Senate File 470 - Introduced
SENATE FILE 470
BY COMMITTEE ON NATURAL
RESOURCES AND ENVIRONMENT
(SUCCESSOR TO SF 368)
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 an amount which that
5 is one cent per container. A dealer, dealer agent, or person
6 operating a redemption center may compact empty metal beverage
7 containers with the approval of the distributor required to
8 accept the containers. A redemption center shall be reimbursed
9 an amount that is two cents per container.
10 Sec. 4. Section 455C.3, subsections 1, 2, and 4, Code 2021,
11 are amended to read as follows:
12 1. A participating dealer shall not refuse to accept from
13 a consumer any empty beverage container of the kind, size and
14 brand sold by the participating dealer, or refuse to pay to the
15 consumer the refund value of a beverage container as provided
16 under section 455C.2.
17 2. A distributor shall accept and pick up from a
18 participating dealer served by the distributor or a redemption
19 center for a dealer served by the distributor at least weekly,
20 or when the distributor delivers the beverage product if
21 deliveries are less frequent than weekly, any empty beverage
22 container of the kind, size, and brand sold by the distributor,
23 and shall pay to the participating dealer or person operating
24 a redemption center the refund value of a beverage container
25 and the reimbursement as provided under section 455C.2 within
26 one week following pickup of the containers or when the
27 participating dealer or redemption center normally pays the
28 distributor for the deposit on beverage products purchased from
29 the distributor if less frequent than weekly. A distributor
30 or employee or agent of a distributor is not in violation
31 of this subsection if a redemption center is closed when the
32 distributor attempts to make a regular delivery or a regular
33 pickup of empty beverage containers. This subsection does
34 not apply to a distributor selling alcoholic liquor to the
35 alcoholic beverages division of the department of commerce.
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1 4. A distributor shall accept from a dealer agent any empty
2 beverage container of the kind, size, and brand sold by the
3 distributor and which that was picked up by the dealer agent
4 from a participating dealer within the geographic territory
5 served by the distributor and the distributor shall pay the
6 dealer agent the refund value of the empty beverage container
7 and the reimbursement as provided in section 455C.2.
8 Sec. 5. Section 455C.4, Code 2021, is amended to read as
9 follows:
10 455C.4 Refusal to accept containers.
11 1. Except as provided in section 455C.5, subsection 3,
12 a participating dealer, a person operating a or redemption
13 center, a distributor or a manufacturer may refuse to accept
14 any empty beverage container which that does not have stated on
15 it a refund value as provided under section 455C.2.
16 2. A dealer may refuse to accept and to pay the refund value
17 of any empty beverage container if the place of business of the
18 dealer and the kind and brand of empty beverage containers are
19 included in an order of the department approving a redemption
20 center under section 455C.6 if a redemption center is located
21 within a twenty-mile radius of the dealer.
22 3. A dealer or a distributor may refuse to accept and to pay
23 the refund value of an empty wine or alcoholic liquor container
24 which is marked to indicate that it was sold by a state liquor
25 store. The alcoholic beverages division shall not reimburse
26 a dealer or a distributor the refund value on an empty wine or
27 alcoholic liquor container which is marked to indicate that the
28 container was sold by a state liquor store.
29 4. 3. A class “E” liquor control licensee may refuse to
30 accept and to pay the refund value on an empty alcoholic liquor
31 container from a participating dealer or a redemption center
32 or from a person acting on behalf of or who has received empty
33 alcoholic liquor containers from a participating dealer or a
34 redemption center.
35 5. 4. A manufacturer or distributor may refuse to accept
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1 and to pay the refund value and reimbursement as provided in
2 section 455C.2 on any empty beverage container that was picked
3 up by a dealer agent from a participating dealer outside the
4 geographic territory served by the manufacturer or distributor.
