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A02517 Floor Votes:

A02517 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
 submitted in accordance with Assembly Rule III, Sec 1(f)



 
BILL NUMBER: A2517D
 
SPONSOR: DiNapoli (MS)

 
TITLE OF BILL:  An act to amend the environmental conservation law,
the economic development law and the state finance law, in relation to
returnable beverage containers; and to repeal sections 27-1005, 27-1007
and subdivision 2 of section 27-1011 of the environmental conservation
law relating thereto
 
 
PURPOSE:
To expand the bottle bill to cover all beverages with the exception of
liquor, wine, infant formula, milk, rice milk, soy milk, nutritional
supplements, medications, concentrates and soups; and to provide for the

return of unclaimed deposits on beverage containers to the State for
deposit into the Environmental Protection Fund (EPF).
 
 
SUMMARY OF PROVISIONS:
The bill amends the ECL and the State Finance Law to provide for the
expansion of the bottle bill and the recapture of unclaimed deposits.
Specifically the bottle bill is expanded to cover all beverages, with
the exception of liquor, wine, infant formula, milk, rice milk, soy
milk, nutritional supplements, medications, concentrates and soups.
Additionally, this portion of the bill would provide for a mechanism by
which "deposit initiators" (bottlers, certain distributors and certain
retailers) would be required to submit unclaimed deposits to the Depart-
ment of Tax and Finance quarterly. These monies would be deposited in
the EPF, and would be distributed regionally (by DEC region) propor-
tionally to the amount that came in from each region (i.e. New York City

unclaimed deposits would be returned to New York City and Long Island
deposits would be returned to Long Island).  The bill also increases the
"handling fee" from two cents to three-and-a-half cents.
 
 
JUSTIFICATION:
The bottle bill has been one of New York's most successful recycling
initiatives. Not only has it reduced litter along our roadways and in
our public spaces, but it has reduced the burden of solid waste disposal
that is shouldered by our municipalities. Nonetheless, since enactment
of the bottle bill in 1982, beverages such as bottled water, juices and
teas have been introduced into the consumer stream and the containers
have been introduced into the waste stream. It is time to update the
bottle bill to include these new products, and this bill will accomplish
that.  As the need to fund environmental initiatives across New York
State increases, it is time to dedicate the unclaimed deposits to such

projects and programs. Right now the bottlers and distributors who
initiate the deposit collection system enjoy a five-cent windfall for
each container that is not returned. This bill would return those
unclaimed deposits, which currently total at least $85 million annually,
to the people of the State for environmental purposes.
 
 
LEGISLATIVE HISTORY:
2002: A.11442 - referred to Environmental Conservation
2003: A.3922A - referred to En Con, reported to Codes, reported to Ways
& Means
2004:  A.3922B - referred to En Con, reported to Codes
 
 
FISCAL IMPLICATIONS:
DEC's estimate of the current amount of unclaimed deposits is $85
million annually. The Container Recycling Institute (CRI) estimates that
unclaimed deposits in New York State actually total $137 million and
that under an expanded bottle bill there would be $179 million in
unclaimed deposits. These monies would be deposited in the Environmental
Protection Fund.
 
 

EFFECTIVE DATE:
This act shall take effect on the first day of January next succeeding
the date on which it shall have become a law.

A02517 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
            S. 1290--D                                            A. 2517--D
                                                                 Cal. No. 74
 
                               2005-2006 Regular Sessions
 
                SENATE - ASSEMBLY
 
                                    January 26, 2005
                                       ___________
 
        IN  SENATE  --  Introduced  by Sens. LAVALLE, BONACIC, LEIBELL, MALTESE,
          MARCHI, PADAVAN, PARKER -- read twice and ordered  printed,  and  when
          printed to be committed to the Committee on Environmental Conservation

          --  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 commit-
          tee -- recommitted to the Committee on Environmental  Conservation  in
          accordance  with  Senate  Rule 6, sec. 8 -- committee discharged, bill
          amended, ordered reprinted as amended and recommitted to said  commit-
          tee  --  committee  discharged,  bill  amended,  ordered  reprinted as
          amended and recommitted to said committee
 
        IN ASSEMBLY -- Introduced by M. of  A.  DiNAPOLI,  WEISENBERG,  GRANNIS,
          COLTON,   DINOWITZ,  CYMBROWITZ,  ENGLEBRIGHT,  CLARK,  GALEF,  TONKO,
          CARROZZA, A. COHEN, PAULIN, HOYT, N. RIVERA,  COOK,  FIELDS,  R. DIAZ,
          L. DIAZ  -- Multi-Sponsored by -- M. of A. ALFANO, AUBRY, BARRA, BING,

          BOYLAND, BRADLEY, BRENNAN, CAHILL,  CANESTRARI,  CHRISTENSEN,  CUSICK,
          DelMONTE, EDDINGTON, FARRELL, GIANARIS, GLICK, GOTTFRIED, GREEN, HEVE-
          SI, HOOPER, JACOBS, LAFAYETTE, LATIMER, LAVINE, LENTOL, LIFTON, LOPEZ,
          LUPARDO,  McENENY,  MENG,  MILLMAN,  NOLAN, O'DONNELL, ORTIZ, PEOPLES,
          PERRY,  PHEFFER,  REILLY,  P. RIVERA,  ROSENTHAL,  SALADINO,  SWEENEY,
          THIELE,  WEINSTEIN, WEPRIN, ZEBROWSKI -- read once and referred to the
          Committee on Environmental Conservation -- reported  and  referred  to
          the  Committee on Codes -- committee discharged, bill amended, ordered
          reprinted as amended and recommitted to said committee -- reported and
          referred to the Committee on Ways and Means --  committee  discharged,
          bill  amended,  ordered  reprinted  as amended and recommitted to said
          committee -- recommitted to the Committee on Rules in accordance  with

          Assembly  Rule  3, sec. 2 -- Rules Committee discharged, bill amended,
          ordered reprinted as amended and recommitted to the Committee on Rules
          -- amended on the special order of third reading, ordered reprinted as
          amended, retaining its place on the special order of third reading
 
