a deposit initiator  or  distributor  may  require  a
     8  dealer  or redemption center to move or load such items at no cost using
     9  a forklift or similar equipment belonging to the  dealer  or  redemption
    10  center  provided  that  such equipment and appropriate staff are readily
    11  available.
    12    (b) A  deposit  initiator  or  distributor  shall  not  require  empty
    13  containers  to be counted at a location other than the redemption center
    14  or dealer's place of business. The dealer  or  redemption  center  shall
    15  have the right to be present at the count. In the event of a discrepancy
    16  between  the  count  of the dealer or redemption center and the count of
    17  the deposit  initiator  or  distributor  for  containers  not  processed
    18  through  a  reverse  vending  machine all such empty containers shall be
    19  retained and a re-count may be requested. The re-count may be held at  a
    20  location  other than the redemption center or dealer's place of business
    21  only if the dealer or redemption center agrees and is present.
    22    (c) A deposit initiator or distributor shall pick  up  empty  beverage
    23  containers  from  the dealer or redemption center in a timely manner and
    24  at reasonable times [and intervals] as  determined  in  rules  or  regu-
    25  lations  promulgated  by  the  department no later than April first, two
    26  thousand twenty-six.
    27    9. No person shall return or assist another to return to a  dealer  or
    28  redemption  center  an  empty beverage container for its refund value if
    29  such container had previously been accepted for redemption by a  dealer,
    30  redemption center, or deposit initiator who initiates deposits on bever-
    31  age containers of the same brand.
    32    10.  A  redeemer,  dealer,  distributor or redemption center shall not
    33  knowingly redeem an empty beverage container  on  which  a  deposit  was
    34  never paid in New York state.
    35    11.  Notwithstanding  the  provisions  of  subdivision  two of section
    36  27-1009 of this title, a deposit initiator or distributor  shall  accept
    37  and  redeem beverage containers as provided in this title, if the dealer
    38  or operator of a redemption center shall  have  accepted  and  paid  the
    39  refund value of such beverage containers.
    40    12. No person shall intentionally program, tamper with, render inaccu-
    41  rate, or circumvent the proper operation of a reverse vending machine to
    42  wrongfully  elicit  deposit  monies  when  no valid, redeemable beverage
    43  container has been placed in and properly processed by the reverse vend-
    44  ing machine.
    45    13. The department and the department  of  taxation  and  finance  are
    46  authorized to audit any reverse vending machine.
    47    14.  Notwithstanding  any provision of this section to the contrary, a
    48  dealer shall not be required to accept from a redeemer any empty  bever-
    49  age  container  at  a  farmers'  market  as  such term is defined by the
    50  department of agriculture and markets.
    51    § 5. Subdivision 1 of section 27-1011 of the  environmental  conserva-
    52  tion law is amended by adding a new paragraph c to read as follows:
    53    c. Each beverage container sold or offered for sale in this state that
    54  has  a  refund  value pursuant to paragraph a of this subdivision, shall
    55  include a universal product code and barcode printed on the  label  that
    56  is  readable  by reverse vending machine or alternative technology. Each

