How Does it Work?

New York State Returnable Container Act

How Does It Work?

Cleaner roadsides and reduced space demands on landfills are two of the benefits of New York State's Returnable Container Act (RCA) which became effective in 1983. Although commonly called the Bottle Bill, the Act involves more than just bottles. Carbonated soft drinks, beer and malt beverages, mineral water, soda water, and wine cooler containers have at least a 5 cent deposit. Deposits are required for glass, metal and plastic containers up to one gallon. Both refillable and nonrefillable containers carry a deposit to encourage reuse and recycling of such containers. Since the RCA went into effect, redemption rates have been 70-80 percent and litter reduced by 75 percent.

How Does the Deposit System Work?

Distribution Chain at a Glance

BOTTLERS/BREWERS

label containers
charge deposit on refillables only

DISTRIBUTORS

first to charge deposit for nonrefillables

RETAILERS

pay deposit to distributor
charge deposit to consumers who take container away

CONSUMERS

pay deposit

Redemption Chain at a Glance

CONSUMERS

return containers to dealers or redemption centers
collect deposits

DEALERS

return deposits to consumers
sort containers for distributor pickup or send containers to redemption centers for sorting
collect deposit plus 2 cent handling fee

REDEMPTION CENTERS

can serve as sorting services and/or recyclers
work out arrangements with distributors and dealers for sorting, recycling, and payment system

DISTRIBUTORS

collect containers from retailers and redemption centers
pay deposit plus 2 cent handling fee on containers
may arrange with redemption centers to recycle materials

BOTTLERS/BREWERS

get back refillable containers only

What Does the Consumer Do?

The consumer's role is quite simple. Consumers pay a deposit when purchasing beverages and get the deposit back when returning empty containers. Empties can be returned to any store that sells that type (brand, size, shape, color and composition) of container. To get back a deposit, the container must have the deposit label showing New York (or NY) and the amount of the deposit. The containers must be reasonably clean and in good shape. While it is helpful to have containers rinsed, a customer cannot be required to rinse containers.

What Does a Dealer Do?

A retailer selling beverages in deposit containers for consumers to take away from the premises is considered a "dealer" and has the following rights and responsibilities:

Dealers pay deposits to distributors when they purchase beverages and receive deposits from consumers when they sell beverages.
Dealers must refund the deposit on all containers of the same type (brand, size, shape, color and composition) they sell for off-premises consumption, regardless of where the container was originally purchased.
Dealers do not have to, but are allowed to refuse to accept containers without the proper refund label, broken bottles, corroded or crushed cans or "dirty" containers. Small amounts of dust, dirt or moisture are allowed. Although helpful, containers do not have to be rinsed.
Dealers may limit the number of containers accepted from one person to 240 at a time and also to 240 per day if they have a sign posted stating this limit. However, this sign must also state that any redeemer may make 48-hour advance arrangements to redeem an unlimited number of empty beverage containers.
Dealers must accept containers and pay refunds during all normal business hours. A store open less than 24 hours does not have to accept returns during the first and last half hour of business.
Dealers, or their contracted sorting services (e.g. a redemption center), must sort containers for distributors. Distributors may require containers to be sorted by brand, by deposit amount and by whether or not the container is intended to be refilled.
The dealer, or whoever sorts the containers for distributors, is entitled to a 2 cent handling fee plus the deposit on every container returned to the distributor. Refunds and handling fees must be paid promptly.
A dealer or other beverage retailer who sells a beverage for on-premises consumption must pay a deposit on all beverages purchased but does not have to charge a deposit to people who consume the beverage on-premises and do not keep the container.

What Does a Distributor Do?

