NY State Senate Bill 2025-S1719

Senate Bill S1719

2025-2026 Legislative Session

Relates to registration as a redemption center and the handling fee paid to any dealer or operator of a redemption center

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Current Bill Status - In Senate Committee Environmental Conservation Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 13, 2025	referred to environmental conservation

2025-S1719 (ACTIVE) - Details

See Assembly Version of this Bill:: A1744
Current Committee:: Senate Environmental Conservation
Law Section:: Environmental Conservation Law
Laws Affected:: Amd §§27-1007, 27-1012, 27-1013 & 27-1015, En Con L
Versions Introduced in Other Legislative Sessions:: 2021-2022: S8242, A8517
2023-2024: S7428, A3375

2025-S1719 (ACTIVE) - Summary

Increases the handling fee paid by a deposit initiator to a dealer or operator of a redemption center from three and one half cents to five cents per container; decreases the amount of quarterly payments a deposit initiator must pay the commissioner of taxation and finance from eighty to forty-seven percent of the balance of initiator's refund value account; provides for registration as a redemption center.

2025-S1719 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S1719

SPONSOR: HINCHEY
 
TITLE OF BILL:

An act to amend the environmental conservation law, in relation to
registration as a redemption center and the handling fee paid to any
dealer or operator of a redemption center

 
PURPOSE:

This bill would increase the handling fee paid to any dealer or operator
of a redemption center from three and half cents to five cents and
permit deposit initiators to retain fifty-three percent of the balance
outstanding accumulated in the refund value account due to unredeemed
bottle deposits.

 
SUMMARY OF PROVISIONS:

Section 1: Amends subdivision six of section 27-1 Mr of the environ-
mental conservation law to direct deposit initiators to pay a five cent
handling fee for each beverage container accepted by the deposit initi-

ator from a dealer or operator of a redemption center.

§ 2: Amends subparagraphs a and c of subdivision four of section 27-1012
of the environmental conservation law to permit deposit initiators to
retain fifty-three percent of the balance outstanding in the refund
value account at the close of each quarter.

§ 3: Adds a new subdivision one to section 27-1013 of the environmental
conservation law and renumbers the remaining subdivisions accordingly.
Paragraph (a) of subdivision one requires redemption centers to register
annually with the state as a condition of operation, provided that
redemption centers in business before April 1, 2024, need not submit a
renewal application prior to the December 31st next succeeding the
effective date of the legislation.  Applications shall be submitted in a
form prescribed by the commissioner which shall, at a minimum, require
certain specified information. Pursuant to paragraph (b), applications
for registration and renewal shall be deemed approved if the department
fails to act on such within thirty days of submission. Paragraph (c)
authorizes the commissioner to deny an application for registration or
renewal after due notice and opportunity of hearing and such a revoca-
tion Is subject to review under article 78 of the Civil Practice Law and
Rules. Paragraph (d) prohibits receipt of a handling fee by any person,
firm or corporation which is not registered with the commissioner, and
If one has been received, it shall be promptly refunded. Paragraph (e)
requires the commissioner to promulgate rules and regulakins governing
audits in connection with pick ups of redeemed beverage container& Such
rules shall contain minimum specified parameters. The department shall
conduct such audits upon the request of a distributor, deposit initi-
ator, redemption center or dealer, provided such requests shall be
limited to no more than ten per calendar year with respect to each pick
Up agent or redemption center with which the requester conducts pick up
transactions. Requests for audits must be made upon no less than two
business days' notice to the department

§ 4: Adds technical amendments to subdivision 2 of section 27-1015 of
the environmental conservation law and amends subdivision 3 to also
apply to redemption centers and dealers by prohibiting distributors,
deposit initiators, redemption centers and dealers from knowingly
returning a beverage container for its refund value more than once.
Following a hearing or opportunity to be heard, a subsequent violation
shall result in a civil penalty of not less than $1,000 nor more than
$5,000, an amount equal to two times the amount of money received as a
result of the violation, and a revocation of the subject redemption
centers registration or a withholding of an equivalent amount from the
subject distributor's, deposit initiators or dealer's refund value
account Subdivision four is amended to add a civil penalty for a subse-
quent violation of up to $50,000 following a hearing or opportunity to
be heard. New subdivision 44 adds new civil penalties, following a hear-
ing or opportunity to be heard, of up to $25,000 (up to $50,000 for a
subsequent violation, plus revocation of the redemption centers regis-
tration) for willful tender to a deposit initiator by a redemption
center of more than forty-eight empty beverage containers for which the
r edemption center knows or should reasonably know that no deposit was
paid in New York state. New subdivision 4-b addresses shortfalls discov-
ered through audit of pick up transactions. Pursuant to subdivision (a),
if there is a discrepancy of ten percent or more, then the deposit
initiator which requested the audit may withhold up to fifty percent (up
to one hundred percent for a subsequent violation) of the handling fee
otherwise due to a redemption center.  Subdivision (b) authorizes a
redemption center which discovers a shortfall of ten percent or more
through audit of pick up transactions to receive one hundred fifty
percent (up to two hundred percent for a subsequent violation) of the
handling fee otherwise due to the redemption center.

