Bill Text: IA SSB3109 | 2019-2020 | 88th General Assembly | Introduced
Bill Title: A bill for an act relating to the applicability of beverage container control provisions, handling fees, and acceptance of beverage containers, making penalties applicable, and providing effective date provisions.
Spectrum: Committee Bill
Status: (Introduced - Dead) 2020-02-06 - Subcommittee Meeting: 02/11/2020 2:30PM RM 24. [SSB3109 Detail]
Download: Iowa-2019-SSB3109-Introduced.html
Senate
Study
Bill
3109
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
COMMERCE
BILL
BY
CHAIRPERSON
DAWSON)
A
BILL
FOR
An
Act
relating
to
the
applicability
of
beverage
container
1
control
provisions,
handling
fees,
and
acceptance
of
2
beverage
containers,
making
penalties
applicable,
and
3
providing
effective
date
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
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Section
1.
Section
455C.1,
subsections
1,
6,
and
13,
Code
1
2020,
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
cocktails
as
defined
in
section
7
123.3,
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
13.
“Redemption
center”
means
a
facility
at
which
consumers
15
may
return
empty
beverage
containers
and
receive
payment
for
16
the
refund
value
of
the
empty
beverage
containers.
“Redemption
17
center”
includes
but
is
not
limited
to
a
participating
dealer.
18
Sec.
2.
Section
455C.1,
Code
2020,
is
amended
by
adding
the
19
following
new
subsection:
20
NEW
SUBSECTION
.
12A.
“Participating
dealer”
means
a
dealer
21
who
accepts
the
return
of
empty
beverage
containers
from
a
22
consumer.
23
Sec.
3.
Section
455C.2,
Code
2020,
is
amended
to
read
as
24
follows:
25
455C.2
Refund
values.
26
1.
A
refund
value
of
not
less
than
five
cents
shall
be
paid
27
by
the
consumer
on
each
beverage
container
sold
in
this
state
28
by
a
dealer
for
consumption
off
the
premises.
Upon
return
of
29
the
empty
beverage
container
upon
which
a
refund
value
has
been
30
paid
to
the
dealer
or
person
operating
a
redemption
center
31
and
acceptance
of
the
empty
beverage
container
by
the
dealer
32
or
person
operating
a
redemption
center,
the
dealer
or
person
33
operating
a
redemption
center
shall
immediately
return
the
34
amount
of
the
refund
value
to
the
consumer.
Upon
return
of
the
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empty
beverage
container
on
which
a
refund
value
has
been
paid
1
to
a
dealer
agent,
the
dealer
agent
shall
return
the
amount
of
2
the
refund
value
to
the
consumer
within
a
reasonable
time.
3
2.
Upon
delivery
of
beverages
from
a
distributor
to
a
4
dealer,
the
dealer
shall
pay
a
one-cent
handling
fee
per
5
container
to
the
distributor.
In
addition
to
the
refund
value
6
provided
in
subsection
1
of
this
section
,
a
dealer,
dealer
7
agent
or
person
operating
a
redemption
center
who
redeems
empty
8
beverage
containers
or
a
dealer
agent
shall
be
reimbursed
9
by
the
distributor
required
to
accept
the
empty
beverage
10
containers
an
amount
which
a
handling
fee
that
is
one
cent
11
two
cents
per
container.
A
dealer,
dealer
agent
,
or
person
12
operating
a
redemption
center
may
compact
empty
metal
beverage
13
containers
with
the
approval
of
the
distributor
required
to
14
accept
the
containers.
15
Sec.
4.
Section
455C.3,
subsections
1,
2,
and
4,
Code
2020,
16
are
amended
to
read
as
follows:
17
1.
A
participating
dealer
shall
not
refuse
to
accept
from
a
18
consumer
any
empty
beverage
container
of
the
kind,
size
,
and
19
brand
sold
by
the
participating
dealer,
or
refuse
to
pay
to
the
20
consumer
the
refund
value
of
a
beverage
container
as
provided
21
under
section
455C.2
.