        AN ACT to amend the environmental conservation law, the economic  devel-
          opment law and the state finance law, in relation to returnable bever-
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04307-07-6
        S. 1290--D                          2                         A. 2517--D
 
          age  containers;  and to repeal sections 27-1005, 27-1007 and subdivi-

          sion 2 of  section  27-1011  of  the  environmental  conservation  law
          relating thereto
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Section 27-1001 of the environmental conservation  law,  as
     2  added by chapter 200 of the laws of 1982, is amended to read as follows:
     3  § 27-1001. Legislative findings.
     4    The  legislature hereby finds that litter composed of discarded [soft-
     5  drink, beer and ale] beverage bottles and cans is a growing  problem  of
     6  state  concern and a direct threat to the health and safety of the citi-
     7  zens of this state. Discarded beverage bottles and cans create a  hazard
     8  to  vehicular  traffic, a source of physical injury to pedestrians, farm
     9  animals and machinery and an unsightly accumulation of litter which must

    10  be disposed of at increasing public expense. Beverage bottles  and  cans
    11  also  create  an unnecessary addition to the state's and municipalities'
    12  already overburdened solid waste and refuse disposal systems.   Unsegre-
    13  gated  disposal  of  such  bottles and cans creates an impediment to the
    14  efficient operation of resource recovery plants. Further,  the  legisla-
    15  ture  finds  that the uninhibited discard of beverage containers consti-
    16  tutes a waste of both mineral  and  energy  resources.  The  legislature
    17  hereby  finds that requiring a deposit on all beverage containers, along
    18  with certain other  facilitating  measures,  will  provide  a  necessary
    19  incentive  for  the  economically  efficient  and environmentally benign
    20  collection and recycling of such containers.
    21    § 2.  Subdivisions 1 and 2 of section  27-1003  of  the  environmental

    22  conservation law, subdivision 1 as amended by chapter 778 of the laws of
    23  1988  and  subdivision  2 as amended by chapter 546 of the laws of 1986,
    24  are amended to read as follows:
    25    1. "Beverage" means  [carbonated  soft  drinks,  mineral  water,  soda
    26  water,  beer,  other  malt  beverages  and  a wine product as defined in
    27  subdivision thirty-six-a of section  three  of  the  alcoholic  beverage
    28  control  law.  "Malt beverages" means any beverage obtained by the alco-
    29  holic fermentation or infusion or decoction of barley,  malt,  hops,  or
    30  other  wholesome grain or cereal and water including, but not limited to
    31  ale, stout or malt liquor.] all carbonated and non-carbonated drinks  in
    32  liquid  form  and  intended  for  internal  human  consumption. The term

    33  "beverage" shall not include:
    34    a. milk and dairy derived products.  "Milk"  means  whole  milk,  skim
    35  milk,  low-fat  milk, cream, cultured milk, yogurt or any combination of
    36  those products. The term "dairy derived products" includes  any  product
    37  of  which the single largest ingredient is milk, milk fat, cultured milk
    38  or yogurt;
    39    b. rice milk or soy milk;
    40    c. infant formula;
    41    d. alcoholic beverages other than beer, other malt beverages and  wine
    42  products  as defined in subdivision thirty-six-a of section three of the
    43  alcoholic beverage control law.  "Malt  beverages"  means  any  beverage
    44  obtained  by  the  alcoholic  fermentation  or  infusion or decoction of

    45  barley, malt, hops, or other wholesome grain or cereal and water includ-
    46  ing, but not limited to ale, stout or malt liquor;
        S. 1290--D                          3                         A. 2517--D
 
     1    e. a liquid that is a syrup, in  a  concentrated  form,  or  typically
     2  added  as  a  minor  flavoring  ingredient  in  food  or  drink, such as
     3  extracts, cooking additives, sauces or condiments;
     4    f.  a  liquid  that  is  ingested in very small quantities and that is
     5  consumed for medicinal purposes only;
     6    g. a liquid that is  designed  and  consumed  only  as  a  nutritional
     7  supplement and not as a beverage;
     8    h. products frozen at the time of sale;

     9    i. products designed to be consumed in a frozen state;
    10    j. instant drink powders; and
    11    k. seafood, meat or vegetable broths, or soups.
    12    2.  "Beverage container" means the individual, separate, sealed glass,
    13  metal, aluminum, steel or plastic bottle, can or jar used for containing
    14  less than one gallon or 3.8 liters [or less] at the time of  sale  of  a
    15  beverage  intended  for  use  or  consumption  in  this  state. Beverage
    16  containers sold or distributed aboard aircraft or ships shall be consid-
    17  ered as intended for use or consumption outside this state.
    18    § 3. Subdivisions 6 and 9 of  section  27-1003  of  the  environmental
    19  conservation  law,  as  added  by  chapter  200 of the laws of 1982, are
    20  amended and four new subdivisions 2-a, 6, 12 and 13 are added to read as
    21  follows:

    22    2-a. "Bottler" means a person who:
    23    a. bottles, cans or otherwise packages beverages in beverage  contain-
    24  ers  except that if such packaging is for a distributor having the right
    25  to bottle, can or otherwise package the same  brand  of  beverage,  then
    26  such distributor shall be the bottler; or
    27    b. imports filled beverage containers into the United States.
    28    6.  A  "deposit  initiator"  for  each  beverage container for which a
    29  refund value is established under section 27-1005 of this title means:
    30    a. the bottler of the beverage in such container;
    31    b. the distributor of such container if such distributor's purchase of
    32  such container was not, directly or indirectly, from a registered depos-
    33  it initiator;

    34    c. a dealer of such container who sells such container in this  state,
    35  whose purchase of such container was not, directly or indirectly, from a
    36  registered deposit initiator; or
    37    d. an agent acting on behalf of a deposit initiator.
    38    [6.]  6-a.  "Distributor"  means any person, firm or corporation which
    39  [bottles, cans or otherwise fills or packages  beverage  containers,  or
    40  which] engages in the sale of [such] beverages in beverage containers to
    41  a dealer.
    42    9.  "Redemption  center"  means any [establishment offering to pay the
    43  refund value of a beverage container] person offering to pay the  refund
    44  value  of  an  empty beverage container to a redeemer, or any person who

