S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5684
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             February 27, 2025
                                ___________
 
 Introduced  by  Sens.  MAY,  BRISPORT,  CLEARE, FAHY, GONZALEZ, HINCHEY,
   HOYLMAN-SIGAL, JACKSON, KAVANAGH,  KRUEGER,  RAMOS,  RIVERA,  SALAZAR,
   SEPULVEDA, WEBB -- 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
   returnable bottles; to  direct  the  multi-agency  bottle  bill  fraud
   investigation  team to submit a report on findings of pervasive bottle
   redemption fraud in New York state; and to repeal section  27-1018  of
   such law relating to the beverage container assistance program
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 1  of  section  27-1003  of  the  environmental
 conservation  law,  as  amended by section 2 of part SS of chapter 59 of
 the laws of 2009, is amended to read as follows:
   1. "Beverage" means carbonated soft drinks, NONCARBONATED SOFT DRINKS,
 NONCARBONATED FRUIT OR VEGETABLE JUICES CONTAINING LESS THAN ONE HUNDRED
 PERCENT FRUIT OR VEGETABLE JUICE, COFFEE AND TEA  BEVERAGES,  CARBONATED
 FRUIT  BEVERAGES, water, beer, other malt beverages, CIDER AS DEFINED IN
 SECTION THREE OF THE ALCOHOLIC BEVERAGE CONTROL LAW, and [a] wine [prod-
 uct] PRODUCTS as defined in [subdivision thirty-six-a of] section  three
 of the alcoholic beverage control law. "Malt beverages" means any bever-
 age  obtained  by the alcoholic fermentation or infusion or decoction of
 barley, malt, hops, or other wholesome grain or cereal and water includ-
 ing, but not limited to ale, stout or malt  liquor.  "Water"  means  any
 beverage  identified through the use of letters, words or symbols on its
 product label as a type of water, including any flavored water or nutri-
 tionally enhanced water[,  provided,  however,  that  "water"  does  not
 include  any beverage identified as a type of water to which a sugar has
 been added].
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05023-04-5
 S. 5684                             2
 
              

   § 2. Subdivision 1 of section 27-1003 of the  environmental  conserva-
 tion  law,  as amended by section one of this act, is amended to read as
 follows:
   1.  "Beverage"  means  [carbonated  soft  drinks,  noncarbonated  soft
 drinks, noncarbonated fruit or vegetable juices containing less than one
 hundred percent fruit or vegetable  juice,  coffee  and  tea  beverages,
 carbonated  fruit beverages, water, beer, other malt beverages, cider as
 defined in section three of the alcoholic beverage control  law,  and  a
 wine  product  as  defined  in  section  three of the alcoholic beverage
 control law. "Malt beverages" means any beverage obtained by  the  alco-
 holic  fermentation  or  infusion or decoction of barley, malt, hops, or
 other wholesome grain or cereal and water including, but not limited  to
 ale, stout or malt liquor. "Water" means any beverage identified through
 the  use  of letters, words or symbols on its product label as a type of
 water, including any flavored water or nutritionally enhanced water] ANY
 DRINKABLE LIQUID INTENDED FOR HUMAN ORAL CONSUMPTION. THE TERM  BEVERAGE
 DOES  NOT  INCLUDE:  A  DRUG REGULATED UNDER THE FEDERAL FOOD, DRUG, AND
 COSMETIC ACT, 21 U.S.C. 301 ET SEQ.; INFANT FORMULA; A MEAL  REPLACEMENT
 LIQUID;  DAIRY  PRODUCTS  DERIVED  FROM  ANIMAL  MILK; PLANT-BASED DAIRY
 ALTERNATIVES; AND NONCARBONATED FRUIT OR VEGETABLE JUICES CONTAINING ONE
 HUNDRED PERCENT FRUIT OR VEGETABLE JUICE.
   § 3. Subdivisions 8 and 12 of section  27-1003  of  the  environmental
 conservation  law,  subdivision 8 as added by chapter 200 of the laws of
 1982 and subdivision 12 as added by section 3 of part SS of  chapter  59
 of  the  laws of 2009, are amended and five new subdivisions 14, 15, 16,
 17 and 18 are added to read as follows:
   8. "Redeemer" means every person who demands the refund value provided
 for herein in exchange for the empty beverage container,  REGARDLESS  OF
 PERSONAL  PURCHASE  OF  THE  BEVERAGE CONTAINER, but shall not include a
 dealer as defined in subdivision four of this section.
   12. "Reverse vending machine" means an automated device  that  uses  a
 laser  scanner, microprocessor, or other technology to accurately recog-
 nize the universal product code (UPC) on containers to determine if  the
 container is redeemable and accumulates information regarding containers
 redeemed,  including  the  number  of  such containers redeemed, thereby
 enabling the reverse vending machine to accept containers from redeemers
 and to issue LEGAL TENDER OR a scrip [or], receipt,  OR  OTHER  FORM  OF
 CREDIT  for  their  refund  value.  SUCH  DEFINITION SHALL ALSO APPLY TO
 ALTERNATIVE TECHNOLOGY APPROVED BY THE COMMISSIONER PURSUANT TO SUBPARA-
 GRAPH (III) OF PARAGRAPH (B) OF SUBDIVISION ONE OF  SECTION  27-1007  OF
 THIS  TITLE.  NOTHING IN THIS DEFINITION SHALL BE CONSTRUED TO RELIEVE A
 DEALER SPECIFIED IN SUBPARAGRAPH (III) OF PARAGRAPH (B)  OF  SUBDIVISION
 ONE  OF  SECTION  27-1007 OF THIS TITLE OF THE REQUIREMENT TO PROVIDE AN
 IMMEDIATE FORM OF DEPOSIT REPAYMENT IF THE REVERSE  VENDING  MACHINE  OR
 ALTERNATIVE TECHNOLOGY DOES NOT PROVIDE SUCH.
   14. "REFILLABLE BEVERAGE CONTAINER" MEANS ANY BEVERAGE CONTAINER WHICH
 IS  SO CONSTRUCTED AND DESIGNED THAT IT IS STRUCTURALLY CAPABLE OF BEING
 REFILLED AND RESOLD AT LEAST FIFTY TIMES BY A BEVERAGE MANUFACTURER, AND
 WHICH THE BEVERAGE MANUFACTURER REQUIRES TO BE RETURNED FOR THE  PURPOSE
 OF REFILLING AND RESALE.
   15. "RETURN AND REUSABLE SYSTEM" MEANS A REFILLABLE BEVERAGE CONTAINER
 REUSE  SYSTEM  THAT FEATURES AN OPERATIONAL AND FINANCIAL ARRANGEMENT IN
 WHICH REFILLABLE BEVERAGE CONTAINERS ARE COLLECTED FOR WASHING AND REUS-
 ING. THE DISTANCES BETWEEN EACH POINT OF THE SYSTEM SHALL BE NO  GREATER
 THAN TWO HUNDRED MILES.
 S. 5684                             3
 
