Senate File 39 - Introduced
SENATE FILE
BY BRUNKHORST
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to redemption of empty beverage containers,
2 creating a container redemption fund, and providing effective
3 dates.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
5 TLSB 1769SS 81
6 tm/gg/14
PAG LIN
1 1 Section 1. Section 455C.1, subsections 1, 2, 6, and 10,
1 2 Code 2005, are amended to read as follows:
1 3 1. "Beverage" means includes, but is not limited to, wine
1 4 as defined in section 123.3, subsection 37, alcoholic liquor
1 5 as defined in section 123.3, subsection 5, and beer all as
1 6 defined in section 123.3, subsection 7, mineral water, soda
1 7 water and similar carbonated soft drinks and any nonalcoholic
1 8 carbonated and noncarbonated drinks excluding grade 'A' milk
1 9 and milk products as specified in the grade 'A' pasteurized
1 10 milk ordinance, as provided in section 192.102, in liquid form
1 11 and intended for human consumption. "Beverage" does not
1 12 include any of the following:
1 13 a. A liquid that is any of the following:
1 14 (1) A syrup.
1 15 (2) In a concentrated form.
1 16 (3) Typically added as a minor flavoring ingredient in
1 17 food or drink, such as extracts, cooking additives, sauces, or
1 18 condiments.
1 19 b. A liquid that is ingested in very small quantities and
1 20 consumed for medicinal purposes only.
1 21 c. A liquid that is designed and consumed only as a
1 22 nutritional supplement, as defined by the department, and not
1 23 as a beverage.
1 24 d. Products frozen at the time of sale to the consumer,
1 25 or, in the case of institutional users such as hospitals and
1 26 nursing homes, at the time of sale to such users.
1 27 e. Products designed to be consumed in a frozen state.
1 28 f. Instant drink powders.
1 29 g. Seafood, meat, or vegetable broths or soups but not
1 30 juices.
1 31 h. Farm=produced apple cider that has not been heated,
1 32 pasteurized, or otherwise processed.
1 33 i. Infant formula.
1 34 2. "Beverage container" means any sealed glass, plastic,
1 35 or metal bottle, can, jar or carton, or other container made
2 1 of glass, metal, or plastic containing a beverage which has
2 2 been sealed by a manufacturer. "Beverage containers" for
2 3 noncarbonated drinks, excluding alcoholic liquor, wine, and
2 4 fruit juices and drinks, includes only those containers with a
2 5 maximum capacity of not more than two liters and not less than
2 6 one hundred forty=seven milliliters. "Beverage containers"
2 7 made of high=density polyethylene for fruit juices and drinks
2 8 includes only those containers with a maximum capacity of less
2 9 than one=half gallon.
2 10 6. "Dealer agent" means a person who solicits or picks up
2 11 empty beverage containers from a dealer for the purpose of
2 12 returning the empty beverage containers to a distributor or
2 13 manufacturer.
2 14 10. "Geographic territory" means the geographical area
2 15 within a perimeter formed by the outermost boundaries served
2 16 by a distributor.
2 17 Sec. 2. Section 455C.1, Code 2005, is amended by adding
2 18 the following new subsection:
2 19 NEW SUBSECTION. 14. "Steward" means an organization which
2 20 has tax=exempt status under section 501(c)(3) of the Internal
2 21 Revenue Code chosen by distributors to administer the
2 22 container redemption fund created in section 455C.3B, as well
2 23 as perform other duties identified in an agreement between the
2 24 steward and distributors.
2 25 Sec. 3. NEW SECTION. 455C.2A REFUND VALUE.
2 26 1. A refund value of not less than five cents shall be
2 27 paid by the consumer on each beverage container sold in this
2 28 state by a dealer for consumption off the premises. Upon
2 29 return of the empty beverage container, upon which a refund
2 30 value has been paid, to a person operating a redemption center
2 31 and acceptance of the empty beverage container by the person
2 32 operating the redemption center, the person operating the
2 33 redemption center shall return the amount of the refund value
2 34 to the consumer.
2 35 2. A consumer may dispose of a beverage container by
3 1 allowing the container to be collected by an entity providing
3 2 a local curbside collection service. An entity collecting a
3 3 beverage container pursuant to this subsection shall only
3 4 accept a container which has been reduced or altered in size
3 5 or shape as defined by the department.
