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OLR Bill Analysis
sSB 895
AN ACT CONCERNING DEPOSIT INITIATOR ACCOUNTS, THE
LABELING OF CERTAIN BEVERAGE CONTAINERS AND THE
REVIEW OF MUNICIPAL PROGRAMS FUNDED BY NIP PAYMENTS.
SUMMARY
This bill makes the following two changes to the state’s beverage
container redemption law (“bottle bill”) related to the January 1, 2024,
increase in the deposit (i.e., refund value) amount:
1. allows dealers (e.g., retailers) to sell or offer for sale beverage
containers labeled with a five-cent deposit after January 1, 2024,
as long as the containers were part of a dealer’s inventory on
December 31, 2023 (§ 2); and
2. requires deposit initiators (e.g., distributors) to keep all
unclaimed deposits from July 1, 2023, to the end of the calendar
year, for purposes of reimbursing the 10-cent deposit on
redeemed beverage containers (§ 3).
The state’s bottle bill generally requires a deposit to be charged on
each beverage container at the time of purchase, which is then refunded
to the consumer when they redeem the empty container at the retailer
or a redemption center. On January 1, 2024, the deposit amount of these
containers increases from five cents to 10 cents.
The bill also requires the Council on Environmental Quality to
include in the annual environmental quality report it submits to the
governor a review of the programs and measures local governments
implemented with funds received from the state’s nip surcharge (§ 1).
By law, there is a five-cent surcharge on each nip sale in Connecticut. A
“nip” is a beverage container containing of 50mL or less of a spirit or
liquor. Wholesalers must remit the surcharge for each nip sold to the 2023SB-00895-R000033-BA.DOCX
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municipality where the sale occurred, and municipalities must use these
funds for environmental efforts to reduce the amount of solid waste
generated in the municipality or the impact of litter (CGS § 22a-244b).
EFFECTIVE DATE: Upon passage, except the provision on selling
outdated 5-cent deposit beverage containers is effective January 1, 2024.
UNCLAIMED DEPOSITS
Under the bottle bill, deposit initiators must place an amount equal
to the deposits they collect on sales into a separate, interest-bearing
account to refund deposits on redeemed beverage containers.
Under current law, quarterly, deposit initiators must pay the revenue
services commissioner 95% of the outstanding account balance
attributable to the previous calendar quarter, for deposit in the General
Fund. On July 1, 2023, this payment amount declines to 65%. But, under
the bill, deposit initiators keep 100% of the outstanding balances
attributable to the calendar quarters beginning July 1, 2023, and October
1, 2023, to refund the 10-cent deposits that apply on January 1, 2024.
Under existing law, unchanged by the bill, if a deposit initiator does
not have enough funds in the account in any quarter to pay all deposit
refunds, it must subtract the deficiency from the next quarterly payment
to the revenue services commissioner until the deficiency is completely
subtracted (CGS § 22a-245a(e)).
COMMITTEE ACTION
Environment Committee
Joint Favorable Substitute
Yea 32 Nay 0 (02/17/2023)