   16. "REDEMPTION RATE" MEANS THE PERCENTAGE OF BEVERAGE CONTAINERS SOLD
 THAT ARE REDEEMED FOR DEPOSIT VALUE.
   17. "RECYCLING" MEANS TO SEPARATE, DISMANTLE OR PROCESS THE MATERIALS,
 COMPONENTS  OR  COMMODITIES  CONTAINED  IN  DISCARDS  FOR THE PURPOSE OF
 PREPARING THE MATERIALS, COMPONENTS, OR COMMODITIES FOR USE OR REUSE  IN
 NEW PRODUCTS OR COMPONENTS. "RECYCLING" SHALL NOT INCLUDE:
   (A)  ENERGY RECOVERY OR  ENERGY GENERATION BY ANY MEANS, INCLUDING BUT
 NOT LIMITED TO,  COMBUSTION,  INCINERATION,  PYROLYSIS,    GASIFICATION,
 SOLVOLYSIS, OR WASTE-TO-FUEL;
   (B)  ANY  CHEMICAL  CONVERSION  PROCESS; OR
   (C) LANDFILL DISPOSAL.
   18.  "RECYCLING  RATE"  MEANS  THE  PERCENTAGE  OF  REDEEMED  BEVERAGE
 CONTAINERS THAT ARE ULTIMATELY RECYCLED. THE  RECYCLING  RATE  SHALL  BE
 CALCULATED  AS THE TOTAL WEIGHT OF BEVERAGE CONTAINERS THAT ARE RECYCLED
 IN A GIVEN YEAR DIVIDED BY  THE  TOTAL  WEIGHT  OF  BEVERAGE  CONTAINERS
 GENERATED BY A DISTRIBUTOR IN THAT YEAR.
   §  4.  Section 27-1007 of the environmental conservation law, as added
 by section 4 of part SS of chapter 59 of the laws of 2009, paragraph (b)
 of subdivision 1 as amended by chapter 459 of  the  laws  of  2011,  and
 subdivision 12 as added by section 3 of part F of chapter 58 of the laws
 of 2013, is amended to read as follows:
 § 27-1007. Mandatory acceptance.
   Except as provided in section 27-1009 of this title:
   1.  (a)  A  dealer shall accept at [his or her] SUCH DEALER'S place of
 business from a redeemer any empty beverage containers  of  the  design,
 shape,  size,  color,  composition and brand sold or offered for sale by
 the dealer, and shall pay to the redeemer the refund value of each  such
 beverage  container  as  established  in  section 27-1005 of this title.
 Redemptions of refund value must be in  legal  tender,  or  a  scrip  or
 receipt  from  a  reverse  vending  machine,  provided that the scrip or
 receipt can be exchanged for legal tender for a period of not less  than
 sixty  days without requiring the purchase of other goods.  IN THE EVENT
 SUCH SCRIP OR RECEIPT EXPIRES, SUCH SCRIP OR RECEIPT MUST  INDICATE  ANY
 EXPIRATION  DATE  AND THE DEALER MUST POST A CONSPICUOUS SIGN INDICATING
 HOW MANY DAYS A REDEEMER HAS TO EXCHANGE THE SCRIP OR RECEIPT FOR  LEGAL
 TENDER.  IF  SUCH NOTIFICATION IS NOT PROVIDED, A DEALER MUST REDEEM THE
 FULL REFUND VALUE INDICATED ON ANY LEGIBLE SCRIP OR RECEIPT. The use  or
 presence  of a reverse vending machine shall not relieve a dealer of any
 obligations imposed pursuant to this section. If  a  dealer  utilizes  a
 reverse  vending  machine to redeem containers, the dealer shall provide
 redemption of beverage containers when the reverse  vending  machine  is
 full,  broken,  under  repair  or  does  not  accept  a type of beverage
 container sold or offered for sale by such dealer and may not limit  the
 hours  or  days of redemption except as provided by subdivision three of
 this section.  ALL DEALERS AND REDEMPTION CENTERS SHALL PROVIDE  CONSUM-
 ERS THE ABILITY TO RECYCLE ANY CONTAINERS DEEMED UNREDEEMABLE.
   (b)  Beginning  March first, two thousand ten, a dealer whose place of
 business is part of a chain engaged in the same general field  of  busi-
 ness  which operates ten or more units in this state under common owner-
 ship and whose business has at least: (i) forty thousand but  less  than
 sixty  thousand  square  feet  devoted to the display of merchandise for
 sale to the public shall install and maintain at least two reverse vend-
 ing machines at the dealer's place of business; (ii) sixty thousand  but
 less  than  eighty-five  thousand  square feet devoted to the display of
 merchandise for sale to the public shall install and maintain  at  least
 three  reverse  vending  machines  at the dealer's place of business; or
 S. 5684                             4
 
