SF 59 (LSB 1152XS (4) 88)

SENATE FILE 59

BY  SEGEBART

A BILL FOR

An Act relating to the redemption and handling of beverage containers and including effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 455C.1, subsections 6 and 10, Code 2019, are amended by striking the subsections.
    Sec. 2.  Section 455C.2, Code 2019, is amended to read as follows:
   455C.2  Refund values.
   1.  A refund value of not less than five cents shall be paid by the consumer on each beverage container sold in this state by a dealer for consumption off the premises. Upon return of the empty beverage container upon which a refund value has been paid to the dealer or a person operating a redemption center and acceptance of the empty beverage container by the dealer or person operating a redemption center, the dealer or person operating a redemption center shall return the amount of the refund value to the consumer.
   2.  In addition to the refund value provided in subsection 1 of this section, a dealer, or person operating a redemption center who redeems empty beverage containers or a dealer agent shall be reimbursed by the distributor required to accept the empty beverage containers an amount which that is one cent two cents per container. A dealer, dealer agent, or person operating a redemption center may compact empty metal beverage containers with the approval of the distributor required to accept the containers.
    Sec. 3.  Section 455C.3, subsections 1 and 4, Code 2019, are amended by striking the subsections.
    Sec. 4.  Section 455C.3, subsection 2, Code 2019, is amended to read as follows:
   2.  A distributor shall accept and pick up from a dealer served by the distributor or a redemption center for a dealer served by the distributor at least weekly, or when the distributor delivers the beverage product if deliveries are less frequent than weekly, any empty beverage container of the kind, size, and brand sold by the distributor, and shall pay to the dealer or person operating a redemption center the refund value of a beverage container and the reimbursement as provided under section 455C.2 within one week following pickup of the containers or when the dealer or redemption center normally pays the distributor for the deposit on beverage products purchased from the distributor if less frequent than weekly. A distributor or employee or agent of a distributor is not in violation of this subsection if a redemption center is closed when the distributor attempts to make a regular delivery or a regular pickup of empty beverage containers. This subsection does not apply to a distributor selling alcoholic liquor to the alcoholic beverages division of the department of commerce.
    Sec. 5.  Section 455C.4, subsections 1 and 4, Code 2019, are amended to read as follows:
   1.  Except as provided in section 455C.5, subsection 3, a dealer, a person operating a redemption center, a distributor, or a manufacturer may refuse to accept any empty beverage container which that does not have stated on it a refund value as provided under section 455C.2.
   4.  A class “E” liquor control licensee may refuse to accept and to pay the refund value on an empty alcoholic liquor container from a dealer or a redemption center or from a person acting on behalf of or who has received empty alcoholic liquor containers from a dealer or a redemption center.
    Sec. 6.  Section 455C.4, subsections 2, 3, and 5, Code 2019, are amended by striking the subsections.
    Sec. 7.  Section 455C.6, subsections 1, 2, 3, and 4, Code 2019, are amended to read as follows:
   1.  To facilitate the return of empty beverage containers and to serve dealers of beverages, any Any person may establish a redemption center, subject to the approval of the department, at which consumers may return empty beverage containers and receive payment of the refund value of such beverage containers.
   2.  An application for approval of a redemption center shall be filed with the department. The application shall state the name and address of the person responsible for the establishment and operation of the redemption center, and the kind and brand names of the beverage containers which that will be accepted at the redemption center, and the names and addresses of the dealers to be served by the redemption center. The application shall contain such other information as the director may reasonably require.  A person who operates an unapproved redemption center prior to July 1, 2020, shall have until December 1, 2020, to gain approval and may continue to operate until such date.
   3.  The department shall approve a redemption center if it finds that the redemption center will provide a convenient service to consumers for the return of empty beverage containers. The order of the department approving a redemption center shall state the dealers to be served by the redemption center and the kind and brand names of empty beverage containers which that the redemption center must accept. The order may contain such other provisions to insure ensure that the redemption center will provide a convenient service to the public as the director may determine.
   4.  The department may review the approval of any redemption center at any time. After written notice to the person responsible for the establishment and operation of the redemption center, and to the dealers served by the redemption center, the commission may, after hearing, withdraw approval of a redemption center if the commission finds there has not been compliance with the department’s order approving the redemption center, or if the redemption center no longer provides a convenient service to the public.
    Sec. 8.  Section 455C.12, subsection 2, Code 2019, is amended to read as follows:
   2.  A distributor who collects or attempts to collect a refund value on an empty beverage container when the distributor has paid the refund value on the container to a dealer, redemption center, or consumer is guilty of a fraudulent practice.
    Sec. 9.  Section 455C.12, subsection 3, paragraph a, Code 2019, is amended to read as follows:
   a.  Collects or attempts to collect the refund value on the container a second time, with the knowledge that the refund value has once been paid by the distributor to a dealer, redemption center or consumer.
    Sec. 10.  Section 455C.14, subsection 1, Code 2019, is amended to read as follows:
   1.  If the refund value indication required under section 455C.5 on an empty nonrefillable metal beverage container is readable but the redemption of the container is lawfully refused by a dealer or person operating a redemption center under other sections of this chapter or rules adopted pursuant to these sections, the container shall be accepted and the refund value paid to a consumer as provided in this section. Each beer distributor selling nonrefillable metal beverage containers in this state shall provide individually or collectively by contract or agreement with a dealer, person operating a redemption center or another person, at least one facility in the county seat of each county where refused empty nonrefillable metal beverage containers having a readable refund value indication as required by this chapter are accepted and redeemed. In cities having a population of twenty-five thousand or more, the number of the facilities provided shall be one for each twenty-five thousand population or a fractional part of that population.
    Sec. 11.  Section 455C.16, Code 2019, is amended to read as follows:
   455C.16  Beverage containers —— disposal at sanitary landfill prohibited.
   Beginning July 1, 1990, the The final disposal of beverage containers by a dealer, distributor, or manufacturer, or person operating a redemption center, in a sanitary landfill, is prohibited. Beginning September 1, 1992, including the final disposal of beverage containers that used to contain alcoholic liquor as defined in section 123.3, subsection 5, by a dealer, distributor, or manufacturer, or person operating a redemption center in a sanitary landfill, is prohibited.
    Sec. 12.  REPEAL.  Section 455C.7, Code 2019, is repealed.
    Sec. 13.  EFFECTIVE DATE.  This Act takes effect July 1, 2020.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   Under current law, a consumer may return an empty beverage container upon which a refund value has been paid to a dealer or a redemption center. When a distributor collects empty beverage containers from a dealer, dealer agent, or redemption center, the distributor reimburses the dealer, dealer agent, or redemption center the refund value plus a 1-cent handling fee for each empty beverage container. Current law also allows any person to establish a redemption center that serves a dealer if it is approved by the department of natural resources. Any person can also establish an unapproved redemption center.
   Under this bill, a consumer must return an empty beverage container to a redemption center if the consumer seeks to redeem a refund value paid for the beverage container. Additionally, the handling fee paid by a distributor is increased to 2 cents for each empty beverage container. A distributor must pick up from a redemption center empty beverage containers on at least a weekly basis. The bill makes conforming changes throughout Code chapter 455C to remove instances of “dealer” and “dealer agent” from provisions dealing with redemption. Lastly, the bill requires all redemption centers to be approved by the department; any unapproved redemption center that currently exists can continue operating without approval until December 1, 2020.
   The bill takes effect on July 1, 2020.