§ 5: Establishes the effective date as the thirtieth day after it shall
have become a law.

 
JUSTIFICATION:

The New York State Returnable Container Act (the *Bottle sir) became law
in 1982 and has been keeping billions of bottles out of landfills and
off roadsides ever since. In the beginning, the law assigned a 5 cent
bottle deposit on consumers, assessed a 1 cent handling fee to beverage
companies, and permitted beverage companies to retain 100% of unredeemed
bottle deposit revenues. The handling fee was - and continues to be -
the sole source of revenue for the small business redemption centers
needed to collect and sort empty bottles in communities throughout
thesate.

When the original handling fee amount proved insufficient to support the
redemption centers, the legislature increased the fee to and 2 cents in
1983 and 1998, respectively. Over the course of 27 years, beverage
companies retained more than $2 billion in unredeemed bottle deposit
revenues. Then, in 2009, the "Bigger, Better Bottle sir raised the
handling fee to 3.5 cents and adjusted the allocation of unredeemed
bottle deposit revenues to 20% to the beverage companies and 80% to the
State General Fund.

Now, twelve years later, while the sole revenue source (the handling
fee) has remained static, operational costs for small business redemp-
tion centers have continued to rise, Including increased wage expenses,
associated payroll taxes, insurance premiums, and rents.  During 2023
alone, nearly fifty redemption centers closed.


Redemption centers cannot be allowed to fail. There are hundreds of
small business redemption centers across the state, each of which
handles approximately 3.5 million empty bottles annually, for a state-
wide total of more than 3.1 billion bottles per year. In communities
lacking a grocery store or other large-scale redemption site, their
convenience and efficiency are indispensable; collectively, small busi-
ness redemption centers have helped New York consistently sustain a
statewide bottle return rate of over 60%.  Beyond their contributions to
recycling and local employment, small business redemption centers also
play a vital role in the lives of community members, supporting communi-
ty fundraising activities through bottle drives conducted by PTAs, Boy
and Girl Scout troops, travel sports teams, and others. This bill does
not raise consumer, costs.

 
LEGISLATIVE HISTORY:

2022 - S.8242/A.8517 referred to environmental conservation

2023 - S7428 (referred to environmental conservation) / A3375 (referred
to environmental conservation)

2024 - S7428 (referred to environmental conservation) / A3375 (referred
to environmental conservation)

 
FISCAL IMPLICATIONS:

The re-allocation of unredeemed bottle deposit revenues between the
State General Fund and the beverage companies offsets the costs of
increasing the handling fee. Based on information received from the
Department of Taxation & Finance, we anticipate New York's loss of unre-
deemed bottle deposits to be approximately $50 million per year.

2025-S1719 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1719
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             January 13, 2025
                                ___________
 
 Introduced  by  Sen. HINCHEY -- read twice and ordered printed, and when
   printed to be committed to the Committee on Environmental Conservation
 
 AN ACT to amend the  environmental  conservation  law,  in  relation  to
   registration  as  a redemption center and the handling fee paid to any
   dealer or operator of a redemption center

