Researcher: KLM Page 1 5/19/23 OLR Bill Analysis sSB 895 (File 33, as amended by Senate "A")* 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 changes to the state’s beverage container redemption law (“bottle bill”): 1. allows dealers (e.g., retailers) and distributors to sell or offer for sale beverage containers labeled with a five-cent deposit on and after January 1, 2024, as long as the containers were part of a dealer’s or distributor’s inventory on December 31, 2023 (§ 2); 2. caps at 240 the number of beverage containers a person may redeem at one time at a dealer’s reverse vending machine (RVM) (§ 501); and 3. requires dealers and distributors, beginning January 1, 2024, to educate consumers about the 10-cent redemption value for beverage containers that applies on and after that date (§ 501). The state’s bottle bill generally requires that a deposit be charged on each beverage container at the time of purchase, which is then refunded to the consumer when redeeming 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). (The law adds a five-cent surcharge on each nip sale in Connecticut.) A 2023SB-00895-R01-BA.DOCX Researcher: KLM Page 2 5/19/23 “nip” is a beverage container containing 50mL or less of a spirit or liquor. Wholesalers must remit the surcharge to the 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). *Senate Amendment “A” (1) adds distributors to the original bill’s provision on selling or offering for sale beverage containers labeled with a five-cent deposit on or after January 1, 2024; (2) eliminates a provision in the original bill allowing distributors to keep all unclaimed deposits from July 1, 2023, to the end of the calendar year; (3) adds the provision on educating consumers about the redemption value increase; and (4) adds the 240-beverage container limit for redemptions at a dealer’s RVM. EFFECTIVE DATE: Upon passage, except the provision on selling outdated five-cent deposit beverage containers is effective January 1, 2024. COMMITTEE ACTION Environment Committee Joint Favorable Substitute Yea 32 Nay 0 (02/17/2023) Finance, Revenue and Bonding Committee Joint Favorable Yea 51 Nay 0 (05/02/2023)