Senate Bill No. 516 proposes significant amendments to Connecticut's beverage container redemption law, commonly referred to as the "bottle bill." The bill requires the Commissioner of Revenue Services to establish the statewide average redemption rate for beverage containers by February 15, 2027. Should this rate exceed 100%, the refund value for beverage containers will be reduced from 10 cents to 5 cents, effective July 1, 2027, or as soon as feasible for the beverage industry. This reduced refund will remain until the Commissioner certifies that 100% of redeemed containers were sold in the state. Additionally, deposit initiators who experienced a negative balance due to over-redemption in fiscal years 2025 and 2026 can apply for full reimbursement of their losses. The bill maintains existing handling fee rates for distributors, which are set at 2.5 cents for certain beverages and 3.5 cents for others.

Moreover, the bill introduces new provisions that allow for an increase in the redemption value by up to one cent if a redemption center does not use specific scanning technology. It also authorizes rebates for deposit initiators reporting a negative balance in their special accounts for the quarter ending June 30, 2026. The legislation includes prohibitions against dealers collecting or charging a refund value on containers not purchased in Connecticut and prevents misrepresentation of beverage container details by dealers and redemption centers. The Finance, Revenue and Bonding Committee has favorably reported this bill with a vote of 38 in favor and 15 against.