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subdivision  6  of  section  27-1007 of the environmental
 conservation law, as added by section 4 of part SS of chapter 59 of  the
 laws of 2009, is amended to read as follows:
   6.  In  addition to the refund value of a beverage container as estab-
 lished by section 27-1005 of this title, a deposit initiator  shall  pay
 to  any  dealer  or  operator  of  a redemption center a handling fee of
 [three and one-half] FIVE cents for each beverage container accepted  by
 the  deposit  initiator  from  such  dealer  or operator of a redemption
 center.   Payment of the handling  fee  shall  be  as  compensation  for
 collecting,  sorting  and  packaging  of  empty  beverage containers for
 transport back to the deposit initiator or its designee. Payment of  the
 handling  fee  may  not  be  conditioned on the purchase of any goods or
 services, nor may such payment be made out of the refund  value  account
 established pursuant to section 27-1012 of this title. A distributor who
 does not initiate deposits on a type of beverage container is considered
 a dealer only for the purpose of receiving a handling fee from a deposit
 initiator.
   §  2.  Paragraphs  a  and c of subdivision 4 of section 27-1012 of the
 environmental conservation law, as added by section  8  of  part  SS  of
 chapter 59 of the laws of 2009, are amended to read as follows:
   a. Quarterly payments. An amount equal to [eighty] FORTY-SEVEN percent
 of  the  balance outstanding in the refund value account at the close of
 each quarter shall be paid to the commissioner of taxation  and  finance
 at the time the report provided for in subdivision three of this section
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03985-01-5

 S. 1719                             2
 
 is  required  to  be filed. The commissioner of taxation and finance may
 require that the payments be made electronically.  The remaining  [twen-
 ty]  FIFTY-THREE percent of the balance outstanding at the close of each
 quarter  shall  be  the monies of the deposit initiator and may be with-
 drawn from such account by the deposit initiator. If the  provisions  of
 this  section  with respect to such account have not been fully complied
 with, each deposit initiator shall pay  to  such  commissioner  at  such
 time,  in  lieu  of  the  amount described in the preceding sentence, an
 amount equal to the balance which would have been  outstanding  on  such
 date  had  such provisions been fully complied with. The commissioner of
 taxation and finance may require that the  payments  be  made  electron-
 ically.
   c. Final report. A deposit initiator who ceases to do business in this
 state as a deposit initiator shall file a final report and remit payment
 of  [eighty]  FORTY-SEVEN percent of all amounts remaining in the refund
 value account as of the close of the deposit  initiator's  last  day  of
 business.  The commissioner of taxation and finance may require that the
 payments be made electronically. The deposit initiator shall indicate on
 the report that it is a "final report". The final report is  due  to  be
 filed  with  payment twenty days after the close of the quarterly period
 in which the deposit initiator ceases to do business. In the  event  the
 deposit  initiator  pays  out  more in refund values than it collects in
 such final quarterly period, the deposit  initiator  may  apply  to  the
 commissioner  of taxation and finance for a refund of the amount of such
 excess payment of refund values from sources other than the refund value
 account, in the manner as provided by the commissioner of  taxation  and
 finance.
   §  3. Section   27-1013   of  the  environmental conservation  law, as
 amended by section 7 of part F of chapter 58 of the  laws  of  2013,  is
 amended to read as follows:
 § 27-1013. Redemption centers.
   1.  (A) (I) AS OF THE EFFECTIVE DATE OF THE CHAPTER OF THE LAWS OF TWO
 THOUSAND TWENTY-FIVE THAT AMENDED THIS SECTION AND SUBJECT TO APPLICABLE
 PROVISIONS OF LOCAL AND STATE LAW, ANY PERSON, FIRM OR CORPORATION WHICH
 ESTABLISHES A REDEMPTION CENTER, AT  WHICH  REDEEMERS  AND  DEALERS  MAY
 RETURN EMPTY BEVERAGE CONTAINERS AND RECEIVE PAYMENT OF THE REFUND VALUE
 OF  SUCH BEVERAGE CONTAINERS, SHALL SUBMIT AN APPLICATION TO THE COMMIS-
 SIONER FOR REGISTRATION AS A CONDITION OF OPERATION.
   (II) ANY REDEMPTION CENTER IN BUSINESS ON OR BEFORE APRIL  FIRST,  TWO
 THOUSAND  TWENTY-FIVE  MAY  CONTINUE TO OPERATE AS IF THE DEPARTMENT HAD
 ISSUED SUCH REDEMPTION CENTER A  REGISTRATION  REQUIRED  BY  REGULATIONS
 ADOPTED  UNDER  THIS  SECTION;  PROVIDED,  HOWEVER, THAT SUCH REDEMPTION
 CENTER SHALL SUBMIT A RENEWAL APPLICATION TO THE COMMISSIONER IN ACCORD-
 ANCE WITH APPLICABLE REGULATIONS BY THE THIRTY-FIRST  OF  DECEMBER  NEXT
 SUCCEEDING THE EFFECTIVE DATE OF THIS SUBPARAGRAPH.
   (III)  AN  APPLICATION  FOR REGISTRATION OR RENEWAL SHALL BE IN A FORM
 PRESCRIBED BY THE COMMISSIONER AND SHALL, AT A MINIMUM, REQUIRE THE NAME
 AND PHYSICAL ADDRESS OF THE REDEMPTION CENTER,  THE  NAME,  ADDRESS  AND
 CONTACT  INFORMATION  OF  THE  OWNER  AND/OR  OPERATOR OF THE REDEMPTION
 CENTER, THE NAMES AND ADDRESSES OF EACH DEALER OR DISTRIBUTOR WITH WHICH
 THE REDEMPTION CENTER HAS CONTRACTED TO COLLECT,  SORT  AND  OBTAIN  THE
 REFUND  VALUE AND HANDLING FEE OF EMPTY BEVERAGE CONTAINERS, AS APPLICA-
 BLE, THE NUMBER OF BEVERAGE CONTAINERS REDEEMED BY THE REDEMPTION CENTER
 DURING THE PRECEDING TWELVE MONTHS, AS APPLICABLE, AND SUCH OTHER INFOR-
 MATION AS THE COMMISSIONER DEEMS NECESSARY FOR PROPER ADMINISTRATION  OF
 THIS  TITLE.  THE COMMISSIONER MAY REQUIRE APPLICATIONS FOR REGISTRATION
 S. 1719                             3
 
