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
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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
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