Senate Bill S5363

                                 BILL NUMBER:  S5363

 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.