House adopts emergency fix to bottle-deposit system after debate and failed rollback amendment

HARTFORD — In an after-hours floor session, the Connecticut House approved an emergency-certified bill (SB 299) that attempts to stabilize the bottle-deposit redemption system after lawmakers, distributors and redemption centers reported surging over-redemption and fraud tied to a higher 10-cent deposit rate.

Sponsors said the system had begun returning rates that exceeded the number of containers that could plausibly have been sold in-state, producing large, uncompensated costs that fell on Connecticut-based bottlers and distributors. Representatives described examples in which measured redemption rates exceeded 100% and cited multi-million-dollar unreimbursed balances at some companies.

SB 299 creates a stepped enforcement framework: larger-volume redemption centers would be subject to licensing and to stronger reporting obligations; high-volume centers would be expected to use barcode-scanning technology and may face reduced handling fees (a 1-cent reduction) if they decline to adopt stronger verification technology. The bill also lowers daily per-person redemption thresholds that trigger identity reporting and puts stiffer civil penalties and escalating fines for known abuses. The Attorney General’s office and municipal law enforcement are given clearer authority to support enforcement.

To provide short-term financial relief for in-state businesses harmed by over-redemption, the bill authorizes using a portion of unclaimed deposit funds (escheats) to create a limited reimbursement pool; DRS and DEEP would administer claims and eligibility (the bill lists distribution bottlers as the initial prioritized group, with thresholds tied to prior-year revenue mixes). Sponsors said the bill could make up to several million dollars available for reimbursements without tapping general-tax revenue.

A floor amendment that would have temporarily rolled the deposit back to 5 cents failed on a roll-call vote; backers argued a temporary rollback was the fastest way to stop cross-border redemption flows while enforcement and technological fixes were built; opponents warned a roll-back would destabilize local redemption-center businesses and complicate a planned phased enforcement and technology approach.

The bill’s sponsors called it a stop-gap measure to restore integrity to the system while additional longer-term policy options — including a regional approach, container labeling and a product-stewardship organization — are developed in committee later in the session.

Ending: After hours of debate and a failed rollback amendment, the House adopted SB 299. Sponsors pledged near-term enforcement and technical work, and additional hearings to pursue longer-term regional and technological solutions.