House File 138 - Introduced



                                       HOUSE FILE       
                                       BY  SHOULTZ


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

                                      A BILL FOR

  1 An Act relating to recycling by providing for the acceptance of
  2    empty beverage containers, increasing the reimbursement amount
  3    paid by a distributor for empty beverage containers, adding to
  4    the list of materials for which recycling property may be used
  5    to receive a pollution=control or recycling property tax
  6    exemption, and providing civil penalties.
  7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  8 TLSB 1786HH 81
  9 tm/sh/8

PAG LIN



  1  1    Section 1.  Section 427.1, subsection 19, unnumbered
  1  2 paragraph 8, Code 2005, is amended to read as follows:
  1  3    For the purposes of this subsection, "pollution=control
  1  4 property" means personal property or improvements to real
  1  5 property, or any portion thereof, used primarily to control or
  1  6 abate pollution of any air or water of this state or used
  1  7 primarily to enhance the quality of any air or water of this
  1  8 state and "recycling property" means personal property or
  1  9 improvements to real property or any portion of the property,
  1 10 used primarily in the manufacturing process and resulting
  1 11 directly in the conversion of waste plastic, wastepaper
  1 12 products, waste paperboard, or waste wood products, or glass
  1 13 into new raw materials or products composed primarily of
  1 14 recycled material.  In the event such property shall also
  1 15 serve other purposes or uses of productive benefit to the
  1 16 owner of the property, only such portion of the assessed
  1 17 valuation thereof as may reasonably be calculated to be
  1 18 necessary for and devoted to the control or abatement of
  1 19 pollution, to the enhancement of the quality of the air or
  1 20 water of this state, or for recycling shall be exempt from
  1 21 taxation under this subsection.
  1 22    Sec. 2.  Section 455C.2, subsection 2, Code 2005, is
  1 23 amended to read as follows:
  1 24    2.  In addition to the refund value provided in subsection
  1 25 1 of this section, a dealer, or person operating a redemption
  1 26 center who redeems empty beverage containers or a dealer agent
  1 27 shall be reimbursed by the distributor required to accept the
  1 28 empty beverage containers an amount which is one cent three
  1 29 cents per container.  A dealer, dealer agent, or person
  1 30 operating a redemption center may compact empty metal beverage
  1 31 containers with the approval of the distributor required to
  1 32 accept the containers.
  1 33    Sec. 3.  Section 455C.4, subsection 2, Code 2005, is
  1 34 amended by striking the subsection.
  1 35    Sec. 4.  Section 455C.7, Code 2005, is amended to read as
  2  1 follows:
  2  2    455C.7  UNAPPROVED REDEMPTION CENTERS.
  2  3    Any person may establish a redemption center which has not
  2  4 been approved by the department, at which a consumer may
  2  5 return empty beverage containers and receive payment of the
  2  6 refund value of the beverage containers.  The establishment of
  2  7 an unapproved a redemption center shall not relieve any dealer
  2  8 from the responsibility of redeeming any empty beverage
  2  9 containers of the kind and brand sold by the dealer.
  2 10    Sec. 5.  Section 455C.12, Code 2005, is amended by adding
  2 11 the following new subsection:
  2 12    NEW SUBSECTION.  6.  The state is precluded from bringing a
  2 13 criminal action against the person if the department has
  2 14 initiated a civil enforcement proceeding pursuant to section
  2 15 455C.17.
  2 16    Sec. 6.  NEW SECTION.  455C.17  SCHEDULE OF CIVIL PENALTIES
  2 17 == VIOLATIONS.
  2 18    1.  The commission shall establish, by rule, a schedule or
  2 19 range of civil penalties which may be administratively
  2 20 assessed.  The schedule shall provide procedures and criteria
  2 21 for the administrative assessment of penalties of not more
  2 22 than ten thousand dollars for violations of this chapter or
  2 23 rules, permits, or orders adopted or issued under this
  2 24 chapter.  In adopting a schedule or range of penalties and in
  2 25 proposing or assessing a penalty, the commission and director
  2 26 shall consider among other relevant factors the following:
  2 27    a.  The costs saved or likely to be saved by noncompliance
  2 28 by the violator.
  2 29    b.  The gravity of the violation.
  2 30    c.  The degree of culpability of the violator.
  2 31    d.  The maximum penalty authorized for the violation under
  2 32 this chapter.
  2 33    Penalties may be administratively assessed only after an
  2 34 opportunity for a contested case hearing which may be combined
  2 35 with a hearing on the merits of the alleged violation.
  3  1 Violations not fitting within the schedule, or violations
  3  2 which the commission determines should be referred to the
  3  3 attorney general for legal action, shall not be governed by
  3  4 the schedule established under this subsection.
