Bill Text: IA HSB709 | 2021-2022 | 89th General Assembly | Introduced
Bill Title: A bill for an act relating to beverage containers control provisions, including handling fees, refund value, applicability to certain beverages, and acceptance of beverage containers, and providing penalties.(See HF 2524, HF 2571.)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2022-02-23 - Committee report approving bill, renumbered as HF 2524. [HSB709 Detail]
Download: Iowa-2021-HSB709-Introduced.html
House
Study
Bill
709
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
COMMERCE
BILL
BY
CHAIRPERSON
LUNDGREN)
A
BILL
FOR
An
Act
relating
to
beverage
containers
control
provisions,
1
including
handling
fees,
refund
value,
applicability
to
2
certain
beverages,
and
acceptance
of
beverage
containers,
3
and
providing
penalties.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
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Section
1.
Section
455C.1,
subsections
1
and
6,
Code
2022,
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
2022,
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
2022,
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
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.
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2.
In
addition
to
the
refund
value
provided
in
subsection
1
1
of
this
section
,
a
participating
dealer,
dealer
agent,
or
2
person
operating
a
redemption
center
who
redeems
empty
beverage
3
containers
or
a
dealer
agent
shall
be
reimbursed
by
the
4
distributor
required
to
accept
the
empty
beverage
containers
5
an
amount
which
a
handling
fee
that,
before
January
1,
2032,
6
is
one
cent
two
cents
per
container.
On
and
after
January
1,
7
2032,
the
handling
fee
shall
be
one
and
one-half
cents
per
8
container.
A
participating
dealer,
dealer
agent,
or
person
9
operating
a
redemption
center
may
compact
empty
metal
beverage
10
containers
with
the
approval
of
the
distributor
required
to
11
accept
the
containers.
12
3.
Upon
delivery
of
beverages
from
a
distributor
to
a
13
dealer,
the
dealer
shall
pay
a
handling
fee
of
one-half
cent
14
per
container
to
the
distributor.
This
subsection
is
repealed
15
January
1,
2032.
16
Sec.
4.
Section
455C.3,
subsections
1,
2,
and
4,
Code
2022,
17
are
amended
to
read
as
follows:
18
1.
A
participating
dealer
shall
not
refuse
to
accept
from
a
19
consumer
any
empty
beverage
container
of
the
kind,
size
,
and
20
brand
sold
by
the
participating
dealer,
or
refuse
to
pay
to
the
21
consumer
the
refund
value
of
a
beverage
container
as
provided
22
under
section
455C.2
.
23
2.
A
distributor
shall
accept
and
pick
up
from
a
24
participating
dealer
served
by
the
distributor
or
a
redemption
25
center
for
a
dealer
served
by
the
distributor
at
least
weekly,
26
or
when
the
distributor
delivers
the
beverage
product
if
27
deliveries
are
less
frequent
than
weekly,
any
empty
beverage
28
container
of
the
kind,
size
,
and
brand
sold
by
the
distributor,
29
and
shall
pay
to
the
participating
dealer
or
person
operating
30
a
redemption
center
the
refund
value
of
a
beverage
container
31
and
the
reimbursement
as
provided
under
section
455C.2
within
32
one
week
following
pickup
of
the
containers
or
when
the
33
participating
dealer
or
redemption
center
normally
pays
the
34
distributor
for
the
deposit
on
beverage
products
purchased
from
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the
distributor
if
less
frequent
than
weekly.
A
distributor
1
or
employee
or
agent
of
a
distributor
is
not
in
violation
2
of
this
subsection
if
a
redemption
center
is
closed
when
the
3
distributor
attempts
to
make
a
regular
delivery
or
a
regular
4
pickup
of
empty
beverage
containers.
This
subsection
does
5
not
apply
to
a
distributor
selling
alcoholic
liquor
to
the
6
alcoholic
beverages
division
of
the
department
of
commerce.
7
4.
A
distributor
shall
accept
from
a
dealer
agent
any
8
empty
beverage
container
of
the
kind,
size,
and
brand
sold
by
9
the
distributor
and
which
that
was
picked
up
by
the
dealer
10
agent
from
a
dealer
within
the
geographic
territory
served
11
by
the
distributor
and
the
distributor
shall
pay
the
dealer
12
agent
the
refund
value
of
the
empty
beverage
container
and
the
13
reimbursement
as
provided
in
section
455C.2
.
14
Sec.
5.
Section
455C.4,
Code
2022,
is
amended
to
read
as
15
follows:
16
455C.4
Refusal
to
accept
containers.
17
1.
Except
as
provided
in
section
455C.5,
subsection
3
,
a
18
participating
dealer,
a
person
operating
a
redemption
center,
a
19
distributor
,
or
a
manufacturer
may
refuse
to
accept
any
empty
20
beverage
container
which
that
does
not
have
stated
on
it
a
21
refund
value
as
provided
under
section
455C.2
.