3 6 Sec. 4. NEW SECTION. 455C.3A REIMBURSEMENT AMOUNT.
3 7 In addition to the refund value provided in section
3 8 455C.2A, a person operating a redemption center who redeems
3 9 empty beverage containers shall be reimbursed from moneys in
3 10 the container redemption fund an amount which is one cent per
3 11 container.
3 12 Sec. 5. NEW SECTION. 455C.3B CONTAINER REDEMPTION FUND.
3 13 1. A container redemption fund shall be established by a
3 14 steward selected by all distributors who sell a beverage
3 15 container to a dealer in this state. The fund shall consist
3 16 of any moneys received from distributors. Moneys in the fund
3 17 shall be considered to be held by the steward on behalf of the
3 18 consumers purchasing a beverage container from a dealer. Any
3 19 interest earned on moneys in the fund shall be retained in the
3 20 fund. The fund shall be used for purposes of disbursing
3 21 moneys to redemption centers and for purposes described in
3 22 section 455C.3C.
3 23 2. Within the container redemption fund, the steward shall
3 24 create an Iowa beautiful land account which shall be used at
3 25 the steward's discretion for purposes of supporting programs
3 26 related to recycling, solid waste management, and litter
3 27 control.
3 28 3. Within the container redemption fund, the steward shall
3 29 create a bottle bill scholarship account. The steward shall
3 30 establish a scholarship program which shall provide to
3 31 students of an eligible institution as defined in section
3 32 261.35 scholarships for matriculation at such an eligible
3 33 institution. In order to qualify for a scholarship, the
3 34 student, at a minimum, shall pursue a curriculum which
3 35 includes the topic of natural resources conservation or solid
4 1 waste management.
4 2 Sec. 6. NEW SECTION. 455C.3C ADMINISTRATION OF FUND.
4 3 On or after the first day of each calendar quarter, the
4 4 steward shall determine the final balance of the fund for the
4 5 end of the previous calendar quarter. One=half of the balance
4 6 shall be deemed to constitute abandoned refund value and shall
4 7 be allocated by the steward, in the following manner:
4 8 1. For the fiscal year beginning July 1, 2006, the steward
4 9 shall do all of the following:
4 10 a. Allocate up to ten percent of the abandoned refund
4 11 value for purposes of administering the fund.
4 12 b. Allocate up to thirty percent of the abandoned refund
4 13 value for purposes of providing financial assistance to
4 14 redemption centers for start=up costs.
4 15 c. Allocate thirty percent of the abandoned refund value
4 16 for purposes of providing financial assistance to solid waste
4 17 planning areas for recycling purposes.
4 18 d. Allocate the remaining abandoned refund value for
4 19 deposit in the Iowa beautiful land account.
4 20 2. For the fiscal year beginning July 1, 2007, the steward
4 21 shall do all of the following:
4 22 a. Allocate up to seven percent of the abandoned refund
4 23 value for purposes of administering the fund.
4 24 b. Allocate twenty percent of the abandoned refund value
4 25 for purposes of providing financial assistance to redemption
4 26 centers for start=up costs.
4 27 c. Allocate thirty percent of the abandoned refund value
4 28 for purposes of providing financial assistance to solid waste
4 29 planning areas for recycling purposes.
4 30 d. Allocate eight percent of the abandoned refund value
4 31 for purposes of remitting the moneys to the department to be
4 32 used by the department for the restore the outdoors program
4 33 established in section 461A.3A.
4 34 e. Allocate five percent of the abandoned refund value for
4 35 deposit in the bottle bill scholarship account.
5 1 f. Allocate the remaining abandoned refund value for
5 2 deposit in the Iowa beautiful land account.
5 3 3. For the fiscal year beginning July 1, 2008, and every
5 4 fiscal year thereafter, the steward shall do all of the
5 5 following:
5 6 a. Allocate up to five percent of the abandoned refund
5 7 value for purposes of administering the fund.
5 8 b. Allocate ten percent of the abandoned refund value for
5 9 purposes of expanding recycling efforts at redemption centers.
5 10 c. Allocate thirty percent of the abandoned refund value
5 11 for purposes of providing financial assistance to solid waste
5 12 planning areas for recycling purposes.
