House Study Bill 508 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON ENVIRONMENTAL PROTECTION BILL BY CHAIRPERSON JONES) A BILL FOR An Act requiring consumers to redeem beverage container 1 deposits at redemption centers. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5373YC (1) 86 tr/rj

H.F. _____ Section 1. Section 455C.2, Code 2016, is amended to read as 1 follows: 2 455C.2 Refund values. 3 1. A refund value of not less than five cents shall be paid 4 by the consumer on each beverage container sold in this state 5 by a dealer for consumption off the premises. Upon return of 6 the empty beverage container upon which a refund value has been 7 paid to the dealer or person operating a redemption center 8 and acceptance of the empty beverage container by the dealer 9 or person operating a redemption center, the dealer or person 10 operating a redemption center shall return the amount of the 11 refund value to the consumer. 12 2. In addition to the refund value provided in subsection 13 1 of this section , a dealer, or person operating a redemption 14 center who redeems empty beverage containers or a dealer agent 15 shall be reimbursed by the distributor required to accept the 16 empty beverage containers an amount which is one cent per 17 container. A dealer, dealer agent , or person operating a 18 redemption center may compact empty metal beverage containers 19 with the approval of the distributor required to accept the 20 containers. 21 Sec. 2. Section 455C.3, subsection 1, Code 2016, is amended 22 by striking the subsection. 23 Sec. 3. Section 455C.3, subsection 2, Code 2016, is amended 24 to read as follows: 25 2. A distributor shall accept and pick up from a dealer 26 served by the distributor or a redemption center for a 27 dealer served by the distributor at least weekly, or when the 28 distributor delivers the beverage product if deliveries are 29 less frequent than weekly, any empty beverage container of the 30 kind, size and brand sold by the distributor, and shall pay to 31 the dealer or person operating a redemption center the refund 32 value of a beverage container and the reimbursement as provided 33 under section 455C.2 within one week following pickup of the 34 containers or when the dealer or redemption center normally 35 -1- LSB 5373YC (1) 86 tr/rj 1/ 3

H.F. _____ pays the distributor for the deposit on beverage products 1 purchased from the distributor if less frequent than weekly. 2 A distributor or employee or agent of a distributor is not in 3 violation of this subsection if a redemption center is closed 4 when the distributor attempts to make a regular delivery or a 5 regular pickup of empty beverage containers. This subsection 6 does not apply to a distributor selling alcoholic liquor to the 7 alcoholic beverages division of the department of commerce. 8 Sec. 4. Section 455C.4, subsections 1, 2, and 3, Code 2016, 9 are amended to read as follows: 10 1. Except as provided in section 455C.5, subsection 3 , a 11 dealer, a person operating a redemption center, a distributor , 12 or a manufacturer may refuse to accept any empty beverage 13 container which does not have stated on it a refund value as 14 provided under section 455C.2 . 15 2. A dealer may refuse to accept and to pay the refund value 16 of any empty beverage container if the place of business of the 17 dealer and the kind and brand of empty beverage containers are 18 included in an order of the department approving a redemption 19 center under section 455C.6 . 20 3. A dealer or a distributor may refuse to accept and to pay 21 the refund value of an empty wine or alcoholic liquor container 22 which is marked to indicate that it was sold by a state liquor 23 store. The alcoholic beverages division shall not reimburse 24 a dealer or a distributor the refund value on an empty wine or 25 alcoholic liquor container which is marked to indicate that the 26 container was sold by a state liquor store. 27 Sec. 5. Section 455C.7, Code 2016, is amended to read as 28 follows: 29 455C.7 Unapproved redemption centers. 30 Any person may establish a redemption center which has not 31 been approved by the department, at which a consumer may return 32 empty beverage containers and receive payment of the refund 33 value of the beverage containers. The establishment of an 34 unapproved redemption center shall not relieve any dealer from 35 -2- LSB 5373YC (1) 86 tr/rj 2/ 3

H.F. _____ the responsibility of redeeming any empty beverage containers 1 of the kind and brand sold by the dealer. 2 Sec. 6. Section 455C.14, subsection 1, Code 2016, is amended 3 to read as follows: 4 1. If the refund value indication required under section 5 455C.5 on an empty nonrefillable metal beverage container 6 is readable but the redemption of the container is lawfully 7 refused by a dealer or person operating a redemption center 8 under other sections of this chapter or rules adopted pursuant 9 to these sections, the container shall be accepted and the 10 refund value paid to a consumer as provided in this section . 11 Each beer distributor selling nonrefillable metal beverage 12 containers in this state shall provide individually or 13 collectively by contract or agreement with a dealer, person 14 operating a redemption center or another person , at least 15 one facility in the county seat of each county where refused 16 empty nonrefillable metal beverage containers having a 17 readable refund value indication as required by this chapter 18 are accepted and redeemed. In cities having a population of 19 twenty-five thousand or more, the number of the facilities 20 provided shall be one for each twenty-five thousand population 21 or a fractional part of that population. 22 EXPLANATION 23 The inclusion of this explanation does not constitute agreement with 24 the explanation’s substance by the members of the general assembly. 25 This bill relieves dealers from the requirement that they 26 must accept the return of beverage containers from consumers 27 and return the container deposit to consumers. Thus, consumers 28 would be required to return beverage containers to redemption 29 centers to redeem the deposit. 30 -3- LSB 5373YC (1) 86 tr/rj 3/ 3