22
2.
A
dealer
may
refuse
to
accept
and
to
pay
the
refund
value
23
of
any
empty
beverage
container
if
the
place
of
business
of
the
24
dealer
and
the
kind
and
brand
of
empty
beverage
containers
are
25
included
in
an
order
of
the
department
approving
a
redemption
26
center
under
section
455C.6
if
the
dealer
has
provided
notice
27
to
the
department
and
if
the
place
of
business
of
the
dealer
is
28
located
within
a
fifteen-mile
radius
of
a
redemption
center
or
29
dealer
agent
.
30
3.
A
dealer
or
a
distributor
may
refuse
to
accept
and
to
pay
31
the
refund
value
of
an
empty
wine
or
alcoholic
liquor
container
32
which
is
marked
to
indicate
that
it
was
sold
by
a
state
liquor
33
store.
The
alcoholic
beverages
division
shall
not
reimburse
34
a
dealer
or
a
distributor
the
refund
value
on
an
empty
wine
or
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alcoholic
liquor
container
which
is
marked
to
indicate
that
the
1
container
was
sold
by
a
state
liquor
store.
2
4.
3.
A
class
“E”
liquor
control
licensee
may
refuse
to
3
accept
and
to
pay
the
refund
value
on
an
empty
alcoholic
liquor
4
container
from
a
participating
dealer
or
a
redemption
center
5
or
from
a
person
acting
on
behalf
of
or
who
has
received
empty
6
alcoholic
liquor
containers
from
a
participating
dealer
or
a
7
redemption
center.
8
5.
4.
A
manufacturer
or
distributor
may
refuse
to
accept
9
and
to
pay
the
refund
value
and
reimbursement
as
provided
in
10
section
455C.2
on
any
empty
beverage
container
that
was
picked
11
up
by
a
dealer
agent
from
a
dealer
outside
the
geographic
12
territory
served
by
the
manufacturer
or
distributor.
13
Sec.
6.
Section
455C.5,
subsection
1,
Code
2022,
is
amended
14
to
read
as
follows:
15
1.
Each
beverage
container
sold
or
offered
for
sale
in
16
this
state
by
a
dealer
shall
clearly
indicate
the
refund
value
17
of
the
container
by
embossing
or
by
a
stamp,
label
,
or
other
18
method
securely
affixed
to
the
container
,
the
refund
value
of
19
the
container
.
The
department
shall
specify,
by
rule,
the
20
minimum
size
of
the
refund
value
indication
on
the
beverage
21
containers
and
require
registration
of
the
universal
product
22
code
for
each
beverage
container
in
a
format
determined
by
the
23
department
.
24
Sec.
7.
Section
455C.6,
subsections
1,
2,
and
5,
Code
2022,
25
are
amended
to
read
as
follows:
26
1.
To
facilitate
the
return
of
empty
beverage
containers
27
and
to
serve
dealers
of
beverages,
any
person
may
establish
a
28
redemption
center
,
subject
to
the
approval
of
the
department,
29
at
which
consumers
may
return
empty
beverage
containers
30
and
receive
payment
of
the
refund
value
of
such
beverage
31
containers.
32
2.
An
application
for
approval
of
a
A
person
operating
a
33
redemption
center
shall
file
written
notice
of
the
operation
34
of
the
redemption
center
shall
be
filed
with
the
department.
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The
application
notice
shall
state
the
name
and
address
of
the
1
person
responsible
for
the
establishment
and
operation
of
the
2
redemption
center
,
the
kind
and
brand
names
of
the
beverage
3
containers
which
will
be
accepted
at
the
redemption
center,
4
and
the
names
and
addresses
of
the
dealers
to
be
served
by
the
5
redemption
center.
The
application
notice
shall
contain
such
6
other
information
as
the
director
may
reasonably
require.
7
5.
All
approved
redemption
centers
shall
meet
applicable
8
health
standards.
9
Sec.
8.
Section
455C.6,
subsections
3
and
4,
Code
2022,
are
10
amended
by
striking
the
subsections.
11
Sec.
9.
Section
455C.12,
subsections
2
and
3,
Code
2022,
are
12
amended
to
read
as
follows:
13
2.
A
distributor
who
collects
or
attempts
to
collect
14
a
refund
value
on
an
empty
beverage
container
when
the
15
distributor
has
paid
the
refund
value
on
the
container
to
a
16
participating
dealer,
redemption
center,
or
consumer
is
guilty
17
of
a
fraudulent
practice.
18
3.
Any
person
who
does
any
of
the
following
acts
is
guilty
19
of
a
fraudulent
practice:
20
a.