    45  contracts with one or more dealers or distributors to collect, sort  and
    46  obtain  the  refund  value and handling fee of empty beverage containers
    47  for, or on behalf of, such dealer or distributor under the provisions of
    48  section 27-1013 of this title.
    49    12. "Reverse vending machine" means an automated device  that  uses  a
    50  laser  scanner, microprocessor, or other technology to accurately recog-
    51  nize the Universal Product Code (UPC) to determine if the  container  is
    52  redeemable  on containers and accumulates information regarding contain-
    53  ers redeemed, thereby enabling the reverse  vending  machine  to  accept
    54  containers from redeemers and to issue scrip for their refund value.
    55    13. "Universal product code or UPC code" means a standard for encoding

    56  a  set  of  lines  and  spaces  that can be scanned and interpreted into
        S. 1290--D                          4                         A. 2517--D
 
     1  numbers to identify a product. Universal Product Code may also mean  any
     2  accepted  industry barcode which replaces the UPC code including but not
     3  limited to universal product code (UPC), EAN and other codes that may be
     4  used to identify a product.
     5    §  4.  Sections  27-1005 and 27-1007 of the environmental conservation
     6  law are REPEALED and two new sections 27-1005 and 27-1007 are  added  to
     7  read as follows:
     8  § 27-1005. Refund value.
     9    No  person  shall  sell or offer for sale a beverage container in this
    10  state unless the deposit on such  beverage  container  is  or  has  been

    11  collected  by  a  registered deposit initiator and unless such container
    12  has a refund value of not less than five cents which  is  clearly  indi-
    13  cated thereon as provided in section 27-1011 of this title.
    14  § 27-1007. Mandatory acceptance.
    15    Except as provided in section 27-1009 of this title:
    16    1.  A  dealer  shall  accept  at  his  or her place of business from a
    17  redeemer any empty beverage  containers  of  the  design,  shape,  size,
    18  color,  composition  and  brand sold by the dealer, and shall pay to the
    19  redeemer the refund value of each such beverage container as established
    20  in section 27-1005 of this title. Redemptions of refund value must be in
    21  legal tender. The use or presence of a reverse vending machine shall not

    22  relieve a dealer of any obligations imposed pursuant  to  this  section.
    23  If a dealer utilizes a reverse vending machine to redeem containers, the
    24  dealer  shall provide redemption of beverage containers when the reverse
    25  vending machine is full, broken, under repair or does not accept a  type
    26  of beverage container sold by such dealer and may not limit the hours or
    27  days  of  redemption  except as provided by subdivision three of section
    28  27-1007 of this title.  On any day that a dealer is open for  less  than
    29  twenty-four  hours,  the  dealer  may  restrict or refuse the payment of
    30  refund values during the first and last hour  the  dealer  is  open  for
    31  business.
    32    2.  A  dealer shall post a conspicuous sign, at the point of sale that

    33  states:
    34                            "NEW YORK BOTTLE BILL
    35                               BILL OF RIGHTS
 
    36          STATE LAW REQUIRES US TO REDEEM EMPTY RETURNABLE BEVERAGE
    37            CONTAINERS OF THE SAME TYPE OF CONTAINER THAT WE SELL
 
    38  YOU HAVE CERTAIN RIGHTS UNDER THE STATE RETURNABLE CONTAINER ACT:
    39    THE RIGHT to return your empties for refund to any  dealer  who  sells
    40  you  the same brand, type and size, whether you bought the beverage from
    41  the dealer or  not.  It  is  illegal  to  return  containers  that  were
    42  purchased outside of New York state.
    43    THE  RIGHT  to  get  your  deposit  refund  in  cash, without proof of
    44  purchase.
    45    THE RIGHT to return your empties any day, any hour, except  the  first

    46  and  last  hours  of  the dealer's business day (empty containers may be
    47  redeemed at any time in 24-hour stores).
    48    THE RIGHT to return your containers if  they  are  empty  and  intact.
    49  Washing  containers  is not required by law, but is strongly recommended
    50  to maintain sanitary conditions.
    51    The New York state returnable container act can be enforced by the New
    52  York state department of environmental conservation  (NYSDEC),  the  New
    53  York state attorney general or your local government."
        S. 1290--D                          5                         A. 2517--D
 
     1    This  sign must be no less than eight inches by ten inches in size and
     2  have lettering a minimum of one quarter inch high, and of a color  which

     3  contrasts with the background.
     4    3.  On  or  after, January first, two thousand eight, in a city with a
     5  population greater than one million, a dealer may limit  the  number  of
     6  empty  beverage containers to be accepted for redemption at the dealer's
     7  place of business to no less than seventy-two containers per visit,  per
     8  redeemer, per day, provided that:
     9    a.  A  redemption  center,  be  it  either  a  licensed fixed physical
    10  location that is located in the same county and within one-half mile  of
    11  the  dealer's  place of business, or a mobile redemption center operated
    12  by a licensed redemption center that is located within one-quarter  mile
    13  of the dealer's place of business; and the redemption center has a writ-

    14  ten  agreement  with  the  dealer  to accept containers on behalf of the
    15  dealer; and the redemption center's hours of operation  cover  at  least
    16  9:00  a.m. through 7:00 p.m. daily or in the case of a mobile redemption
    17  center, the hours of operations cover at least  four  consecutive  hours
    18  between  8:00 a.m. and 8:00 p.m. daily; and the dealer posts a conspicu-
    19  ous, permanent sign open to public view, identifying  the  location  and
    20  hours of operation of the affiliated redemption center or mobile redemp-
    21  tion center; or
    22    b.  The  dealer  provides, at a minimum, a consecutive two hour period
    23  between 7:00 a.m. and 7:00 p.m. daily whereby the dealer will accept  up
    24  to  two  hundred  forty  containers,  per redeemer, per day, and posts a

    25  conspicuous, permanent sign, open to the public view, identifying  those
    26  hours.  The  dealer may not change the hours of redemption without first
    27  posting a thirty day notice; or
    28    c. The dealer's primary business is the sale of food or beverages  for
    29  consumption  off-premises,  and  the  dealer's place of business is less
    30  than eight thousand square feet in size.
    31    4. A deposit initiator shall accept from a dealer  or  operator  of  a
    32  redemption  center  any  empty beverage containers of the design, shape,
    33  size, color, composition and brand sold by the  deposit  initiator,  and
    34  shall pay the dealer or operator of a redemption center the refund value
    35  of  each  such  beverage  container as established by section 27-1005 of

