Bill Text: NY A03375 | 2023-2024 | General Assembly | Amended
Bill Title: 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.
Spectrum: Slight Partisan Bill (Democrat 16-9)
Status: (Introduced) 2024-03-25 - print number 3375a [A03375 Detail]
Download: New_York-2023-A03375-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 3375--A 2023-2024 Regular Sessions IN ASSEMBLY February 2, 2023 ___________ Introduced by M. of A. WOERNER, GUNTHER, LUNSFORD, BUTTENSCHON, KELLES, MAHER, SIMPSON, STIRPE, McDONALD, WALLACE, LUPARDO, PAULIN, EPSTEIN, EACHUS, SIMON, McMAHON, SHIMSKY, LEMONDES, BEEPHAN, BRABENEC, GRAY, BLANKENBUSH, DAVILA, ANGELINO -- Multi-Sponsored by -- M. of A. HAWLEY -- read once and referred to the Committee on Environmental Conserva- tion -- recommitted to the Committee on Environmental Conservation in accordance with Assembly Rule 3, sec. 2 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said commit- tee 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: 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 7 [three and one-half] five cents for each beverage container accepted by 8 the deposit initiator from such dealer or operator of a redemption 9 center. Payment of the handling fee shall be as compensation for 10 collecting, sorting and packaging of empty beverage containers for 11 transport back to the deposit initiator or its designee. Payment of the 12 handling fee may not be conditioned on the purchase of any goods or 13 services, nor may such payment be made out of the refund value account 14 established pursuant to section 27-1012 of this title. A distributor who 15 does not initiate deposits on a type of beverage container is considered 16 a dealer only for the purpose of receiving a handling fee from a deposit 17 initiator. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD07158-06-4A. 3375--A 2 1 § 2. Paragraphs a and c of subdivision 4 of section 27-1012 of the 2 environmental conservation law, as added by section 8 of part SS of 3 chapter 59 of the laws of 2009, are amended to read as follows: 4 a. Quarterly payments. An amount equal to [eighty] forty-seven percent 5 of the balance outstanding in the refund value account at the close of 6 each quarter shall be paid to the commissioner of taxation and finance 7 at the time the report provided for in subdivision three of this section 8 is required to be filed. The commissioner of taxation and finance may 9 require that the payments be made electronically. The remaining [twen-10ty] fifty-three percent of the balance outstanding at the close of each 11 quarter shall be the monies of the deposit initiator and may be with- 12 drawn from such account by the deposit initiator. If the provisions of 13 this section with respect to such account have not been fully complied 14 with, each deposit initiator shall pay to such commissioner at such 15 time, in lieu of the amount described in the preceding sentence, an 16 amount equal to the balance which would have been outstanding on such 17 date had such provisions been fully complied with. The commissioner of 18 taxation and finance may require that the payments be made electron- 19 ically. 20 c. Final report. A deposit initiator who ceases to do business in this 21 state as a deposit initiator shall file a final report and remit payment 22 of [eighty] forty-seven percent of all amounts remaining in the refund 23 value account as of the close of the deposit initiator's last day of 24 business. The commissioner of taxation and finance may require that the 25 payments be made electronically. The deposit initiator shall indicate on 26 the report that it is a "final report". The final report is due to be 27 filed with payment twenty days after the close of the quarterly period 28 in which the deposit initiator ceases to do business. In the event the 29 deposit initiator pays out more in refund values than it collects in 30 such final quarterly period, the deposit initiator may apply to the 31 commissioner of taxation and finance for a refund of the amount of such 32 excess payment of refund values from sources other than the refund value 33 account, in the manner as provided by the commissioner of taxation and 34 finance. 35 § 3. Section 27-1013 of the environmental conservation law, as 36 amended by section 7 of part F of chapter 58 of the laws of 2013, is 37 amended to read as follows: 38 § 27-1013. Redemption centers. 39 1. (a) (i) As of the effective date of the chapter of the laws of two 40 thousand twenty-four that amended this section and subject to applicable 41 provisions of local and state law, any person, firm or corporation which 42 establishes a redemption center, at which redeemers and dealers may 43 return empty beverage containers and receive payment of the refund value 44 of such beverage containers, shall submit an application to the commis- 45 sioner for registration as a condition of operation. 46 (ii) Any redemption center in business on or before April first, two 47 thousand twenty-four may continue to operate as if the department had 48 issued such redemption center a registration required by regulations 49 adopted under this section; provided, however, that such redemption 50 center shall submit a renewal application to the commissioner in accord- 51 ance with applicable regulations by the thirty-first of December next 52 succeeding the effective date of this subparagraph. 