2023 New York Laws › ENV - Environmental Conservation › Article 27 - Collection, Treatment and Disposal of Refuse and Other Solid Waste › Title 10 - Litter and Solid Waste Control › 27-1012 - Deposit and Disposition of Refund Values; Registration; Reports.

§ 27-1012. Deposit  and  disposition  of  refund  values;  registration;
reports.
1. Each deposit initiator shall deposit in a refund value  account  an
  amount equal to the refund value initiated under section 27-1005 of this
  title  which is received with respect to each beverage container sold by
  such deposit initiator. Such deposit initiator shall hold the amounts in
  the refund value account in trust for the state. A refund value  account
  shall   be   an   interest-bearing  account  established  in  a  banking
  institution located in this state, the deposits in which are insured  by
  an  agency  of the federal government. Deposits of such amounts into the
  refund value account shall be made not less frequently than  every  five
  business  days. All interest, dividends and returns earned on the refund
  value account shall be paid directly into said account.  The  monies  in
  such  accounts shall be kept separate and apart from all other monies in
  the possession of the deposit initiator. The  commissioner  of  taxation
  and  finance  may  specify  a  system  of  accounts  and  records  to be
  maintained with respect to accounts established under this subdivision.
2. Payments of refund values pursuant to section 27-1007 of this title
  shall be paid from each deposit initiator's  refund  value  account.  No
  other  payment  or  withdrawal  from  such account may be made except as
  prescribed by this section.
3. Each deposit  initiator  shall  file  quarterly  reports  with  the
  commissioner  of  taxation  and  finance  on  a  form  and in the manner
  prescribed by  such  commissioner.  The  commissioner  of  taxation  and
  finance  may  require  such  reports  to  be  filed  electronically. The
  quarterly reports required by this subdivision shall be  filed  for  the
  quarterly  periods  ending  on the last day of May, August, November and
  February of each year, and each such report shall be filed within twenty
  days after the end of the quarterly period covered  thereby.  Each  such
  report  shall  include all information such commissioner shall determine
  appropriate including but not limited to the following information:
a. the balance in the refund value account at  the  beginning  of  the
  quarter for which the report is prepared;
b.  all  such  deposits  credited  to the refund value account and all
  interest, dividends or returns received on  such  account,  during  such
  quarter;
c.  all withdrawals from the refund value account during such quarter,
  including all reimbursements paid pursuant to subdivision  two  of  this
  section,  all  service  charges  on  the  account, and all payments made
  pursuant to subdivision four of this section; and
d. the balance in the refund  value  account  at  the  close  of  such
  quarter.
4.  a.  Quarterly  payments.  An amount equal to eighty percent of the
  balance outstanding in the refund value account at  the  close  of  each
  quarter shall be paid to the commissioner of taxation and finance at the
  time  the  report  provided  for in subdivision three of this section is
  required to be filed. The  commissioner  of  taxation  and  finance  may
  require  that  the payments be made electronically. The remaining twenty
  percent of the balance outstanding at the close of each quarter shall be
  the monies of the deposit initiator  and  may  be  withdrawn  from  such
  account by the deposit initiator. If the provisions of this section with
  respect  to such account have not been fully complied with, each deposit
  initiator shall pay to such commissioner at such time, in  lieu  of  the
  amount  described  in  the  preceding  sentence,  an amount equal to the
  balance which  would  have  been  outstanding  on  such  date  had  such
  provisions  been  fully  complied with. The commissioner of taxation and
  finance may require that the payments be made electronically.
b. Refund value account shortfall. In the event  a  deposit  initiator
  pays  out  more  in refund values than it collects in deposits of refund
  values  during  the  course  of  a  quarterly  period  as  described  in
  subdivision  three  of  this section, the deposit initiator may apply to
  the  commissioner  of taxation and finance for a refund of the amount of
  such excess payment of refund values from sources other than the  refund
  value account, in the manner as provided by the commissioner of taxation
  and  finance.  A deposit initiator must apply for a refund no later than
  twelve months after the due date for filing the quarterly report for the
  quarterly period for which the refund claim is made. No  interest  shall
  be payable for any refund paid pursuant to this paragraph.
c. Final report. A deposit initiator who ceases to do business in this
  state as a deposit initiator shall file a final report and remit payment
  of  eighty  percent of all amounts remaining in the refund value account
  as of the close of the deposit initiator's last  day  of  business.  The
  commissioner  of  taxation  and finance may require that the payments be
  made electronically. The deposit initiator shall indicate on the  report
  that  it  is  a "final report". The final report is due to be filed with
  payment twenty days after the close of the quarterly period in which the
  deposit initiator ceases to  do  business.  In  the  event  the  deposit
  initiator  pays out more in refund values than it collects in such final
  quarterly period, the deposit initiator may apply to the commissioner of
  taxation and finance for a refund of the amount of such  excess  payment
  of  refund  values  from sources other than the refund value account, in
  the manner as provided by the commissioner of taxation and finance.
