LCO 5325 1 of 7 General Assembly Committee Bill No. 1115 January Session, 2025 LCO No. 5325 Referred to Committee on ENVIRONMENT Introduced by: (ENV) AN ACT CONCERNING ENFORCEMENT OF CROSS-BORDER BOTTLE REDEMPTION PROHIBITIONS. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. Section 22a-245 of the general statutes is repealed and the 1 following is substituted in lieu thereof (Effective October 1, 2025): 2 (a) No person shall establish a redemption center without receiving 3 approval from and annually registering with the [commissioner] 4 Commissioner of Revenue Services on a form provided by the 5 commissioner with such information as the commissioner deems 6 necessary to approve the operation of the redemption center, including 7 (1) the name of the business principals of the redemption center and the 8 address of the business; (2) the name and address of the sponsors and 9 dealers to be served by the redemption center; (3) the types of beverage 10 containers to be accepted; (4) the hours of operation; [and] (5) whether 11 beverage containers will be accepted from consumers; (6) a floor plan 12 for such redemption center that provides for: (A) Adequate and sanitary 13 storage space, and (B) safe and sanitary loading, unloading and 14 vehicular access areas; and (7) records demonstrating sufficient financial 15 Committee Bill No. 1115 LCO 5325 2 of 7 resources to operate such redemption center. The operator of the 16 redemption center shall report any change in [procedure] operations to 17 the commissioner [within] not later than forty-eight hours [of] after such 18 change. Any person establishing a redemption center shall have the 19 right to determine what kind, size and brand of beverage container shall 20 be accepted. Any redemption center may be established to serve all 21 persons or to serve certain specified dealers and shall be subject to the 22 requirements of section 22a-245a, as amended by this act, and this 23 chapter. Any redemption center that accepts more than one thousand 24 two hundred containers from any one individual in one day shall create 25 and obtain from such person a record of such person's name, the license 26 plate number of any vehicle used to transport the containers to such 27 redemption center, the collection points of the empty containers and the 28 number of containers tendered. The redemption center shall obtain from 29 such person a certification that, to the best of such person's knowledge, 30 the beverage containers were originally sold as filled beverages in this 31 state and were not previously redeemed. The Commissioner of Revenue 32 Services shall establish a reasonable annual registration fee for each 33 redemption center to be used for partial funding of examination and 34 enforcement actions authorized under this section and subsections (g) 35 and (h) of section 22a-245a, as amended by this act. 36 (b) A dealer shall not refuse to accept at such dealer's place of 37 business, from any person any empty beverage containers of the kind, 38 size and brand sold by the dealer, or refuse to pay to such person the 39 refund value of a beverage container unless (1) such container contains 40 materials which are foreign to the normal contents of the container; (2) 41 such container is not labeled in accordance with subsection (b) of section 42 22a-244; (3) such dealer sponsors, solely or with others, a redemption 43 center which is located within a one-mile radius of such place of 44 business and which accepts beverage containers of the kind, size and 45 brand sold by such dealer at such place of business; or (4) there is 46 established by others, a redemption center which is located within a 47 one-mile radius of such place of business and which accepts beverage 48 containers of the kind, size and brand sold by such dealer at such place 49 Committee Bill No. 1115 LCO 5325 3 of 7 of business. A dealer shall redeem an empty container of a kind, size or 50 brand the sale of which has been discontinued by such dealer for not 51 less than sixty days after the last sale by the dealer of such kind, size or 52 brand of beverage container. Sixty days before such date, the dealer 53 shall post, at the point of sale, notice of the last date on which the 54 discontinued kind, size or brand of beverage container shall be 55 redeemed. 56 (c) A distributor shall not refuse to accept from a dealer or from an 57 operator of a redemption center, located and operated exclusively 58 within the territory of the distributor or whose operator certifies to the 59 distributor that redeemed containers were from a dealer located within 60 such territory, any empty beverage containers of the kind, size and 61 brand sold by the distributor, or refuse to pay to such dealer or 62 redemption center operator the refund value of a beverage container 63 unless such container contains materials which are foreign to the normal 64 contents of the container or unless such container is not labeled in 65 accordance with subsection (b) of section 22a-244. A distributor shall 66 remove any empty beverage container from the premises of a dealer 67 serviced by the distributor or from the premises of a redemption center 68 sponsored by dealers serviced by the distributor, provided such 69 premises are located within the territory of the distributor. No dealer or 70 redemption center shall remove any beverage container from its 71 premises or transfer such containers between premises under its control 72 before tendering such containers for removal by a distributor. The 73 distributor shall pay the refund value to dealers in accordance with the 74 schedule for payment by the dealer to the distributor for full beverage 75 containers and shall pay such refund value to operators of redemption 76 centers not more than twenty days after receipt of the empty container. 77 For the purposes of this subsection, a redemption center shall be 78 considered to be sponsored by a dealer if (1) the dealer refuses to redeem 79 beverage containers and refers consumers to the redemption center, or 80 (2) there is an agreement between the dealer and the operator of the 81 redemption center requiring the redemption center to remove empty 82 beverage containers from the premises of the dealer. A distributor shall 83 Committee Bill No. 1115 LCO 5325 4 of 7 redeem an empty container of a kind, size or brand of beverage 84 container the sale of which has been discontinued by the distributor for 85 not less than one hundred fifty days after the last delivery of such kind, 86 size or brand of beverage container. Not less than one hundred twenty 87 days before the last date such containers may be redeemed, the 88 distributor shall notify such dealer who bought the discontinued kind, 89 size or brand of beverage container that such distributor shall not 90 redeem an empty beverage container of such kind, size or brand of 91 beverage containers. 