SB 457 — AN ACT CONCERNING THE STATE'S BOTTLE BILL.

General Assembly Substitute Senate Bill No.

457 FebruaryPublic Session,Act 2026No. AN ACT CONCERNING THE STATE'S BOTTLE BILL.

26-148 AN ACT CONCERNING THE STATE'S BOTTLE BILL.

Section(NEW) 22a-246b(Effective October 1, 2026) (a) Notwithstanding any provision of chapter 446d of the general statutesstatutes, isno repealedperson andshall thecollect followingor ischarge substituteda inrefund lieuvalue thereofon (Effectivea Octoberbeverage 1,container 2026):not purchased in this state.

(a)(b) TheAny Commissionerperson ofwho Energywilfully andcollects Environmentalor Protectioncharges shalla approverefund value on a beverage container not purchased in this state on the formationamount of anot less than five thousand but not more than nineteen thousand nine hundred and ninety-nine beverage containercontainers stewardshipin organizationone constitutedor bymore depositseparate initiators.transactionsduring a single calendar yearorwho directsanother person to do so shall have committed a class B misdemeanor.

[if](c) NotAny laterperson thanwho Decemberwilfully 1,collects 2027, or charges a laterrefund date,value ifon approvedbya beverage container not purchased in this state on the commissioner,amount suchof organizationnot [submits]less shallthan submittwenty anthousand applicationbut tonot themore commissionerthan thatthirty demonstratesthousand suchnine organizationhundred meetsand theninety-nine followingbeverage criteria:containers in one or more separate transactions during a one-year period or who directs another person to do so shall have committed a class A misdemeanor.

(1)(d) TheAny organizationperson iswho establishedwilfully andcollects operatedor ascharges ana organizationrefund describedvalue inon sectiona 501(c)(3)Substitute ofSenate theBill InternalNo. Revenue Code of 1986, as amended from time to time, and is exempt from taxation under said section, (2) the governing board of such organization consists of deposit initiators that represent the range of beverages and beverage container materials subject to the state's beverage container redemption program, and (3) such organization demonstrates that it has adequate financial responsibility and financial controls in place, including fraud prevention measures and an audit schedule, to ensure proper management of funds.

(b)457 Allbeverage depositcontainer initiatorsnot shallpurchased registerin withthis andstate joinon anythe amount of forty thousand or more beverage containercontainers stewardshipin organizationone approvedor pursuantmore separate transactions during a one-year period or who directs another person to subsectiondo LCOso 1shall ofhave 9committed Substitutea Billclass No.D felony.

457(e) (a)Nothing ofin this section notshall laterbe thanconstrued threeto monthsapply afterto any common or contract carrier or warehouse worker while engaged in lawfully transporting or storing beverage containers as merchandise, or any employee of such organization'scarrier approvalor bywarehouse worker who acts within the commissioner.scope of such employee's employment.

Any deposit initiator that wishes to initiate the sale of beverage containers in the state after such three- month period elapses shall register and join such organization not less than ninety days prior to selling beverage containers in the state.

(c) [On or before July 1, 2022, any] Any organization approved pursuant to subsection (a) of this section shall submit a plan, for the commissioner's review and approval, to operate a state-wide beverage container stewardship program, as described in this subsection.

Such planshall be submitted not lessthanonehundredeighty daysfollowing approval of such organization pursuant to subsection (a) of this section.

In developing any such plan, such organization shall obtain input from membersoftheindependentredemptioncenterscommunity,municipal resource recovery facilities, municipal leaders, wine and spirits distributors and reverse vending machine operators.

Such plan shall demonstrate, in detail, how such organization will operate and finance a program to provide for the redemption and recycling of beverage containers in the state, including, but not limited to:

(1) Achieving and exceeding an annual redemption rate of eighty per cent by a specified timeline, (2) achieving financial self-sustainability, (3) achieving verifiable performance metrics for enhanced customer satisfaction with and access to the beverage container redemption system, (4) adopting policies and making investments to ensure that recovered materials are returned to their highest and best use, (5) providing a detailed description of how existing collection and redemption centers throughout the state are to be utilized as part of such beverage container stewardship program, (6) disclosing applicable rates of redemption as of the time of such plan and those projected over the next five years under the proposed beverage container stewardship program and the recommended refund value for such containers that is necessary to achieve such redemption rates, (7) identifying how the plan will yield costs to the state or any participant of said program, (8) specifying revenues that escheat to the state pursuant to said beverage container stewardship program and any projected diminishment in the state's use LCO 2 of 9 Substitute Bill No.

457 or collection of such revenues in the next five fiscal years, [beginning July 1, 2022,] (9) identifying any legislative changes necessary to carry out such plan, (10) preventing redemption within the state of containers purchased outside of the state and related fraudulent activities, and [(10)] (11) any other parameters or requirements specified by the commissioner.

The commissioner may provide conditions of approval to ensure compliance with any of such requirements.

The commissioner shall not approve any such plan without verification that such organization obtained input from members of the independent redemption centers community, municipal resource recovery facilities, municipal leaders, wine and spirits distributors and reverse vending machine operators.

(d) Not later than [October 1, 2022] December 1, 2027, the Commissioner of Energy and Environmental Protection shall submit recommendations to the joint standing committee of the General Assembly having cognizance of matters relating to the environment concerning any plansubmittedpursuant tosubsection(c)ofthissection.