 (iii) eighty-five  thousand  square  feet  devoted  to  the  display  of
 merchandise  for  sale to the public shall install and maintain at least
 four reverse vending machines at the dealer's  place  of  business.  The
 requirements of [paragraph (b) of] this subdivision to install and main-
 tain  reverse  vending  machines  shall  not apply to a dealer that: (i)
 sells only beverage containers of  twenty  ounces  or  less  where  such
 beverage  containers  are  packaged  in  quantities fewer than six; (ii)
 sells beverage containers and devotes no more than five percent  of  its
 floor  space to the display and sale of consumer commodities, as defined
 in section two hundred fourteen-h of the agriculture and markets law; or
 (iii) obtains a waiver from  the  commissioner  authorizing  dealers  to
 provide consumers with an alternative technology that: (A) determines if
 the  container  is  redeemable,  (B)  provides protections against fraud
 through a system that validates each container redeemed by  reading  the
 universal  product  code and, except with respect to refillable contain-
 ers, renders the container  unredeemable,  (C)  accumulates  information
 regarding  containers redeemed, and (D) issues legal tender, or a scrip,
 receipt, or other form of credit for  the  refund  value,  that  can  be
 exchanged  for  legal  tender  for  a period of not less than sixty days
 without requiring the purchase of other goods AND INCLUDES  ANY  EXPIRA-
 TION  DATE ON THE SCRIP, RECEIPT, OR OTHER FORM OF CREDIT. Notwithstand-
 ing the foregoing, if the alternative technology does not allow  consum-
 ers  to immediately obtain the refund value of the redeemed container, a
 dealer shall be permitted to deploy such alternative technology only  if
 it  also offers an alternative that allows consumers to conveniently and
 immediately obtain such refund value through a reverse  vending  machine
 or other alternative method.
   (c) A dealer to which paragraph (b) of this subdivision does not apply
 and whose place of business is at least forty thousand square feet which
 does  not  utilize  reverse  vending  machines to process empty beverage
 containers for redemption shall: (i) establish and maintain a  dedicated
 area  within such business to accept beverage containers for redemption;
 (ii) adequately staff such area to facilitate efficient  acceptance  and
 processing  of such containers during business hours; and (iii) post one
 or more conspicuous signs conforming to the size and color  requirements
 described  in subdivision two of this section at each public entrance to
 the business which describes where in the business the  redemption  area
 is  located.  The  commissioner  may  establish in rules and regulations
 additional standards for the efficient processing of beverage containers
 by such dealers.
   (d) For the purposes of this subdivision on any day that a  dealer  is
 open  for less than twenty-four hours, the dealer may restrict or refuse
 the payment of refund values during the first and last hour  the  dealer
 is open for business.
   2.  A dealer shall post a conspicuous sign, at the point of sale, that
 states:
                      "NEW YORK BOTTLE BILL OF RIGHTS
 
  STATE LAW REQUIRES US TO REDEEM EMPTY RETURNABLE BEVERAGE CONTAINERS OF
          THE SAME TYPE AND BRAND THAT WE SELL OR OFFER FOR SALE
 
 YOU HAVE CERTAIN RIGHTS UNDER THE NEW YORK  STATE  RETURNABLE  CONTAINER
 ACT:
   THE  RIGHT  to  return your empties for refund to any dealer who sells
 the same brand, type and size, whether you bought the beverage from  the
 S. 5684                             5
 
 dealer  or  not.  It is illegal to return containers for refund that you
 did not pay a deposit on in New York state.
   THE  RIGHT  to  get  your  deposit  refund  in  cash, without proof of
 purchase.
   THE RIGHT to return your empties any day, any  hour,  except  for  the
 first  and  last hour of the dealer's business day (empty containers may
 be redeemed at any time in 24-hour stores).
   THE RIGHT to return your containers if  they  are  empty  and  intact.
 Washing  containers  is not required by law, but is strongly recommended
 to maintain sanitary conditions.
   The New York state returnable container act can be enforced by the New
 York state department of environmental conservation, the New York  state
 department  of agriculture and markets, the New York state department of
 taxation and finance, the New York state attorney general and/or by your
 local government."
   Such sign must be no less than eight inches by ten inches in size  and
 have  lettering a minimum of one quarter inch high, and of a color which
 contrasts with the background. The department shall maintain a toll free
 telephone number for a "bottle bill complaint line" that shall be avail-
 able from 9:00 a.m. to 5:00 p.m. each business day to receive reports of
 violations of this title. The telephone number shall be  listed  on  any
 sign required by this section.
   3.  On  or after June first, two thousand nine, a dealer may limit the
 number of empty beverage containers to be accepted for redemption at the
 dealer's place of business to no less than  seventy-two  containers  per
 visit, per redeemer, per day, provided that:
   (a) The dealer has a written agreement with a redemption center, be it
 either  at  a  fixed physical location within the same county and within
 [one-half] ONE mile of the dealer's  place  of  business,  or  a  mobile
 redemption  center,  operated  by  a  redemption center, that is located
 within one-quarter mile of the dealer's place of business.  The  redemp-
 tion  center  must  have  a  written agreement with the dealer to accept
 containers on behalf of the dealer; and the redemption center's hours of
 operation must cover at least [9:00 a.m. through 7:00 p.m.] EIGHT  HOURS
 daily  or in the case of a mobile redemption center, the hours of opera-
 tion must cover at least four consecutive hours between  8:00  a.m.  and
 8:00  p.m.    daily. The dealer must post a conspicuous, permanent sign,
 meeting the size and color specifications set forth in  subdivision  two
 of this section, open to public view, identifying the location and hours
 of  operation  of  the affiliated redemption center or mobile redemption
 center; and
   (b) The dealer provides, at a minimum, a consecutive two  hour  period
 between  7:00 a.m. and 7:00 p.m. daily whereby the dealer will accept up
 to two hundred forty containers, per redeemer,  per  day,  and  posts  a
 conspicuous,  permanent  sign, meeting the size and color specifications
 set forth in subdivision two of this section, open to public view, iden-
 tifying those hours. The dealer may not change the hours  of  redemption
 without first posting a thirty day notice; and
   (c) The dealer's primary business is the sale of food or beverages for
 consumption  off-premises,  and  the  dealer's place of business is less
 than ten thousand square feet in size.
   4. A deposit initiator shall accept from a dealer  or  operator  of  a
 redemption  center  any  empty  beverage container of the design, shape,
 size, color, composition and brand sold  or  offered  for  sale  by  the
 deposit  initiator, and shall pay the dealer or operator of a redemption
 center the refund value of each such beverage container  as  established
 S. 5684                             6
 