22
2.
A
distributor
shall
accept
and
pick
up
from
a
dealer
23
served
by
the
distributor
or
a
redemption
center
for
a
24
dealer
served
by
the
distributor
at
least
weekly,
or
when
the
25
distributor
delivers
the
beverage
product
if
deliveries
are
26
less
frequent
than
weekly,
any
empty
beverage
container
of
the
27
kind,
size
,
and
brand
sold
by
the
distributor,
and
shall
pay
to
28
the
dealer
or
person
operating
a
redemption
center
the
refund
29
value
of
a
beverage
container
and
the
reimbursement
as
provided
30
under
section
455C.2
within
one
week
following
pickup
of
the
31
containers
or
when
the
dealer
or
redemption
center
normally
32
pays
the
distributor
for
the
deposit
on
beverage
products
33
purchased
from
the
distributor
if
less
frequent
than
weekly.
34
A
distributor
or
employee
or
agent
of
a
distributor
is
not
in
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violation
of
this
subsection
if
a
redemption
center
is
closed
1
when
the
distributor
attempts
to
make
a
regular
delivery
or
a
2
regular
pickup
of
empty
beverage
containers.
This
subsection
3
does
not
apply
to
a
distributor
selling
alcoholic
liquor
to
the
4
alcoholic
beverages
division
of
the
department
of
commerce.
5
4.
A
distributor
shall
accept
from
a
dealer
agent
any
empty
6
beverage
container
of
the
kind,
size,
and
brand
sold
by
the
7
distributor
and
which
that
was
picked
up
by
the
dealer
agent
8
from
a
participating
dealer
within
the
geographic
territory
9
served
by
the
distributor
and
the
distributor
shall
pay
the
10
dealer
agent
the
refund
value
of
the
empty
beverage
container
11
and
the
reimbursement
as
provided
in
section
455C.2
.
12
Sec.
5.
Section
455C.4,
Code
2020,
is
amended
to
read
as
13
follows:
14
455C.4
Refusal
to
accept
containers.
15
1.
Except
as
provided
in
section
455C.5,
subsection
3
,
a
16
dealer,
a
person
operating
a
redemption
center,
a
distributor
,
17
or
a
manufacturer
may
refuse
to
accept
any
empty
beverage
18
container
which
that
does
not
have
stated
on
it
a
refund
value
19
as
provided
under
section
455C.2
.
20
2.
A
dealer
may
refuse
to
accept
and
to
pay
the
refund
value
21
of
any
empty
beverage
container
if
the
place
of
business
of
the
22
dealer
and
the
kind
and
brand
of
empty
beverage
containers
are
23
included
in
an
order
of
the
department
approving
a
redemption
24
center
under
section
455C.6
.
after
providing
notice
to
the
25
department
and
if
the
dealer’s
place
of
business
is
located
26
within
the
applicable
radius
as
follows:
27
a.
For
July
1,
2021,
through
June
30,
2022,
a
fifteen-mile
28
radius
of
a
redemption
center
or
dealer
agent.
29
b.
For
July
1,
2022,
through
June
30,
2023,
a
twenty-mile
30
radius
of
a
redemption
center
or
dealer
agent.
31
c.
On
and
after
July
1,
2023,
a
twenty-five-mile
radius
of
a
32
redemption
center
or
dealer
agent.
33
3.
A
dealer
or
a
distributor
may
refuse
to
accept
and
to
pay
34
the
refund
value
of
an
empty
wine
or
alcoholic
liquor
container
35
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which
is
marked
to
indicate
that
it
was
sold
by
a
state
liquor
1
store.
The
alcoholic
beverages
division
shall
not
reimburse
2
a
dealer
or
a
distributor
the
refund
value
on
an
empty
wine
or
3
alcoholic
liquor
container
which
is
marked
to
indicate
that
the
4
container
was
sold
by
a
state
liquor
store.