(e) Not less than one year following approval of such a plan by the commissioner, and annually on each December first thereafter, such organization shall submit to the commissioner a report that details such organization's and applicable program's compliance with such approved plan.

(NEW)Subdivision (Effective(2) Octoberof 1,subsection 2026)(d) Notof latersection than22a-245 Decemberof 31, 2026, the Commissioner2026 ofsupplement Energyto andthe Environmentalgeneral Protectionstatutes, shallas studyamended theby efficacysection of1 the provisions of public act 26-226-2, andis determinerepealed ifand the measuresfollowing containedis insubstituted such bill were effective in reducinglieu thethereof over(Effective redemptionfrom ofpassage): beverage containers in the state.

If(2) For the commissionerperiod determinescommencing April 1, 2026, and ending June 30, 2027, the handling fee paid by a distributor for any beverage container described in subdivision (1) of this subsection to any redemption center that, on average, annually processes fifty million or more beverage containers, as confirmed by the Department of Energy and Environmental Protection in consultation with the Department of Revenue Services, and that suchdoes measuresnot haveutilize automated barcode or universalproductcodescanningfortheredemptionofallsuchbeverage containers shall be reduced by not beenmore effectivethan inone both:cent.

(1)On Creatingand aafter state-wideJuly redemption1, rate2027, ofor lessat thansuch onetime hundredthat pera centredemption butcenter notsubject lessto thansuch seventy-fivereduction perutilizes cent,automated andbarcode (2)or significantlyuniversal loweringproduct thecode individualscanning redemption rates for distributors that were more than one hundred per cent redeemed as of the effectivedateredemption of publicall actsuch 26-2,thebeverage commissionercontainers, shallwhichever seekis anearlier, opinionany ofsuch thereduction Attorneyin General on the LCOhandling 3fee ofshall 9discontinue. Substitute Bill No.

457[, likelyprovided outcomesuch ofredemption acenter statutoryutilizes requirementautomated forbarcode manufacturersor touniversalproductcodescanningfortheredemptionofallsuchbeverage labelcontainers.] beveragePublic containersAct withNo. state specific indicia for the purpose of identifying such containers sold in this state.

Any26-148 such2 request of the3 commissionerSubstitute shallSenate seekBill anNo. assessment by the Attorney General of such likely outcome as analyzed under the precedent of the United States Court of Appeals for the Sixth Circuit and any other directly applicable precedents with consideration of the measures contained in public act 26-2 and any other requirements or provisions of chapter 446d of the general statutes intended to deter fraud and the illegal redemption of beverage containers in this state.

Not457 laterGovernor's thanAction: March 1, 2027, the commissioner shall submit a report, in accordance with the provisions of section 11-4a of the general statutes, on such study and any attendant opinion of the Attorney General to the joint standing committee of the General Assembly having cognizance of matters relating to the environment.

SuchApproved reportJune shall4, include,2026 butPublic notAct beNo. limited to, any legislative recommendations from such study and Attorney General opinion, as applicable.

Sec.26-148 3 of 3

3.

(NEW) (Effective October 1, 2026) Notwithstanding any provision of chapter 446d of the general statutes, each distributor, as defined in section 22a-243 of the general statutes, shall remove all accumulated empty beverage containers of such distributor not more than seven days after receipt of written or electronic notice from any dealer or redemption center, as defined in section 22a-243 of the general statutes.Any distributor who violatestheprovisionsofthis sectionshall be fined in accordance with the provisions of section 22a-246 of the general statutes.

Sec.

4.

(NEW) (Effective October 1, 2026) (a) Notwithstanding the provisions of chapter 446d of the general statutes, no distributor or deposit initiator, as defined in section 22a-243 of the general statutes, shall refuse to accept the scrap equivalent from any dealer or redemption center that uses a reverse vending machine for the redemption of any redeemed beverage container of the kind, size and brand sold or distributed by such distributor or deposit initiator solely because such container was processed and comingled through a reverse LCO 4 of 9 Substitute Bill No.

457 vending machine, provided such reverse vending machine meets the requirements established by the Commissioner of Energy and Environmental Protection pursuant to this subsection.

(b) Notwithstanding the provisions of chapter 446d of the general statutes, no distributor or deposit initiator shall refuse to pay the refund value, handling fee or other payment required pursuant to this section for any beverage container processed through a reverse vending machine in accordance with this section.sb457 (c) The Commissioner of Energy and Environmental Protection shall adopt regulations, in accordance with the provisions of chapter 54 ofthe general statutes, to establish standards for reverse vending machines, including, but not limited to, standards for accuracy, fraud prevention, data retention and reporting requirements.

Sec.

5.

Subparagraph (B) of subdivision (2) of subsection (e) of section 22a-245a of the general statutes, as amended by section 2 of public act 26-2, is repealed and the following is substituted in lieu thereof (Effective October 1, 2026):

(B) Subsequently:

(i) For the fiscal year ending June 30, 2023, ninety-five per cent of the balance outstanding in the special account that is attributable to the immediately preceding calendar quarter shall be paid by the deposit initiator on or before the last day of the month next succeeding the close of such quarter to the Commissioner of Revenue Services for deposit in the General Fund;