  3  5    2.  The commission shall provide, by rule, a procedure for
  3  6 the screening of alleged violations to determine which cases
  3  7 may be appropriate for the administrative assessment of civil
  3  8 penalties.  However, the screening procedure shall not limit
  3  9 the discretion of the department to refer any case to the
  3 10 attorney general for legal action.
  3 11    3.  A penalty shall be paid within thirty days of the date
  3 12 the order assessing the civil penalty becomes final.  If a
  3 13 person against whom a penalty is assessed under this section
  3 14 seeks timely judicial review of an order imposing the penalty
  3 15 as provided under chapter 17A, the order is not final for the
  3 16 purposes of this section until all judicial review processes
  3 17 are completed.  Additional judicial review shall not be sought
  3 18 after the order becomes final.  A person who fails to timely
  3 19 pay a penalty assessed by a final order of the department
  3 20 under this section shall pay, in addition, interest at the
  3 21 rate of one and one=half percent of the unpaid balance of the
  3 22 assessed penalty for each month or part of a month that the
  3 23 penalty remains unpaid.  The attorney general shall institute,
  3 24 at the request of the department, summary proceedings to
  3 25 recover the penalty and any accrued interest.
  3 26    4.  All civil penalties assessed by the department and
  3 27 interest on the penalties shall be deposited in the general
  3 28 fund of the state.
  3 29    5.  This section does not require the commission or the
  3 30 director to pursue an administrative remedy before seeking a
  3 31 remedy in the courts of this state.
  3 32    Sec. 7.  Sections 455C.6 and 455C.10, Code 2005, are
  3 33 repealed.
  3 34                           EXPLANATION
  3 35    This bill relates to acceptance of empty beverage
  4  1 containers by dealers of beverages.
  4  2    The bill eliminates the ability of a dealer of beverages to
  4  3 refuse to accept any empty beverage container if the place of
  4  4 business of the dealer and the kind and brand of empty
  4  5 beverage containers are included in an order of the department
  4  6 of natural resources approving a redemption center.
  4  7    The bill increases the reimbursement amount received by a
  4  8 dealer or person operating a redemption center who redeems
  4  9 empty beverage containers from 1 cent per container to 3 cents
  4 10 per container.  The reimbursement amount, commonly referred to
  4 11 as a handling fee, is paid by the distributor who collects the
  4 12 beverage containers from the dealer or person operating a
  4 13 redemption center.  The bill makes conforming amendments
  4 14 related to the elimination of approved redemption centers.
  4 15    The bill requires the department to establish, by rule, a
  4 16 schedule or range of civil penalties which may be
  4 17 administratively assessed.  The bill provides that the
  4 18 schedule shall provide procedures and criteria for the
  4 19 administrative assessment of penalties of not more than
  4 20 $10,000 for violations of Code chapter 455C or rules, permits,
  4 21 or orders adopted or issued pursuant to Code chapter 455C.
  4 22 The bill provides factors to consider in the adoption of a
  4 23 schedule or range of penalties.  The bill provides that
  4 24 penalties may be administratively assessed only after an
  4 25 opportunity for a contested case hearing which may be combined
  4 26 with a hearing on the merits of the alleged violation.  The
  4 27 bill provides that violations not fitting within the schedule,
  4 28 or violations which the environmental protection commission
  4 29 determines should be referred to the attorney general for
  4 30 legal action, shall not be governed by the schedule.  The bill
  4 31 requires the commission to establish a screening procedure for
  4 32 alleged violations.  The bill provides payment requirements
  4 33 and provisions for judicial review of civil penalties.  The
  4 34 bill provides that all civil penalties assessed by the
  4 35 department and interest on the penalties shall be deposited in
  5  1 the general fund of the state.  The bill provides that the
  5  2 commission or the director is not required to pursue an
  5  3 administrative remedy before seeking a remedy in the courts of
  5  4 this state.  The bill provides that the state is precluded
  5  5 from bringing a criminal action against a person if the
  5  6 department has initiated a civil enforcement proceeding.
  5  7    Currently, pollution=control or recycling property is
  5  8 exempt from taxation.  "Recycling property" is personal
  5  9 property or improvements to real property or any portion of
  5 10 the property, used primarily in the manufacturing process and
  5 11 resulting directly in the conversion of waste plastic,
  5 12 wastepaper products, waste paperboard, or waste wood products
  5 13 into new raw materials or products composed primarily of
  5 14 recycled material.  The bill adds glass to the list of
  5 15 materials that are converted into new raw materials or
  5 16 products composed primarily of recycled material.
  5 17 LSB 1786HH 81
  5 18 tm:rj/sh/8.1