 by  section  27-1005 of this title. A deposit initiator shall accept and
 redeem all such empty beverage containers from a  dealer  or  redemption
 center without limitation on quantity.
   5.  A  deposit  initiator's  or distributor's failure to pick up empty
 beverage containers, including containers processed in a reverse vending
 machine, from a redemption center, dealer or the operator of  a  reverse
 vending  machine, IN A TIMELY MANNER AND AT REASONABLE TIMES AS PROVIDED
 BY THE DEPARTMENT PURSUANT TO THE REGULATIONS  PROMULGATED  PURSUANT  TO
 PARAGRAPH  (C) OF SUBDIVISION EIGHT OF THIS SECTION shall be a violation
 of this title.
   6. In addition to the refund value of a beverage container  as  estab-
 lished  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] FIVE cents for each beverage container accepted by
 the deposit initiator from such  dealer  or  operator  of  a  redemption
 center.   BEGINNING APRIL FIRST, TWO THOUSAND TWENTY-SEVEN, THE HANDLING
 FEE SHALL BE SIX CENTS.  BEGINNING APRIL FIRST, TWO THOUSAND THIRTY-TWO,
 THE HANDLING FEE SHALL BE SIX AND ONE-HALF CENTS. Payment of the  handl-
 ing  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.
   7.  A deposit initiator on a brand shall accept from a distributor who
 does not initiate deposits on that brand any empty  beverage  containers
 of that brand accepted by the distributor from a dealer or operator of a
 redemption  center  and shall reimburse the distributor the refund value
 of each such beverage container, as established by  section  27-1005  of
 this  title.  In  addition,  the  deposit initiator shall reimburse such
 distributor for each such beverage container  the  handling  fee  estab-
 lished  under  subdivision  six  of  this  section. Without limiting the
 rights of the department or any person, firm or corporation  under  this
 subdivision  or any other provision of this section, a distributor shall
 have a civil right of action to  enforce  this  subdivision,  including,
 upon three days notice, the right to apply for temporary and preliminary
 injunctive  relief against continuing violations, and until arrangements
 for collection and return of empty containers or reimbursement  of  such
 distributor for such deposits and handling fees are made.
   8. It shall be the responsibility of the deposit initiator or distrib-
 utor  to provide to a dealer or redemption center a sufficient number of
 bags, cartons, or other suitable containers, at no cost, for the packag-
 ing, handling and pickup of  empty  beverage  containers  that  are  not
 redeemed  through  a  reverse  vending  machine.  The  bags, cartons, or
 containers must be provided by the deposit initiator or distributor on a
 schedule that allows the dealer or redemption center sufficient time  to
 sort  the  empty  beverage  containers  prior  to pick up by the deposit
 initiator or distributor. In addition:
   (a) When picking up empty beverage containers, a deposit initiator  or
 distributor  shall  not  require  a  dealer or redemption center to load
 their own bags, cartons or containers onto or into  the  deposit  initi-
 ator's  or  distributor's  vehicle  or  vehicles or provide the staff or
 equipment needed to do  so.  HOWEVER,  WHERE  PALLETS  OR  SKIDS,  BAGS,
 CARTONS OR CONTAINERS ARE READILY MOVABLE ONLY BY MEANS OF A FORKLIFT OR
 S. 5684                             7
 