5
4.
3.
A
class
“E”
liquor
control
licensee
may
refuse
to
6
accept
and
to
pay
the
refund
value
on
an
empty
alcoholic
liquor
7
container
from
a
dealer
or
a
redemption
center
or
from
a
person
8
acting
on
behalf
of
or
who
has
received
empty
alcoholic
liquor
9
containers
from
a
dealer
or
a
redemption
center.
10
5.
4.
A
manufacturer
or
distributor
may
refuse
to
accept
11
and
to
pay
the
refund
value
and
reimbursement
as
provided
in
12
section
455C.2
on
any
empty
beverage
container
that
was
picked
13
up
by
a
dealer
agent
from
a
participating
dealer
outside
the
14
geographic
territory
served
by
the
manufacturer
or
distributor.
15
Sec.
6.
Section
455C.5,
subsection
1,
Code
2020,
is
amended
16
to
read
as
follows:
17
1.
Each
beverage
container
sold
or
offered
for
sale
in
18
this
state
by
a
dealer
shall
clearly
indicate
the
refund
value
19
of
the
container
by
embossing
or
by
a
stamp,
label
,
or
other
20
method
securely
affixed
to
the
container
,
the
refund
value
of
21
the
container
.
The
department
shall
specify,
by
rule,
the
22
minimum
size
of
the
refund
value
indication
on
the
beverage
23
containers
and
require
registration
of
the
universal
product
24
code
for
each
beverage
container
in
a
format
required
by
the
25
department
.
26
Sec.
7.
Section
455C.6,
subsections
1,
2,
and
5,
Code
2020,
27
are
amended
to
read
as
follows:
28
1.
To
facilitate
the
return
of
empty
beverage
containers
29
and
to
serve
dealers
of
beverages,
any
person
may
establish
a
30
redemption
center
,
subject
to
the
approval
of
the
department,
31
at
which
consumers
may
return
empty
beverage
containers
32
and
receive
payment
of
the
refund
value
of
such
beverage
33
containers.
34
2.
An
application
for
approval
of
a
A
redemption
center
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that
is
not
a
participating
dealer
shall
file
written
notice
1
of
the
operation
of
the
redemption
center
shall
be
filed
with
2
the
department.
The
application
notice
shall
state
the
name
3
and
address
of
the
person
responsible
for
the
establishment
4
and
operation
of
the
redemption
center
,
the
kind
and
brand
5
names
of
the
beverage
containers
which
will
be
accepted
at
6
the
redemption
center,
and
the
names
and
addresses
of
the
7
dealers
to
be
served
by
the
redemption
center.
The
application
8
notice
shall
contain
such
other
information
as
the
director
may
9
reasonably
require.
10
5.
All
approved
redemption
centers
shall
meet
applicable
11
health
standards.
12
Sec.
8.
Section
455C.6,
subsections
3
and
4,
Code
2020,
are
13
amended
by
striking
the
subsections.
14
Sec.
9.
Section
455C.12,
subsections
2
and
3,
Code
2020,
are
15
amended
to
read
as
follows:
16
2.
A
distributor
who
collects
or
attempts
to
collect
17
a
refund
value
on
an
empty
beverage
container
when
the
18
distributor
has
paid
the
refund
value
on
the
container
to
19
a
dealer,
redemption
center
,
or
consumer
is
guilty
of
a
20
fraudulent
practice.
21
3.
Any
person
who
does
any
of
the
following
acts
is
guilty
22
of
a
fraudulent
practice:
23
a.
Collects
or
attempts
to
collect
the
refund
value
on
the
24
container
a
second
time,
with
the
knowledge
that
the
refund
25
value
has
once
been
paid
by
the
distributor
to
a
dealer,
26
redemption
center
or
consumer.
27
b.