5 Sec. 6. Section 455C.5, subsection 1, Code 2021, is amended
6 to read as follows:
7 1. Each beverage container sold or offered for sale in
8 this state by a dealer shall clearly indicate the refund value
9 of the container by embossing or by a stamp, label, or other
10 method securely affixed to the container, the refund value of
11 the container. The department shall specify, by rule, the
12 minimum size of the refund value indication on the beverage
13 containers.
14 Sec. 7. Section 455C.12, subsection 2, Code 2021, is amended
15 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 a
19 participating dealer, redemption center, or consumer is guilty
20 of a fraudulent practice.
21 Sec. 8. Section 455C.12, subsection 3, paragraphs a and b,
22 Code 2021, are amended to read as follows:
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 participating
26 dealer, 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 Sec. 9. Section 455C.13, Code 2021, is amended to read as
32 follows:
33 455C.13 Distributors’ Collection and disposal agreements
34 authorized.
35 1. A distributor, dealer, or redemption center may enter
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1 into a contract or agreement with any other distributor,
2 manufacturer, or person for the purpose of collecting or paying
3 the refund value on, or disposing of, beverage containers as
4 provided in this chapter.
5 2. For purposes of this chapter, any contracts entered into
6 pursuant to this section for the collection or disposal of
7 empty beverage containers shall not be deemed to interfere with
8 the refund value pursuant to section 455C.2.
9 Sec. 10. Section 455C.14, subsection 1, Code 2021, is
10 amended to read as follows:
11 1. If the refund value indication required under section
12 455C.5 on an empty nonrefillable metal beverage container
13 is readable but the redemption of the container is lawfully
14 refused by a participating dealer or person operating a
15 redemption center under other sections of this chapter or
16 rules adopted pursuant to these sections, the container
17 shall be accepted and the refund value paid to a consumer
18 as provided in this section. Each beer distributor selling
19 nonrefillable metal beverage containers in this state shall
20 provide individually or collectively by contract or agreement
21 with a dealer, person operating a redemption center, or another
22 person, at least one facility in the county seat of each county
23 where refused empty nonrefillable metal beverage containers
24 having a readable refund value indication as required by
25 this chapter are accepted and redeemed. In cities having a
26 population of twenty-five thousand or more, the number of the
27 facilities provided shall be one for each twenty-five thousand
28 population or a fractional part of that population.
29 Sec. 11. Section 455C.16, Code 2021, is amended to read as
30 follows:
31 455C.16 Beverage containers —— disposal at sanitary landfill
32 prohibited.
33 Beginning July 1, 1990, the The final disposal of beverage
34 containers by a dealer, distributor, or manufacturer, or
35 person operating a redemption center, in a sanitary landfill,
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1 is prohibited. Beginning September 1, 1992, including the
2 final disposal of beverage containers that used to contain
3 alcoholic liquor as defined in section 123.3, subsection 5,
4 by a participating dealer, distributor, or manufacturer, or
5 person operating a redemption center in a sanitary landfill,
6 is prohibited.
7 Sec. 12. EFFECTIVE DATE. This division of this Act takes
8 effect July 1, 2022.
9 DIVISION II
10 REPEAL OF CURRENT BEVERAGE CONTAINER CONTROL LAW
11 Sec. 13. Section 123.24, subsection 2, paragraph d, Code
12 2021, is amended by striking the paragraph.
13 Sec. 14. Section 123.26, Code 2021, is amended to read as
14 follows:
15 123.26 Restrictions on sales —— seals —— labeling.
16 Alcoholic liquor shall not be sold by a class “E” liquor
17 control licensee except in a sealed container with identifying
18 markers as prescribed by the administrator and affixed in the
19 manner prescribed by the administrator, and no such container
20 shall be opened upon the premises of a state warehouse. The
21 division shall cooperate with the department of natural
22 resources so that only one identifying marker or mark is needed
23 to satisfy the requirements of this section and section 455C.5,
24 subsection 1. Possession of alcoholic liquors which that do
25 not carry the prescribed identifying markers is a violation of
26 this chapter except as provided in section 123.22.
