Bill Text: IA HF814 | 2021-2022 | 89th General Assembly | Introduced


Bill Title: A bill for an act relating to the redemption of beverage containers, providing civil penalties, and including effective date provisions.(Formerly HSB 252; See HF 872, HF 892.)

Spectrum: Committee Bill

Status: (Introduced - Dead) 2021-04-21 - Committee report approving bill, renumbered as HF 872. [HF814 Detail]

Download: Iowa-2021-HF814-Introduced.html
House File 814 - Introduced HOUSE FILE 814 BY COMMITTEE ON STATE GOVERNMENT (SUCCESSOR TO HSB 252) A BILL FOR An Act relating to the redemption of beverage containers, 1 providing civil penalties, and including effective date 2 provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2758HV (1) 89 js/ns
H.F. 814 Section 1. Section 455C.1, subsections 1 and 6, Code 2021, 1 are amended to read as follows: 2 1. “Beverage” means wine as defined in section 123.3, 3 subsection 54 , alcoholic liquor as defined in section 123.3, 4 subsection 5 , beer as defined in section 123.3, subsection 5 7 , high alcoholic content beer as defined in section 123.3, 6 subsection 22, canned cocktail as defined in section 123.3, 7 subsection 11, mineral water, soda water , and similar 8 carbonated soft drinks in liquid form and intended for human 9 consumption. 10 6. “Dealer agent” means a person who solicits or picks up 11 empty beverage containers from a dealer for the purpose of 12 returning the empty beverage containers to a distributor or 13 manufacturer. 14 Sec. 2. Section 455C.1, Code 2021, is amended by adding the 15 following new subsection: 16 NEW SUBSECTION . 12A. “Participating dealer” means a dealer 17 who accepts the return of empty beverage containers from a 18 consumer. 19 Sec. 3. Section 455C.2, Code 2021, is amended to read as 20 follows: 21 455C.2 Refund values. 22 1. A refund value of not less than five cents shall be paid 23 by the consumer on each beverage container sold in this state 24 by a dealer for consumption off the premises. Upon return of 25 the empty beverage container upon which a refund value has 26 been paid to the a participating dealer or person operating 27 a redemption center and acceptance of the empty beverage 28 container by the participating dealer or person operating a 29 redemption center, the participating dealer or person operating 30 a redemption center shall immediately return the amount of 31 the refund value to the consumer. Upon return of the empty 32 beverage container on which a refund value has been paid to a 33 dealer agent, the dealer agent shall return the amount of the 34 refund value to the consumer within a reasonable time. 35 -1- LSB 2758HV (1) 89 js/ns 1/ 9
H.F. 814 2. In addition to the refund value provided in subsection 1 1 of this section , a participating dealer, or person operating a 2 redemption center , who redeems empty beverage containers or a 3 dealer agent shall be reimbursed by the distributor required to 4 accept the empty beverage containers an amount which that is 5 one cent per container. A participating dealer, dealer agent, 6 or person operating a redemption center may compact empty 7 metal beverage containers with the approval of the distributor 8 required to accept the containers. 9 Sec. 4. Section 455C.3, subsections 1, 2, and 4, Code 2021, 10 are amended to read as follows: 11 1. A participating dealer shall not refuse to accept from a 12 consumer any empty beverage container of the kind, size , and 13 brand sold by the participating dealer, or refuse to pay to the 14 consumer the refund value of a beverage container as provided 15 under section 455C.2 . 16 2. A distributor shall accept and pick up from a 17 participating dealer served by the distributor or a redemption 18 center for a dealer served by the distributor at least weekly, 19 or when the distributor delivers the beverage product if 20 deliveries are less frequent than weekly, any empty beverage 21 container of the kind, size , and brand sold by the distributor, 22 and shall pay to the participating dealer or person operating 23 a redemption center the refund value of a beverage container 24 and the reimbursement as provided under section 455C.2 within 25 one week following pickup of the containers or when the 26 participating dealer or redemption center normally pays the 27 distributor for the deposit on beverage products purchased from 28 the distributor if less frequent than weekly. A distributor 29 or employee or agent of a distributor is not in violation 30 of this subsection if a redemption center is closed when the 31 distributor attempts to make a regular delivery or a regular 32 pickup of empty beverage containers. This subsection does 33 not apply to a distributor selling alcoholic liquor to the 34 alcoholic beverages division of the department of commerce. 35 -2- LSB 2758HV (1) 89 js/ns 2/ 9