Manufactures,
sells,
possesses
,
or
applies
a
false
or
28
counterfeit
label
or
indication
which
that
shows
or
purports
to
29
show
a
refund
value
for
a
beverage
container,
with
intent
to
30
use
the
false
or
counterfeit
label
or
indication.
31
c.
Collects
or
attempts
to
collect
a
refund
value
on
32
a
container
with
the
use
of
a
false
or
counterfeit
label
33
or
indication
showing
a
refund
value,
knowing
the
label
or
34
indication
to
be
false
or
counterfeit.
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Sec.
10.
Section
455C.12,
Code
2020,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
6.
A
person
who
violates
any
provision
3
of
this
chapter
shall
be
subject
to
a
civil
penalty
of
two
4
thousand
five
hundred
dollars
per
violation,
which
shall
5
be
assessed
and
collected
in
the
same
manner
as
provided
6
in
section
455B.109.
Any
civil
penalty
collected
shall
be
7
deposited
in
the
general
fund
of
the
state.
8
Sec.
11.
NEW
SECTION
.
455C.12A
Administrative
enforcement
9
——
compliance
orders.
10
The
director
may
issue
any
order
necessary
to
secure
11
compliance
with
or
prevent
a
violation
of
the
provisions
of
12
this
chapter
or
any
rule
adopted
or
permit
or
order
issued
13
pursuant
to
this
chapter.
The
person
to
whom
such
compliance
14
order
is
issued
may
cause
to
be
commenced
a
contested
case
15
within
the
meaning
of
chapter
17A
by
filing
within
thirty
16
days
a
notice
of
appeal
to
the
commission.
On
appeal,
the
17
commission
may
affirm,
modify,
or
vacate
the
order
of
the
18
director.
19
Sec.
12.
NEW
SECTION
.
455C.12B
Judicial
review.
20
Judicial
review
of
any
order
or
other
action
of
the
21
commission
or
director
may
be
sought
in
accordance
with
the
22
terms
of
chapter
17A.
Notwithstanding
the
terms
of
chapter
23
17A,
petitions
for
judicial
review
may
be
filed
in
the
district
24
court
of
the
county
in
which
the
alleged
offense
was
committed.
25
Sec.
13.
NEW
SECTION
.
455C.12C
Civil
actions
for
compliance
26
——
penalties.
27
1.
The
attorney
general,
on
request
of
the
department,
shall
28
institute
any
legal
proceedings
necessary
to
obtain
compliance
29
with
an
order
of
the
commission
or
the
director,
including
30
proceedings
for
a
temporary
injunction,
or
prosecuting
any
31
person
for
a
violation
of
an
order
of
the
commission
or
the
32
director,
the
provisions
of
this
chapter,
or
any
rules
adopted
33
or
permit
or
order
issued
pursuant
to
this
chapter.
34
2.
Any
person
who
violates
any
order
issued
pursuant
to
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section
455C.12A
shall
be
subject
to
a
civil
penalty
not
to
1
exceed
ten
thousand
dollars
for
each
day
of
such
violation.
2
Sec.
14.
Section
455C.13,
Code
2020,
is
amended
to
read
as
3
follows:
4
455C.13
Distributors’
agreements
authorized.
5
1.
A
distributor
,
dealer,
or
redemption
center
may
enter
6
into
a
contract
or
agreement
with
any
other
distributor,
7
manufacturer
,
or
person
for
the
purpose
of
collecting
or
paying
8
the
refund
value
on,
or
disposing
of,
beverage
containers
as
9
provided
in
this
chapter
.
10
2.
For
purposes
of
this
chapter,
any
contracts
entered
into
11
pursuant
to
this
section
for
the
collecting
or
disposal
of
12
empty
beverage
containers
shall
not
be
deemed
to
interfere
with
13
the
refund
value
pursuant
to
section
455C.2.
14
Sec.
15.
Section
455C.14,
subsection
1,
Code
2020,
is
15
amended
to
read
as
follows:
16
1.
