Bill Text: IA SF520 | 2019-2020 | 88th General Assembly | Introduced


Bill Title: A bill for an act relating to the redemption and handling of beverage containers, providing civil penalties, and including effective date provisions. (Formerly SF 59.)

Spectrum: Committee Bill

Status: (Introduced - Dead) 2019-03-26 - Subcommittee recommends amendment and passage. [SF520 Detail]

Download: Iowa-2019-SF520-Introduced.html
Senate File 520 - Introduced SENATE FILE 520 BY COMMITTEE ON NATURAL RESOURCES AND ENVIRONMENT (SUCCESSOR TO SF 59) A BILL FOR An Act relating to the redemption and handling of beverage 1 containers, providing civil penalties, and including 2 effective date provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1152SV (5) 88 js/tm
S.F. 520 Section 1. Section 455C.1, Code 2019, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 12A. “Participating dealer” means a dealer 3 who accepts the return of empty beverage containers from a 4 consumer. 5 Sec. 2. Section 455C.2, Code 2019, is amended to read as 6 follows: 7 455C.2 Refund values. 8 1. A refund value of not less than five cents shall be paid 9 by the consumer on each beverage container sold in this state 10 by a dealer for consumption off the premises. Upon return of 11 the empty beverage container upon which a refund value has 12 been paid to the participating dealer or person operating 13 a redemption center and acceptance of the empty beverage 14 container by the participating dealer or person operating a 15 redemption center, the participating dealer or person operating 16 a redemption center shall return the amount of the refund value 17 to the consumer. 18 2. In addition to the refund value provided in subsection 1 19 of this section , a participating dealer, or person operating a 20 redemption center who redeems empty beverage containers , or a 21 dealer agent shall be reimbursed by the distributor required 22 to accept the empty beverage containers an amount which that 23 is one cent two cents per container. A participating dealer, 24 dealer agent, or person operating a redemption center may 25 compact empty metal beverage containers with the approval of 26 the distributor required to accept the containers. 27 Sec. 3. Section 455C.3, subsections 1, 2, and 4, Code 2019, 28 are amended to read as follows: 29 1. A participating dealer shall not refuse to accept from a 30 consumer any empty beverage container of the kind, size , and 31 brand sold by the participating dealer, or refuse to pay to the 32 consumer the refund value of a beverage container as provided 33 under section 455C.2 . 34 2. A distributor shall accept and pick up from a 35 -1- LSB 1152SV (5) 88 js/tm 1/ 8
S.F. 520 participating dealer served by the distributor or a redemption 1 center for a dealer served by the distributor at least weekly, 2 or when the distributor delivers the beverage product if 3 deliveries are less frequent than weekly, any empty beverage 4 container of the kind, size , and brand sold by the distributor, 5 and shall pay to the participating dealer or person operating 6 a redemption center the refund value of a beverage container 7 and the reimbursement as provided under section 455C.2 within 8 one week following pickup of the containers or when the 9 participating dealer or redemption center normally pays the 10 distributor for the deposit on beverage products purchased from 11 the distributor if less frequent than weekly. A distributor 12 or employee or agent of a distributor is not in violation 13 of this subsection if a redemption center is closed when the 14 distributor attempts to make a regular delivery or a regular 15 pickup of empty beverage containers. This subsection does 16 not apply to a distributor selling alcoholic liquor to the 17 alcoholic beverages division of the department of commerce. 18 4. A distributor shall accept from a dealer agent any empty 19 beverage container of the kind, size, and brand sold by the 20 distributor and which that was picked up by the dealer agent 21 from a participating dealer within the geographic territory 22 served by the distributor and the distributor shall pay the 23 dealer agent the refund value of the empty beverage container 24 and the reimbursement as provided in section 455C.2 . 25 Sec. 4. Section 455C.4, Code 2019, is amended to read as 26 follows: 27 455C.4 Refusal to accept containers. 28 1. Except as provided in section 455C.5, subsection 3 , a 29 participating dealer, a person operating a redemption center, a 30 distributor , or a manufacturer may refuse to accept any empty 31 beverage container which does not have stated on it a refund 32 value as provided under section 455C.2 . 33 2. A dealer may refuse to accept and to pay the refund value 34 of any empty beverage container if the place of business of the 35 -2- LSB 1152SV (5) 88 js/tm 2/ 8