H.F. 814 4. A distributor shall accept from a dealer agent any 1 empty beverage container of the kind, size, and brand sold by 2 the distributor and which that was picked up by the dealer 3 agent from a dealer within the geographic territory served 4 by the distributor and the distributor shall pay the dealer 5 agent the refund value of the empty beverage container and the 6 reimbursement as provided in section 455C.2 . 7 Sec. 5. Section 455C.4, Code 2021, is amended to read as 8 follows: 9 455C.4 Refusal to accept containers. 10 1. Except as provided in section 455C.5, subsection 3 , 11 a participating dealer, a person operating dealer agent, a 12 redemption center, a distributor , or a manufacturer may refuse 13 to accept any empty beverage container which that does not have 14 stated on it a refund value as provided under section 455C.2 . 15 2. A dealer may refuse to accept and to pay the refund value 16 of any empty beverage container if the place of business of the 17 dealer and the kind and brand of empty beverage containers are 18 included in an order of the department approving a redemption 19 center under section 455C.6 dealer enters a contract with a 20 dealer agent or redemption center who will accept beverage 21 containers on the dealer’s behalf . A dealer may only enter a 22 contract with a redemption center under this subsection if the 23 dealer’s place of business is in a county with a population 24 of more than thirty thousand and within ten miles of the 25 redemption center or if the dealer’s place of business is in a 26 county with a population of thirty thousand or fewer and within 27 fifteen miles of the redemption center. 28 3. A dealer or a distributor may refuse to accept and to pay 29 the refund value of an empty wine or alcoholic liquor container 30 which is marked to indicate that it was sold by a state liquor 31 store. The alcoholic beverages division shall not reimburse 32 a dealer or a distributor the refund value on an empty wine or 33 alcoholic liquor container which is marked to indicate that the 34 container was sold by a state liquor store. 35 -3- LSB 2758HV (1) 89 js/ns 3/ 9
H.F. 814 4. 3. A class “E” liquor control licensee may refuse to 1 accept and to pay the refund value on an empty alcoholic liquor 2 container from a participating dealer or a redemption center 3 or from a person acting on behalf of or who has received empty 4 alcoholic liquor containers from a dealer or a redemption 5 center. 6 5. 4. A manufacturer or distributor may refuse to accept 7 and to pay the refund value and reimbursement as provided in 8 section 455C.2 on any empty beverage container that was picked 9 up by a dealer agent from a dealer outside the geographic 10 territory served by the manufacturer or distributor. 11 Sec. 6. Section 455C.5, subsection 1, Code 2021, is amended 12 to read as follows: 13 1. Each beverage container sold or offered for sale in 14 this state by a dealer shall clearly indicate the refund value 15 of the container by embossing or by a stamp, label , or other 16 method securely affixed to the container , the refund value of 17 the container . The department shall specify, by rule, the 18 minimum size of the refund value indication on the beverage 19 containers and require registration of the universal product 20 code for each beverage container in a format required by the 21 department . 22 Sec. 7. Section 455C.6, subsections 1, 2, and 5, Code 2021, 23 are amended to read as follows: 24 1. To facilitate the return of empty beverage containers 25 and to serve dealers of beverages, any person may establish a 26 redemption center , subject to the approval of the department, 27 at which consumers may return empty beverage containers 28 and receive payment of the refund value of such beverage 29 containers. 30 2. An application for approval of Written notice of the 31 operation of a redemption center shall be filed with the 32 department. The application notice shall state the name and 33 address of the person responsible for the establishment and 34 operation of the redemption center , the kind and brand names 35 -4- LSB 2758HV (1) 89 js/ns 4/ 9