If
the
refund
value
indication
required
under
section
17
455C.5
on
an
empty
nonrefillable
metal
beverage
container
18
is
readable
but
the
redemption
of
the
container
is
lawfully
19
refused
by
a
dealer
or
person
operating
a
redemption
center
20
under
other
sections
of
this
chapter
or
rules
adopted
pursuant
21
to
these
sections,
the
container
shall
be
accepted
and
the
22
refund
value
paid
to
a
consumer
as
provided
in
this
section
.
23
Each
beer
distributor
selling
nonrefillable
metal
beverage
24
containers
in
this
state
shall
provide
individually
or
25
collectively
by
contract
or
agreement
with
a
dealer,
person
26
operating
a
redemption
center
,
or
another
person
,
at
least
27
one
facility
in
the
county
seat
of
each
county
where
refused
28
empty
nonrefillable
metal
beverage
containers
having
a
29
readable
refund
value
indication
as
required
by
this
chapter
30
are
accepted
and
redeemed.
In
cities
having
a
population
of
31
twenty-five
thousand
or
more,
the
number
of
the
facilities
32
provided
shall
be
one
for
each
twenty-five
thousand
population
33
or
a
fractional
part
of
that
population.
34
Sec.
16.
Section
455C.16,
Code
2020,
is
amended
to
read
as
35
-7-
LSB
5256XC
(10)
88
js/ns
7/
10
S.F.
_____
follows:
1
455C.16
Beverage
containers
——
disposal
at
sanitary
landfill
2
prohibited.
3
Beginning
July
1,
1990,
the
The
final
disposal
of
beverage
4
containers
by
a
dealer,
distributor,
or
manufacturer,
or
person
5
operating
a
redemption
center,
in
a
sanitary
landfill,
is
6
prohibited.
Beginning
September
1,
1992
,
including
the
final
7
disposal
of
beverage
containers
that
used
to
contain
alcoholic
8
liquor
as
defined
in
section
123.3,
subsection
5
,
by
a
dealer,
9
distributor,
or
manufacturer,
or
person
operating
a
redemption
10
center
in
a
sanitary
landfill
,
is
prohibited.
11
Sec.
17.
NEW
SECTION
.
455C.18
Report
required
——
future
12
repeal.
13
1.
On
June
30,
2030,
and
on
June
30
of
each
year
thereafter,
14
the
department
shall
submit
a
report
to
the
general
assembly
15
detailing
the
three-year
rolling
average
redemption
rate
for
16
beverage
containers
in
this
state
for
the
three
calendar
years
17
preceding
the
year
in
which
the
report
is
submitted.
18
2.
If
the
three-year
rolling
average
redemption
rate
19
reported
by
the
department
pursuant
to
subsection
1
is
below
20
sixty-five
percent,
this
chapter
is
repealed
effective
on
the
21
date
the
report
is
submitted.
22
Sec.
18.
REPEAL.
Sections
455C.7
and
455C.10,
Code
2020,
23
are
repealed.
24
Sec.
19.
EFFECTIVE
DATE.
This
Act
takes
effect
July
1,
25
2021.
26
EXPLANATION
27
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
28
the
explanation’s
substance
by
the
members
of
the
general
assembly.
29
This
bill
relates
to
the
beverage
containers
control
30
program,
also
known
as
the
bottle
bill.
31
Current
law
limits
beverage
containers
subject
to
beverage
32
containers
control
deposit
and
refund
provisions
to
any
sealed
33
glass,
plastic,
or
metal
bottle,
can,
jar,
or
carton
holding
34
wine,
alcoholic
liquor,
beer,
mineral
water,
soda
water,
and
35
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_____
carbonated
soft
drinks.
When
a
distributor
sells
beverages
1
in
eligible
containers
to
a
dealer,
the
distributor
charges
5
2
cents
per
eligible
container
to
the
sale
price.
When
a
dealer
3
sells
beverages
in
eligible
containers
to
a
consumer,
the
4
dealer
charges
the
5-cent
deposit
on
each
beverage
container.
