What's happening
The bill increases the handling fee paid to dealers and redemption centers for beverage container returns, tying future increases to changes in minimum wage.
Why it matters
Raises the minimum handling fee paid to dealers and redemption centers for each returned beverage container from 3.5 cents to at least 5 cents. , providing greater financial support for those processing returns.
Links future increases in the handling fee to changes in the minimum wage (state or federal, whichever is higher). , ensuring that compensation keeps pace with labor costs and inflation, which could help maintain or expand redemption infrastructure.
Details the calculation method for fee adjustments. , specifying that increases are based on the percentage increase in the relevant minimum wage and rounded to the nearest half-cent, creating a predictable and transparent system for future changes.
Specifies which minimum wage applies if New York’s state wage varies by region. , standardizing the adjustment based on the rate for large New York City employers, potentially leading to higher handling fees than if calculated from lower regional rates.
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Who cares
Headline styles
Raise Bottle Deposit Handling Fee
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to environmental conservation
- Print number 5366a
- Amend and recommit to environmental conservation
- Referred to environmental conservation
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Raise Bottle Redemption Fee
In Assembly Committee · Environmental Conservation · Sponsor J. Gary Pretlow
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5366--A
2017-2018 Regular Sessions
IN SENATE
March 23, 2017
Introduced by Sen. AVELLA -- read twice and ordered printed, and when printed to be committed to the Committee on Environmental Conservation -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
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
The People of the State of New York, represented in Senate and Assembly, 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 2009, is amended to read as follows:
6. (a) In addition to the refund value of a beverage container as established 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 cents] for each beverage container accepted by the deposit initiator from such dealer or operator of a redemption center as specified in paragraphs (b), (c) and (d) of this subdivision. 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.
(b) Except as otherwise provided in this subdivision, the handling fee paid shall not be less than five cents.
(c) Beginning December thirty-first, two thousand eighteen, each year a new federal or New York state minimum wage is to take effect, but not later than the date that the new federal or New York state minimum wage
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10526-02-7
S. 5366--A 2
is to take effect, the commissioner shall determine the handling fee to be in effect pursuant to this subdivision. Subject to paragraph (d) of this subdivision, the handling fee determined pursuant to this subdivision shall be:
(i) not less than the amount in effect under paragraph (b) on the date of such determination;
(ii) increased from such amount by the percentage increase in the newly effective federal or New York state minimum wage; and
(iii) rounded to the nearest multiple of $0.005.
(d) The handling fee shall only be increased by the percentage increase in a newly effective federal minimum wage pursuant to paragraph (c) of this subdivision if the federal minimum wage is set at an amount higher than the New York state minimum wage. Otherwise, the handling fee shall be increased only by the percentage increase in a newly effective New York state minimum wage pursuant to paragraph (c) of this subdivision. If a newly effective New York state minimum wage increases based on a wage rate schedule that varies throughout New York state, then the percentage increase to be used for calculating the handling fee shall be based on the wage rate applicable to city of New York employers with eleven employees or more pursuant to paragraph (c) of this subdivision.
§ 2. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
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 or general idea of bill
The purpose of this bill is to raise the fees at redemption centers, so that they may afford to pay the new minimum wage established by the state.
Summary of specific provisions
Section 1 of the bill amends 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, by increasing the handling fee to 5 cents per container. The bill also sets forth that beginning December 31, 2018 the fee will be "indexed" to any increases in either the New York State or Federal Minimum Wage that is higher than 5 cents per container.
Section 2 of the bill sets forth an immediate effective date.
Justification
With the recent passing of the rise in the New York State minimum wage, this will create problems for certain businesses that are labor intensive. One of those businesses than will feel the negative impact of the rise in the minimum wage is the bottle and can redemption businesses. These businesses are not against the rise in the minimum wage but they are in danger of being out of business if fees that are established by statute do not increase in according to the rise of minimum wage.
These redemption businesses have labor that make up 40 percent of their total business cost. Therefore with such businesses that generate revenue that is solely based on fees established by statute they will be in danger of having to let go of employees or be forced out of business because of lost revenue. However if the fees where to be increased at the same rate that the minimum wage has been increased this will allow redemption centers to stay open and can even grow the number of centers across the state.
Ever since the state established The Bottle Bill which allows these redemption centers to operate and collect these bottles and cans, at a set fee, environmental groups have studied the benefits of these centers. For example the Department of Environmental Conservation has noted that since this bill was passed there has been a reduction of roadside container litter by 70 percent. This reduction in container litter has come in large part from the establishment of redemption centers that collect and properly dispose of such containers.
Other research shows how these centers not only help the environment but also contribute to the economy by creating jobs. The New York Public Interest Group (NYPIRG) has also conducted research that shows the benefits of these centers stating that, these centers currently employee over 10,000 entry level workers. NYPIRG has gone on to state that a new increased fee "will encourage more redemption centers to open and expand, making it more convenient to return empty containers." If the fee where to be increased it will not only help keep the environment clean but it will also help more redemption centers to open across the state, therefore also increasing opportunities for level entry employees.
Legislative history
2017: A.6816(Pretlow)
Fiscal implications
None to the state
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.