Researcher: RP Page 1 5/4/23
OLR Bill Analysis
sSB 1236
AN ACT CONCERNING THE AMOUNTS OF UNCLAIMED
BEVERAGE CONTAINER DEPOSITS TO BE PAID FOR DEPOSIT IN
THE GENERAL FUND.
SUMMARY
For FYs 24 and 25, this bill reduces the amount of unclaimed deposits
remitted to the General Fund under the state’s beverage container
redemption law (i.e., “bottle bill”). For FY 24, it requires deposit
initiators (e.g., distributors) to keep all unclaimed deposits from July 1,
2023, to the end of the calendar year, to reimburse them for the 10-cent
deposit on redeemed beverage containers scheduled to take effect on
January 1, 2024. For FY 25, it reduces the amount of unclaimed deposits
that deposit initiators must quarterly remit to the General Fund from
55% to 50%.
Beginning in FY 26, current law requires deposit initiators to remit
45% of unclaimed deposits to the General Fund. The bill instead ties the
required remittance to the average statewide redemption rate for the
preceding fiscal year and requires deposit initiators to remit less than
45% of unclaimed deposits if the redemption rate is greater than 65%.
EFFECTIVE DATE: Upon passage
UNCLAIMED DEPOSITS REMITTED TO GENERAL FUND
FYs 24 and 25
The state’s bottle bill generally requires a deposit to be charged on
each beverage container at the time of purchase. 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. On January 1, 2024, the deposit amount increases
from five cents to 10 cents. 2023SB-01236-R000706-BA.DOCX
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Under current law, 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, and in
FY 24 this amount decreases to 65%. The bill requires deposit initiators
to keep all outstanding balances attributable to the calendar quarters
starting July 1, 2023, and October 1, 2023, to refund the 10-cent deposits
that apply on January 1, 2024.
Starting in FY 25, the bill requires deposit initiators to pay the revenue
services commissioner 50% of the outstanding account balance for each
quarter, rather than the 55% required under current law.
FY 26 and After
Starting in FY 26, the bill ties the percentage of unclaimed deposits
that deposit initiators must remit each quarter to the average statewide
redemption rate for the preceding fiscal year, as shown in the table
below. It requires the Department of Energy and Environmental
Protection commissioner, beginning by August 1, 2024, to annually
calculate and publish this rate by dividing the number of beverage
containers redeemed by the number sold.
Table: Required Remittance of Unclaimed Deposits for FY 26 and After
FY Statewide Redemption Rate for
Preceding Fiscal Year
Required
Remittance
26
At least 65% 25%
Less than 65% 45%
27
At least 70% 5%
Greater than 65%, but less than 70% 25%
65% or less 45%
28 and after
At least 80% 5%
Greater than 70%, but less than 80% 10%
Greater than 65% to 70% 25%
65% or less 45%
BACKGROUND
Related Bills
sSB 981, favorably reported by the Finance, Revenue and Bonding
Committee, contains identical provisions. 2023SB-01236-R000706-BA.DOCX
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sSB 895 (File 33), favorably reported by the Environment Committee,
contains a similar provision requiring deposit initiators to keep all
unclaimed deposits from July 1, 2023, to the end of the year.
COMMITTEE ACTION
Finance, Revenue and Bonding Committee
Joint Favorable Substitute
Yea 51 Nay 0 (04/19/2023)