27 Sec. 15. Section 123.187, subsection 3, paragraph e, Code
28 2021, is amended by striking the paragraph.
29 Sec. 16. Section 423.6, subsection 3, paragraph a, Code
30 2021, is amended to read as follows:
31 a. Any tangible personal property including containers
32 for which it is intended shall, by means of fabrication,
33 compounding, manufacturing, or germination, become an integral
34 part of other tangible personal property intended to be sold
35 ultimately at retail, and containers used in the collection,
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1 recovery, or return of empty beverage containers subject to
2 chapter 455C.
3 Sec. 17. Section 455A.4, subsection 1, paragraph b, Code
4 2021, is amended to read as follows:
5 b. Provide overall supervision, direction, and coordination
6 of functions to be administered by the administrators under
7 chapters 321G, 321I, 455B, 455C, 456A, 456B, 457A, 458A, 459,
8 459A, 459B, 461A, 462A, 462B, 464A, 465C, 473, 481A, 481B,
9 483A, 484A, and 484B.
10 Sec. 18. Section 455A.6, subsection 6, paragraphs a, b, and
11 d, Code 2021, are amended to read as follows:
12 a. Establish policy for the department and adopt rules,
13 pursuant to chapter 17A, necessary to provide for the effective
14 administration of chapter 455B, 455C, or 459.
15 b. Hear appeals in contested cases pursuant to chapter 17A
16 on matters relating to actions taken by the director under
17 chapter 455C, 458A, 464B, or 473.
18 d. Approve the budget request prepared by the director
19 for the programs authorized by chapters 455B, 455C, 455E,
20 455F, 455H, and 459, subchapters II and III. The commission
21 shall approve the budget request prepared by the director for
22 programs subject to the rulemaking authority of the commission.
23 The commission may increase, decrease, or strike any item
24 within the department budget request for the specified programs
25 before granting approval.
26 Sec. 19. Section 455B.313, subsection 1, Code 2021, is
27 amended to read as follows:
28 1. A distributor as defined in section 455C.1, subsection
29 9, shall not sell or offer to sell any beverage container
30 if the beverage container is connected to another beverage
31 container by a device constructed of a material which that is
32 not biodegradable or photodegradable.
33 Sec. 20. Section 455B.313, Code 2021, is amended by adding
34 the following new subsection:
35 NEW SUBSECTION. 3. For purposes of this section,
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1 “distributor” means any person who engages in the sale of
2 beverages in beverage containers to a dealer in this state,
3 as those terms are defined in section 123B.1, including any
4 manufacturer who engages in such sales.
5 Sec. 21. REPEAL. Chapter 455C, Code 2021, is repealed.
6 Sec. 22. EFFECTIVE DATE. This division of this Act takes
7 effect January 1, 2023.
8 DIVISION III
9 NEW BEVERAGE CONTAINER CONTROL LAW
10 Sec. 23. NEW SECTION. 123B.1 Definitions.
11 As used in this chapter, unless the context otherwise
12 requires:
13 1. “Beverage” means wine as defined in section 123.3,
14 subsection 54, alcoholic liquor as defined in section 123.3,
15 subsection 5, beer as defined in section 123.3, subsection
16 7, high alcoholic content beer as defined in section 123.3,
17 subsection 22, canned cocktail as defined in section 123.3,
18 subsection 11, and mineral water, soda water, and similar
19 carbonated soft drinks in liquid form and intended for human
20 consumption.
21 2. “Beverage container” means any sealed glass, plastic, or
22 metal bottle, can, jar, or carton containing a beverage.
23 3. “Commission” means the alcoholic beverages commission
24 established in chapter 123.
25 4. “Consumer” means any person who purchases a beverage in a
26 beverage container for use or consumption.
27 5. “Dealer” means any person who engages in the sale of
28 beverages in beverage containers to a consumer.
29 6. “Division” means the alcoholic beverages division of the
30 department of commerce established in chapter 123.
31 7