NY State Senate Bill 2017-S5366

Senate Bill S5366

2017-2018 Legislative Session

Relates to the handling fee paid to a dealer or operator of a redemption center for the redemption of empty beverage containers

download bill text pdf

Archive: Last Bill Status - In Senate Committee Environmental Conservation Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2018	referred to environmental conservation
Apr 06, 2017	print number 5366a
Apr 06, 2017	amend and recommit to environmental conservation
Mar 23, 2017	referred to environmental conservation

Bill Amendments

Original

A (Active)

2017-S5366 - Details

Current Committee:: Senate Environmental Conservation
Law Section:: Environmental Conservation Law
Laws Affected:: Amd §27-1007, En Con L

2017-S5366 - Summary

Relates to the handling fee paid to a dealer or operator of a redemption center for the redemption of empty beverage containers.

2017-S5366 - Sponsor Memo

                                 BILL NUMBER:  S5366               Revised 04/03/17

 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 states that this act shall be known and may be
cited as the "indexed handling fee act."

Section 2 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 3 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 :

New bill

 FISCAL IMPLICATIONS :

None to the state

 EFFECTIVE DATE :
This act shall take effect immediately.

2017-S5366 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5366
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                              March 23, 2017
                                ___________
 
 Introduced  by  Sen.  AVELLA -- read twice and ordered printed, and when
   printed to be committed to the Committee on Environmental Conservation
 
 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  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  This  act shall be known and may be cited as the "indexed
 handling fee act."
   § 2. Subdivision 6 of section 27-1007 of the  environmental  conserva-
 tion  law, as added by section 4 of part SS of chapter 59 of the laws of
 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 condi-
 tioned 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 BE NOT 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.

                                                            LBD10526-01-7

 S. 5366                             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  SUBDIVI-
 SION SHALL BE:
   (I)  NOT  LESS  THAN  THE AMOUNT IN EFFECT UNDER PARAGRAPH (B) OF THIS
 SUBDIVISION 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  SUBDIVI-
 SION.  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 NEW YORK CITY EMPLOYERS WITH ELEVEN
 EMPLOYEES  OR  MORE  (I.E. "BIG EMPLOYERS") PURSUANT TO PARAGRAPH (C) OF
 THIS SUBDIVISION.
   § 3. This act shall take effect immediately.

2017-S5366A (ACTIVE) - Details

Current Committee:: Senate Environmental Conservation
Law Section:: Environmental Conservation Law
Laws Affected:: Amd §27-1007, En Con L

2017-S5366A (ACTIVE) - Summary

Relates to the handling fee paid to a dealer or operator of a redemption center for the redemption of empty beverage containers.

2017-S5366A (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S5366A

 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.

2017-S5366A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5366--A
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                              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 ASSEM-
 BLY, 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 condi-
 tioned 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  SUBDIVI-
 SION 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 SUBDIVI-
 SION.  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.

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