        S. 237--C                           8

     1  deposit initiator shall provide such universal product code and  barcode
     2  and  ownership and packaging information of any such beverage container,
     3  to the department not less than forty-five days prior  to  such  product
     4  being offered for sale in the state. The department shall, not more than
     5  thirty  days  after  receipt  of such information, make this information
     6  readily available to any  redemption  center,  reverse  vending  machine
     7  system  operator, deposit initiator-authorized contracted agents, or any
     8  other appropriate stakeholder approved by the department.
     9    § 6. Paragraph (b) of subdivision 3 of section 27-1011 of the environ-
    10  mental conservation law, as added by section 1 of part PP of chapter  58
    11  of the laws of 2018, is amended and a new subdivision 4 is added to read
    12  as follows:
    13    (b)  comply with [minimum post-consumer recycled material content and]
    14  hole diameter limitations as defined in rules and regulations promulgat-
    15  ed  by  the  department  no  later  than  April  first,   two   thousand
    16  twenty-five,  and  is  recyclable  and  indicates a resin identification
    17  code.
    18    4. Each distributor is required  to  meet  the  following  performance
    19  requirements:  (a)  Beginning April first, two thousand thirty, at least
    20  twenty-five percent of all beverage containers sold by each  distributor
    21  in  the  state  shall be refillable containers that are part of a return
    22  and reusable system. Each distributor shall work with  dealers,  reverse
    23  vending  machine owners, and  redemption centers to ensure that refilla-
    24  ble beverage containers sold by the  distributor  achieve  at  least  an
    25  eighty percent return rate.
    26    (b) (i) Beginning April first, two thousand twenty-five, all distribu-
    27  tors  of  non-refillable  beverage containers shall report the recycling
    28  rate, by material type, of redeemed containers to the department.
    29    (ii) Beginning April first, two thousand twenty-six, at least  seventy
    30  percent of the redeemed beverage container material shall be recycled.
    31    (iii)  Beginning  April  first,  two  thousand  twenty-eight, at least
    32  eighty percent of the redeemed  beverage  container  material  shall  be
    33  recycled.
    34    (iv)  Beginning  April  first,  two  thousand  thirty, at least ninety
    35  percent of the redeemed beverage container material, including  beverage
    36  container caps, lids, and other rigid sealers, shall be recycled.
    37    §  7.    Subdivision   5   of   section   27-1012 of the environmental
    38  conservation law, as amended by section 2 of part JJ of  chapter  58  of
    39  the laws of 2017, is amended to read as follows:
    40    5. All moneys collected or received by the department of taxation  and
    41  finance  pursuant  to this title shall be deposited to the credit of the
    42  comptroller with such responsible banks, banking houses or trust  compa-
    43  nies  as  may  be  designated by the comptroller. Such deposits shall be
    44  kept separate and apart from all other moneys in the possession  of  the
    45  comptroller.  The  comptroller  shall require adequate security from all
    46  such depositories. Of the total revenue collected, the comptroller shall
    47  retain the amount determined by the commissioner of taxation and finance
    48  to be necessary for refunds out of which the comptroller  must  pay  any
    49  refunds  to which a deposit initiator may be entitled.  Of  the  revenue
    50  remaining following payments  of  any  refunds,  the  comptroller  shall
    51  retain  an  amount equal to five percent of the total  for  the beverage
    52  container assistance program established pursuant to section 27-1018  of
    53  this  title.  After reserving the amount to pay refunds, the comptroller
    54  must, by the tenth day of each month, pay into the state treasury to the
    55  credit of the general fund the revenue deposited under this  subdivision
    56  during  the  preceding calendar month and remaining to the comptroller's