5 13 d. Allocate twenty percent of the abandoned refund value
5 14 for purposes of remitting the moneys to the department to be
5 15 used by the department for the restore the outdoors program
5 16 established in section 461A.3A.
5 17 e. Allocate five percent of the abandoned refund value for
5 18 deposit in the bottle bill scholarship account.
5 19 f. Allocate the remaining abandoned refund value for
5 20 deposit in the Iowa beautiful land account.
5 21 Sec. 7. Section 455C.4, Code 2005, is amended to read as
5 22 follows:
5 23 455C.4 REFUSAL TO ACCEPT CONTAINERS.
5 24 1. Except as provided in section 455C.5, subsection 3, a
5 25 dealer, a A person operating a redemption center, a
5 26 distributor or a manufacturer may refuse to accept any empty
5 27 beverage container which does not have stated on it a refund
5 28 value as provided under section 455C.2 455C.2A. A person
5 29 operating a redemption center shall refuse to accept an empty
5 30 beverage container that has been reduced or altered in size or
5 31 shape as defined by the department.
5 32 2. A dealer may refuse to accept and to pay the refund
5 33 value of any empty beverage container if the place of business
5 34 of the dealer and the kind and brand of empty beverage
5 35 containers are included in an order of the department
6 1 approving a redemption center under section 455C.6. A
6 2 redemption center may deduct five cents from the total
6 3 reimbursement to be received by a consumer for any empty
6 4 beverage container that is presented to the redemption center
6 5 that does not meet the requirements of section 455C.5.
6 6 3. A dealer or a distributor may refuse to accept and to
6 7 pay the refund value of an empty wine or alcoholic liquor
6 8 container which is marked to indicate that it was sold by a
6 9 state liquor store. The alcoholic beverages division shall
6 10 not reimburse a dealer or a distributor the refund value on an
6 11 empty wine or alcoholic liquor container which is marked to
6 12 indicate that the container was sold by a state liquor store.
6 13 4. A class "E" liquor control licensee may refuse to
6 14 accept and to pay the refund value on an empty alcoholic
6 15 liquor container from a dealer or a redemption center or from
6 16 a person acting on behalf of or who has received empty
6 17 alcoholic liquor containers from a dealer or a redemption
6 18 center.
6 19 5. A manufacturer or distributor may refuse to accept and
6 20 to pay the refund value and reimbursement as provided in
6 21 section 455C.2 on any empty beverage container that was picked
6 22 up by a dealer agent from a dealer outside the geographic
6 23 territory served by the manufacturer or distributor.
6 24 Sec. 8. Section 455C.5, subsection 1, Code 2005, is
6 25 amended to read as follows:
6 26 1. Each beverage container sold or offered for sale in
6 27 this state by a dealer shall clearly and conspicuously
6 28 indicate by embossing or by a stamp, label, or other method
6 29 securely affixed to the container, the refund value of the
6 30 container. The department shall specify, by rule, the minimum
6 31 size of the refund value indication on the beverage
6 32 containers.
6 33 Sec. 9. Section 455C.5, Code 2005, is amended by adding
6 34 the following new subsections:
6 35 NEW SUBSECTION. 4. A distributor shall not sell or offer
7 1 for sale to a dealer in this state a beverage container if the
7 2 distributor sells the same beverage container meeting the
7 3 labeling requirements of this section in a state that does not
7 4 have a beverage container redemption system, unless the
7 5 distributor deposits in the container redemption fund an
7 6 amount equal to the refund value per container meeting the
7 7 labeling requirements of this section to a dealer in a state
7 8 that does not have a beverage container redemption system.
7 9 NEW SUBSECTION. 5. Subsection 4 shall not apply if a
7 10 distributor demonstrates to the steward an average ratio of
7 11 beverage containers meeting the labeling requirements of this
7 12 section and sold to dealers in a state that does not have a
7 13 beverage container redemption system which are eventually
7 14 redeemed in this state. Upon approval by the steward of the
7 15 ratio, the steward and distributor shall agree on the proper
7 16 amount the distributor must pay into the container redemption
7 17 fund per container sold to a dealer in a state that does not
7 18 have a beverage container redemption system.
7 19 Sec. 10. Section 455C.6, Code 2005, is amended to read as
7 20 follows:
7 21 455C.6 REDEMPTION CENTERS.