S.F. 520 dealer and the kind and brand of empty beverage containers are 1 included in an order of the department approving a redemption 2 center under section 455C.6 by providing notice to the 3 department . 4 3. A dealer or a distributor may refuse to accept and to pay 5 the refund value of an empty wine or alcoholic liquor container 6 which is marked to indicate that it was sold by a state liquor 7 store. The alcoholic beverages division shall not reimburse 8 a dealer or a distributor the refund value on an empty wine or 9 alcoholic liquor container which is marked to indicate that the 10 container was sold by a state liquor store. 11 4. 3. A class “E” liquor control licensee may refuse to 12 accept and to pay the refund value on an empty alcoholic liquor 13 container from a participating dealer or a redemption center 14 or from a person acting on behalf of or who has received empty 15 alcoholic liquor containers from a participating dealer or a 16 redemption center. 17 5. 4. A manufacturer or distributor may refuse to accept 18 and to pay the refund value and reimbursement as provided in 19 section 455C.2 on any empty beverage container that was picked 20 up by a dealer agent from a participating dealer outside the 21 geographic territory served by the manufacturer or distributor. 22 Sec. 5. Section 455C.5, subsection 1, Code 2019, is amended 23 to read as follows: 24 1. Each beverage container sold or offered for sale in 25 this state by a dealer shall clearly indicate by embossing or 26 by a stamp, label , or other method securely affixed to the 27 container , the refund value of the container. The department 28 shall specify, by rule, the minimum size of the refund value 29 indication on the beverage containers and require registration 30 of the universal product code for each beverage container in a 31 format required by the department . 32 Sec. 6. Section 455C.6, subsections 1, 2, and 5, Code 2019, 33 are amended to read as follows: 34 1. To facilitate the return of empty beverage containers 35 -3- LSB 1152SV (5) 88 js/tm 3/ 8
S.F. 520 and to serve dealers of beverages, any person may establish a 1 redemption center , subject to the approval of the department, 2 at which consumers may return empty beverage containers 3 and receive payment of the refund value of such beverage 4 containers. 5 2. An application for approval of Written notice of the 6 operation of a redemption center shall be filed with the 7 department. The application notice shall state the name and 8 address of the person responsible for the establishment and 9 operation of the redemption center , the kind and brand names 10 of the beverage containers which will be accepted at the 11 redemption center, and the names and addresses of the dealers 12 to be served by the redemption center. The application notice 13 shall contain such other information as the director may 14 reasonably require. 15 5. All approved redemption centers shall meet applicable 16 health standards. 17 Sec. 7. Section 455C.6, subsections 3 and 4, Code 2019, are 18 amended by striking the subsections. 19 Sec. 8. Section 455C.12, subsections 2 and 3, Code 2019, are 20 amended to read as follows: 21 2. A distributor who collects or attempts to collect 22 a refund value on an empty beverage container when the 23 distributor has paid the refund value on the container to a 24 participating dealer, redemption center, or consumer is guilty 25 of a fraudulent practice. 26 3. Any person who does any of the following acts is guilty 27 of a fraudulent practice: 28 a. Collects or attempts to collect the refund value on the 29 container a second time, with the knowledge that the refund 30 value has once been paid by the distributor to a participating 31 dealer, redemption center , or consumer. 32 b. Manufactures, sells, possesses or applies a false or 33 counterfeit label or indication which shows or purports to show 34 a refund value for a beverage container, with intent to use the 35 -4- LSB 1152SV (5) 88 js/tm 4/ 8
S.F. 520 false or counterfeit label or indication. 1 c. Collects or attempts to collect a refund value on 2 a container with the use of a false or counterfeit label 3 or indication showing a refund value, knowing the label or 4 indication to be false or counterfeit. 5 Sec. 9. Section 455C.12, Code 2019, is amended by adding the 6 following new subsection: 7 NEW SUBSECTION . 6. A person who violates any provision of 8 this chapter shall be subject to a civil penalty that shall 9 be established, assessed, and collected in the same manner 10 as provided in section 455B.109. Any civil penalty shall be 11 deposited in the general fund of the state. 12 Sec. 10. NEW SECTION . 455C.12A Administrative enforcement 13 —— compliance orders. 14 The director may issue any order necessary to secure 15 compliance with or prevent a violation of the provisions of 16 this chapter or any rule adopted or permit or order issued 17 pursuant to this chapter. The person to whom such compliance 18 order is issued may cause to be commenced a contested case 19 within the meaning of chapter 17A by filing within thirty 20 days a notice of appeal to the commission. On appeal, the 21 commission may affirm, modify, or vacate the order of the 22 director. 23 Sec. 11. NEW SECTION . 455C.12B Judicial review. 24 Judicial review of any order or other action of the 25 commission or director may be sought in accordance with the 26 terms of chapter 17A. Notwithstanding the terms of chapter 27 17A, petitions for judicial review may be filed in the district 28 court of the county in which the alleged offense was committed. 29 Sec. 12. NEW SECTION . 455C.12C Civil actions for compliance 30 —— penalties. 31 1. The attorney general, on request of the department, shall 32 institute any legal proceedings necessary to obtain compliance 33 with an order of the commission or the director, including 34 proceedings for a temporary injunction, or prosecuting any 35 -5- LSB 1152SV (5) 88 js/tm 5/ 8
