Litigation Updates for the IBWA, et al. v. Paterson, et al. Case
Court Order issued October 23, 2009
The Court Order issued on October 23, 2009, lifts the injunction on implementation and enforcement of the amendments to the Returnable Container Act pertaining to bottled water products as of 11:59 p.m. on Friday, October 30, 2009. It also permanently enjoins the New York-specific Universal Product Code requirement. Therefore, on October 31, 2009, all of the 2009 amendments to the Returnable Container Act will be fully effective, except for the Universal Product Code requirement.
September 14th Court Order
Pursuant to the Court's Order filed on September 14, 2009, the increased handling fee of 3.5 cents must be paid on all containers accepted by distributors and deposit initiators on or after August 13, 2009 - NOT June 1, 2009.
August 13th Court Order
In basic terms, the Court's Order, dated August 13, 2009, means that the recent amendments to the Returnable Container Act (commonly known as the "Bottle Bill") may be implemented and enforced, with two exceptions: amendments impacting bottled water and the New York-exclusive UPC provisions. More specifically:
The Court's injunction of the New York-exclusive UPC provisions of the Bottle Bill Amendments - ECL § 27-1012 (12) - remains in full force and effect.
The injunction is lifted to the extent that the Court had enjoined enforcement of the amendments impacting bottled beverages other than bottled water. The State may immediately implement and enforce all provisions impacting bottled beverages, other than bottled water, including provisions that went into effect on April 1st, April 7th, and the remaining provisions that were effective June 1, 2009.
The bottled water industry must comply with the expanded bottle bill by October 22, 2009, unless they can demonstrate that compliance is impossible. The Judge stated that "it is the Court's expectation that Plaintiffs . . . . are actively working to achieve compliance with all aspects of the Bottle Bill except the New York exclusive provisions."
The Court has now lifted the injunction on most provisions of the amendments, so that New York State may implement and enforce major portions of the amendments that were temporarily delayed by the prior order issued in May 2009.
Handling Fees: The 2009 amendments increased the handling fees from 2 cents to 3.5 cents per container. Therefore, a handling fee of 3.5 cents must be paid on all containers accepted by deposit initiators or distributors from dealers or redemption centers on and after August 13, 2009.
Registration with the Tax Department: Deposit initiators on beverage containers for beverages other than water are required to electronically register with the NYS Tax Department, file quarterly reports, and remit 80% of the unclaimed beverage container deposits to the State, beginning with the quarterly report for the period August 13, 2009 through August 31, 2009. The Tax Department has issued guidance as to when reports and payments are due. For details on these obligations, please see the Tax Department's TSB-M-09(8.1)M, dated September 17, 2009. This TSB-M and other information may be found on the Tax Department's website (www.nystax.gov).