7 22 1. To facilitate the return of empty beverage containers
7 23 and to serve dealers of beverages, any person may establish a
7 24 redemption center, subject to the approval of the department
7 25 steward, at which consumers may return empty beverage
7 26 containers and receive payment of the refund value of such
7 27 beverage containers. A dealer shall not own or operate a
7 28 redemption center, unless the redemption center is located
7 29 outside and separate from the business premises of the dealer.
7 30 2. An application for approval of a redemption center
7 31 shall be filed with the department steward. The application
7 32 shall state the name and address of the person responsible for
7 33 the establishment and operation of the redemption center, and
7 34 the kind and brand names of the beverage containers which will
7 35 be accepted at the redemption center, and the names and
8 1 addresses of the dealers to be served by the redemption
8 2 center. The application shall contain such other information
8 3 as the director steward may reasonably require.
8 4 3. The department steward shall approve a redemption
8 5 center if it finds that the redemption center will provide a
8 6 convenient service to consumers for the return of empty
8 7 beverage containers. The order of the department approving a
8 8 redemption center shall state the dealers to be served by the
8 9 redemption center and the kind and brand names of empty
8 10 beverage containers which the redemption center must accept.
8 11 The order approving a redemption center may contain such other
8 12 provisions to insure ensure that the redemption center will
8 13 provide a convenient service to the public as the director
8 14 steward may determine.
8 15 4. The department steward may review the approval of any
8 16 redemption center at any time. After written notice to the
8 17 person responsible for the establishment and operation of the
8 18 redemption center, and to the dealers served by the redemption
8 19 center, the commission steward may, after hearing, withdraw
8 20 approval of a redemption center if the commission steward
8 21 finds there has not been compliance with the department's
8 22 steward's order approving the redemption center, or if the
8 23 redemption center no longer provides a convenient service to
8 24 the public.
8 25 5. All approved redemption centers shall meet applicable
8 26 health standards.
8 27 Sec. 11. Section 455C.12, subsections 1, 2, and 3, Code
8 28 2005, are amended to read as follows:
8 29 1. Any person violating the provisions of section 455C.2,
8 30 455C.3, 455C.5, and 455C.8, or a rule adopted under this
8 31 chapter shall be guilty of a simple misdemeanor.
8 32 2. A distributor An owner or operator of a redemption
8 33 center who collects or attempts to collect a refund value on
8 34 an empty beverage container when the distributor redemption
8 35 center has paid the refund value on the container to a dealer,
9 1 redemption center, or consumer is guilty of a fraudulent
9 2 practice.
9 3 3. Any person who does any of the following acts is guilty
9 4 of a fraudulent practice:
9 5 a. Collects or attempts to collect the refund value on the
9 6 container a second time, with the knowledge that the refund
9 7 value has once been paid by the distributor redemption center
9 8 to a dealer, redemption center or consumer.
9 9 b. Manufactures, sells, possesses, or applies a false or
9 10 counterfeit label or indication which shows or purports to
9 11 show a refund value for a beverage container, with intent to
9 12 use the false or counterfeit label or indication.
9 13 c. Collects or attempts to collect a refund value on a
9 14 container with the use of a false or counterfeit label or
9 15 indication showing a refund value, knowing the label or
9 16 indication to be false or counterfeit.
9 17 Sec. 12. NEW SECTION. 455C.17 PILOT PROJECT.
9 18 The steward shall establish a pilot project which would
9 19 allow a solid waste planning area to function as a redemption
9 20 center in terms of accepting empty beverage containers from
9 21 consumers and paying the refund value to consumers. A
9 22 participant in the pilot project shall receive from the
9 23 container redemption fund five cents per container accepted
9 24 from a consumer. Any container accepted by a pilot project
9 25 participant may be sold by the participant to a recycler and
9 26 moneys received by the participant shall be retained by the
9 27 participant.
9 28 Sec. 13. NEW SECTION. 455C.18 REPORT.
9 29 1. By January 15 of each year, the steward shall submit to
9 30 the department a financial report regarding the container
9 31 redemption fund.
