BILL NUMBER: S5820A
SPONSOR: SEPULVEDA
 
TITLE OF BILL:
An act to amend the environmental conservation law, in relation to the
handling fee paid to a dealer or operator of a redemption center for the
redemption of empty beverage containers
 
PURPOSE:
This bill would increase the handling fee paid to any dealer or operator
of a redemption center from three and half cents to six cents.
 
SUMMARY OF PROVISIONS:
Section 1: Amends subdivision six of section 27-1007 of the environ-
mental conservation law by designating a new section 6(a), to direct
deposit initiators to pay a six cents handling fee, for each beverage
container accepted by the deposit initiator from a dealer or operator of
a redemption center beginning April 1, 2025.
Newly designated section 6(b) would provide for an inflation escalator
in the redemption fee.
Section 2 Sets forth the effective date.
 
JUSTIFICATION:
The New York State Returnable Container Act (the "Bottle Bill") became
law in 1982. In its over 40-year history, it has proven to be highly
effective in reducing litter and increasing recycling rates. In 2020,
New York's redemption rate was 64%, roadside container litter was down
70% and 5.5 billion containers were recycled in the state. Beverage
containers are the third most littered item in New York state. This
program has saved valuable materials from going into landfills and kept
communities clean.
Initially, the law assigned a 5 cents bottle deposit on consumers, and
the handling fee was 20% of refund value or 1 cent. In 1983 the handling
fee for redemption centers increased to 1.5 cents and then 2 cents in
1998. Then in 2009 the handling fee for redemption centers increased to
3.5 cents and has not increased again in 15 years. Since 2009, opera-
tional costs for small business redemption centers have continued to
rise. Minimum wage in New York was $7.25/hr. the last time redemption
centers saw an increase in handling fees. Today minimum wage is $16/hr.
As expenses continue to rise for redemption centers, including wage
expenses, payroll taxes, insurance premiums, and rentier revenue source
has seen no increase. The handling fee is the sole source of revenue for
small business redemption centers.
A large number of redemption centers have closed across New York State
and many more may be forced to close because they are facing insolvency.
Approximately 3.1 billion bottles per year are handled by New York's 896
small business redemption centers. The closing of small business redemp-
tion centers will have a detrimental impact on our state.
This bill will provide much needed relief for small business redemption
centers so they can keep operating in our communities - maintaining our
streets and neighborhoods clean, protecting our environment from plas-
tics and ensuring local jobs are not lost, all while not raising consum-
er costs.
 
LEGISLATIVE HISTORY:
S.8520 of 2023-2024: Referred to Environmental Conservation;
 
FISCAL IMPLICATIONS:
To be determined.
 
LOCAL FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
This act shall take effect immediately.

Statutes affected:
S5820: 27-1007 environmental conservation law, 27-1007(6) environmental conservation law
S5820A: 27-1007 environmental conservation law, 27-1007(6) environmental conservation law