 TO BE SUBMITTED ELECTRONICALLY. THE  COMMISSIONER  SHALL  ELECTRONICALLY
 ISSUE  A  REDEMPTION  CENTER REGISTRATION CERTIFICATE OR RENEWAL CERTIF-
 ICATE IN A FORM PRESCRIBED BY THE COMMISSIONER  WITHIN  THIRTY  DAYS  OF
 RECEIPT  OF  SUCH  APPLICATION.  A  REGISTRATION  CERTIFICATE OR RENEWAL
 CERTIFICATE ISSUED PURSUANT TO THIS SUBDIVISION SHALL BE ISSUED FOR  ONE
 YEAR  AND  SHALL  BE SUBJECT TO ANNUAL RENEWAL IN ACCORDANCE WITH PROCE-
 DURES SPECIFIED BY THE COMMISSIONER.
   (IV) ANY REGISTERED REDEMPTION CENTER  THAT  CEASES  OPERATIONS  SHALL
 NOTIFY  THE COMMISSIONER OF SUCH CESSATION IN WRITING WITHIN THIRTY DAYS
 IN A FORM PRESCRIBED BY THE COMMISSIONER.
   (B) THE COMMISSIONER SHALL ISSUE  A  REGISTRATION  OR  RENEWAL  WITHIN
 THIRTY  DAYS  OF  THE  SUBMISSION OF AN APPLICATION BY A PERSON, FIRM OR
 CORPORATION WHICH ESTABLISHES A REDEMPTION CENTER IN ACCORDANCE WITH THE
 PROVISIONS OF THIS SECTION, SUBJECT TO APPLICABLE  PROVISIONS  OF  LOCAL
 AND  STATE  LAWS.  AN  APPLICATION  FOR REGISTRATION OR RENEWAL SHALL BE
 DEEMED APPROVED IF THE DEPARTMENT FAILS TO ACT ON SUCH APPLICATION WITH-
 IN THIRTY DAYS OF SUBMISSION. REGISTRATIONS AND RENEWALS SHALL BE ISSUED
 AT NO COST TO THE APPLICANT. THE COSTS ATTRIBUTABLE  TO  THE  DEPARTMENT
 FOR  THE  REVIEW AND PROCESSING OF REGISTRATION AND RENEWAL APPLICATIONS
 PURSUANT TO THIS SECTION SHALL BE PAID FOR OUT OF THE STATE'S PORTION OF
 THE OUTSTANDING BALANCE IN THE REFUND VALUE ACCOUNT WHICH  IS  REGULARLY
 DEPOSITED  INTO  THE  GENERAL FUND IN ACCORDANCE WITH SECTION 27-1012 OF
 THIS TITLE.
   (C) AFTER DUE NOTICE AND  OPPORTUNITY  OF  HEARING,  PURSUANT  TO  THE
 PROVISIONS  OF  SECTION 71-1709 OF THIS CHAPTER, THE DEPARTMENT MAY DENY
 AN APPLICATION FOR REGISTRATION OR RENEWAL OR REVOKE A REGISTRATION.  IN
 DETERMINING WHETHER OR NOT TO REVOKE A  REGISTRATION,  THE  COMMISSIONER
 SHALL,  AT  A MINIMUM, TAKE INTO CONSIDERATION THE COMPLIANCE HISTORY OF