53 (iii) An application for registration or renewal shall be in a form 54 prescribed by the commissioner and shall, at a minimum, require the name 55 and physical address of the redemption center, the name, address and 56 contact information of the owner and/or operator of the redemptionA. 3375--A 3 1 center, the names and addresses of each dealer or distributor with which 2 the redemption center has contracted to collect, sort and obtain the 3 refund value and handling fee of empty beverage containers, as applica- 4 ble, the number of beverage containers redeemed by the redemption center 5 during the preceding twelve months, as applicable, and such other infor- 6 mation as the commissioner deems necessary for proper administration of 7 this title. The commissioner may require applications for registration 8 to be submitted electronically. The commissioner shall electronically 9 issue a redemption center registration certificate or renewal certif- 10 icate in a form prescribed by the commissioner within thirty days of 11 receipt of such application. A registration certificate or renewal 12 certificate issued pursuant to this subdivision shall be issued for one 13 year and shall be subject to annual renewal in accordance with proce- 14 dures specified by the commissioner. 15 (iv) Any registered redemption center that ceases operations shall 16 notify the commissioner of such cessation in writing within thirty days 17 in a form prescribed by the commissioner. 18 (b) The commissioner shall issue a registration or renewal within 19 thirty days of the submission of an application by a person, firm or 20 corporation which establishes a redemption center in accordance with the 21 provisions of this section, subject to applicable provisions of local 22 and state laws. An application for registration or renewal shall be 23 deemed approved if the department fails to act on such application with- 24 in thirty days of submission. Registrations and renewals shall be issued 25 at no cost to the applicant. The costs attributable to the department 26 for the review and processing of registration and renewal applications 27 pursuant to this section shall be paid for out of the state's portion of 28 the outstanding balance in the refund value account which is regularly 29 deposited into the general fund in accordance with section 27-1012 of 30 this title. 31 (c) After due notice and opportunity of hearing, pursuant to the 32 provisions of section 71-1709 of this chapter, the department may deny 33 an application for registration or renewal or revoke a registration. In 34 determining whether or not to revoke a registration, the commissioner 35 shall, at a minimum, take into consideration the compliance history of 36 an applicant, good faith efforts of an applicant to comply, any economic 37 benefit from noncompliance and whether any violation was procedural in 38 nature. The commissioner's determination to revoke a registration is 39 subject to review under article seventy-eight of the civil practice law 40 and rules. 41 (d) Any person, firm or corporation required to be registered under 42 this section which, without being registered, redeems beverage contain- 43 ers in this state, shall not be eligible to receive a handling fee for 44 any such redeemed beverage containers, and if such person, firm or 45 corporation has received such a handling fee, it shall be promptly 46 refunded. 47 (e) The commissioner shall promulgate rules and regulations governing 48 the performance of audits in connection with pick-ups of redeemed bever- 49 age containers. Such audits shall be conducted by the department at the 50 request of a distributor, deposit initiator, redemption center or deal- 51 er, upon no less than two business days' notice, to monitor beverage 52 container pick-ups and party compliance with the provisions of this 53 chapter. A distributor, deposit initiator, redemption center or dealer 54 may request the department to conduct an audit no more than ten times 55 per calendar year with respect to each pick up agent or redemption 56 center with which the requester conducts pick up transactions. SuchA. 3375--A 4 1 audits shall, at a minimum, include the following parameters: (i) all 2 audits shall be conducted on an entire pick-up shipment at one of two 3 locations, including at the site of such redemption center or site at 4 which such pick up shipment of redeemed beverage containers is delivered 5 and counted; (ii) a department auditor shall be present at the redemp- 6 tion center at which such audit shall be performed to witness the weigh- 7 ing of all individual bags of beverage containers included in the pick- 8 up transaction; (iii) a department inspector shall be present at the 9 delivery/counting site of such pick up shipment of redeemed beverage 10 containers at the time of such audit to witness the counting of contain- 11 ers; and (iv) there shall be a secure chain of custody between the pick- 12 up location and point of delivery/counting that shall remain secured 13 until audited in the presence of the department's auditor. Audit results 14 shall be promptly reported to the distributor, deposit initiator, 15 redemption center and/or dealer whose pick up transaction is the subject 16 of such audit. 