Senate File 2024 - Introduced



                                       SENATE FILE       
                                       BY  BEALL, KIBBIE, FRAISE,
                                           DEARDEN, QUIRMBACH,
                                           SCHMITZ, CONNOLLY, and
                                           BOLKCOM


    Passed Senate, Date               Passed House,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to the recycling of empty beverage containers by
  2    increasing the reimbursement amount paid by distributors,
  3    eliminating refusal of empty containers by dealers,
  4    eliminating departmental approval of redemption centers, and
  5    establishing civil penalties.
  6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  7 TLSB 5317SS 82
  8 tw/rj/5

PAG LIN



  1  1    Section 1.  Section 455C.2, subsection 2, Code 2007, is
  1  2 amended to read as follows:
  1  3    2.  In addition to the refund value provided in subsection
  1  4 1 of this section, a dealer, or a person operating a
  1  5 redemption center who redeems empty beverage containers, or a
  1  6 dealer agent shall be reimbursed by the distributor required
  1  7 to accept the empty beverage containers an amount which is one
  1  8 cent in the amount of two cents per container.  A dealer,
  1  9 dealer agent, or person operating a redemption center may
  1 10 compact empty metal beverage containers with the approval of
  1 11 the distributor required to accept the containers.
  1 12    Sec. 2.  Section 455C.4, subsection 2, Code 2007, is
  1 13 amended by striking the subsection.
  1 14    Sec. 3.  Section 455C.7, Code 2007, is amended to read as
  1 15 follows:
  1 16    455C.7  UNAPPROVED REDEMPTION CENTERS.
  1 17    Any person may establish a redemption center which has not
  1 18 been approved by the department, at which a consumer may
  1 19 return empty beverage containers and receive payment of the
  1 20 refund value of the beverage containers.  The establishment of
  1 21 an unapproved a redemption center shall not relieve any dealer
  1 22 from the responsibility of redeeming any empty beverage
  1 23 containers of the kind and brand sold by the dealer.
  1 24    Sec. 4.  NEW SECTION.  455C.11  SCHEDULE OF PENALTIES ==
  1 25 VIOLATIONS.
  1 26    1.  PENALTY ASSESSMENT.  The commission shall establish by
  1 27 rule a schedule for the administrative assessment of civil
  1 28 penalties.  The schedule shall provide procedures and criteria
  1 29 for assessing penalties of not more than ten thousand dollars
  1 30 for violations of this chapter or for violations of the rules,
  1 31 permits, or orders adopted or issued under this chapter.
  1 32 Violations not fitting within the schedule, or violations
  1 33 which the commission determines should be referred to the
  1 34 attorney general for legal action, shall not be governed by
  1 35 the schedule established under this subsection.  When adopting
  2  1 the schedule and when proposing or assessing a penalty, the
  2  2 commission and the director shall consider the following:
  2  3    a.  The costs saved, or likely to be saved, by a violator's
  2  4 noncompliance.
  2  5    b.  The gravity of the violation.
  2  6    c.  The degree of culpability of the violator.
  2  7    d.  The maximum penalty authorized for a violation of this
  2  8 chapter.
  2  9    e.  Other relevant factors.
  2 10    2.  SCREENING OF VIOLATIONS.  In establishing the schedule
  2 11 of violations, the commission shall provide by rule a
  2 12 procedure for screening alleged violations in order to
  2 13 determine which cases may be appropriate for the
  2 14 administrative assessment of penalties.  However, the
  2 15 screening procedure shall not limit the discretion of the
  2 16 commission to refer any case to the attorney general for legal
  2 17 action.
  2 18    3.  CONTESTED CASE HEARINGS.  Penalties may be
  2 19 administratively assessed under this section only after an
  2 20 opportunity for a contested case hearing.  The contested case
  2 21 hearing may be combined with a hearing on the merits of the
  2 22 alleged violation.
  2 23    4.  JUDICIAL REVIEW.  When a person against whom a penalty
  2 24 is assessed under this section seeks timely judicial review of
  2 25 an order imposing the penalty, as provided under chapter 17A,
  2 26 the order is not final for the purposes of this section until
  2 27 all judicial review processes are completed.  Additional
  2 28 judicial review shall not be sought after the order becomes
  2 29 final.
  2 30    5.  PAYMENT OF PENALTIES AND INTEREST.
  2 31    a.  A penalty assessed under this section shall be paid
  2 32 within thirty days of the date the order assessing the penalty
  2 33 becomes final.
  2 34    b.  A person who fails to timely pay a penalty assessed by
  2 35 a final order of the department shall pay, in addition to the
  3  1 penalty, interest at the rate of one and one=half percent of
  3  2 the unpaid balance of the assessed penalty for each month, or
  3  3 part of a month, that the penalty remains unpaid.
  3  4    c.  The attorney general shall institute, at the request of
  3  5 the department, summary proceedings to recover the penalty and
  3  6 any accrued interest.
  3  7    d.  All penalties assessed by the department under this
  3  8 section and interest on the penalties shall be deposited in
  3  9 the general fund of the state.
  3 10    6.  This section does not require the commission or the
  3 11 director to pursue an administrative remedy before seeking a
  3 12 remedy in the courts of this state.
  3 13    Sec. 5.  Section 455C.12, Code 2007, is amended by adding
  3 14 the following new subsection:
  3 15    NEW SUBSECTION.  6.  The state shall be precluded from
  3 16 bringing a criminal action against a person under this chapter
  3 17 if the department has initiated a civil enforcement proceeding
  3 18 against the person pursuant to section 455C.11.
  3 19    Sec. 6.  Sections 455C.6 and 455C.10, Code 2007, are
  3 20 repealed.
  3 21                           EXPLANATION
  3 22    This bill relates to the recycling of empty beverage
  3 23 containers.
  3 24    The bill increases to 2 cents per container the amount
  3 25 received by a dealer or a person operating a redemption
  3 26 center.  The redemption amount, commonly referred to as a
  3 27 handling fee, is paid by the distributor who collects the
  3 28 beverage containers from the dealer or the operator of the
  3 29 redemption center.
  3 30    Under current law, a dealer may refuse to accept empty
  3 31 beverage containers if that dealer's place of business and the
  3 32 kind of containers are included in an order of the department
  3 33 of natural resources approving a redemption center.  The bill
  3 34 eliminates the ability of a dealer to refuse to accept
  3 35 containers in this instance.
  4  1    The bill eliminates the approval of redemption centers by
  4  2 the department and makes other related changes necessary to do
  4  3 so.
  4  4    The bill requires the department to establish a schedule of
  4  5 civil penalties and provides for the administrative assessment
  4  6 of penalties up to $10,000 for violations of the Code chapter
  4  7 or any rules, permits, or orders adopted or issued under it.
  4  8 Violations not fitting within the schedule, or violations
  4  9 referred to the attorney general, are not governed by the
  4 10 schedule.  The bill also provides factors to be considered in
  4 11 the adoption of the schedule.
  4 12    The bill requires the environmental protection commission
  4 13 to adopt by rule a screening procedure that determines which
  4 14 violations to refer to the attorney general and which
  4 15 violations are more appropriate for administrative assessment.
  4 16 The bill requires the department to provide a contested case
  4 17 hearing before assessing any penalties.  The bill also
  4 18 provides for judicial review of administrative penalties and
  4 19 requires the assessment of interest on penalties not timely
  4 20 paid.
  4 21    Finally, the bill precludes the department from seeking
  4 22 criminal penalties if it has initiated a civil enforcement
  4 23 proceeding under the Code chapter.
  4 24 LSB 5317SS 82
  4 25 tw/rj/5.1