 AN APPLICANT, GOOD FAITH EFFORTS OF AN APPLICANT TO COMPLY, ANY ECONOMIC
 BENEFIT FROM NONCOMPLIANCE AND WHETHER ANY VIOLATION WAS  PROCEDURAL  IN
 NATURE.  THE  COMMISSIONER'S  DETERMINATION  TO REVOKE A REGISTRATION IS
 SUBJECT TO REVIEW UNDER ARTICLE SEVENTY-EIGHT OF THE CIVIL PRACTICE  LAW
 AND RULES.
   (D)  ANY  PERSON,  FIRM OR CORPORATION REQUIRED TO BE REGISTERED UNDER
 THIS SECTION WHICH, WITHOUT BEING REGISTERED, REDEEMS BEVERAGE  CONTAIN-
 ERS  IN  THIS STATE, SHALL NOT BE ELIGIBLE TO RECEIVE A HANDLING FEE FOR
 ANY SUCH REDEEMED BEVERAGE CONTAINERS,  AND  IF  SUCH  PERSON,  FIRM  OR
 CORPORATION  HAS  RECEIVED  SUCH  A  HANDLING  FEE, IT SHALL BE PROMPTLY
 REFUNDED.
   (E) THE COMMISSIONER SHALL PROMULGATE RULES AND REGULATIONS  GOVERNING
 THE PERFORMANCE OF AUDITS IN CONNECTION WITH PICK-UPS OF REDEEMED BEVER-
 AGE  CONTAINERS. SUCH AUDITS SHALL BE CONDUCTED BY THE DEPARTMENT AT THE
 REQUEST OF A DISTRIBUTOR, DEPOSIT INITIATOR, REDEMPTION CENTER OR  DEAL-
 ER,  UPON  NO  LESS  THAN TWO BUSINESS DAYS' NOTICE, TO MONITOR BEVERAGE
 CONTAINER PICK-UPS AND PARTY COMPLIANCE  WITH  THE  PROVISIONS  OF  THIS
 CHAPTER.  A  DISTRIBUTOR, DEPOSIT INITIATOR, REDEMPTION CENTER OR DEALER
 MAY REQUEST THE DEPARTMENT TO CONDUCT AN AUDIT NO MORE  THAN  TEN  TIMES
 PER  CALENDAR  YEAR  WITH  RESPECT  TO  EACH PICK UP AGENT OR REDEMPTION
 CENTER WITH WHICH THE REQUESTER  CONDUCTS  PICK  UP  TRANSACTIONS.  SUCH
 AUDITS  SHALL,  AT  A MINIMUM, INCLUDE THE FOLLOWING PARAMETERS: (I) ALL
 AUDITS SHALL BE CONDUCTED ON AN ENTIRE PICK-UP SHIPMENT AT  ONE  OF  TWO
 LOCATIONS,  INCLUDING  AT  THE SITE OF SUCH REDEMPTION CENTER OR SITE AT
 WHICH SUCH PICK UP SHIPMENT OF REDEEMED BEVERAGE CONTAINERS IS DELIVERED
 AND COUNTED; (II) A DEPARTMENT AUDITOR SHALL BE PRESENT AT  THE  REDEMP-
 TION CENTER AT WHICH SUCH AUDIT SHALL BE PERFORMED TO WITNESS THE WEIGH-
 ING  OF ALL INDIVIDUAL BAGS OF BEVERAGE CONTAINERS INCLUDED IN THE PICK-
 S. 1719                             4
 
