Relates to the effectiveness of the additional beverage containers to the environmental conservation law

§2. Repeals subdivision 12 of section 27-1012 of the of the Environmental Conservation Law (ECL) which contains the requirement that deposit containers sold in New York State have a New York State specific universal product.

§3. Amends paragraph (a) of subdivision 3 of section 27-10070 of the ECL to provide that a store of less than 10,000 square feet may EITHER contract with a redemption center within one half mile or provide a two hour daily period where up to 240 containers must be accepted.

§4. Amends subdivision 1 of section 27-1007 of the ECL to: * provide that the scrip or receipt from reverse vending machines shall expire after 30 days, and that such scrip or receipt clearly indicate its expiration; * require the Commissioner of DEC to provide for a waiver for the requirement of large chain stores to install reverse vending machines if equally convenient and efficient methods of redemption will be provided; and * provides that certain large chain stores are exempt from the requirements to install reverse vending machines if they sell a minimum amount of covered containers for off-premises consumption.

§5. Amends subdivision 1 of section 27-1012 to allow businesses ten days, rather than five days, to deposit the container refunds into a refund value account.

§6. Amends Part SS of chapter 59 of the laws of 2009 to require the commissioners of DEC and the Department of Tax and Finance to report and provide recommendations to the Legislature on issues related to illegal redemption and cross-border fraud.

§7. provides the effective date.

Existing law

As passed in the budget and adopted by Chapter 59 of the Laws of 2009, all water soda and beer containers must have a New York deposit label and a New York specific bar code on June 1, 2009.

Justification

Simply stated, there will be no bottled water legal for consumer purchase at retail on shelves in New York State on June 1 because of insufficient lead time to implement the changes in labeling the product. Typically product is in the pipeline from bottler to retail for over 90 days. This was recognized by the legislature in 1983 where implementation of the original deposit law was delayed by three months to accommodate a sufficient lead in time. Less than two months is clearly insufficient. In fact, all imported bottled water is currently in transit and not labeled for sale in New York as a deposit container. October 1, 2009 should be sufficient to have all water bottles properly labeled for sale in New York.

The New York specific universal product code (UPC or "bar code") is simply unworkable at every level, whether it be the bottler, the distributor/wholesaler or retailer. While the intention of eliminating "transshipped" or out of state product sales in New York is laudable, the additional costs to consumers associated with creating new labels, "slotting," which essentially segregates New York product from all others in inventory, and reprogramming all code readers at retail, far outweigh the potential benefits. Instead of preemptively addressing the issue of fraud, this bill requires the commissioners of DEC and the Department of Tax and Finance to report and provide recommendations to the Legislature on issues related to cross-border fraud. The bill also makes other technical corrections to.improve implementation of the new bottle bill requirements contained in Chapter 59 of the Laws of 2009.

Legislative history

New bill.

Fiscal implications

There will be some loss of revenue to the general fund due to the delay in the addition of water bottles to the State's Returnable Container Act.

Effective date

Immediate.