        S. 237--C                           9

     1  credit on the last day of that preceding month; provided, however, that,
     2  beginning April first, two thousand thirteen, nineteen million  dollars,
     3  and  all  fiscal years thereafter, twenty-three million dollars plus all
     4  funds received from the payments due each fiscal year pursuant to subdi-
     5  vision  four  of  this  section  in  excess of the greater of the amount
     6  received from April first, two thousand  twelve  through  March  thirty-
     7  first,  two  thousand  thirteen  or  one  hundred twenty-two million two
     8  hundred thousand dollars, shall be deposited to the credit of the  envi-
     9  ronmental  protection  fund established pursuant to section ninety-two-s
    10  of the state finance law.
    11    § 8. Paragraph c of subdivision 3 of section 27-1012 of  the  environ-
    12  mental  conservation law, as added by section 8 of part SS of chapter 59
    13  of the laws of 2009, is amended and a new subdivision  13  is  added  to
    14  read as follows:
    15    c.  all withdrawals from the refund value account during such quarter,
    16  including all reimbursements paid pursuant to subdivision  two  of  this
    17  section,  all service charges on the account, provided that such service
    18  charges do not exceed the maximum amount authorized by the commissioner,
    19  and all payments made pursuant to subdivision four of this section; and
    20    13. Annually the department, in consultation with  the  department  of
    21  taxation  and  finance,  shall  use  available information to produce an
    22  annual report at a minimum containing information on  redemption  rates,
    23  container  material  types by percent usage, refillable container usage,
    24  fraud and enforcement actions, an  analysis  of  the  handling  fee  and
    25  consumer  price  index,  and  information  on  how this program helps to
    26  achieve the targets of chapter one hundred six of the laws of two  thou-
    27  sand  nineteen.    Such  report shall be shared with the legislature and
    28  posted publicly on the department's website.
    29    § 9. Paragraph a of subdivision 4 of section 27-1012 of  the  environ-
    30  mental  conservation law, as added by section 8 of part SS of chapter 59
    31  of the  laws of 2009, is amended to read as follows:
    32    a. Quarterly payments. An  amount  equal  to  eighty  percent  of  the
    33  balance  outstanding  in  the  refund value account at the close of each
    34  quarter shall be paid to the commissioner of taxation and finance at the
    35  time the report provided for in subdivision three  of  this  section  is
    36  required  to  be  filed.  The  commissioner  of taxation and finance may
    37  require that the payments be made electronically. The  remaining  twenty
    38  percent of the balance outstanding at the close of each quarter shall be
    39  the  monies  of  the  deposit  initiator  and may be withdrawn from such
    40  account by the deposit initiator.   However,  a  deposit  initiator  who
    41  initiates deposits on refillable beverage containers which are part of a
    42  return  and  reusable  system  may be entitled to pay an amount equal to
    43  seventy-five percent of the balance  outstanding  in  the  refund  value
    44  account  specifically  attributable to refillable beverage containers at
    45  the close of each quarter to the commissioner of taxation and finance at
    46  the time the report provided for in subdivision three of this section is
    47  required to   be filed. The department shall  promulgate  rules  on  the
    48  eligibility of deposit initiators for such refillable beverage container
    49  bonus.  If  the  provisions of this section with respect to such account
    50  have not been fully complied with, each deposit initiator shall  pay  to
    51  such  commissioner  at such time, in lieu of the amount described in the
    52  preceding sentence, an amount equal to the balance which would have been
    53  outstanding on such date had such provisions been fully  complied  with.
    54  The  commissioner  of taxation and finance may require that the payments
    55  be made electronically.