 SIMILAR  EQUIPMENT,  A  DEPOSIT  INITIATOR  OR DISTRIBUTOR MAY REQUIRE A
 DEALER OR REDEMPTION CENTER TO MOVE OR LOAD SUCH ITEMS AT NO COST  USING
 A  FORKLIFT  OR  SIMILAR EQUIPMENT BELONGING TO THE DEALER OR REDEMPTION
 CENTER  PROVIDED  THAT  SUCH EQUIPMENT AND APPROPRIATE STAFF ARE READILY
 AVAILABLE.
   (b) A  deposit  initiator  or  distributor  shall  not  require  empty
 containers  to be counted at a location other than the redemption center
 or dealer's place of business. The dealer  or  redemption  center  shall
 have the right to be present at the count. IN THE EVENT OF A DISCREPANCY
 BETWEEN  THE  COUNT  OF THE DEALER OR REDEMPTION CENTER AND THE COUNT OF
 THE DEPOSIT  INITIATOR  OR  DISTRIBUTOR  FOR  CONTAINERS  NOT  PROCESSED
 THROUGH  A  REVERSE  VENDING  MACHINE ALL SUCH EMPTY CONTAINERS SHALL BE
 RETAINED AND A RE-COUNT MAY BE REQUESTED. THE RE-COUNT MAY BE HELD AT  A
 LOCATION  OTHER THAN THE REDEMPTION CENTER OR DEALER'S PLACE OF BUSINESS
 ONLY IF THE DEALER OR REDEMPTION CENTER AGREES AND IS PRESENT.
   (c) A deposit initiator or distributor shall pick  up  empty  beverage
 containers  from  the dealer or redemption center IN A TIMELY MANNER AND
 at reasonable times [and intervals] as  determined  in  rules  or  regu-
 lations  promulgated  by  the  department NO LATER THAN APRIL FIRST, TWO
 THOUSAND TWENTY-SEVEN.
   9. No person shall return or assist another to return to a  dealer  or
 redemption  center  an  empty beverage container for its refund value if
 such container had previously been accepted for redemption by a  dealer,
 redemption center, or deposit initiator who initiates deposits on bever-
 age containers of the same brand.
   10.  A  redeemer,  dealer,  distributor or redemption center shall not
 knowingly redeem an empty beverage container  on  which  a  deposit  was
 never paid in New York state.
   11.  Notwithstanding  the  provisions  of  subdivision  two of section
 27-1009 of this title, a deposit initiator or distributor  shall  accept
 and  redeem beverage containers as provided in this title, if the dealer
 or operator of a redemption center shall  have  accepted  and  paid  the
 refund value of such beverage containers.
   12. No person shall intentionally program, tamper with, render inaccu-
 rate, or circumvent the proper operation of a reverse vending machine to
 wrongfully  elicit  deposit  monies  when  no valid, redeemable beverage
 container has been placed in and properly processed by the reverse vend-
 ing machine.
   13. THE DEPARTMENT AND THE DEPARTMENT  OF  TAXATION  AND  FINANCE  ARE
 AUTHORIZED TO AUDIT ANY REVERSE VENDING MACHINE.
   14.  NOTWITHSTANDING  ANY PROVISION OF THIS SECTION TO THE CONTRARY, A
 DEALER SHALL NOT BE REQUIRED TO ACCEPT FROM A REDEEMER ANY EMPTY  BEVER-
 AGE  CONTAINER  AT  A  FARMERS'  MARKET  AS  SUCH TERM IS DEFINED BY THE
 DEPARTMENT OF AGRICULTURE AND MARKETS.
   § 5. Subdivision 1 of section 27-1011 of the  environmental  conserva-
 tion law is amended by adding a new paragraph c to read as follows:
   C. EACH BEVERAGE CONTAINER SOLD OR OFFERED FOR SALE IN THIS STATE THAT
 HAS  A  REFUND  VALUE PURSUANT TO PARAGRAPH A OF THIS SUBDIVISION, SHALL
 INCLUDE A UNIVERSAL PRODUCT CODE AND BARCODE PRINTED ON THE  LABEL  THAT
 IS  READABLE  BY REVERSE VENDING MACHINE OR ALTERNATIVE TECHNOLOGY. EACH
 DEPOSIT INITIATOR SHALL PROVIDE SUCH UNIVERSAL PRODUCT CODE AND  BARCODE
 AND  OWNERSHIP AND PACKAGING INFORMATION OF ANY SUCH BEVERAGE CONTAINER,
 TO THE DEPARTMENT NOT LESS THAN FORTY-FIVE DAYS PRIOR  TO  SUCH  PRODUCT
 BEING OFFERED FOR SALE IN THE STATE. THE DEPARTMENT SHALL, NOT MORE THAN
 THIRTY  DAYS  AFTER  RECEIPT  OF SUCH INFORMATION, MAKE THIS INFORMATION
 READILY AVAILABLE TO ANY  REDEMPTION  CENTER,  REVERSE  VENDING  MACHINE
 S. 5684                             8
 
 SYSTEM  OPERATOR, DEPOSIT INITIATOR-AUTHORIZED CONTRACTED AGENTS, OR ANY
 OTHER APPROPRIATE STAKEHOLDER APPROVED BY THE DEPARTMENT.
   § 6. Paragraph (b) of subdivision 3 of section 27-1011 of the environ-
 mental  conservation law, as added by section 1 of part PP of chapter 58
 of the laws of 2018, is amended and two new subdivisions  4  and  5  are
 added to read as follows:
   (b)  comply with [minimum post-consumer recycled material content and]
 hole diameter limitations as defined in rules and regulations promulgat-
 ed by the department NO LATER THAN APRIL FIRST, TWO THOUSAND TWENTY-SIX,
 and is recyclable and indicates a resin identification code.
   4. EACH DISTRIBUTOR SHALL DEVELOP AND IMPLEMENT A POLICY WITH THE GOAL
 OF ACHIEVING THE  FOLLOWING  PERFORMANCE  REQUIREMENT:  BEGINNING  APRIL
 FIRST, TWO THOUSAND THIRTY-ONE, IT SHALL BE THE GOAL OF EACH DISTRIBUTOR
 THAT  AT  LEAST  TWENTY-FIVE  PERCENT OF ALL BEVERAGE CONTAINERS SOLD BY
 EACH DISTRIBUTOR IN THE STATE SHALL BE REFILLABLE  CONTAINERS  THAT  ARE
 PART  OF  A RETURN AND REUSABLE SYSTEM. EACH DISTRIBUTOR SHALL WORK WITH
 DEALERS, REVERSE VENDING MACHINE OWNERS,  AND    REDEMPTION  CENTERS  TO
 ENSURE  THAT  REFILLABLE  BEVERAGE  CONTAINERS  SOLD  BY THE DISTRIBUTOR
 ACHIEVE AT LEAST AN EIGHTY PERCENT RETURN RATE.
   5. EACH DISTRIBUTOR IS REQUIRED  TO  MEET  THE  FOLLOWING  PERFORMANCE
 REQUIREMENTS:  A.  BEGINNING  APRIL  FIRST, TWO THOUSAND TWENTY-SIX, ALL
 DISTRIBUTORS OF NON-REFILLABLE  BEVERAGE  CONTAINERS  SHALL  REPORT  THE
 RECYCLING  RATE, BY MATERIAL TYPE, OF REDEEMED CONTAINERS TO THE DEPART-
 MENT.
   B. BEGINNING APRIL FIRST, TWO THOUSAND TWENTY-SEVEN, AT LEAST  SEVENTY
 PERCENT OF THE REDEEMED BEVERAGE CONTAINER MATERIAL SHALL BE RECYCLED.
   C.  BEGINNING  APRIL  FIRST, TWO THOUSAND TWENTY-NINE, AT LEAST EIGHTY
 PERCENT OF THE REDEEMED BEVERAGE CONTAINER MATERIAL SHALL BE RECYCLED.
   D. BEGINNING APRIL FIRST, TWO THOUSAND  THIRTY-ONE,  AT  LEAST  NINETY
 PERCENT  OF THE REDEEMED BEVERAGE CONTAINER MATERIAL, INCLUDING BEVERAGE
 CONTAINER CAPS, LIDS, AND OTHER RIGID SEALERS, SHALL BE RECYCLED.
   § 7.   Subdivision   5   of   section   27-1012 of  the  environmental
 conservation law, as amended by section 2 of part JJ of  chapter  58  of
 the laws of 2017, is amended to read as follows:
   5.  All moneys collected or received by the department of taxation and
 finance pursuant to this title shall be deposited to the credit  of  the
 comptroller  with such responsible banks, banking houses or trust compa-
 nies as may be designated by the comptroller.  Such  deposits  shall  be
 kept  separate  and apart from all other moneys in the possession of the
 comptroller. The comptroller shall require adequate  security  from  all
 such depositories. Of the total revenue collected, the comptroller shall
 retain the amount determined by the commissioner of taxation and finance
 to  be  necessary  for refunds out of which the comptroller must pay any
 refunds to which a deposit initiator may be entitled.  OF  THE   REVENUE
 REMAINING  FOLLOWING  PAYMENTS  OF  ANY  REFUNDS,  THE COMPTROLLER SHALL
 RETAIN AN AMOUNT EQUAL TO FIVE PERCENT OF THE TOTAL  FOR   THE  BEVERAGE
 CONTAINER  ASSISTANCE PROGRAM ESTABLISHED PURSUANT TO SECTION 27-1018 OF
 THIS TITLE. After reserving the amount to pay refunds,  the  comptroller
 must, by the tenth day of each month, pay into the state treasury to the
 credit  of the general fund the revenue deposited under this subdivision
 during the preceding calendar month and remaining to  the  comptroller's
 credit on the last day of that preceding month; provided, however, that,
 beginning  April first, two thousand thirteen, nineteen million dollars,
 and all fiscal years thereafter, twenty-three million dollars  plus  all
 funds received from the payments due each fiscal year pursuant to subdi-
 vision  four  of  this  section  in  excess of the greater of the amount
 S. 5684                             9