H.F. 814 of the beverage containers which will be accepted at the 1 redemption center, and the names and addresses of the dealers 2 to be served by the redemption center. The application notice 3 shall contain such other information as the director may 4 reasonably require. 5 5. All approved redemption centers shall meet applicable 6 health standards. 7 Sec. 8. Section 455C.6, subsections 3 and 4, Code 2021, are 8 amended by striking the subsections. 9 Sec. 9. Section 455C.12, subsections 2 and 3, Code 2021, are 10 amended to read as follows: 11 2. A distributor who collects or attempts to collect 12 a refund value on an empty beverage container when the 13 distributor has paid the refund value on the container to a 14 participating dealer, dealer agent, redemption center, or 15 consumer is guilty of a fraudulent practice. 16 3. Any person who does any of the following acts is guilty 17 of a fraudulent practice: 18 a. Collects or attempts to collect the refund value on the 19 container a second time, with the knowledge that the refund 20 value has once been paid by the distributor to a participating 21 dealer, dealer agent, redemption center , or consumer. 22 b. Manufactures, sells, possesses , or applies a false or 23 counterfeit label or indication which that shows or purports to 24 show a refund value for a beverage container, with intent to 25 use the false or counterfeit label or indication. 26 c. Collects or attempts to collect a refund value on 27 a container with the use of a false or counterfeit label 28 or indication showing a refund value, knowing the label or 29 indication to be false or counterfeit. 30 Sec. 10. Section 455C.12, Code 2021, is amended by adding 31 the following new subsection: 32 NEW SUBSECTION . 6. A person who violates any provision of 33 this chapter shall be subject to a civil penalty that shall 34 be established, assessed, and collected in the same manner as 35 -5- LSB 2758HV (1) 89 js/ns 5/ 9
H.F. 814 provided in section 455B.109, but shall not exceed two thousand 1 five hundred dollars. Any civil penalty collected under this 2 chapter shall be deposited in the general fund of the state. 3 Sec. 11. NEW SECTION . 455C.12A Administrative enforcement 4 —— compliance orders. 5 The director may issue any order necessary to secure 6 compliance with or prevent a violation of the provisions of 7 this chapter or any rule adopted or permit or order issued 8 pursuant to this chapter. The person to whom the compliance 9 order is issued may cause to be commenced a contested case 10 within the meaning of chapter 17A by filing within thirty 11 days a notice of appeal to the commission. On appeal, the 12 commission may affirm, modify, or vacate the order of the 13 director. 14 Sec. 12. NEW SECTION . 455C.12B Judicial review. 15 Judicial review of any order or other action of the 16 commission or director may be sought in accordance with the 17 terms of chapter 17A. Notwithstanding the terms of chapter 18 17A, petitions for judicial review may be filed in the district 19 court of the county in which the alleged offense was committed. 20 Sec. 13. NEW SECTION . 455C.12C Civil actions for compliance 21 —— penalties. 22 1. The attorney general, on request of the department, shall 23 institute any legal proceedings necessary to obtain compliance 24 with an order of the commission or the director, including 25 proceedings for a temporary injunction, or prosecuting any 26 person for a violation of an order of the commission or the 27 director or the provisions of this chapter or any rules adopted 28 or permit or order issued pursuant to this chapter. 29 2. Any person who violates an order issued pursuant to 30 section 455C.12A shall be subject to a civil penalty, not to 31 exceed two thousand five hundred dollars for each day of such 32 violation. 33 Sec. 14. Section 455C.13, Code 2021, is amended to read as 34 follows: 35 -6- LSB 2758HV (1) 89 js/ns 6/ 9
