Senate File 494 - Introduced SENATE FILE 494 BY CELSI A BILL FOR An Act relating to the applicability of beverage containers 1 control provisions, refund value for beverage containers, 2 and handling fees. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2644XS (4) 88 js/tm

S.F. 494 Section 1. Section 455C.1, subsections 1 and 2, Code 2019, 1 are amended to read as follows: 2 1. a. “Beverage” means wine all of the following: 3 (1) Wine as defined in section 123.3, subsection 48 , 4 alcoholic . 5 (2) Alcoholic liquor or intoxicating liquor as defined in 6 section 123.3, subsection 5 , beer . 7 (3) Beer as defined in section 123.3, subsection 7 , mineral . 8 (4) Mineral water, soda water and similar carbonated soft 9 drinks in liquid form and intended for human consumption . 10 (5) Any liquid identified through the use of letters, 11 words, or symbols on its product label as a type of water, 12 including any flavored water or nutritionally enhanced water, 13 in a container more than or equal to four fluid ounces and less 14 than three liters. 15 (6) Tea and coffee drinks, regardless of dairy-derived 16 content, in a container more than or equal to four fluid ounces 17 and less than three liters. 18 (7) Any other liquid that is intended for human consumption 19 and is in a container more than or equal to four fluid ounces 20 and less than three liters. 21 b. For the purpose of this chapter, the term “beverage” 22 excludes the following: 23 (1) A liquid that is a syrup, in a concentrated form, or 24 typically added as a minor flavoring ingredient in food or 25 drink, such as but not limited to extracts, cooking additives, 26 sauces, or condiments, and has more than twenty percent juice 27 content. 28 (2) A liquid that is designed and consumed only as a dietary 29 supplement and not as a beverage as defined in the Dietary 30 Supplement Health and Education Act of 1994, Pub. L. No. 31 103-417. 32 (3) Instant drink powders. 33 (4) Milk, or any product marketed as a plant-based milk, 34 and all other dairy-derived products, except tea and coffee 35 -1- LSB 2644XS (4) 88 js/tm 1/ 3

S.F. 494 drinks included in paragraph “a” , subparagraph (6), of this 1 subsection. 2 2. “Beverage container” means any sealed glass, plastic, 3 or metal bottle , or can , jar or carton containing a beverage. 4 “Beverage container” does not include jars, cartons, foil 5 pouches, and drink boxes. 6 Sec. 2. Section 455C.2, Code 2019, is amended to read as 7 follows: 8 455C.2 Refund values. 9 1. A refund value of not less than five seventeen cents 10 shall be paid by the consumer on each beverage container sold 11 in this state by a dealer for consumption off the premises. 12 Upon return of the empty beverage container upon which a 13 refund value has been paid to the dealer or person operating 14 a redemption center and acceptance of the empty beverage 15 container by the dealer or person operating a redemption 16 center, the dealer or person operating a redemption center 17 shall return the amount of the refund value to the consumer. 18 2. In addition to the refund value provided in subsection 19 1 of this section , a dealer, or person operating a redemption 20 center who redeems empty beverage containers or a dealer agent 21 shall be reimbursed by the distributor required to accept 22 the empty beverage containers an amount which is one cent 23 three cents per container. A dealer, dealer agent, or person 24 operating a redemption center may compact empty metal beverage 25 containers with the approval of the distributor required to 26 accept the containers. 27 Sec. 3. Section 455C.5, subsection 3, Code 2019, is amended 28 to read as follows: 29 3. The provisions of subsections 1 and 2 of this section 30 do not apply to a refillable glass beverage container which 31 has a brand name permanently marked on it and which has a 32 refund value of not less than five seventeen cents, to any 33 other refillable beverage container which has a refund value 34 of not less than five seventeen cents and which is exempted 35 -2- LSB 2644XS (4) 88 js/tm 2/ 3

S.F. 494 by the director under rules adopted by the commission, or to 1 a beverage container sold aboard a commercial airliner or 2 passenger train for consumption on the premises. 3 EXPLANATION 4 The inclusion of this explanation does not constitute agreement with 5 the explanation’s substance by the members of the general assembly. 6 Current law limits beverage containers subject to beverage 7 containers control deposit and refund provisions to any sealed 8 glass, plastic, or metal bottle, can, jar, or carton holding 9 wine, alcoholic liquor, beer, mineral water, soda water, and 10 carbonated soft drinks. When a distributor sells beverages in 11 eligible containers to a dealer, the distributor attaches an 12 extra 5 cents per eligible container to the sale price. When a 13 dealer sells beverages in eligible containers to a consumer, 14 the dealer passes on the 5-cent deposit to the sale price. A 15 consumer can take eligible beverage containers to a dealer, 16 dealer agent, or a redemption center and receive a 5-cent 17 refund for every eligible beverage container that the consumer 18 returns. A distributor collects eligible containers from a 19 dealer, dealer agent, or redemption center, at which time 20 the distributor pays the dealer, dealer agent, or redemption 21 center 5 cents per eligible container plus a handling fee of an 22 additional 1 cent per empty container. 23 This bill expands the definition of “beverage” and excludes 24 certain substances from that definition. The bill removes jars 25 and cartons from the definition of “beverage container” and 26 instead excludes jars, cartons, foil pouches, and drink boxes. 27 The bill increases the refund and deposit amount from 5 cents 28 to 17 cents for all beverage containers subject to the deposit 29 and refund provisions. The bill also increases the handling 30 fee that a dealer, dealer agent, or redemption center will 31 charge a distributor from 1 cent to 3 cents. 32 -3- LSB 2644XS (4) 88 js/tm 3/ 3