    36  this title.  A deposit initiator shall accept and  redeem all such empty
    37  beverage containers from a dealer or redemption center  without  limita-
    38  tion on quantity.
    39    5.  A  deposit  initiator's  or distributor's failure to pick up empty
    40  beverage containers, including containers processed in a reverse vending
    41  machine, from a redemption center, dealer or  reverse  vending  machine,
    42  shall be a violation of this title.
    43    6.  In  addition to the refund value of a beverage container as estab-
    44  lished by section 27-1005 of this title, a deposit initiator  shall  pay
    45  to  any  dealer,  or  operator of a redemption center, a handling fee of
    46  three and one-half cents for each beverage  container  accepted  by  the

    47  deposit  initiator  from such dealer, operator of a redemption center or
    48  distributor.  Payment of the handling fee shall be as  compensation  for
    49  collecting,  sorting  and  packaging  of  empty  beverage containers for
    50  transport back to the deposit initiator or its designee. Payment of  the
    51  handling  fee  may  not  be  conditioned on the purchase of any goods or
    52  services, nor may such payment be made out of the refund  value  account
    53  established pursuant to section 27-1012 of this title. A distributor who
    54  does not initiate deposits on a type of beverage container is considered
    55  a dealer only for the purpose of receiving a handling fee from a deposit
    56  initiator.

        S. 1290--D                          6                         A. 2517--D
 
     1    7.  A deposit initiator on a brand shall accept from a distributor who
     2  does not initiate deposits on that brand any empty  beverage  containers
     3  of  that  brand  and  shall pay the distributor the refund value of each
     4  such beverage container, as  established  by  section  27-1005  of  this
     5  title.  In addition, the deposit initiator shall pay to such distributor
     6  for each such beverage container  the  handling  fee  established  under
     7  subdivision  six  of  this section.   Without limiting the rights of the
     8  department or any persons, firm or corporation under this subdivision or
     9  any other provision of this section, a distributor, a dealer or an oper-

    10  ator of a redemption center shall  have  a  civil  right  of  action  to
    11  enforce this subdivision, including upon three days notice, the right to
    12  apply for temporary and preliminary injunctive relief against continuing
    13  violations  and  until  arrangements  for collection and return of empty
    14  containers or reimbursement of the redeeming distributor for such depos-
    15  its and handling fees are made.
    16    8. If a deposit  initiator  or  distributor  requires  empty  beverage
    17  containers that are not redeemed through a reverse vending machine to be
    18  packaged  for  pick-up in bags, cartons or other containers, it shall be
    19  the deposit initiator's or distributor's  responsibility  to  provide  a

    20  dealer or redemption center a sufficient number of such containers at no
    21  cost  to the dealer or distributor. The bags, cartons, or other contain-
    22  ers must be provided by the deposit initiator or distributor on a sched-
    23  ule that allows the dealer or redemption center sufficient time to  sort
    24  the  empty beverage containers prior to pick up by the deposit initiator
    25  or distributor:
    26    a. When picking up empty beverage containers, a deposit  initiator  or
    27  distributor  shall  not  require  a  dealer or redemption center to load
    28  their own bags, cartons or containers on the  distributor's  vehicle  or
    29  vehicles or provide the staff or equipment needed.
    30    b. A deposit initiator or distributor shall not require empty contain-

    31  ers  to  be  counted  at  a location other than the redemption center or
    32  dealer's place of business. The dealer or redemption center  shall  have
    33  the right to be present at the count.
    34    9.  No  person shall return or assist another to return to a dealer or
    35  redemption center an empty beverage container for its  refund  value  if
    36  such  container had previously been accepted for redemption by a dealer,
    37  redemption center, or deposit initiator who initiates deposits on bever-
    38  age containers of the same brand.
    39    10. It is unlawful for a redeemer, dealer, distributor  or  redemption
    40  center to knowingly redeem an empty beverage container on which a depos-
    41  it was never paid.

    42    11. Notwithstanding the provisions of section 27-1009 of this title, a
    43  deposit  initiator  or  distributor  shall  accept  and  redeem beverage
    44  containers as provided in this title, if the dealer  or  operator  of  a
    45  redemption  center shall have accepted and paid the refund value of such
    46  beverage containers.
    47    § 5. Section 27-1009 of the environmental conservation law,  as  added
    48  by chapter 200 of the laws of 1982, is amended to read as follows:
    49  § 27-1009. Refusal of acceptance.
    50    1.  A  dealer  or operator of a redemption center may refuse to accept
    51  from a redeemer, and a [distributor] deposit  initiator  may  refuse  to
    52  accept from a dealer or operator of a redemption center any empty bever-
    53  age container which does not state thereon a refund value as established

    54  by section 27-1005 and provided by section 27-1011 of this title.
    55    2.  A  dealer  or  operator  of a redemption center may also refuse to
    56  accept any broken bottle, corroded or dismembered can, or  any  beverage
        S. 1290--D                          7                         A. 2517--D
 
     1  container  which  contains  a significant amount of foreign material, as
     2  determined in rules and regulations to be promulgated by the commission-
     3  er. [Notwithstanding the provisions of this subdivision,  a  distributor
     4  shall  accept  beverage  containers  as  provided  in subdivision two of
     5  section 27-1007 of this title, if the dealer  shall  have  accepted  and
     6  paid the refund value of such beverage containers.]
     7    §  6.  Subdivision 2 of section 27-1011 of the environmental conserva-
     8  tion law is REPEALED.