        S. 237--C                          10

     1    § 10. Paragraph a of subdivision 7 of section 27-1012 of the  environ-
     2  mental  conservation  law, as amended by section 8 of part SS of chapter
     3  59 of the laws of 2009, is amended to read as follows:
     4    a. Any person who is a deposit initiator under this title before April
     5  first, two thousand nine, must apply by June first, two thousand nine to
     6  the  commissioner  of taxation and finance for registration as a deposit
     7  initiator. Any person who becomes a deposit initiator on or after  April
     8  first,  two thousand nine shall apply for registration prior to collect-
     9  ing any deposits as such a deposit initiator. Such application shall  be
    10  in  a  form  prescribed  by the commissioner of taxation and finance and
    11  shall require such information deemed to be necessary for proper  admin-
    12  istration  of  this  title. The commissioner of taxation and finance may
    13  require that applications for registration must be  submitted  electron-
    14  ically.  The  commissioner  of taxation and finance shall electronically
    15  issue a deposit initiator registration certificate in a form  prescribed
    16  by  the  commissioner  of  taxation  and  finance within fifteen days of
    17  receipt of such application or may take an additional ten  days  if  the
    18  commissioner  of taxation and finance deems it necessary to consult with
    19  the commissioner before issuing such registration certificate. A  regis-
    20  tration  certificate  issued  pursuant to this subdivision may be issued
    21  for a specified term of not less than three years and shall  be  subject
    22  to  renewal  in accordance with procedures specified by the commissioner
    23  of taxation and finance. The commissioner of taxation and finance  shall
    24  furnish to the commissioner a complete list of registered deposit initi-
    25  ators  and  shall continually update such list as warranted. The commis-
    26  sioner shall share any information with the commissioner of taxation and
    27  finance that is necessary for the administration  of  this  subdivision.
    28  The commissioner shall publish the list of registered deposit initiators
    29  and  their covered products, and a list of registered redemption centers
    30  on the department's website.
    31    § 11. Section  27-1014  of  the  environmental  conservation  law,  as
    32  amended  by  section 10 of part SS of chapter 59 of the laws of 2009, is
    33  amended to read as follows:
    34  § 27-1014. Authority to promulgate rules and regulations.
    35    In addition to the  authority  of  the  commissioner,  under  sections
    36  27-1007,  27-1009  [and], 27-1011, 27-1012, 27-1013, and 27-1018 of this
    37  title, the commissioner shall have the power  to  promulgate  rules  and
    38  regulations  necessary  and  appropriate  for the administration of this
    39  title.
    40    § 12. Section 27-1018 of the environmental conservation law, as  added
    41  by  section  13 of part SS of chapter 59 of the laws of 2009, is amended
    42  to read as follows:
    43  § 27-1018. Beverage container assistance program.
    44    Notwithstanding any other provision of law to the contrary, within the
    45  amounts retained by the comptroller for use under the beverage container
    46  assistance  program  pursuant  to subdivision five of section 27-1012 of
    47  this title, and  within  the  limits  of  appropriations  therefor,  the
    48  commissioner  shall  make  state  assistance payments to municipalities,
    49  qualifying small businesses, and not-for-profit organizations located in
    50  the state, upon application, for the cost and  installation  of  reverse
    51  vending  machines  located  or  to  be  located in the state. Such state
    52  assistance payments shall not exceed  fifty  percent  of  the  costs  of
    53  equipment,  [and/or  the acquisition] installation and/or rehabilitation
    54  of real property or structures located or to be  located  in  the  state
    55  related  to  the  collecting,  sorting,  and packaging of empty beverage
    56  containers subject to the provisions of this title. [Such  payments  may

        S. 237--C                          11

     1  include  costs  related  to  the  establishment  of  redemption centers,
     2  including mobile redemption centers.] For the purposes of this  section,
     3  municipalities  and  not-for-profit organizations shall have the meaning
     4  as  defined in section 54-0101 of this chapter and qualified small busi-
     5  nesses shall mean  a  dealer[,  distributor]  or  redemption  center  as
     6  defined in this title that employs less than fifty employees. Preference
     7  for  these funds shall be given to registered redemption centers that do
     8  not utilize any reverse vending machines.  Preference  for  these  funds
     9  shall  also be given to municipalities, not-for-profit organizations, or
    10  qualified small businesses that do  not  have  a  registered  redemption
    11  center within one mile.
    12    §  13. Subdivision 1 of section 27-1013 of the environmental conserva-
    13  tion law, as amended by section 7 of part F of chapter 58 of the laws of
    14  2013, is amended to read as follows:
    15    1. The commissioner is hereby empowered to promulgate rules and  regu-
    16  lations  governing  (a)  the  circumstances in which deposit initiators,
    17  dealers and distributors, individually or collectively, are required  to
    18  accept  the  return  of  empty  beverage  containers, including beverage
    19  containers processed through reverse vending machines and  make  payment
    20  therefor; (b) the sorting of the containers which a deposit initiator or
    21  distributor  may  require  of  dealers  and  redemption centers; (c) the
    22  collection of returned beverage  containers  by  deposit  initiators  or
    23  distributors, including the party to whom such expense is to be charged,
    24  the  frequency  of  such  pick ups, a process for safe pick ups, and the
    25  payment for refunds and handling fees thereon; (d) the right of  dealers
    26  to  restrict  or  limit the number of containers redeemed, the rules for
    27  redemption at the dealers' place of  business,  and  the  redemption  of
    28  containers  from  a beverage for which sales have been discontinued; (e)
    29  [to] the right of redemption centers to have  timely,  transparent,  and
    30  safe  pick ups and transparent verification of container counts; (f) the
    31  department shall issue registrations to persons, firms  or  corporations
    32  which  establish redemption centers, subject to applicable provisions of
    33  local and state laws, at which redeemers and dealers  may  return  empty
    34  beverage  containers  and  receive  payment  of the refund value of such
    35  beverage containers[. Such], subject to a review that  considers  safety
    36  and  accessibility,  and  shall  be renewed every ten years. As of April
    37  first, two thousand twenty-six, such such registrations shall be  issued
    38  at  [no  cost] the cost of one hundred fifty dollars. Should the depart-
    39  ment require [by] any additional regulations adopted  pursuant  to  this
    40  paragraph  [that  redemption  centers  must  obtain  a registration as a
    41  condition of operation,] any redemption center in business as of  [March
    42  first, two thousand thirteen] April first, two thousand twenty-five that
    43  previously  provided  the  department  with the notification information
    44  required by regulations in effect as of such date may continue to  oper-
    45  ate  as  if the department had issued such redemption center a registra-
    46  tion required by regulations adopted  under  this  paragraph;  provided,
    47  however,  that  such redemption center shall provide the department with
    48  any other information required by regulations adopted pursuant  to  this
    49  paragraph.    The  department  may,  after due notice and opportunity of
    50  hearing, pursuant to the provisions of section 71-1709 of this  chapter,
    51  deny  an application or revoke a registration. In determining whether or
    52  not to revoke a registration the commissioner shall at a  minimum,  take
    53  into  consideration  the  compliance  history  of a violator, good faith
    54  efforts of a violator to comply, any economic benefit from noncompliance
    55  and whether the violation was procedural in nature.  The  commissioner's
    56  determination  to revoke a registration is subject to review under arti-