5. All moneys collected or received by the department of taxation  and
  finance  pursuant  to this title shall be deposited to the credit of the
  comptroller  with  such  responsible  banks,  banking  houses  or  trust
  companies  as  may be designated by the comptroller. Such deposits shall
  be kept separate and apart from all other moneys in  the  possession  of
  the  comptroller.  The  comptroller shall require adequate security from
  all such depositories. Of the total revenue collected,  the  comptroller
  shall  retain  the amount determined by the commissioner of taxation and
  finance to be necessary for refunds out of which  the  comptroller  must
  pay  any  refunds  to  which  a deposit initiator may be entitled. After
  reserving the amount to pay refunds, the comptroller must, by the  tenth
  day  of  each  month,  pay  into the state treasury to the credit of the
  general fund the revenue deposited under  this  subdivision  during  the
  preceding  calendar  month  and remaining to the comptroller's credit on
  the last day of that preceding month; provided, however, that, beginning
  April first, two thousand thirteen, nineteen million  dollars,  and  all
  fiscal  years  thereafter,  twenty-three  million dollars plus all funds
  received from the payments due each fiscal year pursuant to  subdivision
  four  of  this  section  in excess of the greater of the amount received
  from April first, two thousand twelve through  March  thirty-first,  two
  thousand thirteen or one hundred twenty-two million two hundred thousand
  dollars,   shall  be  deposited  to  the  credit  of  the  environmental
  protection fund established pursuant  to  section  ninety-two-s  of  the
  state finance law.
6. The commissioner and the commissioner of taxation and finance shall
  promulgate, and shall consult each other in promulgating, such rules and
  regulations  as  may  be  necessary  to  effectuate the purposes of this
  title. The commissioner and the commissioner  of  taxation  and  finance
  shall  provide all necessary aid and assistance to each other, including
  the sharing of any information that is  necessary  to  their  respective
  administration   and   enforcement   responsibilities  pursuant  to  the
  provisions of this title.
7. a. Any person who is a deposit initiator under  this  title  before
  April  first,  two thousand nine, must apply by June first, two thousand
  nine to the commissioner of taxation and finance for registration  as  a
  deposit  initiator.  Any  person  who  becomes a deposit initiator on or
  after  April first, two thousand nine shall apply for registration prior
  to collecting any deposits as such a deposit initiator. Such application
  shall be in a form  prescribed  by  the  commissioner  of  taxation  and
  finance  and  shall  require such information deemed to be necessary for
  proper administration of this title. The commissioner  of  taxation  and
  finance may require that applications for registration must be submitted
  electronically.   The   commissioner   of  taxation  and  finance  shall
  electronically issue a deposit initiator registration certificate  in  a
  form  prescribed  by  the  commissioner  of  taxation and finance within
  fifteen days of receipt of such application or may  take  an  additional
  ten  days if the commissioner of taxation and finance deems it necessary
  to consult  with  the  commissioner  before  issuing  such  registration
  certificate.   A   registration  certificate  issued  pursuant  to  this
  subdivision may be issued for a specified term of not  less  than  three
  years  and  shall  be  subject  to renewal in accordance with procedures
  specified by the commissioner of taxation and finance. The  commissioner
  of  taxation  and  finance  shall furnish to the commissioner a complete
  list of registered deposit initiators and shall continually update  such
  list as warranted. The commissioner shall share any information with the
  commissioner   of  taxation  and  finance  that  is  necessary  for  the
  administration of this subdivision.
b. The commissioner of taxation and finance shall have  the  authority
  to  revoke  or  refuse to renew any registration issued pursuant to this
  subdivision when he or she has determined or has been  informed  by  the
  commissioner  that  any  of  the  provisions  of this title or rules and
  regulations promulgated thereunder have been violated.  Such  violations
  shall  include,  but  not  be  limited to, the failure to file quarterly
  reports, the failure to make payments pursuant to this subdivision,  the
  providing of false or fraudulent information to either the department of
  taxation  and finance or the department, or knowingly aiding or abetting
  another person in violating any of  the  provisions  of  this  title.  A
  notice  of  proposed  revocation  or  non-renewal  shall be given to the
  deposit initiator in the manner prescribed for a notice of deficiency of
  tax and all the provisions applicable to a notice  of  deficiency  under
  article  twenty-seven  of  the  tax  law  shall apply to a notice issued
  pursuant to this paragraph, insofar  as  such  provisions  can  be  made
  applicable   to  a  notice  authorized  by  this  paragraph,  with  such
  modifications as may be necessary in order to adapt the language of such
  provisions to the notice authorized by this paragraph. All such  notices
  issued  by  the  commissioner  of  taxation and finance pursuant to this
  paragraph shall contain a statement advising the deposit initiator  that
  the  revocation or non-renewal of registration may be challenged through
  a hearing process and the petition for such a challenge  must  be  filed
  with  the  commissioner of taxation and finance within ninety days after
  such notice is issued. A deposit initiator whose registration  has  been
  so  revoked  or  not  renewed  shall  cease  to do business as a deposit
  initiator in this state, until this title has been complied with  and  a
  new   registration   has   been  issued.  Any  deposit  initiator  whose
  registration has been so revoked may not apply for registration for  two
  years from the date such revocation takes effect.