17 2. The commissioner is hereby empowered to promulgate rules and regu- 18 lations governing (a) the circumstances in which deposit initiators, 19 dealers and distributors, individually or collectively, are required to 20 accept the return of empty beverage containers, including beverage 21 containers processed through reverse vending machines and make payment 22 therefor; (b) the sorting of the containers which a deposit initiator or 23 distributor may require of dealers and redemption centers; (c) the 24 collection of returned beverage containers by deposit initiators or 25 distributors, including the party to whom such expense is to be charged, 26 the frequency of such pick ups and the payment for refunds and handling 27 fees thereon; (d) the right of dealers to restrict or limit the number 28 of containers redeemed, the rules for redemption at the dealers' place 29 of business, and the redemption of containers from a beverage for which 30 sales have been discontinued; (e) [to issue] registrations and renewals 31 issued to persons, firms or corporations which establish redemption 32 centers, subject to applicable provisions of local and state laws, at 33 which redeemers and dealers may return empty beverage containers and 34 receive payment of the refund value of such beverage containers[. Such35registrations shall be issued at no cost. Should the department require36by regulations adopted pursuant to this paragraph that redemption37centers must obtain a registration as a condition of operation, any38redemption center in business as of March first, two thousand thirteen39that previously provided the department with the notification informa-40tion required by regulations in effect as of such date may continue to41operate as if the department had issued such redemption center a regis-42tration required by regulations adopted under this paragraph; provided,43however, that such redemption center shall provide the department with44any other information required by regulations adopted pursuant to this45paragraph. The department may, after due notice and opportunity of46hearing, pursuant to the provisions of section 71-1709 of this chapter,47deny an application or revoke a registration. In determining whether or48not to revoke a registration the commissioner shall at a minimum, take49into consideration the compliance history of a violator, good faith50efforts of a violator to comply, any economic benefit from noncompliance51and whether the violation was procedural in nature. The commissioner's52determination to revoke a registration is subject to review under arti-53cle seventy-eight of the civil practice law and rules]; and (f) the 54 operation of mobile redemption centers in order to ensure that to the 55 best extent practicable containers are not proffered for redemption to aA. 3375--A 5 1 deposit initiator or distributor outside of the geographic area where 2 such deposit initiator sells containers and initiates deposits. 3 [2.] 3. The department may require a redemption center to obtain a 4 permit, as an alternative to registration if such center is located at 5 the same facility or site as another solid waste management facility 6 otherwise subject to the requirements of title seven of this article or 7 the regulations promulgated pursuant thereto. 8 [3.] 4. No dealer or distributor, as defined in section 27-1003 of 9 this title, shall be required to obtain a permit to operate a redemption 10 center at the same location as the dealer's or distributor's place of 11 business. Operators of such redemption centers shall receive payment of 12 the refund value of each beverage container from the appropriate deposit 13 initiator or distributor as provided under section 27-1007 of this 14 title. 15 [4.] 5. Each dealer and redemption center shall require any person 16 tendering for redemption more than two thousand five hundred containers 17 at one time to such dealer or redemption center to provide such person's 18 name and address and the license plate of the vehicle used to transport 19 the containers, or, in the case of an agent or employee of a not-for- 20 profit corporation, a sales tax exemption certificate. The dealer or 21 redemption center redeeming the beverage containers shall keep the 22 information on file for a minimum of twelve months and provide same to 23 the department upon request. 24 § 4. Subdivisions 2, 3 and 4 of section 27-1015 of the environmental 25 conservation law, as amended by section 8 of part F of chapter 58 of the 26 laws of 2013, are amended and two new subdivisions 4-a and 4-b are added 27 to read as follows: 28 2. Any distributor, deposit initiator, redemption center or dealer who 29 violates any provision of this title, except as provided in section 30 27-1012 and paragraph (d) of subdivision one of section 27-1013 of this 31 title and subdivisions three, four, four-a and four-b of this section, 32 shall be liable to the state of New York for a civil penalty of not more 33 than one thousand dollars, and an additional civil penalty of not more 34 than one thousand dollars for each day during which each such violation 35 continues. Any civil penalty may be assessed following a hearing or 36 opportunity to be heard. 