BILL NUMBER: S7722A
SPONSOR: RYAN C
 
TITLE OF BILL:
An act to amend the environmental conservation law, in relation to
returnable beverage containers; and repealing certain provisions of such
law relating thereto
 
PURPOSE:
The purpose of this legislation is to begin to address problems in the
state's deposit and return system while providing relief to redemption
centers.
 
SUMMARY OF PROVISIONS:
Section 1: Defmitions, including clarifying language around the defmi-
tion of "redemption center".
Section 2: Expands the definition of beverage to include all noncarbo-
nated beverages in beverage containers with exceptions for dairy
products, wine, and spirits. Revises the definition of beverage contain-
er to limit to those three liters or less, and specifies plastic
containers made from PET.
Section 3: Allows food and beverage dealers smaller than 10,000 square
feet to apply for an exemption from redemption responsibility by devel-
oping a written agreement with a nearby redemption center or mobile
redemption operation within 5 miles of the dealer if located in a rural
area or within 2 miles of the dealer elsewhere in the state. Also estab-
lishes tiered handling fees for relevant settings.
Section 4: Replaces current audit language with audit procedures requir-
ing tagging of bags or other receptacles at the time of pickup, notify-
ing redemption centers of the time and place of the count, requirements
to count a minimum share/number of containers, and release of and it
results. Also establishes standards for the presence of nondeposit
containers and for shortfalls and related violations.
Section 5: Removes the presumption that redemption centers or dealers
are entitled to reimbursement on any container for which they paid out
refunds to consumers.
Section 6: Establishes criteria for a commingling agreement among depos-
it initiators/distributors.
Section 7: Strengthens obligations on dealers and redemption centers to
refuse ineligible or compromised containers and extends the obligation
to deposit initiators/distributors and requires rejection of containers
where there is "reasonable grounds to know" or certainty that the
containers were not purchased in New York.
Section 8: Makes updates to labeling requirements regarding refund
value.
Section 9: Directs $12 million of the unclaimed deposits, for each of
the four years after enactment, to support independent redemption
centers in rural areas or environmental justice communities that redeem
fewer than two million containers per year.
Section 10: Establishes a mandatory registration program for redemption
centers with renewals every three years and refines requirements on
redemptions of over 2,500 containers.
Section 11: Provides an effective date.
 
JUSTIFICATION:
New York's deposit and return system does not function as effectively or
efficiently as it could, leading to cost pressures at redemption
centers, widespread persistent fraud, and a lack of innovation. It is
vital that New York makes improvements to this system but imperative
that these changes do not increase burdens on consumers. This bill
approaches the idea of reform with modest, actionable objectives to
address the most critical problems in the system.
 
LEGISLATIVE HISTORY:
New bill.
 
FISCAL IMPLICATIONS:
Section 9 directs the Department of Taxation and Finance to shift $12
million per year from the unclaimed deposits destined for the general
fund to instead supplement the handling fees of independent redemption
centers in rural and environmental justice areas who struggle with high
operating costs for a period of four years. This payment represents a
small fraction of the $115 million in unclaimed deposits collected annu-
ally by the Department on average over the past six years.
 
EFFECTIVE DATE:
Effective immediately, provided, however, that section 3 shall take
effect on July 1,2029.

Statutes affected:
S7722: 27-1003 environmental conservation law, 27-1003(9) environmental conservation law, 27-1009 environmental conservation law, 27-1013 environmental conservation law
S7722A: 27-1003 environmental conservation law, 27-1003(9) environmental conservation law, 27-1009 environmental conservation law, 27-1013 environmental conservation law