NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A9044
SPONSOR: Ramos
 
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 OR GENERAL IDEA OF BILL:
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 to direct deposit initiators to pay a six cents
handling fee for each beverage container accepted by the deposit initi-
ator from a dealer or operator of a redemption center beginning April 1,
2024.
§ 2 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. Bever-
age 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 handl-
ing 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, operational 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, includ-
ing wage expenses, payroll taxes,. insurance premiums, and rentseir
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
redemption centers will have a detriment 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.
 
PRIOR LEGISLATIVE HISTORY:
None
 
FISCAL IMPLICATIONS FOR STATE AN!) LOCAL GOVERNMENTS:
To be determined
 
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
9044
IN ASSEMBLY
February 5, 2024
___________
Introduced by M. of A. RAMOS -- read once and referred to the Committee
on Environmental Conservation
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
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 6 of section 27-1007 of the environmental
2 conservation law, as added by section 4 of part SS of chapter 59 of the
3 laws of 2009, is amended to read as follows:
4 6. In addition to the refund value of a beverage container as estab-
5 lished by section 27-1005 of this title, a deposit initiator shall pay
6 to any dealer or operator of a redemption center a handling fee of three
7 and one-half cents for each beverage container accepted by the deposit
8 initiator from such dealer or operator of a redemption center. Beginning
9 April first, two thousand twenty-four, the handling fee will be six
10 cents. Payment of the handling fee shall be as compensation for collect-
11 ing, sorting and packaging of empty beverage containers for transport
12 back to the deposit initiator or its designee. Payment of the handling
13 fee may not be conditioned on the purchase of any goods or services, nor
14 may such payment be made out of the refund value account established
15 pursuant to section 27-1012 of this title. A distributor who does not
16 initiate deposits on a type of beverage container is considered a dealer
17 only for the purpose of receiving a handling fee from a deposit initi-
18 ator.
19 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD13958-01-4