37 3. It shall be unlawful for a distributor, or deposit initiator, 38 redemption center or dealer, acting alone or aided by another, to return 39 any empty beverage container to a dealer or redemption center for its 40 refund value if the distributor, or deposit initiator, redemption center 41 or dealer returning the empty beverage container had knowingly previous- 42 ly accepted such beverage container from any dealer or operator of a 43 redemption center or if the distributor, deposit initiator, redemption 44 center or dealer returning the empty beverage container knows that such 45 container was previously accepted by a reverse vending machine. A 46 violation of this subdivision shall be a misdemeanor punishable by a 47 fine of not less than five hundred dollars nor more than one thousand 48 dollars and an amount equal to two times the amount of money received as 49 a result of such violation. A distributor, deposit initiator, redemption 50 center or dealer which commits a subsequent violation of this subdivi- 51 sion shall be liable to the state of New York for a civil penalty of not 52 less than one thousand dollars nor more than five thousand dollars, an 53 amount equal to two times the amount of money received as a result of 54 such violation and a revocation of the redemption center's registration 55 or, as applicable, a withholding of an equivalent amount from the 56 distributor's, deposit initiator's or dealer's refund value account, asA. 3375--A 6 1 set forth in section 27-1012 of this title, administered by the commis- 2 sioner of taxation and finance. Any civil penalty may be assessed 3 following a hearing or opportunity to be heard. 4 4. Any person who willfully tenders to a dealer, distributor, redemp- 5 tion center or deposit initiator more than forty-eight empty beverage 6 containers for which such person knows or should reasonably know that no 7 deposit was paid in New York state may be assessed by the department a 8 civil penalty of up to one hundred dollars for each container or up to 9 twenty-five thousand dollars for each such tender of containers. A 10 subsequent violation of this section may result in a civil penalty of up 11 to fifty thousand dollars. Any civil penalty may be assessed following 12 a hearing or opportunity to be heard. At each location where a person 13 tenders containers for redemption, dealers and redemption centers must 14 conspicuously display a sign in letters that are at least one inch in 15 height with the following information: "WARNING: Persons tendering for 16 redemption containers on which a deposit was never paid in this state 17 may be subject to a civil penalty of up to one hundred dollars per 18 container or up to twenty-five thousand dollars for each such tender of 19 containers." Any civil penalty may be assessed following a hearing or 20 opportunity to be heard. 21 4-a. Any redemption center which willfully tenders to a deposit initi- 22 ator more than forty-eight empty beverage containers for which such 23 redemption center knows or should reasonably know that no deposit was 24 paid in New York state may be assessed by the department a civil penalty 25 of up to one hundred dollars for each container or up to twenty-five 26 thousand dollars for each such tender of containers. A subsequent 27 violation of this section may result in a civil penalty of up to fifty 28 thousand dollars and revocation of such redemption center's registra- 29 tion. Any civil penalty may be assessed following a hearing or opportu- 30 nity to be heard. 31 4-b. (a) A deposit initiator which upon audit discovers that a redemp- 32 tion center reported more beverage containers than were actually phys- 33 ically tendered shall provide written notice to the redemption center of 34 such shortfall and shall provide a refund based on the actual tendered 35 amount, provided that if such audit reveals a discrepancy between the 36 redemption center's reported number of beverage containers and the actu- 37 al physical count of ten percent or greater, the deposit initiator may 38 withhold up to fifty percent of the handling fee otherwise payable to 39 the redemption center for such tender, and provided further that upon 40 any subsequent audit which produces a discrepancy of ten percent or 41 more, the deposit initiator may withhold up to one hundred percent of 42 the handling fee otherwise payable to such redemption center. Notwith- 43 standing any other provisions of this title, any funds withheld by a 44 deposit initiator pursuant to this paragraph may be retained by the 45 deposit initiator to defray the costs of the auditing process. 46 (b) A redemption center which upon audit discovers that a deposit 47 initiator underreported the number of beverage containers that were 48 actually physically tendered shall provide written notice to the deposit 49 initiator of such shortfall and shall receive payment from the deposit 50 initiator based on the actual tendered amount, provided that if such 51 audit reveals a discrepancy between the deposit initiator's reported 52 number of beverage containers and the actual physical count of ten 53 percent or greater, the redemption center shall be paid one hundred 54 fifty percent of the handling fee otherwise payable to the redemption 55 center for such tender, and provided further that upon any subsequent 56 audit which produces a discrepancy of ten percent or more, the redemp-A. 3375--A 7 1 tion center shall be paid two hundred percent of the handling fee other- 2 wise payable to such redemption center. 3 § 5. This act shall take effect on the thirtieth day after it shall 4 have become a law.
