Senate File 368 - Introduced
SENATE FILE 368
BY ROZENBOOM
A BILL FOR
1 An Act relating to the redemption of and payment of refund
2 value on beverage containers, making appropriations,
3 providing penalties, and including effective date
4 provisions.
5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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1 DIVISION I
2 FUTURE CHANGES TO CURRENT BEVERAGE CONTAINER CONTROL LAW
3 Section 1. Section 455C.1, subsections 1 and 6, Code 2021,
4 are amended to read as follows:
5 1. “Beverage” means wine as defined in section 123.3,
6 subsection 54, alcoholic liquor as defined in section 123.3,
7 subsection 5, beer as defined in section 123.3, subsection
8 7, high alcoholic content beer as defined in section 123.3,
9 subsection 22, canned cocktail as defined in section 123.3,
10 subsection 11, mineral water, soda water, and similar
11 carbonated soft drinks in liquid form and intended for human
12 consumption.
13 6. “Dealer agent” means a person who solicits or picks
14 up empty beverage containers from a participating dealer for
15 the purpose of returning the empty beverage containers to a
16 distributor or manufacturer.
17 Sec. 2. Section 455C.1, Code 2021, is amended by adding the
18 following new subsection:
19 NEW SUBSECTION. 12A. “Participating dealer” means a dealer
20 who accepts the return of empty beverage containers from a
21 consumer.
22 Sec. 3. Section 455C.2, Code 2021, is amended to read as
23 follows:
24 455C.2 Refund values.
25 1. A refund value of not less than five cents shall be paid
26 by the consumer on each beverage container sold in this state
27 by a dealer for consumption off the premises. Upon return of
28 the empty beverage container upon which a refund value has
29 been paid to the a participating dealer or person operating
30 a redemption center and acceptance of the empty beverage
31 container by the participating dealer or person operating a
32 redemption center, the participating dealer or person operating
33 a redemption center shall return the amount of the refund value
34 to the consumer.
35 2. In addition to the refund value provided in subsection 1
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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
4 to accept the empty beverage containers pursuant to section
5 455C.11 an amount which that is one cent per container. A
6 dealer, dealer agent, or person operating a redemption center
7 may compact empty metal beverage containers with the approval
8 of the distributor 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
12 a 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 4. A distributor shall accept from a dealer agent any empty
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1 beverage container of the kind, size, and brand sold by the
2 distributor and which that was picked up by the dealer agent
3 from a participating dealer within the geographic territory
4 served by the distributor and the distributor shall pay the
5 dealer agent the refund value of the empty beverage container
6 and the 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 a or redemption
12 center, a distributor or a manufacturer may refuse to accept
13 any empty beverage container which that does not have stated on
14 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 if a redemption center is located
20 within a twenty-mile radius of the dealer.
21 3. A dealer or a distributor may refuse to accept and to pay
22 the refund value of an empty wine or alcoholic liquor container
23 which is marked to indicate that it was sold by a state liquor
24 store. The alcoholic beverages division shall not reimburse
25 a dealer or a distributor the refund value on an empty wine or
26 alcoholic liquor container which is marked to indicate that the
27 container was sold by a state liquor store.
28 4. 3. A class “E” liquor control licensee may refuse to
29 accept and to pay the refund value on an empty alcoholic liquor
30 container from a participating dealer or a redemption center
31 or from a person acting on behalf of or who has received empty
32 alcoholic liquor containers from a participating dealer or a
33 redemption center.
34 5. 4. A manufacturer or distributor may refuse to accept
35 and to pay the refund value and reimbursement as provided in
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1 section 455C.2 on any empty beverage container that was picked
2 up by a dealer agent from a participating dealer outside the
3 geographic territory served by the manufacturer or distributor.
4 Sec. 6. Section 455C.5, subsection 1, Code 2021, is amended
5 to read as follows:
6 1. Each beverage container sold or offered for sale in
7 this state by a dealer shall clearly indicate the refund value
8 of the container by embossing or by a stamp, label, or other
9 method securely affixed to the container, the refund value of
10 the container. The department shall specify, by rule, the
11 minimum size of the refund value indication on the beverage
12 containers.