5
A
consumer
can
take
eligible
beverage
containers
to
a
dealer,
6
dealer
agent,
or
redemption
center
and
receive
a
5-cent
7
refund
for
every
eligible
beverage
container
that
the
consumer
8
returns.
A
distributor
collects
eligible
containers
from
a
9
dealer,
dealer
agent,
or
redemption
center,
at
which
time
10
the
distributor
pays
the
dealer,
dealer
agent,
or
redemption
11
center
5
cents
per
eligible
container
plus
a
handling
fee
of
an
12
additional
1
cent
per
empty
container.
13
The
bill
adds
high
alcoholic
content
beer
and
canned
14
cocktails
to
the
definition
of
“beverage”.
The
bill
creates
15
a
definition
for
“participating
dealer”.
The
bill
amends
the
16
definition
of
“redemption
center”
to
include
participating
17
dealers.
The
bill
requires
any
dealer
to
pay
a
1-cent
handling
18
fee
to
a
distributor
upon
delivery
of
beverages
and
increases
19
the
handling
fee
that
a
dealer
agent
or
redemption
center
will
20
charge
a
distributor
from
1
cent
to
2
cents.
The
bill
requires
21
a
participating
dealer
to
accept
and
pay
the
refund
value
of
22
any
beverage
container,
except
as
currently
provided
by
law.
23
The
bill
requires
a
redemption
center
to
immediately
return
24
the
refund
value
to
a
consumer
upon
the
return
and
acceptance
25
of
a
beverage
container
for
which
the
refund
value
has
been
26
paid.
However,
a
dealer
agent
shall
return
the
refund
value
27
to
a
consumer
within
a
reasonable
time
for
the
return
of
a
28
beverage
container
for
which
the
refund
value
has
been
paid.
A
29
dealer
can
choose
to
not
be
a
participating
dealer
by
providing
30
notice
to
the
department
of
natural
resources
and
only
if
31
the
dealer’s
place
of
business
is
within
a
certain
radius
of
32
a
redemption
center
or
dealer
agent.
The
bill
requires
the
33
registration
of
the
universal
product
code
for
each
beverage
34
container
in
a
format
provided
by
the
department.
The
bill
35
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10
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_____
requires
a
redemption
center
that
is
not
a
participating
dealer
1
to
file
a
notice
with
the
department
but
does
not
require
the
2
department’s
approval
to
operate
any
redemption
centers.
The
3
bill
removes
provisions
of
Code
chapter
455C
that
relate
to
4
the
department’s
authority
to
approve
redemption
centers.
The
5
bill
also
allows
a
dealer
or
redemption
center
to
enter
into
6
contracts
or
agreements
for
the
collection
or
disposal
of
7
beverage
containers.
8
The
bill
authorizes
the
department
to
establish
a
civil
9
penalty
of
$2,500
for
a
violation
of
any
provision
of
Code
10
chapter
455C.
The
bill
allows
the
department
to
issue
11
compliance
orders,
subject
to
judicial
review,
that
may
be
12
enforced
by
the
attorney
general’s
office.
A
violation
of
a
13
compliance
order
is
subject
to
a
fine
of
not
more
than
$10,000
14
per
day
per
violation.
15
On
June
30,
2030,
and
on
June
30
of
each
year
thereafter,
the
16
bill
requires
the
department
to
submit
a
report
to
the
general
17
assembly
detailing
the
three-year
rolling
average
redemption
18
rate
for
the
three
calendar
years
preceding
the
year
in
which
19
the
report
is
submitted.
The
bill
provides
for
the
repeal
20
of
the
beverage
containers
control
program
if
the
three-year
21
rolling
average
redemption
rate
falls
below
65
percent
as
22
reported
by
the
department.
23
The
bill
takes
effect
July
1,
2021.
24
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5256XC
(10)
88
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10/
10