     9    § 7. The environmental conservation law is amended  by  adding  a  new
    10  section 27-1012 to read as follows:
    11  § 27-1012. Deposit and disposition of refund values.
    12    1.  Each  deposit initiator shall deposit in a refund value account an
    13  amount equal to the refund value required to be initiated under  section
    14  27-1005  of  this  title which is received with respect to each beverage
    15  container sold by such deposit initiator. Such deposit  initiator  shall
    16  hold  such  amounts in trust for the state. A refund value account shall
    17  be an interest-bearing account  established  in  a  banking  institution
    18  approved by the commissioner of taxation and finance and located in this
    19  state,  the  deposits  in  which are insured by an agency of the federal

    20  government. Deposits of such amounts shall be made not  less  frequently
    21  than  every  five  business  days.  All  interest, dividends and returns
    22  earned on the account shall be paid directly  into  said  account.  Such
    23  monies  shall  be  kept  separate and apart from all other moneys in the
    24  possession of the deposit initiator. The commissioner  of  taxation  and
    25  finance  may  specify  a system of accounts and records to be maintained
    26  with respect to accounts established under this subdivision.
    27    2. Payments of refund values pursuant to section 27-1007 of this title
    28  shall be paid from each deposit initiator's  refund  value  account.  No
    29  other  payment  or  withdrawal  from  such account may be made except as
    30  prescribed by this section.

    31    3. Each deposit  initiator  shall  file  quarterly  reports  with  the
    32  commissioner  of  taxation  and  finance  on  a  form  and in the manner
    33  prescribed by such commissioner. The quarterly reports required by  this
    34  subdivision  shall be filed for the quarterly periods ending on the last
    35  day of May, August, November and February of each year,  and  each  such
    36  report  shall be filed within twenty days after the end of the quarterly
    37  period covered thereby. Each such report shall include, in  addition  to
    38  any other information such commissioner shall determine appropriate, the
    39  following information:
    40    a.  the  balance  in  the refund value account at the beginning of the
    41  quarter for which the report is prepared;

    42    b. all such deposits credited to such account and all interest,  divi-
    43  dends or returns received on such account, during such quarter;
    44    c.  all  withdrawals from such account, during such quarter, including
    45  all reimbursements paid pursuant to subdivision two of this section, all
    46  service charges on the account, and all payments made pursuant to subdi-
    47  vision four of this section; and
    48    d. the balance in such account at the close of such quarter.
    49    4. a. Under-redemptions.  An amount equal to the  balance  outstanding
    50  in  the  refund value account at the close of each quarter shall be paid
    51  to the commissioner of taxation and  finance  at  the  time  the  report
    52  provided  for  in  subdivision  three  of this section is required to be

    53  filed. If the provisions of this section with respect  to  such  account
    54  have  not  been fully complied with, each deposit initiator shall pay to
    55  such commissioner at such time, in lieu of the amount described  in  the
        S. 1290--D                          8                         A. 2517--D
 
     1  preceding sentence, an amount equal to the balance which would have been
     2  outstanding on such date had such provisions been fully complied with.
     3    All  moneys  collected or received by the commissioner of taxation and
     4  finance pursuant to this section shall be deposited by  the  comptroller
     5  in  the  environmental  protection  fund established pursuant to section
     6  ninety-two-s of the state finance law.

     7    b. Over-redemptions. In the event a deposit initiator pays out more in
     8  refund values than it collects in deposits during the course of a calen-
     9  dar year, the deposit initiator may apply to the commissioner  of  taxa-
    10  tion  and  finance for a reimbursement from the environmental protection
    11  fund equal to the amount of over-redeemed deposits. The commissioner  of
    12  taxation and finance shall reimburse any such documented claim.
    13    5.  The  provisions  of this section shall not be construed to relieve
    14  any deposit initiator from an obligation to pay either the refund  value
    15  and handling fee for each redeemed beverage container in accordance with
    16  this title or any amount required by subdivision four of this section at

    17  the time prescribed in such subdivision.
    18    6. The commissioner and the commissioner of taxation and finance shall
    19  promulgate, and shall consult each other in promulgating, such rules and
    20  regulations  as may be necessary or desirable to effectuate the purposes
    21  of this section. The commissioner shall provide all  necessary  aid  and
    22  assistance  to  the  commissioner  of taxation and finance in connection
    23  with the administration  and  enforcement  of  the  provisions  of  this
    24  section.
    25    7.  Each  deposit  initiator  shall  register with the commissioner of
    26  taxation and finance as a deposit initiator under this title. The appli-
    27  cation shall be in such form and contain such information and  shall  be

    28  filed  at  such time and under such conditions, as such commissioner may
    29  prescribe. No deposit initiator, unless so registered,  shall  make  any
    30  sale within this state of beverage containers, except a sale, if any, as
    31  to which this state is without power to impose such condition.
    32    8.  Each  deposit  initiator shall register the container label of any
    33  beverage offered for sale in the state on which it initiates a  deposit.
    34  Any such registered container label shall bear a universal product code.
    35  Such  universal  product code shall be New York state specific, in order
    36  to identify the beverage container as offered for  sale  exclusively  in
    37  New  York  state,  and  as  a  means of preventing illegal redemption of

    38  beverage containers purchased out-of-state.   Registration  must  be  on
    39  forms  as  prescribed  by  the department and must include the universal
    40  product code for each combination of  beverage  and  container  manufac-
    41  tured.  The  deposit initiator shall renew a label registration whenever
    42  that label is revised by altering the universal product code or whenever
    43  the container on which it appears is changed  in  size,  composition  or
    44  glass color.
    45    9.  The  commissioner  of taxation and finance may require the mainte-
    46  nance of such accounts, records or documents relating  to  the  sale  of
    47  beverage  containers,  by any beverage manufacturer, distributor, dealer
    48  or redemption center as such commissioner may deem appropriate  for  the

    49  administration  of this section. The commissioner may make examinations,
    50  including the conduct of facility inspections  during  regular  business
    51  hours, with respect to the accounts, records or documents required to be
    52  maintained under this subdivision.  Such accounts, records and documents
    53  shall  be preserved for a period of three years, except that the commis-
    54  sioner may consent to  their  destruction  within  that  period  or  may
    55  require  that they be kept longer.  Such accounts, records and documents
    56  may be kept within the meaning of this subdivision  when  reproduced  by
        S. 1290--D                          9                         A. 2517--D
 
     1  any  photographic,  photostatic, microfilm, micro-card, miniature photo-

     2  graphic  or  other  process  which  actually  reproduces  the   original
     3  accounts, records or documents.
     4    10.  a.  Any  person required to be registered under this section who,
     5  without being so registered, makes sales of beverage containers in  this
     6  state,  in addition to any other penalty imposed by this title, shall be
     7  subject to a penalty in an amount not exceeding five hundred dollars for
     8  the first day on which such sales are made, plus an amount not exceeding
     9  five hundred dollars for each subsequent day on  which  such  sales  are
    10  made, not to exceed twenty-five thousand dollars in the aggregate.
    11    b.  Any  deposit  initiator  who fails to maintain accounts or records
    12  pursuant to this section, unless it is shown that such failure  was  due