 received from April first, two thousand  twelve  through  March  thirty-
 first,  two  thousand  thirteen  or  one  hundred twenty-two million two
 hundred thousand dollars, shall be deposited to the credit of the  envi-
 ronmental  protection  fund established pursuant to section ninety-two-s
 of the state finance law.
   § 8. Paragraph c of subdivision 3 of section 27-1012 of  the  environ-
 mental  conservation law, as added by section 8 of part SS of chapter 59
 of the laws of 2009, is amended and a new subdivision  13  is  added  to
 read as follows:
   c.  all withdrawals from the refund value account during such quarter,
 including all reimbursements paid pursuant to subdivision  two  of  this
 section,  all service charges on the account, PROVIDED THAT SUCH SERVICE
 CHARGES DO NOT EXCEED THE MAXIMUM AMOUNT AUTHORIZED BY THE COMMISSIONER,
 and all payments made pursuant to subdivision four of this section; and
   13. ANNUALLY THE DEPARTMENT, IN CONSULTATION WITH  THE  DEPARTMENT  OF
 TAXATION  AND  FINANCE,  SHALL  USE  AVAILABLE INFORMATION TO PRODUCE AN
 ANNUAL REPORT AT A MINIMUM CONTAINING INFORMATION ON  REDEMPTION  RATES,
 CONTAINER  MATERIAL  TYPES BY PERCENT USAGE, REFILLABLE CONTAINER USAGE,
 FRAUD AND ENFORCEMENT ACTIONS, AN  ANALYSIS  OF  THE  HANDLING  FEE  AND
 CONSUMER  PRICE  INDEX,  AND  INFORMATION  ON  HOW THIS PROGRAM HELPS TO
 ACHIEVE THE TARGETS OF CHAPTER ONE HUNDRED SIX OF THE LAWS OF TWO  THOU-
 SAND  NINETEEN.    SUCH  REPORT SHALL BE SHARED WITH THE LEGISLATURE AND
 POSTED PUBLICLY ON THE DEPARTMENT'S WEBSITE.
   § 9. Paragraph a of subdivision 4 of section 27-1012 of  the  environ-
 mental  conservation law, as added by section 8 of part SS of chapter 59
 of the  laws of 2009, is amended to read as follows:
   a. Quarterly payments. An  amount  equal  to  eighty  percent  of  the
 balance  outstanding  in  the  refund value account at the close of each
 quarter shall be paid to the commissioner of taxation and finance at the
 time the report provided for in subdivision three  of  this  section  is
 required  to  be  filed.  The  commissioner  of taxation and finance may
 require that the payments be made electronically. The  remaining  twenty
 percent of the balance outstanding at the close of each quarter shall be
 the  monies  of  the  deposit  initiator  and may be withdrawn from such
 account by the deposit initiator.   HOWEVER,  A  DEPOSIT  INITIATOR  WHO
 INITIATES DEPOSITS ON REFILLABLE BEVERAGE CONTAINERS WHICH ARE PART OF A
 RETURN  AND  REUSABLE  SYSTEM  MAY BE ENTITLED TO PAY AN AMOUNT EQUAL TO
 SEVENTY-FIVE PERCENT OF THE BALANCE  OUTSTANDING  IN  THE  REFUND  VALUE
 ACCOUNT  SPECIFICALLY  ATTRIBUTABLE TO REFILLABLE BEVERAGE CONTAINERS AT
 THE CLOSE OF EACH QUARTER TO THE COMMISSIONER OF TAXATION AND FINANCE AT
 THE TIME THE REPORT PROVIDED FOR IN SUBDIVISION THREE OF THIS SECTION IS
 REQUIRED TO   BE FILED. THE DEPARTMENT SHALL  PROMULGATE  RULES  ON  THE
 ELIGIBILITY OF DEPOSIT INITIATORS FOR SUCH REFILLABLE BEVERAGE CONTAINER
 BONUS.  If  the  provisions of this section with respect to such account
 have not been fully complied with, each deposit initiator shall  pay  to
 such  commissioner  at such time, in lieu of the amount described in the
 preceding sentence, an amount equal to the balance which would have been
 outstanding on such date had such provisions been fully  complied  with.
 The  commissioner  of taxation and finance may require that the payments
 be made electronically.
   § 10. Paragraph a of subdivision 7 of section 27-1012 of the  environ-
 mental  conservation  law, as amended by section 8 of part SS of chapter
 59 of the laws of 2009, is amended to read as follows:
   a. Any person who is a deposit initiator under this title before April
 first, two thousand nine, must apply by June first, two thousand nine to
 the commissioner of taxation and finance for registration as  a  deposit
 S. 5684                            10
 