A distributor is a beverage manufacturer or wholesaler who sells beverages to a dealer. In addition, someone who owns a private label, purchases beverages directly from the manufacturers in containers marked with that label, then sells the beverage at retail, is considered the distributor of that beverage. Distributors have the following rights and responsibilities:

Distributors charge a deposit when they sell beverages to retailers. However, a distributor who manufactures beverages but does not sell to retailers is not allowed to charge a deposit except on refillable containers. This refers specifically to the beer industry where brewers sell to distributors who sell to retailers. The brewer may not charge a deposit except on refillables. In the soft drink industry, the bottler and distributor are usually the same; therefore, this distinction is usually not relevant. For imported beverages, the first U.S. distributor is responsible for initiating the deposit.
Distributors must accept from dealers and redemption centers all containers of the same type (brand, size, shape, color and composition) they sell. In addition to paying the refund, the distributor must pay a 2 cent handling fee per container to the dealer or redemption center. The handling fee must be paid on both refillable and nonrefillable beverage containers.
Distributors must pick up empties, at their expense, from dealers they sell to at least as often as they deliver filled containers, unless an alternative schedule is agreed to in writing.
Distributors must pick up empty beverage containers from any redemption center in that distributor's primary territory, if the redemption center is only servicing consumers. The distributor and redemption center may set up their own schedules for payment and pickup, but a redemption center has the right to be serviced at least every two weeks and to be paid within ten business days of pickup.

What Does a Beverage Manufacturer Do?

Beverage manufacturers (brewers, soft drink bottlers, etc.) have the following rights and responsibilities:

Manufacturers determine the amount of the deposit. The deposit must be at least five cents. Once a container has been labeled with the deposit, the amount of the deposit cannot be changed.
Manufacturers place the deposit information on the containers. The lettering must be at least 1/8 inch high and must indicate New York, or N.Y. and the amount of the deposit. The information must be permanently embossed or painted on the containers or printed as part of the product label on the container. It must appear on the top of cans and side of bottles. The names of other states with similar deposit legislation may also be included on the refund label.
Refund stamps or stickers may not be used except for private label beverages. Private label beverages are beverages purchased from a beverage manufacturer in beverage containers bearing a brand name or trademark, for sale at retail directly by the owner or licensee of such brand name or trademark; or through retail dealers affiliated with such owner or licensee by a cooperative or franchise agreement.
Containers that already had a deposit prior to the implementation date of the law and that had the brand name permanently marked on them were exempt from the above labeling requirements if the Commissioner of the Department of Environmental Conservation was notified of these containers by the beverage manufacturer prior to July 1, 1983.
Manufacturers may initiate the deposit on refillable containers.

What are Redemption Centers and How Do They Work?

Anyone may establish a redemption center and determine the type of empty beverage containers to be accepted. Anyone who wishes to establish a redemption center must send the Commissioner of the Department of Environmental Conservation written notice of the following information and any changes that occur:

Name, address and telephone number of owner(s);
Name of operator and address of place of business of the redemption center;
Name and address of any dealer(s) served or under contract;
Name and address of distributor(s) served or under contract;
General geographic area served.

What are the Requirements for Vending Machines?

Vending machines must have a sign listing the dealer's name, address and business hours when containers can be redeemed. Consumers can also return containers to any store that carries that type of container.

What About Container Material and Labeling?

It is illegal to sell non-deposit containers, metal containers with detachable nondegradable openers and plastic packaging devices which are not either photodegradable or bio-degradable. With the exception of certain private label beverages, retailers may not use stick-on refund labels to bring nonconforming containers into compliance with the law.

Exemptions

Beverage containers manufactured for sale outside the state or sold to consumers aboard aircraft or ocean-going ships are exempt from the law.

What Happens If You Don't Comply with the Act?

A violation of the Returnable Container Act or Regulations is subject to a civil penalty of not more than $500 per violation. Each day that a violation exists or continues is considered a separate violation. In addition, double redemptions (which occur when a distributor conspires to defraud another distributor by having another person re-redeem containers previously redeemed by the first distributor) is a misdemeanor punishable by a fine of $500-$1,000 plus double recovery of the monies illegally received.

Additional Information May Be Obtained From The Following Sources:

New York State Beer Wholesalers Association, Inc.
90 South Swan Street
Albany, New York 12210
(518) 465-6115

New York State Soft Drink Association, Inc.
99 Pine Street
Albany, New York 12207
(518) 462-4135