BILL NUMBER: S8520

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 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, oper-
ational 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 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 ourò
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:

None

 
FISCAL IMPLICATIONS:

To be determined

 
LOCAL FISCAL IMPLICATIONS:

To be determined

 
EFFECTIVE DATE:
This act shall take effect immediately.