House File 166 - 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 the acceptance of empty beverage containers by
2 dealers of beverages, the reimbursement amount paid by a
3 distributor for empty beverage containers, a property tax
4 exemption for glass recyclers, and providing civil penalties.
5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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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 waste
1 13 glass 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.1, subsections 1 and 2, Code 2005,
1 23 are amended to read as follows:
1 24 1. "Beverage" means includes, but is not limited to, wine
1 25 as defined in section 123.3, subsection 37, alcoholic liquor
1 26 as defined in section 123.3, subsection 5, and beer all as
1 27 defined in section 123.3, subsection 7, mineral water, soda
1 28 water and similar carbonated soft drinks and any nonalcoholic
1 29 carbonated and noncarbonated drinks excluding grade 'A' milk
1 30 and milk products as specified in the grade 'A' pasteurized
1 31 milk ordinance, as provided in section 192.102, in liquid form
1 32 and intended for human consumption. "Beverage" does not
1 33 include any of the following:
1 34 a. A liquid that is any of the following:
1 35 (1) A syrup.
2 1 (2) In a concentrated form.
2 2 (3) Typically added as a minor flavoring ingredient in
2 3 food or drink, such as extracts, cooking additives, sauces, or
2 4 condiments.
2 5 b. A liquid that is ingested in very small quantities and
2 6 consumed for medicinal purposes only.
2 7 c. A liquid that is designed and consumed only as a
2 8 nutritional supplement, as defined by the department, and not
2 9 as a beverage.
2 10 d. Products frozen at the time of sale to the consumer,
2 11 or, in the case of institutional users such as hospitals and
2 12 nursing homes, at the time of sale to such users.
2 13 e. Products designed to be consumed in a frozen state.
2 14 f. Instant drink powders.
2 15 g. Seafood, meat, or vegetable broths or soups but not
2 16 juices.
2 17 h. Farm=produced apple cider that has not been heated,
2 18 pasteurized, or otherwise processed.
2 19 i. Infant formula.
2 20 2. "Beverage container" means any sealed glass, plastic,
2 21 or metal bottle, can, jar or carton, or other container made
2 22 of glass, metal, or plastic containing a beverage which has
2 23 been sealed by a manufacturer. "Beverage containers" for
2 24 noncarbonated drinks, excluding alcoholic liquor, wine, and
2 25 fruit juices and drinks, includes only those containers with a
2 26 maximum capacity of not more than two liters and not less than
2 27 one hundred forty=seven milliliters. "Beverage containers"
2 28 made of high=density polyethylene for fruit juices and drinks
2 29 includes only those containers with a maximum capacity of less
2 30 than one=half gallon.
2 31 Sec. 3. Section 455C.2, subsection 2, Code 2005, is
2 32 amended to read as follows:
2 33 2. In addition to the refund value provided in subsection
2 34 1 of this section, a dealer, or person operating a redemption
2 35 center who redeems empty beverage containers or a dealer agent
3 1 shall be reimbursed by the distributor required to accept the
3 2 empty beverage containers an amount which is one cent two
3 3 cents per container. A dealer, dealer agent, or person
3 4 operating a redemption center may compact empty metal beverage
3 5 containers with the approval of the distributor required to
3 6 accept the containers.
3 7 Sec. 4. Section 455C.4, subsection 2, Code 2005, is
3 8 amended by striking the subsection.
3 9 Sec. 5. Section 455C.7, Code 2005, is amended to read as
3 10 follows:
3 11 455C.7 UNAPPROVED REDEMPTION CENTERS.
3 12 Any person may establish a redemption center which has not
3 13 been approved by the department, at which a consumer may
3 14 return empty beverage containers and receive payment of the
3 15 refund value of the beverage containers. The establishment of
3 16 an unapproved a redemption center shall not relieve any dealer
3 17 from the responsibility of redeeming any empty beverage
3 18 containers of the kind and brand sold by the dealer.
3 19 Sec. 6. NEW SECTION. 455C.11 SCHEDULE OF FINES ==
3 20 VIOLATIONS.
3 21 1. The commission shall establish, by rule, a schedule or
3 22 range of civil penalties which may be administratively
3 23 assessed. The schedule shall provide procedures and criteria
3 24 for the administrative assessment of penalties of not more
3 25 than ten thousand dollars for violations of this chapter or
3 26 rules, permits, or orders adopted or issued under this
3 27 chapter. In adopting a schedule or range of penalties and in
3 28 proposing or assessing a penalty, the commission and director
3 29 shall consider among other relevant factors the following:
3 30 a. The costs saved or likely to be saved by noncompliance
3 31 by the violator.
3 32 b. The gravity of the violation.
3 33 c. The degree of culpability of the violator.
3 34 d. The maximum penalty authorized for that violation under
3 35 this chapter.
4 1 Penalties may be administratively assessed only after an
4 2 opportunity for a contested case hearing which may be combined
4 3 with a hearing on the merits of the alleged violation.
4 4 Violations not fitting within the schedule, or violations
4 5 which the commission determines should be referred to the
4 6 attorney general for legal action, shall not be governed by
4 7 the schedule established under this subsection.