Collects
or
attempts
to
collect
the
refund
value
on
the
21
container
a
second
time,
with
the
knowledge
that
the
refund
22
value
has
once
been
paid
by
the
distributor
to
a
participating
23
dealer,
redemption
center
,
or
consumer.
24
b.
Manufactures,
sells,
possesses
,
or
applies
a
false
or
25
counterfeit
label
or
indication
which
that
shows
or
purports
to
26
show
a
refund
value
for
a
beverage
container,
with
intent
to
27
use
the
false
or
counterfeit
label
or
indication.
28
c.
Collects
or
attempts
to
collect
a
refund
value
on
29
a
container
with
the
use
of
a
false
or
counterfeit
label
30
or
indication
showing
a
refund
value,
knowing
the
label
or
31
indication
to
be
false
or
counterfeit.
32
Sec.
10.
Section
455C.12,
Code
2022,
is
amended
by
adding
33
the
following
new
subsection:
34
NEW
SUBSECTION
.
6.
Except
as
provided
in
section
455C.12C,
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a
person
who
violates
any
provision
of
this
chapter
shall
be
1
subject
to
a
civil
penalty
of
two
thousand
five
hundred
dollars
2
per
violation,
which
shall
be
assessed
and
collected
in
the
3
same
manner
as
provided
in
section
455B.109.
Any
civil
penalty
4
collected
under
this
subsection
or
section
455C.12C
shall
be
5
deposited
in
the
general
fund
of
the
state.
6
Sec.
11.
NEW
SECTION
.
455C.12A
Administrative
enforcement
7
——
compliance
orders.
8
The
director
may
issue
any
order
necessary
to
secure
9
compliance
with
or
prevent
a
violation
of
the
provisions
of
10
this
chapter
or
any
rule
adopted
or
permit
or
order
issued
11
pursuant
to
this
chapter.
The
person
to
whom
such
compliance
12
order
is
issued
may
cause
to
be
commenced
a
contested
case
13
within
the
meaning
of
chapter
17A
by
filing
within
thirty
14
days
a
notice
of
appeal
to
the
commission.
On
appeal,
the
15
commission
may
affirm,
modify,
or
vacate
the
order
of
the
16
director.
17
Sec.
12.
NEW
SECTION
.
455C.12B
Judicial
review.
18
Judicial
review
of
any
order
or
other
action
of
the
19
commission
or
director
may
be
sought
in
accordance
with
the
20
terms
of
chapter
17A.
Notwithstanding
the
terms
of
chapter
21
17A,
petitions
for
judicial
review
may
be
filed
in
the
district
22
court
of
the
county
in
which
the
alleged
offense
was
committed.
23
Sec.
13.
NEW
SECTION
.
455C.12C
Civil
actions
for
compliance
24
——
penalties.
25
1.
The
attorney
general,
on
request
of
the
department,
shall
26
institute
any
legal
proceedings
necessary
to
obtain
compliance
27
with
an
order
of
the
commission
or
the
director,
including
28
proceedings
for
a
temporary
injunction,
or
prosecuting
any
29
person
for
a
violation
of
an
order
of
the
commission
or
the
30
director,
the
provisions
of
this
chapter,
or
any
rules
adopted
31
or
permit
or
order
issued
pursuant
to
this
chapter.
32
2.
Any
person
who
violates
any
order
issued
pursuant
to
33
section
455C.12A
shall
be
subject
to
a
civil
penalty
not
to
34
exceed
ten
thousand
dollars
for
each
day
of
such
violation.
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Sec.
14.
Section
455C.13,
Code
2022,
is
amended
to
read
as
1
follows:
2
455C.13
Distributors’
agreements
authorized.
3
1.
A
distributor
,
dealer,
or
person
operating
a
redemption
4
center
may
enter
into
a
contract
or
agreement
with
any
other
5
distributor,
manufacturer
,
or
person
for
the
purpose
of
6
collecting
or
paying
the
refund
value
on,
or
disposing
of,
7
beverage
containers
as
provided
in
this
chapter
.
8
2.
For
purposes
of
this
chapter,
any
contracts
entered
into
9
pursuant
to
this
section
for
the
collection
or
disposal
of
10
empty
beverage
containers
shall
not
be
deemed
to
interfere
with
11
the
refund
value
pursuant
to
section
455C.2.
12
Sec.
15.
NEW
SECTION
.
455C.18
Unclaimed
refund
values
and
13
handling
fees.
14
Any
amount
of
refund
value
or
handling
fees
possessed
by
a
15
distributor
after
the
distributor
has
made
payments
required
16
pursuant
to
this
chapter
shall
be
considered
the
property
of
17
the
distributor.
18
Sec.
16.
REPEAL.
