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,orwaste 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 isone centthree 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.7UNAPPROVEDREDEMPTION CENTERS. 2 3 Any person may establish a redemption centerwhich 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 7an unapproveda 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