92 (d) In addition to the refund value of a beverage container, a 93 distributor shall pay to any dealer or operator of a redemption center a 94 handling fee of at least two and one-half cents for each container of beer, 95 hard seltzer, hard cider or other malt beverage and three and one-half 96 cents for each beverage container of mineral waters, soda water and 97 similar carbonated soft drinks or noncarbonated beverage returned for 98 redemption. A distributor shall not be required to pay to a manufacturer 99 the refund value of a nonrefillable beverage container. 100 (e) The Commissioner of Energy and Environmental Protection shall 101 adopt regulations, in accordance with the provisions of chapter 54, to 102 implement the provisions of sections 22a-243 to 22a-245, inclusive, as 103 amended by this act. Such regulations shall include, but not be limited 104 to, provisions for the redemption of beverage containers dispensed 105 through automatic reverse vending machines, the use of vending 106 machines that reimburse consumers for the redemption value of 107 beverage containers, scheduling for redemption by dealers and 108 distributors and for exemptions or modifications to the labeling 109 requirement of section 22a-244. 110 (f) For the purposes of this section, "refund value" means the refund 111 value established by subsection (a) of section 22a-244. 112 (g) Notwithstanding the provisions of subsections (b) to (d), 113 inclusive, of this section, no person shall tender to a dealer, redemption 114 center, reverse vending machine, distributor or deposit initiator for the 115 Committee Bill No. 1115 LCO 5325 5 of 7 purpose of obtaining a refund value or handling fee for any empty 116 beverage container that the person knows or has reason to know was 117 not originally sold in this state as a filled beverage container or that was 118 previously redeemed through a dealer, redemption center, reverse 119 vending machine, distributor or deposit initiator. 120 (h) Each dealer, redemption center or reverse vending machine 121 operator shall post where empty containers are redeemed a conspicuous 122 "Redemption Warning" sign using at least a one-inch font that states the 123 following: "Returning empty beverage containers for refund that were 124 not purchased in Connecticut or that were previously redeemed is 125 illegal. Any person who returns empty beverage containers that the 126 person knows or has reason to know were not originally sold in this 127 state as filled beverage containers or that were previously redeemed 128 shall be subject to fines and state enforcement action. Connecticut 129 General Statutes section 22a-245, as amended by this act.". 130 (i) Each operator of a redemption center and reverse vending 131 machine shall report monthly to the Commissioner of Energy and 132 Environmental Protection, on a form provided by the commissioner, the 133 number and type of containers such operator redeems, aggregated by 134 each town in which such operator operates and any such other 135 redemption information the commissioner deems necessary. 136 Sec. 2. Subsections (f) and (g) of section 22a-245a of the general 137 statutes are repealed and the following is substituted in lieu thereof 138 (Effective October 1, 2025): 139 (f) If moneys deposited in the special account are insufficient to pay 140 for withdrawals authorized pursuant to subsection (b) of this section, 141 the amount of such deficiency shall be subtracted from the next 142 succeeding payment or payments due pursuant to subsection (e) of this 143 section until the amount of the deficiency has been subtracted in full. 144 The Commissioner of Revenue Services shall remit from the General 145 Fund to a deposit initiator payment of the amount of any deficiency 146 credit accumulated by a deposit initiator plus the handling fee for each 147 Committee Bill No. 1115 LCO 5325 6 of 7 container paid by the deposit initiator in excess of the number of 148 containers sold by the deposit initiator through the quarter ending June 149 30, 2025. For any calendar quarter beginning September 30, 2025, if 150 moneys deposited in the special account are insufficient to pay for 151 withdrawals authorized pursuant to subsection (b) of this section, the 152 amount of such deficiency shall not be paid by the deposit initiator to 153 the Commissioner of Revenue Services and the commissioner shall 154 remit from the General Fund, to a deposit initiator, payment of the 155 amount of the refund value plus the handling fee for each container paid 156 by the deposit initiator in excess of the number of containers sold by the 157 deposit initiator during such quarter. 158 (g) The Commissioner of Revenue Services may examine the accounts 159 and records of any deposit initiator, dealer or redemption center 160 maintained under this section or sections 22a-243 to 22a-245, inclusive, 161 as amended by this act, and any related accounts and records, including 162 receipts, disbursements and such other items as the Commissioner of 163 Revenue Services deems appropriate. The Commissioner of Revenue 164 Services may hire employees in sufficient number to carry out the 165 examination and enforcement actions authorized under this subsection 166 and subsections (a) and (h) of this section. 167 Sec. 3. Section 22a-246 of the general statutes is repealed and the 168 following is substituted in lieu thereof (Effective October 1, 2025): 169 Any person who violates any provision of section 22a-244, 22a-245, 170 as amended by this act, or 22a-245a, as amended by this act, shall be 171 fined not less than fifty dollars nor more than one hundred dollars, and 172 for a second offense shall be fined not less than one hundred dollars nor 173 more than two hundred dollars and for a third or subsequent offense 174 shall be fined not less than two hundred fifty dollars or more than five 175 hundred dollars. The Commissioner of Revenue Services may, after 176 notice and hearing, suspend or revoke the registration of a person 177 operating a redemption center who violates any provision of subsection 178 (a) of section 22a-245, as amended by this act, or subsection (c) of section 179 22a-245, as amended by this act, or impose a fine of not less than five 180 Committee Bill No. 1115 LCO 5325 7 of 7 hundred dollars and not more than one thousand dollars for each such 181 offense. Any person aggrieved by such action of the Commissioner of 182 Revenue Services may appeal such action, in accordance with section 4-183 183. 184 This act shall take effect as follows and shall amend the following sections: Section 1 October 1, 2025 22a-245 Sec. 2 October 1, 2025 22a-245a(f) and (g) Sec. 3 October 1, 2025 22a-246 ENV Joint Favorable JUD Joint Favorable