 initiator.  Any person who becomes a deposit initiator on or after April
 first, two thousand nine shall apply for registration prior to  collect-
 ing  any deposits as such a deposit initiator. Such application shall be
 in  a  form  prescribed  by the commissioner of taxation and finance and
 shall require such information deemed to be necessary for proper  admin-
 istration  of  this  title. The commissioner of taxation and finance may
 require that applications for registration must be  submitted  electron-
 ically.  The  commissioner  of taxation and finance shall electronically
 issue a deposit initiator registration certificate in a form  prescribed
 by  the  commissioner  of  taxation  and  finance within fifteen days of
 receipt of such application or may take an additional ten  days  if  the
 commissioner  of taxation and finance deems it necessary to consult with
 the commissioner before issuing such registration certificate. A  regis-
 tration  certificate  issued  pursuant to this subdivision may be issued
 for a specified term of not less than three years and shall  be  subject
 to  renewal  in accordance with procedures specified by the commissioner
 of taxation and finance. The commissioner of taxation and finance  shall
 furnish to the commissioner a complete list of registered deposit initi-
 ators  and  shall continually update such list as warranted. The commis-
 sioner shall share any information with the commissioner of taxation and
 finance that is necessary for the administration  of  this  subdivision.
 THE COMMISSIONER SHALL PUBLISH THE LIST OF REGISTERED DEPOSIT INITIATORS
 AND  THEIR COVERED PRODUCTS, AND A LIST OF REGISTERED REDEMPTION CENTERS
 ON THE DEPARTMENT'S WEBSITE.
   § 11. Section  27-1014  of  the  environmental  conservation  law,  as
 amended  by  section 10 of part SS of chapter 59 of the laws of 2009, is
 amended to read as follows:
 § 27-1014. Authority to promulgate rules and regulations.
   In addition to the  authority  of  the  commissioner,  under  sections
 27-1007,  27-1009  [and], 27-1011, 27-1012, 27-1013, AND 27-1018 of this
 title, the commissioner shall have the power  to  promulgate  rules  and
 regulations  necessary  and  appropriate  for the administration of this
 title.
   § 12. Section 27-1018 of the environmental conservation law, as  added
 by  section  13 of part SS of chapter 59 of the laws of 2009, is amended
 to read as follows:
 § 27-1018. Beverage container assistance program.
   Notwithstanding any other provision of law to the contrary, WITHIN THE
 AMOUNTS RETAINED BY THE COMPTROLLER FOR USE UNDER THE BEVERAGE CONTAINER
 ASSISTANCE  PROGRAM  PURSUANT  TO SUBDIVISION FIVE OF SECTION 27-1012 OF
 THIS TITLE, AND  within  the  limits  of  appropriations  therefor,  the
 commissioner  shall  make  state  assistance payments to municipalities,
 QUALIFYING SMALL businesses, and not-for-profit organizations located in
 the state, UPON APPLICATION, for the cost AND  INSTALLATION  of  reverse
 vending  machines  located  or  to  be  located in the state. Such state
 assistance payments shall not exceed  fifty  percent  of  the  costs  of
 equipment,  [and/or  the acquisition] INSTALLATION and/or rehabilitation
 of real property or structures located or to be  located  in  the  state
 related  to  the  collecting,  sorting,  and packaging of empty beverage
 containers subject to the provisions of this title. [Such  payments  may
 include  costs  related  to  the  establishment  of  redemption centers,
 including mobile redemption centers.] For the purposes of this  section,
 municipalities  and  not-for-profit organizations shall have the meaning
 as defined in section 54-0101 of this chapter and QUALIFIED SMALL  busi-
 nesses  shall  mean  a  dealer[,  distributor]  or  redemption center as
 defined in this title that employs less than fifty employees. PREFERENCE
 S. 5684                            11
 