8.   The   commissioner  of  taxation  and  finance  may  require  the
  maintenance of such accounts, records or documents relating to the  sale
  of  beverage containers, by any deposit initiator, bottler, distributor,
  dealer or redemption center as such commissioner  may  deem  appropriate

  for  the  administration  of  this  section.  Such commissioner may make
  examinations, including  the  conduct  of  facility  inspections  during
  regular  business  hours,  with  respect  to  the  accounts,  records or
  documents  required  to  be  maintained  under  this  subdivision.  Such
  accounts, records and documents shall be preserved for a period of three
  years, except that such commissioner may consent  to  their  destruction
  within  that  period  or  may  require  that  they  be kept longer. Such
  accounts, records and documents may be kept within the meaning  of  this
  subdivision when reproduced by any photographic, photostatic, microfilm,
  micro-card,  miniature  photographic  or  other  process  which actually
  reproduces the original accounts, records or documents.
9. a. Any person required to be registered  under  this  section  who,
  without   being  so  registered,  sells  or  offers  for  sale  beverage
  containers in this state, in addition to any other  penalty  imposed  by
  this  title,  shall  be  subject  to  a  penalty  to  be assessed by the
  commissioner of taxation and finance in an amount  not  to  exceed  five
  hundred dollars for the first day on which such sales or offers for sale
  are  made,  plus  an  amount not to exceed five hundred dollars for each
  subsequent day on which such sales or offers for sale are made,  not  to
  exceed twenty-five thousand dollars in the aggregate.
b.  Any  deposit  initiator  who fails to file reports, make quarterly
  payments or maintain accounts  or  records  pursuant  to  this  section,
  unless it is shown that such failure was due to reasonable cause and not
  due  to  negligence or willful neglect, in addition to any other penalty
  imposed by this title, shall be subject to a penalty to be  assessed  by
  the  commissioner  of taxation and finance of not more than one thousand
  dollars for each quarter during which  such  failure  occurred,  and  an
  additional  penalty  of  not  more  than  one  thousand dollars for each
  quarter such failure continues.
10. The provisions of article twenty-seven of the tax law shall  apply
  to  the  provisions of this title for which the commissioner of taxation
  and  finance  is  responsible,  including  collection  of  refund  value
  amounts, in the same manner and with the same force and effect as if the
  language of such article had been incorporated in full into this section
  except  to  the  extent  that  any  provision  of such article is either
  inconsistent with a provision of this section or is not relevant to this
  section as determined by  the  commissioner  of  taxation  and  finance.
  Furthermore,   for  purposes  of  applying  the  provisions  of  article
  twenty-seven of the tax law, where the terms "tax" and "taxes" appear in
  such article, such terms shall be construed to mean  "refund  value"  or
  "balance in the refund value account".
11.  If  any  deposit  initiator  fails or refuses to file a report or
  furnish any information  requested  in  writing  by  the  department  of
  taxation  and  finance or the department, the department of taxation and
  finance with the assistance of the department may, from any  information
  in  its  possession, make an estimate of the deficiency and collect such
  deficiency from such deposit initiator.
12. a. Each deposit initiator shall provide a report to the department
  describing all the types of beverage containers on  which  it  initiates
  deposits.  The  report shall include the product name, type of beverage,
  size and composition of the beverage container, universal product  code,
  and  any  other  information the department may require. Upon request, a
  deposit initiator shall also provide to the department  a  copy  of  the
  container  label  or a picture of any beverage container sold or offered
  for sale in this state on which it initiates a deposit. Such information
  shall be provided in  a  form  as  prescribed  by  the  department.  The
  department may require that such forms be filed electronically.
b.  A  bottler  may  place on a beverage container a universal product
  code or other distinctive marking that is specific to the state or  used
  only  in  the state and any other states with laws substantially similar
  to this title as a  means  of  preventing  the  sale  or  redemption  of
  beverage containers on which no deposit was initiated.
c.  A  bottler  or deposit initiator shall notify the department, in a
  form prescribed by the department,  whenever  a  beverage  container  or
  beverage  container  label  is revised by altering the universal product
  code, or whenever the  container  on  which  a  universal  product  code
  appears  is changed in size, composition or glass color, or whenever the
  container or container label on which a universal product  code  appears
  is  changed  to  include  a universal product code that is unique to the
  state or used  only  in  the  state  and  any  other  states  with  laws
  substantially similar to this title.