9 32 2. Every five years beginning in the calendar year 2011,
9 33 by January 15, the department, in cooperation with the
9 34 steward, shall submit a written report to the general assembly
9 35 which reviews and provides recommendations regarding the
10 1 administration of this chapter including, but not limited to,
10 2 the allocation of abandoned refund value in the container
10 3 redemption fund and the types of beverage containers covered
10 4 under this chapter.
10 5 Sec. 14. NEW SECTION. 455C.19 RECYCLED CONTENT IN
10 6 BEVERAGE CONTAINERS.
10 7 A beverage container made of glass or metal sold or offered
10 8 for sale in this state shall have a minimum postconsumer
10 9 recycled content of twenty=five percent by weight.
10 10 Sec. 15. Section 123.24, subsection 5, Code 2005, is
10 11 amended to read as follows:
10 12 5. Notwithstanding subsection 4, the division shall assess
10 13 a bottle surcharge to be included in the price of alcoholic
10 14 liquor in an amount sufficient, when added to the amount not
10 15 refunded to class "E" liquor control licensees pursuant to
10 16 section 455C.2, to pay the costs incurred by the division for
10 17 collecting and properly disposing of the liquor containers.
10 18 The amount collected pursuant to this subsection, in addition
10 19 to any amounts not refunded to class "E" liquor control
10 20 licensees pursuant to section 455C.2, shall be deposited in
10 21 the beer and liquor control fund established under section
10 22 123.53.
10 23 Sec. 16. Section 455C.3A, as enacted in section 4 of this
10 24 Act, is amended to read as follows:
10 25 455C.3A REIMBURSEMENT AMOUNT.
10 26 1. In addition to the refund value provided in section
10 27 455C.2A, a person operating a redemption center who redeems
10 28 empty beverage containers shall be reimbursed from moneys in
10 29 the container redemption fund an amount which is one cent and
10 30 one=half cents per container.
10 31 2. By the seventh day of each month, a distributor that is
10 32 not a part of the agreement submitted to the department
10 33 pursuant to section 21 of this Act shall remit to the steward
10 34 for deposit in the container redemption fund an amount equal
10 35 to three cents for each beverage container sold to a dealer
11 1 during the previous month.
11 2 Sec. 17. Section 455C.3A, as enacted in section 4 of this
11 3 Act, is amended to read as follows:
11 4 455C.3A REIMBURSEMENT AMOUNT.
11 5 1. In addition to the refund value provided in section
11 6 455C.2A, a person operating a redemption center who redeems
11 7 empty beverage containers shall be reimbursed from moneys in
11 8 the container redemption fund an amount which is one cent
11 9 three cents per container.
11 10 2. By the seventh day of each month, a distributor that is
11 11 not a part of the agreement submitted to the department
11 12 pursuant to section 21 of this Act shall remit to the steward
11 13 for deposit in the container redemption fund an amount equal
11 14 to three cents for each beverage container sold to a dealer
11 15 during the previous month.
11 16 Sec. 18. Section 455C.2, Code 2005, is repealed.
11 17 Sec. 19. Section 455C.3, Code 2005, is repealed.
11 18 Sec. 20. Section 455C.7, Code 2005, is repealed.
11 19 Sec. 21. DISTRIBUTOR PLAN == CONTINGENT EFFECTIVE DATE.
11 20 1. By January 1, 2006, all distributors shall develop an
11 21 agreement and submit the agreement to the department of
11 22 natural resources. The agreement shall include provisions
11 23 relating to, but not be limited to, all of the following:
11 24 a. The designation of a steward for the container
11 25 redemption fund.
11 26 b. The amount of moneys to be deposited in the container
11 27 redemption fund by distributors on a per beverage container
11 28 basis.
11 29 c. The manner in which distributors shall transfer moneys
11 30 in paragraph "b".
11 31 d. A plan for distributors to transfer to the steward for
11 32 deposit in the container redemption fund on July 1, 2006, any
11 33 moneys being held by distributors as unredeemed refund value.
11 34 2. An agreement shall not be deemed complete or properly
11 35 submitted to the department until the department approves the
12 1 steward designated by the distributors.
12 2 3. If the department has not received an agreement from
12 3 distributors and has not approved the steward designated by
12 4 the distributors by January 1, 2006, section 17 of this Act
12 5 takes effect January 1, 2006, section 23, subsections 1 and 2,
12 6 of this Act are repealed on January 1, 2006, and section 16 of
12 7 this Act is repealed on January 1, 2006.