        S. 237--C                          12

     1  cle seventy-eight of the civil practice law and rules; [and (f)] (g) the
     2  operation of mobile redemption centers in order to ensure  that  to  the
     3  best extent practicable containers are not proffered for redemption to a
     4  deposit  initiator  or  distributor outside of the geographic area where
     5  such deposit initiator sells  containers  and  initiates  deposits;  (h)
     6  yearly  information  provided to the department from dealers and redemp-
     7  tion centers including number  of  containers  redeemed  and  any  other
     8  information  required  by  the  department;  and  (i) climate mitigation
     9  including targets within chapter one hundred six  of  the  laws  of  two
    10  thousand  nineteen  and  recommendations on improving redeemed container
    11  recycling rates.
    12    § 14.  Section 27-1005 of the environmental conservation law, as added
    13  by section 4 of part SS of chapter 59 of the laws of 2009, is amended to
    14  read as follows:
    15  § 27-1005. Refund value.
    16    No person shall sell or offer for sale a beverage  container  in  this
    17  state  unless  the  deposit  on  such  beverage container is or has been
    18  collected by a registered deposit initiator and  unless  such  container
    19  has  a  refund  value  of  not less than five cents, and beginning April
    20  first, two thousand twenty-six, a refund value  of  not  less  than  ten
    21  cents, which is clearly indicated thereon as provided in section 27-1011
    22  of this title.
    23    §  15.  Section  27-1018  of  the  environmental  conservation  law is
    24  REPEALED.
    25    § 16. This act shall take effect April  1,  2025;  provided,  however,
    26  that  section one of this act shall take effect April 1, 2026; provided,
    27  further, that section two of this act shall take effect April  1,  2029;
    28  provided,  further,  that  the  amendments  to  subdivision 6 of section
    29  27-1007 of the environmental conservation law made by  section  four  of
    30  this  act  shall  take  effect  immediately; and provided, further, that
    31  section fifteen of this act shall take effect January 1, 2038, with  any
    32  proceeds  transferred  to  the environmental protection fund established
    33  pursuant to section 92-s of the state finance law. Effective  immediate-
    34  ly,  the  addition,  amendment  and/or  repeal of any rule or regulation
    35  necessary for the implementation of this act on its effective  date  are
    36  authorized to be made and completed on or before such effective date.
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