 FOR THESE FUNDS SHALL BE GIVEN TO REGISTERED REDEMPTION CENTERS THAT  DO
 NOT  UTILIZE  ANY  REVERSE  VENDING MACHINES. PREFERENCE FOR THESE FUNDS
 SHALL ALSO BE GIVEN TO MUNICIPALITIES, NOT-FOR-PROFIT ORGANIZATIONS,  OR
 QUALIFIED  SMALL  BUSINESSES  THAT  DO  NOT HAVE A REGISTERED REDEMPTION
 CENTER WITHIN ONE MILE.
   § 13. Subdivision 1 of section 27-1013 of the environmental  conserva-
 tion law, as amended by section 7 of part F of chapter 58 of the laws of
 2013, is amended to read as follows:
   1.  The commissioner is hereby empowered to promulgate rules and regu-
 lations governing (a) the circumstances  in  which  deposit  initiators,
 dealers  and distributors, individually or collectively, are required to
 accept the return  of  empty  beverage  containers,  including  beverage
 containers  processed  through reverse vending machines and make payment
 therefor; (b) the sorting of the containers which a deposit initiator or
 distributor may require of  dealers  and  redemption  centers;  (c)  the
 collection  of  returned  beverage  containers  by deposit initiators or
 distributors, including the party to whom such expense is to be charged,
 the frequency of such pick ups, A PROCESS FOR SAFE  PICK  UPS,  and  the
 payment  for refunds and handling fees thereon; (d) the right of dealers
 to restrict or limit the number of containers redeemed,  the  rules  for
 redemption  at  the  dealers'  place  of business, and the redemption of
 containers from a beverage for which sales have been  discontinued;  (e)
 [to]  THE  RIGHT  OF REDEMPTION CENTERS TO HAVE TIMELY, TRANSPARENT, AND
 SAFE PICK UPS AND TRANSPARENT VERIFICATION OF CONTAINER COUNTS; (F)  THE
 DEPARTMENT  SHALL  issue registrations to persons, firms or corporations
 which establish redemption centers, subject to applicable provisions  of
 local  and  state  laws, at which redeemers and dealers may return empty
 beverage containers and receive payment of  the  refund  value  of  such
 beverage  containers[.  Such], SUBJECT TO A REVIEW THAT CONSIDERS SAFETY
 AND ACCESSIBILITY, AND SHALL BE RENEWED EVERY TEN  YEARS.  AS  OF  APRIL
 FIRST,  TWO THOUSAND TWENTY-SEVEN, SUCH registrations shall be issued at
 [no cost] THE COST OF ONE HUNDRED FIFTY DOLLARS. Should  the  department
 require  [by]  ANY ADDITIONAL regulations adopted pursuant to this para-
 graph [that redemption centers must obtain a registration as a condition
 of operation,] any redemption center in business as of [March first, two
 thousand thirteen] APRIL FIRST, TWO THOUSAND TWENTY-SIX that  previously
 provided  the  department  with the notification information required by
 regulations in effect as of such date may continue to operate as if  the
 department  had issued such redemption center a registration required by
 regulations adopted under this paragraph; provided, however,  that  such
 redemption  center  shall provide the department with any other informa-
 tion required by regulations adopted pursuant to this  paragraph.    The
 department may, after due notice and opportunity of hearing, pursuant to
 the  provisions  of section 71-1709 of this chapter, deny an application
 or revoke a registration. In determining whether  or  not  to  revoke  a
 registration  the  commissioner  shall at a minimum, take into consider-
 ation the compliance history of a violator,  good  faith  efforts  of  a
 violator  to comply, any economic benefit from noncompliance and whether
 the violation was procedural in nature. The commissioner's determination
 to revoke a registration is subject to  review  under  article  seventy-
 eight  of  the civil practice law and rules; [and (f)] (G) the operation
 of mobile redemption centers in order to ensure that to the best  extent
 practicable  containers  are  not  proffered for redemption to a deposit
 initiator or distributor outside  of  the  geographic  area  where  such
 deposit  initiator  sells  containers and initiates deposits; (H) YEARLY
 INFORMATION PROVIDED TO  THE  DEPARTMENT  FROM  DEALERS  AND  REDEMPTION
 S. 5684                            12
 
 CENTERS  INCLUDING  NUMBER OF CONTAINERS REDEEMED AND ANY OTHER INFORMA-
 TION REQUIRED BY THE DEPARTMENT; AND (I)  CLIMATE  MITIGATION  INCLUDING
 TARGETS WITHIN CHAPTER ONE HUNDRED SIX OF THE LAWS OF TWO THOUSAND NINE-
 TEEN  AND  RECOMMENDATIONS  ON  IMPROVING  REDEEMED  CONTAINER RECYCLING
 RATES.
   § 14.  Section 27-1005 of the environmental conservation law, as added
 by section 4 of part SS of chapter 59 of the laws of 2009, is amended to
 read as follows:
 § 27-1005. Refund value.
   No person shall sell or offer for sale a beverage  container  in  this
 state  unless  the  deposit  on  such  beverage container is or has been
 collected by a registered deposit initiator and  unless  such  container
 has  a  refund  value  of  not less than five cents, AND BEGINNING APRIL
 FIRST, TWO THOUSAND TWENTY-SEVEN, A REFUND VALUE OF NOT  LESS  THAN  TEN
 CENTS, which is clearly indicated thereon as provided in section 27-1011
 of this title.
   §  15.  Section  27-1018  of  the  environmental  conservation  law is
 REPEALED.
   § 16. The multi-agency bottle bill fraud investigation  team,  led  by
 the  department  of  environmental  conservation  and first announced on
 October 23, 2023, shall submit a report to the governor,  the  temporary
 president  of  the senate, and the speaker of the assembly no later than
 one year after the  effective  date  of  this  act.  Such  report  shall
 include,  but  not  be  limited  to,  any findings of pervasive beverage
 container redemption fraud in New York state,  and  any  recommendations
 for legislative action in response to such fraud.
   §  17.  This  act  shall take effect April 1, 2026; provided, however,
 that section one of this act shall take effect April 1, 2027;  provided,
 further,  that  section two of this act shall take effect April 1, 2030;
 provided, further, that the  amendments  to  subdivision  6  of  section
 27-1007  of  the  environmental conservation law made by section four of
 this act shall take effect  immediately;  and  provided,  further,  that
 section  fifteen of this act shall take effect January 1, 2039, with any
 proceeds transferred to the environmental  protection  fund  established
 pursuant  to section 92-s of the state finance law. Effective immediate-
 ly, the addition, amendment and/or repeal  of  any  rule  or  regulation
 necessary  for  the implementation of this act on its effective date are
 authorized to be made and completed on or before such effective date.