Eliminates the universal product code label and extends the start date of container label registering

Title of bill

An act to amend the environmental conservation law, in relation to eliminating the requirement that bottlers and brewers must include a New York specific universal product code on all redeemable bottles and cans and to extend the start date of registering container labels

Purpose

This bill would eliminate a job killing, unnecessary and costly new mandate contained in the recent bottle bill amendments which would require brewers, bottlers and retailers to establish a New York specific uniform product code on all redeemable bottles and cans in New York. It would also provide sufficient time for New York bottlers and brewers to comply with another new mandate contained in the bottle bill requiring brewers and bottlers to register the labels of all redeemable bottles and cans with the Department of Environmental Conservation.

Summary of provisions

This bill would amend subdivision 12 of the new section 27-1012 of the Environmental Conservation Law, which was added pursuant to Section 8 of Part SS of Chapter 59 of the Laws of 2009, the Article VII budget bill implementing the Transportation, Environmental Conservation and Economic Development portions of the budget. The amendment would eliminate the requirement that all bottlers and brewers who sell products in New York establish a New York specific universal product code for bottles and cans which are required to be redeemed in New York State. The bill also extends the effective date of the new requirement to register the labels of such redeemable bottles and cans from June 1, 2009 until January 1, 2010.

Existing law

Prior to the enactment of the bottle bill amendments as part of this year's budget, there was no requirement in New York law relative to what information need be on a container label of any redeemed bottle or can. Nor were brewers or bottlers required to register such labels with the Department of Environmental Conservation.

Justification

Without any legislative finding or evidence that a New York specific universal product code is necessary or effective in preventing the redemption of beverage containers purchased out of state, the proposed new provision is a significant burden on interstate commerce and will result in significant unanticipated costs for New York brewers and bottlers. This new provision may also violate provisions of the North American free trade agreement.

This new mandate will cost brewers and bottlers who wish to sell products in New York hundreds of millions of dollars in order to comply. At least one Northeastern brewer currently selling a significant amount of product in New York has indicated it will no longer market its product in New York; another large brewer with a significant New York presence has indicated the cost of complying with this unique mandate will cost tens of millions of dollars.

This job killing new mandate will drive up the cost of all products sold in redeemable containers in New York. It will prompt many small brewers and bottlers to bypass distribution in New York. New York based brewers and bottlers will be placed at a competitive disadvantage in marketing their product beyond New York's boundaries. These small businessmen, the backbone of New York's job creation engine, will be especially burdened by having this new job killing mandate imposed on them.

The bill will also impose additional costs on New York retailers who will be required to set up discrete handling, storage and distribution systems.

Legislative history

New Bill.

Fiscal implications

None to the State.

Local fiscal implications

None to Local Governments.

Effective date

Immediately.