    13  to  reasonable cause and not due to negligence or willful neglect, shall
    14  be subject to a penalty of not more than one thousand dollars  for  each
    15  quarter during which such failure occurred or continues.
    16    § 8. Section 27-1013 of the environmental conservation law, as amended
    17  by chapter 149 of the laws of 1983, is amended to read as follows:
    18  § 27-1013. Redemption centers.
    19    The  commissioner  is  hereby  empowered to promulgate rules and regu-
    20  lations governing (1) the circumstances in which dealers  and  distribu-
    21  tors, individually or collectively, are required to accept the return of
    22  empty beverage containers, and make payment therefor; (2) the sorting of
    23  the  containers  which a deposit initiator or distributor may require of

    24  dealers and redemption centers; (3) the [pick up] collection of returned
    25  beverage containers by deposit initiators or distributors, including the
    26  party to whom such expense is to be charged, the frequency of such  pick
    27  ups and the payment for refunds and handling fees thereon; (4) the right
    28  of  dealers  to restrict or limit the number of containers redeemed, the
    29  rules for redemption at the dealers' place of business, and the  redemp-
    30  tion  of containers from a beverage for which sales have been discontin-
    31  ued, and to issue permits to persons, firms or corporations which estab-
    32  lish redemption centers, subject to applicable provisions of  local  and
    33  state  laws,  at  which  redeemers and dealers may return empty beverage
    34  containers and receive payment of the  refund  value  of  such  beverage

    35  containers.  No  dealer or distributor, as defined in section 27-1003 of
    36  this title, shall be required to obtain a permit to operate a redemption
    37  center at the same location as the dealer's or  distributor's  place  of
    38  business.  Operators of such redemption centers shall receive payment of
    39  the refund  value  of  each  beverage  container  from  the  appropriate
    40  manufacturer or distributor as provided under [sections] section 27-1007
    41  [and 27-1009] of this title.
    42    §  9.  Section 27-1014 of the environmental conservation law, as added
    43  by chapter 149 of the laws of 1983, is amended to read as follows:
    44  § 27-1014. Limitation on rules and regulations.
    45    In addition to the  authority  of  the  commissioner,  under  sections
    46  27-1009 and 27-1013 of this title, the commissioner shall [only have the

    47  power  to  promulgate  rules and regulations governing the initiation of
    48  deposits, sale of beverages in containers through vending  machines  and
    49  for  on-premises  consumption,  record keeping, refunding for refillable
    50  beverage containers, embossing, imprinting or labeling of refund  values
    51  and  enforcement  of the provisions of this section and sections 27-1009
    52  and 27-1013 of this title] have the power to promulgate rules and  regu-
    53  lations necessary and appropriate to the implementation of this title.
    54    §  10. Section 27-1015 of the environmental conservation law, as added
    55  by chapter 200 of the laws of 1982 and subdivision 1 as  designated  and
        S. 1290--D                         10                         A. 2517--D
 

     1  subdivision 2 as added by chapter 149 of the laws of 1983, is amended to
     2  read as follows:
     3  § 27-1015. Violations.
     4    1.  A  violation of this title, except as provided in subdivision four
     5  of this section, shall be a public  nuisance.  In  addition,  except  as
     6  provided  in  subdivisions  two and four of this section, any person who
     7  shall violate any provision of this title shall be liable  for  a  civil
     8  penalty  of  not more than five hundred dollars, and an additional civil
     9  penalty of not more than five hundred dollars for each day during  which
    10  each such violation continues. Any civil penalty may be assessed follow-
    11  ing a hearing or opportunity to be heard.
    12    2.  Any distributor or deposit initiator who violates any provision of

    13  this title shall be liable for a civil penalty  of  not  more  than  one
    14  thousand  dollars,  and an additional civil penalty of not more than one
    15  thousand dollars for each day during which each such  violation  contin-
    16  ues.  Any  civil penalty may be assessed following a hearing or opportu-
    17  nity to be heard.
    18    3. It shall be unlawful for a distributor or deposit initiator, acting
    19  alone or aided by another, to return  empty  beverage  containers  to  a
    20  dealer or redemption center for their refund value if the distributor or
    21  deposit  initiator had previously accepted such beverage containers from
    22  any dealer or operator of a  redemption  center.  A  violation  of  this
    23  subdivision shall be a misdemeanor punishable by a fine of not less than

    24  five  hundred  dollars  nor more than one thousand dollars and an amount
    25  equal to two times the amount of money received  as  a  result  of  such
    26  violation.
    27    4.  Any  person who wilfully tenders to a dealer, distributor, redemp-
    28  tion center or bottler more than forty-eight empty  beverage  containers
    29  that  such  person  knows  or reasonably should know were not originally
    30  sold in this state as filled beverage containers may be assessed by  the
    31  department  a  civil  penalty  of  up  to  one  hundred dollars for each
    32  container or up to twenty-five thousand dollars for each such tender  of
    33  containers.  At  each  location  where  customers  tender containers for
    34  redemption, dealers and redemption centers must conspicuously display  a

    35  sign  in letters that are at least one inch in height with the following
    36  information: "WARNING: Persons tendering containers for redemption  that
    37  were  not  originally  purchased in this state may be subject to a civil
    38  penalty of up to one hundred dollars per container or up to  twenty-five
    39  thousand dollars for each such tender of containers."  Any civil penalty
    40  may be assessed following a hearing or opportunity to be heard.
    41    5. The attorney general and any political subdivision of the state are
    42  hereby authorized to enforce the provisions of this title.
    43    §  11.  The  environmental conservation law is amended by adding a new
    44  section 27-1016 to read as follows:
    45  § 27-1016. Public education.