Sections
455C.7,
455C.10,
and
455C.14,
19
Code
2022,
are
repealed.
20
EXPLANATION
21
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
22
the
explanation’s
substance
by
the
members
of
the
general
assembly.
23
This
bill
relates
to
the
beverage
containers
control
law,
24
also
known
as
the
bottle
bill.
25
Current
law
limits
beverage
containers
subject
to
beverage
26
containers
control
deposit
and
refund
provisions
to
any
sealed
27
glass,
plastic,
or
metal
bottle,
can,
jar,
or
carton
holding
28
wine,
alcoholic
liquor,
beer,
mineral
water,
soda
water,
and
29
carbonated
soft
drinks.
When
a
distributor
sells
beverages
30
in
eligible
containers
to
a
dealer,
the
distributor
adds
31
5
cents
per
eligible
container
to
the
sale
price.
When
a
32
dealer
sells
beverages
in
eligible
containers
to
a
consumer,
33
the
dealer
adds
the
5-cent
deposit
to
the
sale
price
of
each
34
beverage
container.
A
consumer
can
take
eligible
beverage
35
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containers
to
a
dealer,
dealer
agent,
or
redemption
center
and
1
receive
a
5-cent
refund
for
every
eligible
beverage
container
2
that
the
consumer
returns.
A
distributor
collects
eligible
3
containers
from
a
dealer,
dealer
agent,
or
redemption
center,
4
at
which
time
the
distributor
pays
the
dealer,
dealer
agent,
5
or
redemption
center
5
cents
per
eligible
container
plus
a
6
handling
fee
of
an
additional
1
cent
per
eligible
container.
7
The
bill
adds
high
alcoholic
content
beer
and
canned
8
cocktails
to
the
definition
of
“beverage”.
The
bill
defines
9
the
term
“participating
dealer”.
The
bill
requires
a
dealer
to
10
pay
a
.5-cent
handling
fee
to
a
distributor
upon
delivery
of
11
beverages
prior
to
January
1,
2032,
and
increases
the
handling
12
fee
that
a
participating
dealer,
dealer
agent,
or
redemption
13
center
will
collect
from
a
distributor
from
1
cent
to
2
cents.
14
The
handling
fee
will
decrease
to
1.5
cents
on
January
1,
2032.
15
The
bill
requires
a
participating
dealer
to
accept
and
pay
16
the
refund
value
of
any
empty
beverage
container,
except
as
17
currently
provided
by
law.
The
bill
requires
a
participating
18
dealer
or
a
redemption
center
to
immediately
return
the
refund
19
value
to
a
consumer
upon
the
return
and
acceptance
of
an
20
empty
beverage
container
for
which
the
refund
value
has
been
21
paid.
However,
a
dealer
agent
must
return
the
refund
value
22
to
a
consumer
within
a
reasonable
time
of
the
return
of
an
23
empty
beverage
container
for
which
the
refund
value
has
been
24
paid,
rather
than
immediately.
A
dealer
can
choose
to
not
be
25
a
participating
dealer
if
the
dealer
provides
notice
to
the
26
department
of
natural
resources
(DNR)
and
the
place
of
business
27
of
the
dealer
is
within
a
15-mile
radius
of
a
redemption
center
28
or
dealer
agent.
29
The
bill
requires
the
registration
of
the
universal
product
30
code
for
each
beverage
container
in
a
format
determined
by
DNR.
31
The
bill
requires
a
redemption
center
to
file
a
notice
with
32
DNR
but
does
not
require
DNR’s
approval
to
operate
a
redemption
33
center.
The
bill
removes
provisions
of
Code
chapter
455C
34
that
relate
to
DNR’s
authority
to
approve
redemption
centers
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and
that
relate
to
the
redemption
of
refused
nonrefillable
1
metal
beverage
containers.
The
bill
also
allows
a
dealer
or
2
person
operating
a
redemption
center
to
enter
into
contracts
3
or
agreements
for
the
collection
or
disposal
of
beverage
4
containers.
5
The
bill
authorizes
DNR
to
establish
a
civil
penalty
of
6
$2,500
for
a
violation
of
any
provision
of
Code
chapter
455C,
7
except
for
a
violation
of
a
compliance
order.
The
bill
allows
8
DNR
to
issue
compliance
orders,
subject
to
judicial
review,
9
that
may
be
enforced
by
the
attorney
general.
A
violation
of
a
10
compliance
order
is
subject
to
a
civil
penalty
of
not
more
than
11
$10,000
per
day
per
violation.
12
The
bill
provides
that
any
amount
of
refund
value
or
handling
13
fees
possessed
by
a
distributor
after
the
distributor
has
made
14
required
payments
shall
be
considered
the
property
of
the
15
distributor.
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