Senate File 2193 - Introduced SENATE FILE 2193 BY SCHULTZ A BILL FOR An Act relating to the handling fees for beverage containers. 1 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 2 TLSB 5501XS (7) 87 js/rn

S.F. 2193 Section 1. Section 455C.2, subsection 2, Code 2018, is 1 amended to read as follows: 2 2. In addition to the refund value provided in subsection 3 1 of this section , a dealer, or person operating a redemption 4 center who redeems empty beverage containers , or a dealer agent 5 shall be reimbursed by the distributor required to accept the 6 empty beverage containers an amount which is one cent two cents 7 per container. A dealer, dealer agent, or person operating a 8 redemption center may compact empty metal beverage containers 9 with the approval of the distributor required to accept the 10 containers. 11 Sec. 2. Section 455C.3, subsection 1, Code 2018, is amended 12 by striking the subsection and inserting in lieu thereof the 13 following: 14 1. If a dealer chooses to accept empty beverage containers, 15 the dealer must pay the refund value as provided in section 16 455C.2. 17 Sec. 3. Section 455C.3, subsection 2, Code 2018, is amended 18 to read as follows: 19 2. A distributor shall accept and pick up from a dealer 20 served by the distributor or a redemption center for a 21 dealer served by the distributor at least weekly, or when the 22 distributor delivers the beverage product if deliveries are 23 less frequent than weekly, any empty beverage container of the 24 kind, size and brand sold by the distributor, and shall pay to 25 the dealer or person operating a redemption center the refund 26 value of a beverage container and the reimbursement as provided 27 under section 455C.2 within one week following pickup of the 28 containers or when the dealer or redemption center normally 29 pays the distributor for the deposit on beverage products 30 purchased from the distributor if less frequent than weekly. 31 Upon delivery to a dealer, a dealer must pay the refund 32 value and a handling fee of one cent per beverage container 33 to the distributor. A distributor or employee or agent of 34 a distributor is not in violation of this subsection if a 35 -1- LSB 5501XS (7) 87 js/rn 1/ 2

S.F. 2193 redemption center is closed when the distributor attempts to 1 make a regular delivery or a regular pickup of empty beverage 2 containers. This subsection does not apply to a distributor 3 selling alcoholic liquor to the alcoholic beverages division 4 of the department of commerce. 5 EXPLANATION 6 The inclusion of this explanation does not constitute agreement with 7 the explanation’s substance by the members of the general assembly. 8 This bill relates to handling fees between beverage 9 distributors and dealers, dealer agents, and independent 10 redemption centers. 11 Currently, a dealer must accept any empty beverage container 12 of the kind, size, and brand sold by the dealer and pay to 13 the consumer the full refund value. A distributor collects 14 beverage containers from a dealer, dealer agent, or independent 15 redemption center, at which time the distributor pays the 16 dealer, dealer agent, or independent redemption center 5 cents 17 per eligible container plus a handling fee of an additional 1 18 cent per empty container. 19 The bill affects the handling fees between distributors and 20 dealers, dealer agents, and independent redemption centers. 21 When a distributor sells beverages to a dealer, the dealer 22 will pay to the distributor a 1-cent handling fee per beverage 23 container in addition to the current deposit. A consumer 24 will still pay a 5-cent deposit per beverage container. A 25 dealer may choose whether to accept a beverage container from 26 a consumer, even if the beverage container is of the kind, 27 size, and brand sold by the dealer, but must pay the consumer 28 the refund value if the dealer chooses to accept the beverage 29 container. When a distributor collects beverage containers 30 from a dealer, dealer agent, or independent redemption center, 31 the dealer, dealer agent, or independent redemption center will 32 charge the distributor a handling fee of 2 cents per beverage 33 container. 34 -2- LSB 5501XS (7) 87 js/rn 2/ 2