 UP TRANSACTION; (III) A DEPARTMENT INSPECTOR SHALL  BE  PRESENT  AT  THE
 DELIVERY/COUNTING  SITE  OF  SUCH  PICK UP SHIPMENT OF REDEEMED BEVERAGE
 CONTAINERS AT THE TIME OF SUCH AUDIT TO WITNESS THE COUNTING OF CONTAIN-
 ERS; AND (IV) THERE SHALL BE A SECURE CHAIN OF CUSTODY BETWEEN THE PICK-
 UP  LOCATION  AND  POINT  OF DELIVERY/COUNTING THAT SHALL REMAIN SECURED
 UNTIL AUDITED IN THE PRESENCE OF THE DEPARTMENT'S AUDITOR. AUDIT RESULTS
 SHALL BE  PROMPTLY  REPORTED  TO  THE  DISTRIBUTOR,  DEPOSIT  INITIATOR,
 REDEMPTION CENTER AND/OR DEALER WHOSE PICK UP TRANSACTION IS THE SUBJECT
 OF SUCH AUDIT.
   2.  The commissioner is hereby empowered to promulgate rules and regu-
 lations governing (a) the circumstances  in  which  deposit  initiators,
 dealers  and distributors, individually or collectively, are required to
 accept the return  of  empty  beverage  containers,  including  beverage
 containers  processed  through reverse vending machines and make payment
 therefor; (b) the sorting of the containers which a deposit initiator or
 distributor may require of  dealers  and  redemption  centers;  (c)  the
 collection  of  returned  beverage  containers  by deposit initiators or
 distributors, including the party to whom such expense is to be charged,
 the frequency of such pick ups and the payment for refunds and  handling
 fees  thereon;  (d) the right of dealers to restrict or limit the number
 of containers redeemed, the rules for redemption at the  dealers'  place
 of  business, and the redemption of containers from a beverage for which
 sales have been discontinued; (e) [to issue] registrations AND  RENEWALS
 ISSUED  to  persons,  firms  or  corporations which establish redemption
 centers, subject to applicable provisions of local and  state  laws,  at
 which  redeemers  and  dealers  may return empty beverage containers and
 receive payment of the refund value of such beverage  containers[.  Such
 registrations  shall be issued at no cost. Should the department require
 by regulations  adopted  pursuant  to  this  paragraph  that  redemption
 centers  must  obtain  a  registration  as a condition of operation, any
 redemption center in business as of March first, two  thousand  thirteen
 that  previously  provided the department with the notification informa-
 tion required by regulations in effect as of such date may  continue  to
 operate  as if the department had issued such redemption center a regis-
 tration required by regulations adopted under this paragraph;  provided,
 however,  that  such redemption center shall provide the department with
 any other information required by regulations adopted pursuant  to  this
 paragraph.    The  department  may,  after due notice and opportunity of
 hearing, pursuant to the provisions of section 71-1709 of this  chapter,
 deny  an application or revoke a registration. In determining whether or
 not to revoke a registration the commissioner shall at a  minimum,  take
 into  consideration  the  compliance  history  of a violator, good faith
 efforts of a violator to comply, any economic benefit from noncompliance
 and whether the violation was procedural in nature.  The  commissioner's
 determination  to revoke a registration is subject to review under arti-
 cle seventy-eight of the civil practice law  and  rules];  and  (f)  the
 operation  of  mobile  redemption centers in order to ensure that to the
 best extent practicable containers are not proffered for redemption to a
 deposit initiator or distributor outside of the  geographic  area  where
 such deposit initiator sells containers and initiates deposits.
   [2.]  3.  The  department  may require a redemption center to obtain a
 permit, as an alternative to registration if such center is  located  at
 the  same  facility  or  site as another solid waste management facility
 otherwise subject to the requirements of title seven of this article  or
 the regulations promulgated pursuant thereto.
 S. 1719                             5
 