13 Sec. 7. Section 455C.12, subsection 2, Code 2021, is amended
14 to read as follows:
15 2. A distributor who collects or attempts to collect
16 a refund value on an empty beverage container when the
17 distributor has paid the refund value on the container to a
18 participating dealer, redemption center, or consumer is guilty
19 of a fraudulent practice.
20 Sec. 8. Section 455C.12, subsection 3, paragraphs a and b,
21 Code 2021, are amended to read as follows:
22 a. Collects or attempts to collect the refund value on the
23 container a second time, with the knowledge that the refund
24 value has once been paid by the distributor to a participating
25 dealer, redemption center, or consumer.
26 b. Manufactures, sells, possesses, or applies a false or
27 counterfeit label or indication which that shows or purports to
28 show a refund value for a beverage container, with intent to
29 use the false or counterfeit label or indication.
30 Sec. 9. Section 455C.13, Code 2021, is amended to read as
31 follows:
32 455C.13 Distributors’ Collection and disposal agreements
33 authorized.
34 1. A distributor, dealer, or redemption center may enter
35 into a contract or agreement with any other distributor,
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1 manufacturer, or person for the purpose of collecting or paying
2 the refund value on, or disposing of, beverage containers as
3 provided in this chapter.
4 2. For purposes of this chapter, any contracts entered into
5 pursuant to this section for the collection or disposal of
6 empty beverage containers shall not be deemed to interfere with
7 the refund value pursuant to section 455C.2.
8 Sec. 10. Section 455C.14, subsection 1, Code 2021, is
9 amended to read as follows:
10 1. If the refund value indication required under section
11 455C.5 on an empty nonrefillable metal beverage container
12 is readable but the redemption of the container is lawfully
13 refused by a participating dealer or person operating a
14 redemption center under other sections of this chapter or
15 rules adopted pursuant to these sections, the container
16 shall be accepted and the refund value paid to a consumer
17 as provided in this section. Each beer distributor selling
18 nonrefillable metal beverage containers in this state shall
19 provide individually or collectively by contract or agreement
20 with a dealer, person operating a redemption center, or another
21 person, at least one facility in the county seat of each county
22 where refused empty nonrefillable metal beverage containers
23 having a readable refund value indication as required by
24 this chapter are accepted and redeemed. In cities having a
25 population of twenty-five thousand or more, the number of the
26 facilities provided shall be one for each twenty-five thousand
27 population or a fractional part of that population.
28 Sec. 11. Section 455C.16, Code 2021, is amended to read as
29 follows:
30 455C.16 Beverage containers —— disposal at sanitary landfill
31 prohibited.
32 Beginning July 1, 1990, the The final disposal of beverage
33 containers by a dealer, distributor, or manufacturer, or
34 person operating a redemption center, in a sanitary landfill,
35 is prohibited. Beginning September 1, 1992, including the
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1 final disposal of beverage containers that used to contain
2 alcoholic liquor as defined in section 123.3, subsection 5,
3 by a participating dealer, distributor, or manufacturer, or
4 person operating a redemption center in a sanitary landfill,
5 is prohibited.
6 Sec. 12. EFFECTIVE DATE. This division of this Act takes
7 effect July 1, 2022.
8 DIVISION II
9 REPEAL OF CURRENT BEVERAGE CONTAINER CONTROL LAW
10 Sec. 13. Section 123.24, subsection 2, paragraph d, Code
11 2021, is amended to read as follows:
12 d. A bottle surcharge in an amount sufficient, when
13 added to the amount not refunded to class “E” liquor control
14 licensees pursuant to section 455C.2, to pay the costs incurred
15 by the division for collecting and properly disposing of the
16 liquor containers. The amount collected pursuant to this
17 paragraph, in addition to any amounts not refunded to class “E”
18 liquor control licensees pursuant to section 455C.2, shall be
19 deposited in the beer and liquor control fund established under
20 section 123.17.
21 Sec. 14. Section 123.26, Code 2021, is amended to read as
22 follows:
23 123.26 Restrictions on sales —— seals —— labeling.
