BILL NUMBER: S7551
SPONSOR: BYNOE
 
TITLE OF BILL:
An act to establish the bottle redemption fraud task force; and provid-
ing for the repeal of such provisions upon the expiration thereof
 
PURPOSE:
The purpose of this bill is to conduct a study to evaluate the fraud,
enforcement, and reporting requirements of the Returnable Container Act.
 
SUMMARY OF PROVISIONS:
Section 1 of this bill would establish the "bottle redemption fraud task
force". Section 2 of this bill would establish the task force members,
determine the level of compensation to members and explain how the task
force will fill any vacancies.
Section 3 of this bill would require that the task force submit a report
to the governor, president pro temp of the senate, and the speaker of
the assembly. This report will encompass: a review of appropriate law,
evaluate the need for coordination between programs, review the fiscal
impact of fraudulent bottle redemptions including those caused by ship-
ping fraud, evaluation of enforcement, and make recommendations for
legislative, regulatory, and enforcement policies to address fraudulent
bottle redemptions.
Section 4 of this bill provides that the effective date shall take
effect immediately and shall expire 24 months after it shall have become
a law when upon such date the provisions of this act shall be deemed
repealed.
 
JUSTIFICATION:
Since the implementation of the bottle redemption program, bad actors
have abused the system set up to promote recycling. Reports have stated
that every year, there are about $100 million in unclaimed deposits and
an estimated $200 million to $300 million a year in fraud. A majority of
this fraud is caused by trans-shipping practices, which is when bad
actors haul beverage containers from other states where no nickel depos-
it was collected in New York for the container. These fraudulently
redeemed beverages cause our environmental programs to be shortchanged.
However, even with these reports of fraud, the State has failed to prop-
erly address these issues. Further, if the state fails to address these
issues prior to the expansion of the returnable container act, the fraud
associated with the act will also expand.
These issues of fraud have made it clear for the need of a specific task
force to determine the impact of that fraud on the State has become
clear. By creating this task force, New York can specifically uncover
two important facts: one, how much money this fraud is costing New York
State; and two, whether organized criminal enterprises constitute a key
part of this fraud. This task force aims to accomplish proposals set out
to combat the threats to the Returnable Container Act by evaluating the
current laws for weaknesses and determining the fiscal impact that fraud
by bad actors has on the bottle redemption program. It will also allow
disparate agencies to begin to coordinate and work together to solve
this unchecked problem. The information gathered will better inform the
legislature on how to best reduce fraud and it will address overall
solid waste issues going forward.
 
LEGISLATIVE HISTORY:
2020: S7821(Kaminsky) - Advanced to third reading.
2021: S1103A(Kaminsky) - Passed Senate, died in Assembly.
2022: S1103A(Kaminsky) - Passed Senate, died in Assembly.
2023: S3419A(Mannion) - Passed Senate, died in Assembly.
2024: S3419A(Mannion) - Referred to Environmental Conservation
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
This act shall take effect immediately and shall expire 24 months after
it shall have become a law when upon such date the provisions of this
act shall be deemed repealed.