    46    The commissioner shall establish a public education program to dissem-
    47  inate information regarding implementation of this title.  Such informa-
    48  tion shall include, but not be limited to, publication of the  New  York
    49  Bottle Bill of Rights as specified in subdivision two of section 27-1007
    50  of  this  title;  publication  of  information specifying the procedures
    51  necessary to establish  a  redemption  center  as  provided  in  section
    52  27-1013 of this title, including information regarding financial assist-
    53  ance  available  for the establishment of redemption centers as provided
    54  in section 27-1019 of this title; publication of information delineating
    55  the relevant rights  and  responsibilities  of  the  bottle  initiators,

    56  distributors,  dealers,  redemption  centers  and  redeemers  under  the
        S. 1290--D                         11                         A. 2517--D
 
     1  provisions of this title; and publication of information on the  general
     2  benefits of recycling.
     3    §  12. Section 27-1017 of the environmental conservation law, as added
     4  by chapter 200 of the laws of 1982, is amended to read as follows:
     5  § 27-1017. Local beverage container laws.
     6    The provisions of this title shall not be construed so as to limit  in
     7  any  way  the authority of political subdivisions of the state to enact,
     8  implement and enforce local beverage container control laws prior to but
     9  not after the effective date of this  title.  Nothing  in  this  section

    10  shall  limit  the  authority  of  political subdivisions of the state to
    11  enforce the provisions of this title.
    12    § 13. The environmental conservation law is amended by  adding  a  new
    13  section 27-1018 to read as follows:
    14  § 27-1018. Returnable container act advisory board.
    15    There is hereby created the "returnable container act advisory board",
    16  referred  to hereafter as the board. Such board shall consist of fifteen
    17  members: six of whom shall  be  appointed  by  the  governor  and  shall
    18  include  the  commissioners  of  environmental conservation and economic
    19  development, three of whom shall be appointed by the temporary president
    20  of the senate; three of whom shall be appointed by the  speaker  of  the

    21  assembly;  one  of whom shall be appointed by the minority leader of the
    22  senate; one of whom shall be appointed by the  minority  leader  of  the
    23  assembly; and the attorney general.
    24    1. The twelve at large members of the board should include: two repre-
    25  sentatives  of  organizations whose prime function is the enhancement of
    26  the environmental quality  of  the  state;  two  deposit  initiators  or
    27  distributors;  two  municipal  recycling  coordinators; two dealers; two
    28  operators of redemption centers and two redeemers.
    29    2. The commissioner, or his or her designee, shall serve as the  chair
    30  of the board.
    31    3.  The  members  of the board shall receive no compensation for their

    32  services, but shall be  allowed  their  actual  and  necessary  expenses
    33  incurred in the performance of their duties.
    34    4. The board shall, at a minimum have the duty and responsibility to:
    35    (a)  Serve  as  a  working  forum for the exchange of views, concerns,
    36  ideas, information and recommendations  relating  to  implementation  of
    37  this title;
    38    (b) Request the attendance at any meeting of the board of such person-
    39  nel  of the department or of other state agencies or authorities, as may
    40  be necessary to provide information and otherwise assist the  board  and
    41  request  such information from the department or other state agencies or
    42  authorities as the board may require in  fulfilling  its  responsibility
    43  under this section;

    44    (c)  Monitor,  review  and  make recommendations concerning the objec-
    45  tives, methods and strategies of the department and other state agencies
    46  in implementing and pursuing programs designed to meet the objectives of
    47  this title;
    48    (d) Request and receive, upon  reasonable  notice,  reports  from  the
    49  department  and  other  state agencies and public authorities concerning
    50  the implementation of this title;
    51    (e) Make recommendations to the governor and the legislature  concern-
    52  ing implementation of this title; and
    53    (f)  Perform  other  activities  or  services  as  may be necessary to
    54  fulfill the purposes of this section.
    55    5. The board shall meet at least twice each year; keep a record of its

    56  proceedings; and determine the rules of its own procedures. Nine members
        S. 1290--D                         12                         A. 2517--D
 
     1  of the board shall constitute a quorum for the transaction of any  busi-
     2  ness of the board.
     3    6.  Staff services, including recording of board proceedings, shall be
     4  performed by personnel of the department, or such state  departments  or
     5  agencies as the chair deems appropriate or desirable.
     6    7.  The  department  shall  provide  the  board  with such facilities,
     7  assistance, and data as will enable the board to carry  out  its  powers
     8  and  duties.  Additionally,  all other agencies of the state or subdivi-
     9  sions thereof shall, at the request of the chair provide the board  with

    10  such  facilities, assistance, and data as will enable the board to carry
    11  out its powers and duties.
    12    § 14. Section 27-1019 of the environmental conservation law is  renum-
    13  bered 27-1020 and a new section 27-1019 is added to read as follows:
    14  § 27-1019. Beverage container assistance program.
    15    Within  the  limits of appropriations therefor, the commissioner shall
    16  make state assistance payments to municipalities, not-for-profit  organ-
    17  izations  and  New  York  businesses  for  the  cost  of reverse vending
    18  machines and grants not to exceed fifty percent of the costs  of  equip-
    19  ment,  and/or  the acquisition and/or rehabilitation of real property or
    20  structures related to the collecting, sorting, and  packaging  of  empty

    21  beverage  containers  subject  to  the  provisions  of  this title. Such
    22  payments shall include costs related to the establishment of  redemption
    23  centers,  including  mobile redemption centers. For the purposes of this
    24  section, municipalities and not-for-profit organizations shall have  the
    25  meaning  as  defined  in  section 54-0101 of this chapter and businesses
    26  shall mean a dealer, distributor or redemption center as defined in this
    27  title that employs less than one hundred employees per location.
    28    § 15. Subdivisions 1 and 4 of section  54-0701  of  the  environmental
    29  conservation law, subdivision 1 as amended by chapter 146 of the laws of
    30  2000  and subdivision 4 as added by chapter 610 of the laws of 1993, are
    31  amended to read as follows:

    32    1. "Cost" means the capital cost  of  a  municipal  recycling  project
    33  including  engineering  and  architectural  services, surveys, plans and
    34  specifications; consultant and legal services; lands  acquired  pursuant
    35  to  the conditions set forth in section 54-0709 of this title, and other
    36  direct capital expenses incident to such a  project,  less  any  federal
    37  assistance  or other assistance received or to be received. "Cost" shall
    38  also include the capital, planning and promotional costs associated with
    39  waste reduction projects, the costs related to household hazardous waste
    40  collection and disposal programs, and the  costs  related  to  planning,
    41  educational  and  promotional  activities  associated with a recyclables
    42  recovery program.  "Cost" shall also include beverage container  assist-
    43  ance  program  grants to municipalities and not-for-profit organizations