12 8 4. If the department has received an agreement from
12 9 distributors and has approved the steward designated by the
12 10 distributors by January 1, 2006, section 16 of this Act takes
12 11 effect January 1, 2006, and section 23, subsection 1, of this
12 12 Act is repealed January 1, 2006.
12 13 Sec. 22. FUND CREATION == INITIAL DEPOSITS == EFFECTIVE
12 14 DATE == CONTINGENT REPEAL.
12 15 1. By July 1, 2006, the steward shall establish the
12 16 container redemption fund and receive initial deposits from
12 17 distributors. Upon completion of the requirements of this
12 18 subsection, the steward shall submit notice to the department
12 19 of natural resources confirming compliance with the
12 20 requirements of this subsection. If the department receives
12 21 notice by July 1, 2006, section 17 of this Act and section 23,
12 22 subsection 2, of this Act are repealed July 1, 2006.
12 23 2. If the department has not received notice of compliance
12 24 from the steward by July 1, 2006, section 17 of this Act takes
12 25 effect July 1, 2006, and section 23, subsection 2, of this Act
12 26 is repealed July 1, 2006.
12 27 3. Sections 5 and 6 of this Act shall take effect July 1,
12 28 2006.
12 29 Sec. 23. EFFECTIVE DATES.
12 30 1. Section 16 of this Act takes effect January 1, 2007.
12 31 2. Section 17 of this Act takes effect January 1, 2007.
12 32 3. Sections 3, 4, 7, 8, 9, 10, 11, 12, 13, 15, 18, 19, and
12 33 20 of this Act take effect January 1, 2007.
12 34 4. Sections 1 and 14 of this Act take effect July 1, 2007.
12 35 EXPLANATION
13 1 This bill amends Code chapter 455C, which contains the
13 2 beverage container control law. The bill replaces the current
13 3 system for redeeming and recycling beverage containers with a
13 4 new system.
13 5 Effective July 1, 2007, the bill expands the list of
13 6 beverages whose containers are regulated under Code chapter
13 7 455C and amends the definition of "beverage container". The
13 8 newly regulated beverages include any nonalcoholic carbonated
13 9 and noncarbonated drinks excluding grade 'A' milk and milk
13 10 products as specified in the grade 'A' pasteurized milk
13 11 ordinance. The bill provides a list of exceptions to the
13 12 newly regulated beverages. The bill provides that "beverage
13 13 container" means a bottle, can, jar, or other container made
13 14 of glass, metal, or plastic containing a beverage. The bill
13 15 limits the definition by size for certain noncarbonated drinks
13 16 and beverage containers for fruit juices and drinks.
13 17 Effective July 1, 2007, the bill provides that a beverage
13 18 container made of glass or metal sold or offered for sale in
13 19 this state shall have a minimum postconsumer recycled content
13 20 of 25 percent by weight.
13 21 Effective January 1, 2007, the bill provides that a refund
13 22 value of not less than 5 cents shall be paid by the consumer
13 23 on each beverage container sold in this state by a dealer for
13 24 consumption off the premises. The bill provides that, upon
13 25 return of the empty beverage container, upon which a refund
13 26 value has been paid, to a person operating a redemption center
13 27 and acceptance of the empty beverage container by the person
13 28 operating the redemption center, the person operating the
13 29 redemption center shall return the amount of the refund value
13 30 to the consumer.
13 31 Effective January 1, 2007, the bill provides that in
13 32 addition to the refund value, a person operating a redemption
13 33 center who redeems empty beverage containers shall be
13 34 reimbursed from moneys in the container redemption fund an
13 35 amount which is 1 cent per container.
14 1 Effective July 1, 2006, the bill provides that a container
14 2 redemption fund shall be established and administered by a
14 3 steward selected by all distributors and approved by the
14 4 department of natural resources. The bill provides that the
14 5 fund shall consist of any moneys received from distributors.
14 6 The bill also creates an Iowa beautiful land account and a
14 7 scholarship account within the fund.
14 8 Effective July 1, 2006, the bill provides that, on or after
14 9 the first day of each calendar quarter, the steward shall
14 10 determine the final balance of the fund for the end of the
14 11 previous calendar quarter. The bill provides that one=half of
14 12 the balance shall be deemed to constitute abandoned refund
14 13 value and provides for the allocation of the abandoned refund
14 14 value.