   [3.]  4.  No  dealer  or distributor, as defined in section 27-1003 of
 this title, shall be required to obtain a permit to operate a redemption
 center at the same location as the dealer's or  distributor's  place  of
 business.  Operators of such redemption centers shall receive payment of
 the refund value of each beverage container from the appropriate deposit
 initiator  or  distributor  as  provided  under  section 27-1007 of this
 title.
   [4.] 5. Each dealer and redemption center  shall  require  any  person
 tendering  for redemption more than two thousand five hundred containers
 at one time to such dealer or redemption center to provide such person's
 name and address and the license plate of the vehicle used to  transport
 the  containers,  or,  in the case of an agent or employee of a not-for-
 profit corporation, a sales tax exemption  certificate.  The  dealer  or
 redemption  center  redeeming  the  beverage  containers  shall keep the
 information on file for a minimum of twelve months and provide  same  to
 the department upon request.
   §  4.  Subdivisions 2, 3 and 4 of section 27-1015 of the environmental
 conservation law, as amended by section 8 of part F of chapter 58 of the
 laws of 2013, are amended and two new subdivisions 4-a and 4-b are added
 to read as follows:
   2. Any distributor, deposit initiator, redemption center or dealer who
 violates any provision of this title,  except  as  provided  in  section
 27-1012  AND PARAGRAPH (D) OF SUBDIVISION ONE OF SECTION 27-1013 of this
 title AND SUBDIVISIONS THREE, FOUR, FOUR-A AND FOUR-B OF  THIS  SECTION,
 shall be liable to the state of New York for a civil penalty of not more
 than  one  thousand dollars, and an additional civil penalty of not more
 than one thousand dollars for each day during which each such  violation
 continues.  Any  civil  penalty  may  be assessed following a hearing or
 opportunity to be heard.
   3. It shall be unlawful  for  a  distributor,  or  deposit  initiator,
 REDEMPTION CENTER OR DEALER, acting alone or aided by another, to return
 any  empty  beverage  container to a dealer or redemption center for its
 refund value if the distributor, or deposit initiator, REDEMPTION CENTER
 OR DEALER RETURNING THE EMPTY BEVERAGE CONTAINER had KNOWINGLY previous-
 ly accepted such beverage container from any dealer  or  operator  of  a
 redemption  center  or if THE DISTRIBUTOR, DEPOSIT INITIATOR, REDEMPTION
 CENTER OR DEALER RETURNING THE EMPTY BEVERAGE CONTAINER KNOWS THAT  such
 container  was  previously  accepted  by  a  reverse  vending machine. A
 violation of this subdivision shall be a  misdemeanor  punishable  by  a
 fine  of  not  less than five hundred dollars nor more than one thousand
 dollars and an amount equal to two times the amount of money received as
 a result of such violation. A DISTRIBUTOR, DEPOSIT INITIATOR, REDEMPTION
 CENTER OR DEALER WHICH COMMITS A SUBSEQUENT VIOLATION OF  THIS  SUBDIVI-
 SION SHALL BE LIABLE TO THE STATE OF NEW YORK FOR A CIVIL PENALTY OF NOT
 LESS  THAN  ONE THOUSAND DOLLARS NOR MORE THAN FIVE THOUSAND DOLLARS, AN
 AMOUNT EQUAL TO TWO TIMES THE AMOUNT OF MONEY RECEIVED AS  A  RESULT  OF
 SUCH  VIOLATION AND A REVOCATION OF THE REDEMPTION CENTER'S REGISTRATION
 OR, AS APPLICABLE, A  WITHHOLDING  OF  AN  EQUIVALENT  AMOUNT  FROM  THE
 DISTRIBUTOR'S,  DEPOSIT INITIATOR'S OR DEALER'S REFUND VALUE ACCOUNT, AS
 SET FORTH IN SECTION 27-1012 OF THIS TITLE, ADMINISTERED BY THE  COMMIS-
 SIONER  OF  TAXATION  AND  FINANCE.    ANY CIVIL PENALTY MAY BE ASSESSED
 FOLLOWING A HEARING OR OPPORTUNITY TO BE HEARD.
   4. Any person who willfully tenders to a dealer, distributor,  redemp-
 tion  center  or  deposit initiator more than forty-eight empty beverage
 containers for which such person knows or should reasonably know that no
 deposit was paid in New York state may be assessed by the  department  a
 S. 1719                             6
 