4 8 2. When the commission establishes a schedule for
4 9 violations, the commission shall provide, by rule, a procedure
4 10 for the screening of alleged violations to determine which
4 11 cases may be appropriate for the administrative assessment of
4 12 penalties. However, the screening procedure shall not limit
4 13 the discretion of the department to refer any case to the
4 14 attorney general for legal action.
4 15 3. A penalty shall be paid within thirty days of the date
4 16 the order assessing the penalty becomes final. When a person
4 17 against whom a civil penalty is assessed under this section
4 18 seeks timely judicial review of an order imposing the penalty
4 19 as provided under chapter 17A, the order is not final for the
4 20 purposes of this section until all judicial review processes
4 21 are completed. Additional judicial review may not be sought
4 22 after the order becomes final. A person who fails to timely
4 23 pay a civil penalty assessed by a final order of the
4 24 department shall pay, in addition, interest at the rate of one
4 25 and one=half percent of the unpaid balance of the assessed
4 26 penalty for each month or part of a month that the penalty
4 27 remains unpaid. The attorney general shall institute, at the
4 28 request of the department, summary proceedings to recover the
4 29 penalty and any accrued interest.
4 30 4. All civil penalties assessed by the department and
4 31 interest on the penalties shall be deposited in the general
4 32 fund of the state.
4 33 5. This section does not require the commission or the
4 34 director to pursue an administrative remedy before seeking a
4 35 remedy in the courts of this state.
5 1 Sec. 7. Section 455C.12, Code 2005, is amended by adding
5 2 the following new subsection:
5 3 NEW SUBSECTION. 6. The state shall be precluded from
5 4 bringing a criminal action against a person under this chapter
5 5 if the department has initiated a civil enforcement proceeding
5 6 against the person pursuant to section 455C.11.
5 7 Sec. 8. Sections 455C.6 and 455C.10, Code 2005, are
5 8 repealed.
5 9 EXPLANATION
5 10 This bill relates to acceptance of empty beverage
5 11 containers by dealers of beverages. The bill expands the list
5 12 of beverages whose containers are regulated under Code chapter
5 13 455C and amends the definition of "beverage container". The
5 14 newly regulated beverages include any nonalcoholic carbonated
5 15 and noncarbonated drinks excluding grade 'A' milk and milk
5 16 products as specified in the grade 'A' pasteurized milk
5 17 ordinance. The bill provides a list of exceptions to the
5 18 newly regulated beverages. The bill provides that "beverage
5 19 container" means a bottle, can, jar, or other container made
5 20 of glass, metal, or plastic containing a beverage. The bill
5 21 limits the definition by size for certain noncarbonated drinks
5 22 and beverage containers for fruit juices and drinks.
5 23 The bill increases the reimbursement amount received by a
5 24 dealer or person operating a redemption center who redeems
5 25 empty beverage containers from 1 cent per container to 2 cents
5 26 per container. The reimbursement amount, commonly referred to
5 27 as a handling fee, is paid by the distributor who collects the
5 28 beverage containers from the dealer or person operating a
5 29 redemption center.
5 30 The bill eliminates the ability of a dealer of beverages to
5 31 refuse to accept any empty beverage container if the place of
5 32 business of the dealer and the kind and brand of empty
5 33 beverage containers are included in an order of the department
5 34 of natural resources approving a redemption center.
5 35 The bill makes conforming amendments related to the
6 1 elimination of approved redemption centers.
6 2 The bill requires the department to establish, by rule, a
6 3 schedule or range of civil penalties which may be
6 4 administratively assessed for violations of Code chapter 455C
6 5 or rules, permits, or orders adopted or issued pursuant to
6 6 Code chapter 455C. The bill provides factors to consider in
6 7 the adoption of a schedule or range of penalties. The bill
6 8 provides that penalties may be administratively assessed only
6 9 after an opportunity for a contested case hearing which may be
6 10 combined with a hearing on the merits of the alleged
6 11 violation. The bill provides that violations not fitting
6 12 within the schedule, or violations which the environmental
6 13 protection commission determines should be referred to the
6 14 attorney general for legal action, shall not be governed by
6 15 the schedule. The bill requires the commission to establish a
6 16 screening procedure for alleged violations. The bill provides
6 17 payment requirements and provisions for judicial review of
6 18 civil penalties. The bill provides that all civil penalties
6 19 assessed by the department and interest on the penalties shall
6 20 be deposited in the general fund of the state. The bill
6 21 provides that the commission or the director is not required
6 22 to pursue an administrative remedy before seeking a remedy in
6 23 the courts of this state. The bill provides that the state is
6 24 precluded from bringing a criminal action against a person if
6 25 the department has initiated a civil enforcement proceeding.
6 26 Currently, pollution=control or recycling property is
6 27 exempt from taxation. "Recycling property" is personal
6 28 property or improvements to real property or any portion of
6 29 the property, used primarily in the manufacturing process and
6 30 resulting directly in the conversion of waste plastic,
6 31 wastepaper products, waste paperboard, or waste wood products
6 32 into new raw materials or products composed primarily of
6 33 recycled material. The bill adds waste glass to the list of
6 34 materials that are converted into new raw materials or
6 35 products composed primarily of recycled material.
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