    44  pursuant to section 27-1019 of this chapter. Provided,  however,  "cost"
    45  shall  exclude  any cost incurred prior to April first, nineteen hundred
    46  ninety-three, and shall  further  exclude  costs  related  to  planning,
    47  educational  and  promotional  activities  associated with a recyclables
    48  recovery program incurred prior to April first, two thousand.
    49    4. "Recycling project" means recyclables  recovery  equipment,  source
    50  separation  equipment, a recyclables recovery program or any combination
    51  thereof required by a recyclables recovery program and the reimbursement
    52  to municipalities and not-for-profit corporations,  as  such  terms  are
    53  defined in section 54-0101 of this article, for the cost of a redemption
    54  center as defined in section 27-1003 of this chapter.

        S. 1290--D                         13                         A. 2517--D
 
     1    §  16.  Paragraph  h  of  subdivision 1 of section 261 of the economic
     2  development law, as amended by chapter 471  of  the  laws  of  1998,  is
     3  amended to read as follows:
     4    h.  "Eligible  project"  shall mean actions taken by or on behalf of a
     5  New York business involving the acquisition,  construction,  alteration,
     6  repair  or  improvement of a building, fixtures, machinery or equipment,
     7  provided that such project results in:
     8    (i) source reduction  or  material  substitution,  provided  that  the
     9  substitution  of  one  hazardous substance, product or nonproduct output
    10  for another does not result in the creation of a new risk,
    11    (ii) in-process recycling,
    12    (iii) recycling or reuse of non-hazardous solid wastes,
    13    (iv) increased energy efficiency,

    14    (v) conservation of the  use  of  water  or  other  natural  resources
    15  improvements in process economics,
    16    (vi) elimination of the purchase of materials, the production of which
    17  for the use of said firm would result in more waste or resource consump-
    18  tion, or
    19    (vii) other practices or technologies that reduce the use of hazardous
    20  materials or otherwise improve air or water quality.
    21    The  term "eligible project" shall also include actions taken by or on
    22  behalf of a New York business to support costs of equipment, and/or  the
    23  acquisition and/or rehabilitation of real property or structures related
    24  to  the  collecting, sorting, and packaging of empty beverage containers
    25  as such terms are defined in title ten of article  twenty-seven  of  the

    26  environmental  conservation  law.    Such  actions shall be eligible for
    27  state  assistance  payments  under  the  beverage  container  assistance
    28  program  pursuant  to  section 27-1019 of the environmental conservation
    29  law.
    30    The term "eligible project" shall not include end  of  pipe  pollution
    31  control  technologies  or practices where such controls or practices are
    32  designed primarily to achieve compliance with the environmental  conser-
    33  vation law or regulations promulgated pursuant thereto, or energy recov-
    34  ery  or  incineration, or out-of-process recycling or reuse of hazardous
    35  waste or hazardous substances.
    36    § 17. Subdivision 2 of section  92-s  of  the  state  finance  law  is
    37  amended by adding a new paragraph c to read as follows:

    38    c. Monies received by the comptroller for deposit in the environmental
    39  protection  fund  pursuant to paragraph b of subdivision four of section
    40  27-1012 of the environmental conservation law shall  be  made  available
    41  for state assistance under this section for projects within each depart-
    42  ment  of  environmental conservation administrative region in proportion
    43  to the amount of such deposits received from deposit  initiators  within
    44  each  such  region. The commissioner of environmental conservation shall
    45  annually report on the amount of such deposits made within  each  region
    46  and  the  amount  of state assistance payments approved pursuant to this
    47  section.
    48    § 18. Subdivision 3 of section 92-s  of  the  state  finance  law,  as

    49  amended  by  chapter  145  of  the  laws  of 2004, is amended to read as
    50  follows:
    51    3. Such fund shall consist of the amount of revenue  collected  within
    52  the  state  from the amount of revenue, interest and penalties deposited
    53  pursuant to section fourteen hundred twenty-one  of  the  tax  law,  the
    54  amount  of fees and penalties received from easements or leases pursuant
    55  to subdivision fourteen of section seventy-five of the public lands  law
    56  and  the  money  received  as annual service charges pursuant to section
        S. 1290--D                         14                         A. 2517--D
 
     1  four hundred four-l of the vehicle and traffic law, all moneys  required
     2  to  be  deposited  therein from the contingency reserve fund pursuant to
     3  section two hundred ninety-four of chapter fifty-seven of  the  laws  of

     4  nineteen  hundred  ninety-three,  all  moneys  required  to be deposited
     5  pursuant to section thirteen of chapter six hundred ten of the  laws  of
     6  nineteen  hundred  ninety-three,  repayments  of  loans made pursuant to
     7  section 54-0511 of the environmental conservation law, all moneys to  be
     8  deposited from the Northville settlement pursuant to section one hundred
     9  twenty-four  of  chapter  three  hundred  nine  of  the laws of nineteen
    10  hundred ninety-six, provided however, that such  moneys  shall  only  be
    11  used  for  the cost of the purchase of private lands in the core area of
    12  the central Suffolk pine barrens pursuant to a consent  order  with  the
    13  Northville  industries  signed  on  October thirteenth, nineteen hundred
    14  ninety-four and the related resource restoration and  replacement  plan,
    15  all  moneys required to be deposited pursuant to paragraph b of subdivi-

    16  sion four of section 27-1012 of the environmental conservation law,  the
    17  amount  of penalties required to be deposited therein by section 71-2724
    18  of the environmental conservation law, and all other moneys credited  or
    19  transferred  thereto  from any other fund or source pursuant to law. All
    20  such  revenue  shall  be  initially  deposited  into  the  environmental
    21  protection fund, for application as provided in subdivision five of this
    22  section.
    23    § 19. This act shall take effect on the first of January next succeed-
    24  ing  the  date  on  which it shall have become a law; provided, however,
    25  that section two of this act shall take effect January 1, 2008.