14 15 Effective January 1, 2007, the bill provides that a person
14 16 operating a redemption center shall refuse to accept an empty
14 17 beverage container which has been reduced or altered in size
14 18 or shape as defined by the department. The bill provides that
14 19 a redemption center may deduct 5 cents from the total
14 20 reimbursement to be received by a consumer for any empty
14 21 beverage container that is presented to the redemption center
14 22 that does not meet the labeling requirements.
14 23 Effective January 1, 2007, the bill provides a beverage
14 24 container sold or offered for sale in this state by a dealer
14 25 shall clearly and conspicuously indicate the refund value.
14 26 The bill provides that a distributor shall not sell or offer
14 27 for sale to a dealer in this state a beverage container if the
14 28 distributor sells the same beverage container meeting the
14 29 labeling requirements of this section in a state that does not
14 30 have a beverage container redemption system, unless the
14 31 distributor deposits in the container redemption fund an
14 32 amount equal to the refund value per container meeting the
14 33 labeling requirements to a dealer in a state that does not
14 34 have a beverage container redemption system, unless a
14 35 distributor demonstrates to the steward an average ratio of
15 1 beverage containers meeting the labeling requirements and sold
15 2 to dealers in a state that does not have a beverage container
15 3 redemption system which are eventually redeemed in this state.
15 4 Effective January 1, 2007, the bill provides that a dealer
15 5 shall not own or operate a redemption center, unless the
15 6 redemption center is located outside and separate from the
15 7 business premises of the dealer.
15 8 Effective January 1, 2007, the bill provides that the
15 9 steward shall establish a pilot project which would allow a
15 10 solid waste planning area to function as a redemption center
15 11 in terms of accepting empty beverage containers from consumers
15 12 and paying the refund value to consumers. The bill provides
15 13 that a participant in a pilot project shall receive 5 cents
15 14 per container from the container redemption fund and any
15 15 container accepted by the participant may be sold by the
15 16 participant to a recycler with the participant retaining the
15 17 proceeds of the sale.
15 18 Effective January 1, 2007, the bill provides that, by
15 19 January 15 of each year, the steward shall submit to the
15 20 department a financial report regarding the container
15 21 redemption fund. The bill provides that, every five years
15 22 beginning in the calendar year 2011, by January 15, the
15 23 department, in cooperation with the steward, shall submit a
15 24 written report to the general assembly which reviews and
15 25 provides recommendations regarding the administration of the
15 26 beverage container control law.
15 27 The bill provides that, by January 1, 2006, all
15 28 distributors shall develop an agreement and submit the
15 29 agreement to the department. The bill provides that the
15 30 agreement shall include the designation of a steward for the
15 31 container redemption fund, the amount to be deposited in the
15 32 container redemption fund by distributors on a per beverage
15 33 container basis, the manner in which distributors shall
15 34 transfer moneys to the fund, and a plan for distributors to
15 35 transfer to the steward for deposit in the container
16 1 redemption fund any moneys being held by distributors as
16 2 unredeemed refund value. The bill provides that an agreement
16 3 shall not be deemed complete or properly submitted to the
16 4 department until the department approves the steward
16 5 designated by the distributors. The bill provides that if the
16 6 department has received an agreement from distributors by
16 7 January 1, 2006, the reimbursement amount shall increase to
16 8 1.5 cents per container, otherwise the reimbursement amount
16 9 increases to 3 cents. The bill provides that, for any
16 10 distributor not part of the distributor agreement, the
16 11 distributor shall remit to the steward for deposit in the
16 12 container redemption fund an amount equal to 3 cents for each
16 13 beverage container sold to a dealer during the previous month.
16 14 The bill provides that, by July 1, 2006, the steward shall
16 15 establish the container redemption fund and receive initial
16 16 deposits from distributors and shall submit notice to the
16 17 department confirming compliance with these requirements. The
16 18 bill provides that if notice is not received by July 1, 2006,
16 19 the reimbursement amount shall increase to 3 cents per
16 20 container.
16 21 The bill also makes conforming amendments.
16 22 LSB 1769SS 81
16 23 tm:rj/gg/14.1