24 Alcoholic liquor shall not be sold by a class “E” liquor
25 control licensee except in a sealed container with identifying
26 markers as prescribed by the administrator and affixed in the
27 manner prescribed by the administrator, and no such container
28 shall be opened upon the premises of a state warehouse. The
29 division shall cooperate with the department of natural
30 resources so that only one identifying marker or mark is needed
31 to satisfy the requirements of this section and section 455C.5,
32 subsection 1. Possession of alcoholic liquors which that do
33 not carry the prescribed identifying markers is a violation of
34 this chapter except as provided in section 123.22.
35 Sec. 15. Section 123.187, subsection 3, paragraph e, Code
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1 2021, is amended by striking the paragraph.
2 Sec. 16. Section 423.6, subsection 3, paragraph a, Code
3 2021, is amended to read as follows:
4 a. Any tangible personal property including containers
5 for which it is intended shall, by means of fabrication,
6 compounding, manufacturing, or germination, become an integral
7 part of other tangible personal property intended to be sold
8 ultimately at retail, and containers used in the collection,
9 recovery, or return of empty beverage containers subject to
10 chapter 455C.
11 Sec. 17. Section 455A.4, subsection 1, paragraph b, Code
12 2021, is amended to read as follows:
13 b. Provide overall supervision, direction, and coordination
14 of functions to be administered by the administrators under
15 chapters 321G, 321I, 455B, 455C, 456A, 456B, 457A, 458A, 459,
16 459A, 459B, 461A, 462A, 462B, 464A, 465C, 473, 481A, 481B,
17 483A, 484A, and 484B.
18 Sec. 18. Section 455A.6, subsection 6, paragraphs a, b, and
19 d, Code 2021, are amended to read as follows:
20 a. Establish policy for the department and adopt rules,
21 pursuant to chapter 17A, necessary to provide for the effective
22 administration of chapter 455B, 455C, or 459.
23 b. Hear appeals in contested cases pursuant to chapter 17A
24 on matters relating to actions taken by the director under
25 chapter 455C, 458A, 464B, or 473.
26 d. Approve the budget request prepared by the director
27 for the programs authorized by chapters 455B, 455C, 455E,
28 455F, 455H, and 459, subchapters II and III. The commission
29 shall approve the budget request prepared by the director for
30 programs subject to the rulemaking authority of the commission.
31 The commission may increase, decrease, or strike any item
32 within the department budget request for the specified programs
33 before granting approval.
34 Sec. 19. Section 455B.313, subsection 1, Code 2021, is
35 amended to read as follows:
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1 1. A distributor as defined in section 455C.1, subsection
2 9, shall not sell or offer to sell any beverage container
3 if the beverage container is connected to another beverage
4 container by a device constructed of a material which that is
5 not biodegradable or photodegradable.
6 Sec. 20. Section 455B.313, Code 2021, is amended by adding
7 the following new subsection:
8 NEW SUBSECTION. 3. For purposes of this section,
9 “distributor” means any person who engages in the sale of
10 beverages in beverage containers to a dealer in this state,
11 as those terms are defined in section 123B.1, including any
12 manufacturer who engages in such sales.
13 Sec. 21. REPEAL. Chapter 455C, Code 2021, is repealed.
14 Sec. 22. EFFECTIVE DATE. This division of this Act takes
15 effect January 1, 2023.
16 DIVISION III
17 NEW BEVERAGE CONTAINER CONTROL LAW
18 Sec. 23. NEW SECTION. 123B.1 Definitions.
19 As used in this chapter, unless the context otherwise
20 requires:
21 1. “Beverage” means wine as defined in section 123.3,
22 subsection 54, alcoholic liquor as defined in section 123.3,
23 subsection 5, beer as defined in section 123.3, subsection
24 7, high alcoholic content beer as defined in section 123.3,
25 subsection 22, canned cocktail as defined in section 123.3,
26 subsection 11, and mineral water, soda water, and similar
27 carbonated soft drinks in liquid form and intended for human
28 consumption.
29 2. “Beverage container” means any sealed glass, plastic, or
30 metal bottle, can, jar, or carton containing a beverage.
31 3. “Commission” means the alcoholic beverages commission
32 established in chapter 123.
33 4. “Consu