 civil  penalty  of up to one hundred dollars for each container or up to
 twenty-five thousand dollars for  each  such  tender  of  containers.  A
 SUBSEQUENT VIOLATION OF THIS SECTION MAY RESULT IN A CIVIL PENALTY OF UP
 TO  FIFTY THOUSAND DOLLARS.  ANY CIVIL PENALTY MAY BE ASSESSED FOLLOWING
 A HEARING OR OPPORTUNITY TO BE HEARD. At each location  where  a  person
 tenders  containers  for redemption, dealers and redemption centers must
 conspicuously display a sign in letters that are at least  one  inch  in
 height  with the following information: "WARNING:  Persons tendering for
 redemption containers on which a deposit was never paid  in  this  state
 may  be  subject  to  a  civil  penalty of up to one hundred dollars per
 container or up to twenty-five thousand dollars for each such tender  of
 containers."  Any  civil  penalty may be assessed following a hearing or
 opportunity to be heard.
   4-A. ANY REDEMPTION CENTER WHICH WILLFULLY TENDERS TO A DEPOSIT INITI-
 ATOR MORE THAN FORTY-EIGHT EMPTY  BEVERAGE  CONTAINERS  FOR  WHICH  SUCH
 REDEMPTION  CENTER  KNOWS  OR SHOULD REASONABLY KNOW THAT NO DEPOSIT WAS
 PAID IN NEW YORK STATE MAY BE ASSESSED BY THE DEPARTMENT A CIVIL PENALTY
 OF UP TO ONE HUNDRED DOLLARS FOR EACH CONTAINER  OR  UP  TO  TWENTY-FIVE
 THOUSAND  DOLLARS  FOR  EACH  SUCH  TENDER  OF  CONTAINERS. A SUBSEQUENT
 VIOLATION OF THIS SECTION MAY RESULT IN A CIVIL PENALTY OF UP  TO  FIFTY
 THOUSAND  DOLLARS  AND  REVOCATION OF SUCH REDEMPTION CENTER'S REGISTRA-
 TION.  ANY CIVIL PENALTY MAY BE ASSESSED FOLLOWING A HEARING OR OPPORTU-
 NITY TO BE HEARD.
   4-B. (A) A DEPOSIT INITIATOR WHICH UPON AUDIT DISCOVERS THAT A REDEMP-
 TION CENTER REPORTED MORE BEVERAGE CONTAINERS THAN WERE  ACTUALLY  PHYS-
 ICALLY TENDERED SHALL PROVIDE WRITTEN NOTICE TO THE REDEMPTION CENTER OF
 SUCH  SHORTFALL  AND SHALL PROVIDE A REFUND BASED ON THE ACTUAL TENDERED
 AMOUNT, PROVIDED THAT IF SUCH AUDIT REVEALS A  DISCREPANCY  BETWEEN  THE
 REDEMPTION CENTER'S REPORTED NUMBER OF BEVERAGE CONTAINERS AND THE ACTU-
 AL  PHYSICAL  COUNT OF TEN PERCENT OR GREATER, THE DEPOSIT INITIATOR MAY
 WITHHOLD UP TO FIFTY PERCENT OF THE HANDLING FEE  OTHERWISE  PAYABLE  TO
 THE  REDEMPTION  CENTER  FOR SUCH TENDER, AND PROVIDED FURTHER THAT UPON
 ANY SUBSEQUENT AUDIT WHICH PRODUCES A  DISCREPANCY  OF  TEN  PERCENT  OR
 MORE,  THE  DEPOSIT  INITIATOR MAY WITHHOLD UP TO ONE HUNDRED PERCENT OF
 THE HANDLING FEE OTHERWISE PAYABLE TO SUCH REDEMPTION  CENTER.  NOTWITH-
 STANDING  ANY  OTHER  PROVISIONS  OF THIS TITLE, ANY FUNDS WITHHELD BY A
 DEPOSIT INITIATOR PURSUANT TO THIS PARAGRAPH  MAY  BE  RETAINED  BY  THE
 DEPOSIT INITIATOR TO DEFRAY THE COSTS OF THE AUDITING PROCESS.
   (B)  A  REDEMPTION  CENTER  WHICH  UPON AUDIT DISCOVERS THAT A DEPOSIT
 INITIATOR UNDERREPORTED THE NUMBER  OF  BEVERAGE  CONTAINERS  THAT  WERE
 ACTUALLY PHYSICALLY TENDERED SHALL PROVIDE WRITTEN NOTICE TO THE DEPOSIT
 INITIATOR  OF  SUCH SHORTFALL AND SHALL RECEIVE PAYMENT FROM THE DEPOSIT
 INITIATOR BASED ON THE ACTUAL TENDERED AMOUNT,  PROVIDED  THAT  IF  SUCH
 AUDIT  REVEALS  A  DISCREPANCY  BETWEEN THE DEPOSIT INITIATOR'S REPORTED
 NUMBER OF BEVERAGE CONTAINERS AND  THE  ACTUAL  PHYSICAL  COUNT  OF  TEN
 PERCENT  OR  GREATER,  THE  REDEMPTION  CENTER SHALL BE PAID ONE HUNDRED
 FIFTY PERCENT OF THE HANDLING FEE OTHERWISE PAYABLE  TO  THE  REDEMPTION
 CENTER  FOR  SUCH  TENDER, AND PROVIDED FURTHER THAT UPON ANY SUBSEQUENT
 AUDIT WHICH PRODUCES A DISCREPANCY OF TEN PERCENT OR MORE,  THE  REDEMP-
 TION CENTER SHALL BE PAID TWO HUNDRED PERCENT OF THE HANDLING FEE OTHER-
 WISE PAYABLE TO SUCH REDEMPTION CENTER.
   §  5.  This  act shall take effect on the thirtieth day after it shall
 have become a law.

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