H.F. 814 455C.13 Distributors’ agreements authorized. 1 1. A distributor , dealer, or redemption center may enter 2 into a contract or agreement with any other distributor, 3 manufacturer , or person for the purpose of collecting or paying 4 the refund value on, or disposing of, beverage containers as 5 provided in this chapter . 6 2. For purposes of this chapter, any contracts entered into 7 pursuant to this section for the collection or disposal of 8 empty beverage containers shall not be deemed to interfere with 9 the refund value pursuant to section 455C.2. A contract shall 10 not authorize a person to offer and pay a refund value of less 11 than five cents. 12 Sec. 15. Section 455C.14, subsection 1, Code 2021, is 13 amended to read as follows: 14 1. If the refund value indication required under section 15 455C.5 on an empty nonrefillable metal beverage container 16 is readable but the redemption of the container is lawfully 17 refused by a participating dealer or person operating a 18 redemption center under other sections of this chapter or 19 rules adopted pursuant to these sections, the container 20 shall be accepted and the refund value paid to a consumer 21 as provided in this section . Each beer distributor selling 22 nonrefillable metal beverage containers in this state shall 23 provide individually or collectively by contract or agreement 24 with a dealer, person operating a redemption center , or another 25 person, at least one facility in the county seat of each county 26 where refused empty nonrefillable metal beverage containers 27 having a readable refund value indication as required by 28 this chapter are accepted and redeemed. In cities having a 29 population of twenty-five thousand or more, the number of the 30 facilities provided shall be one for each twenty-five thousand 31 population or a fractional part of that population. 32 Sec. 16. REPEAL. Sections 455C.7 and 455C.10, Code 2021, 33 are repealed. 34 Sec. 17. EFFECTIVE DATE. This Act takes effect July 1, 35 -7- LSB 2758HV (1) 89 js/ns 7/ 9
H.F. 814 2023. 1 EXPLANATION 2 The inclusion of this explanation does not constitute agreement with 3 the explanation’s substance by the members of the general assembly. 4 Under current law, a consumer may return an empty beverage 5 container upon which a refund value has been paid to a dealer 6 or a redemption center. When a distributor collects empty 7 beverage containers from a dealer, dealer agent, or redemption 8 center, the distributor reimburses the dealer, dealer agent, or 9 redemption center the refund value plus a 1-cent handling fee 10 for each empty beverage container. Current law also allows any 11 person to establish a redemption center that serves a dealer 12 if it is approved by the department of natural resources. Any 13 person can also establish an unapproved redemption center. 14 Under this bill, a dealer may choose to not accept beverage 15 containers if the dealer enters into a contract with a dealer 16 agent or redemption center who will accept beverage containers 17 on the dealer’s behalf. A dealer may only enter such contract 18 with a redemption center if the dealer’s place of business is 19 in a county with a population of more than 30,000 and within 20 10 miles of the redemption center or if the dealer’s place of 21 business is in a county with a population of 30,000 or fewer 22 and within 15 miles of the redemption center. 23 The bill amends the definition of “dealer agent” so that a 24 dealer agent is not limited to soliciting or picking up empty 25 beverage containers from a dealer. The bill allows a person 26 to establish a redemption center by providing notice to the 27 department. The bill also requires each beverage container to 28 have a registered universal product code in a format required 29 by the department. 30 The bill creates civil enforcement procedures and penalties 31 for a violation of the provisions of the bill, including a 32 civil penalty of up to $2,500. 33 The bill makes numerous changes throughout Code chapter 455C 34 to change instances of “dealer” to “participating dealer”, 35 -8- LSB 2758HV (1) 89 js/ns 8/ 9
H.F. 814 remove obsolete language, and stylistically and grammatically 1 update the Code chapter. 2 The bill takes effect July 1, 2023. 3 -9- LSB 2758HV (1) 89 js/ns 9/ 9
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