S.F. 520 person for a violation of an order of the commission or the 1 director or the provisions of this chapter or any rules adopted 2 or permit or order issued pursuant to this chapter. 3 2. Any person who violates any order issued pursuant to 4 455C.12A shall be subject to a civil penalty, not to exceed ten 5 thousand dollars for each day of such violation. 6 Sec. 13. Section 455C.13, Code 2019, is amended to read as 7 follows: 8 455C.13 Distributors’ agreements authorized. 9 1. A distributor , dealer, or redemption center may enter 10 into a contract or agreement with any other distributor, 11 manufacturer , or person for the purpose of collecting or paying 12 the refund value on, or disposing of, beverage containers as 13 provided in this chapter . 14 2. For purposes of this chapter, any contracts entered into 15 pursuant to this section for the collecting or disposal of 16 empty beverage containers shall not be deemed to interfere with 17 the refund value pursuant to section 455C.2. A contract shall 18 not authorize a person to offer and pay a refund value of less 19 than five cents. 20 Sec. 14. Section 455C.14, subsection 1, Code 2019, is 21 amended to read as follows: 22 1. If the refund value indication required under section 23 455C.5 on an empty nonrefillable metal beverage container 24 is readable but the redemption of the container is lawfully 25 refused by a participating dealer or person operating a 26 redemption center under other sections of this chapter or 27 rules adopted pursuant to these sections, the container 28 shall be accepted and the refund value paid to a consumer 29 as provided in this section . Each beer distributor selling 30 nonrefillable metal beverage containers in this state shall 31 provide individually or collectively by contract or agreement 32 with a dealer, person operating a redemption center , or another 33 person, at least one facility in the county seat of each county 34 where refused empty nonrefillable metal beverage containers 35 -6- LSB 1152SV (5) 88 js/tm 6/ 8
S.F. 520 having a readable refund value indication as required by 1 this chapter are accepted and redeemed. In cities having a 2 population of twenty-five thousand or more, the number of the 3 facilities provided shall be one for each twenty-five thousand 4 population or a fractional part of that population. 5 Sec. 15. Section 455C.16, Code 2019, is amended to read as 6 follows: 7 455C.16 Beverage containers —— disposal at sanitary landfill 8 prohibited. 9 Beginning July 1, 1990, the The final disposal of beverage 10 containers , by a dealer, distributor, or manufacturer, or 11 person operating a redemption center, in a sanitary landfill, 12 is prohibited. Beginning September 1, 1992, including the 13 final disposal of beverage containers that used to contain 14 alcoholic liquor as defined in section 123.3, subsection 5 , by 15 a dealer, distributor, or manufacturer, or person operating a 16 redemption center in a sanitary landfill , is prohibited. 17 Sec. 16. REPEAL. Sections 455C.7 and 455C.10, Code 2019, 18 are repealed. 19 Sec. 17. EFFECTIVE DATE. The following take effect July 1, 20 2020: 21 The sections of this Act amending sections 455C.3 and 22 455C.4. 23 Sec. 18. EFFECTIVE DATE. The following, being deemed of 24 immediate importance, take effect upon enactment: 25 The sections of this Act amending or repealing sections 26 455C.1, 455C.2, 455C.5, 455C.6, 455C.7, 455C.10, 455C.13, 27 455C.14, and 455C.16. 28 EXPLANATION 29 The inclusion of this explanation does not constitute agreement with 30 the explanation’s substance by the members of the general assembly. 31 Under current law, a consumer may return an empty beverage 32 container upon which a refund value has been paid to a dealer 33 or a redemption center. When a distributor collects empty 34 beverage containers from a dealer, dealer agent, or redemption 35 -7- LSB 1152SV (5) 88 js/tm 7/ 8
S.F. 520 center, the distributor reimburses the dealer, dealer agent, or 1 redemption center the refund value plus a 1-cent handling fee 2 for each empty beverage container. Current law also allows any 3 person to establish a redemption center that serves a dealer 4 if it is approved by the department of natural resources. Any 5 person can also establish an unapproved redemption center. 6 Under this bill, a dealer may choose to not accept beverage 7 containers by providing notice to the department beginning July 8 1, 2020. 9 The bill raises the handling fee paid by a distributor to 10 2 cents for each empty beverage container. The bill allows a 11 person to establish a redemption center by providing notice to 12 the department. The bill also requires each beverage container 13 to have a registered universal product code in a format 14 required by the department. 15 These provisions take effect upon enactment. The bill 16 creates civil enforcement procedures and penalties for a 17 violation of the provisions of the bill. 18 The bill makes numerous changes throughout Code chapter 455C 19 to change instances of “dealer” to “participating dealer”, 20 remove obsolete language, and stylistically and grammatically 21 update the Code chapter. 22 -8- LSB 1152SV (5) 88 js/tm 8/ 8
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