Senate File 59 - IntroducedA Bill ForAn Act 1relating to the redemption and handling of beverage
2containers and including effective date provisions.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1   Section 1.  Section 455C.1, subsections 6 and 10, Code 2019,
2are amended by striking the subsections.
3   Sec. 2.  Section 455C.2, Code 2019, is amended to read as
4follows:
   5455C.2  Refund values.
   61.  A refund value of not less than five cents shall be paid
7by the consumer on each beverage container sold in this state
8by a dealer for consumption off the premises. Upon return of
9the empty beverage container upon which a refund value has been
10paid to the dealer or a person operating a redemption center
11and acceptance of the empty beverage container by the dealer
12or
person operating a redemption center, the dealer or person
13operating a redemption center shall return the amount of the
14refund value to the consumer.
   152.  In addition to the refund value provided in subsection
161 of this section, a dealer, or person operating a redemption
17center who redeems empty beverage containers or a dealer agent
18 shall be reimbursed by the distributor required to accept the
19empty beverage containers an amount which that is one cent
20
 two cents per container. A dealer, dealer agent, or person
21operating a redemption center may compact empty metal beverage
22containers with the approval of the distributor required to
23accept the containers.
24   Sec. 3.  Section 455C.3, subsections 1 and 4, Code 2019, are
25amended by striking the subsections.
26   Sec. 4.  Section 455C.3, subsection 2, Code 2019, is amended
27to read as follows:
   282.  A distributor shall accept and pick up from a dealer
29served by the distributor or
a redemption center for a
30dealer served by the distributor
at least weekly, or when the
31distributor delivers the beverage product if deliveries are
32less frequent than weekly,
any empty beverage container of the
33kind, size, and brand sold by the distributor, and shall pay to
34the dealer or person operating a redemption center the refund
35value of a beverage container and the reimbursement as provided
-1-1under section 455C.2 within one week following pickup of the
2containers or when the dealer or redemption center normally
3pays the distributor for the deposit on beverage products
4purchased from the distributor if less frequent than weekly
.
5A distributor or employee or agent of a distributor is not in
6violation of this subsection if a redemption center is closed
7when the distributor attempts to make a regular delivery or a
8regular pickup of empty beverage containers. This subsection
9does not apply to a distributor selling alcoholic liquor to the
10alcoholic beverages division of the department of commerce.
11   Sec. 5.  Section 455C.4, subsections 1 and 4, Code 2019, are
12amended to read as follows:
   131.  Except as provided in section 455C.5, subsection 3, a
14dealer,
a person operating a redemption center, a distributor,
15 or a manufacturer may refuse to accept any empty beverage
16container which that does not have stated on it a refund value
17as provided under section 455C.2.
   184.  A class “E” liquor control licensee may refuse to accept
19and to pay the refund value on an empty alcoholic liquor
20container from a dealer or a redemption center or from a person
21acting on behalf of or who has received empty alcoholic liquor
22containers from a dealer or a redemption center.
23   Sec. 6.  Section 455C.4, subsections 2, 3, and 5, Code 2019,
24are amended by striking the subsections.
25   Sec. 7.  Section 455C.6, subsections 1, 2, 3, and 4, Code
262019, are amended to read as follows:
   271.  To facilitate the return of empty beverage containers and
28to serve dealers of beverages, any
 Any person may establish a
29redemption center, subject to the approval of the department,
30at which consumers may return empty beverage containers
31and receive payment of the refund value of such beverage
32containers.
   332.  An application for approval of a redemption center
34shall be filed with the department. The application shall
35state the name and address of the person responsible for the
-2-1establishment and operation of the redemption center, and the
2kind and brand names of the beverage containers which that
3 will be accepted at the redemption center, and the names and
4addresses of the dealers to be served by the redemption center
.
5The application shall contain such other information as the
6director may reasonably require. A person who operates an
7unapproved redemption center prior to July 1, 2020, shall have
8until December 1, 2020, to gain approval and may continue to
9operate until such date.

   103.  The department shall approve a redemption center if it
11finds that the redemption center will provide a convenient
12service to consumers for the return of empty beverage
13containers. The order of the department approving a redemption
14center shall state the dealers to be served by the redemption
15center and
the kind and brand names of empty beverage
16containers which that the redemption center must accept. The
17order may contain such other provisions to insure ensure that
18the redemption center will provide a convenient service to the
19public as the director may determine.
   204.  The department may review the approval of any redemption
21center at any time. After written notice to the person
22responsible for the establishment and operation of the
23redemption center, and to the dealers served by the redemption
24center,
the commission may, after hearing, withdraw approval of
25a redemption center if the commission finds there has not been
26compliance with the department’s order approving the redemption
27center, or if the redemption center no longer provides a
28convenient service to the public.
29   Sec. 8.  Section 455C.12, subsection 2, Code 2019, is amended
30to read as follows:
   312.  A distributor who collects or attempts to collect
32a refund value on an empty beverage container when the
33distributor has paid the refund value on the container to
34a dealer, redemption center, or consumer is guilty of a
35fraudulent practice.
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1   Sec. 9.  Section 455C.12, subsection 3, paragraph a, Code
22019, is amended to read as follows:
   3a.  Collects or attempts to collect the refund value on the
4container a second time, with the knowledge that the refund
5value has once been paid by the distributor to a dealer,
6 redemption center or consumer.
7   Sec. 10.  Section 455C.14, subsection 1, Code 2019, is
8amended to read as follows:
   91.  If the refund value indication required under section
10455C.5 on an empty nonrefillable metal beverage container
11is readable but the redemption of the container is lawfully
12refused by a dealer or person operating a redemption center
13under other sections of this chapter or rules adopted pursuant
14to these sections, the container shall be accepted and the
15refund value paid to a consumer as provided in this section.
16Each beer distributor selling nonrefillable metal beverage
17containers in this state shall provide individually or
18collectively by contract or agreement with a dealer, person
19operating a redemption center or another person, at least
20one facility in the county seat of each county where refused
21empty nonrefillable metal beverage containers having a
22readable refund value indication as required by this chapter
23are accepted and redeemed. In cities having a population of
24twenty-five thousand or more, the number of the facilities
25provided shall be one for each twenty-five thousand population
26or a fractional part of that population.
27   Sec. 11.  Section 455C.16, Code 2019, is amended to read as
28follows:
   29455C.16  Beverage containers — disposal at sanitary landfill
30prohibited.
   31Beginning July 1, 1990, the The final disposal of beverage
32containers by a dealer, distributor, or manufacturer, or person
33operating a redemption center, in a sanitary landfill, is
34prohibited. Beginning September 1, 1992
including the final
35disposal of beverage containers that used to contain alcoholic
-4-1liquor as defined in section 123.3, subsection 5, by a dealer,
2 distributor, or manufacturer, or person operating a redemption
3center in a sanitary landfill, is prohibited.
4   Sec. 12.  REPEAL.  Section 455C.7, Code 2019, is repealed.
5   Sec. 13.  EFFECTIVE DATE.  This Act takes effect July 1,
62020.
7EXPLANATION
8The inclusion of this explanation does not constitute agreement with
9the explanation’s substance by the members of the general assembly.
   10Under current law, a consumer may return an empty beverage
11container upon which a refund value has been paid to a dealer
12or a redemption center. When a distributor collects empty
13beverage containers from a dealer, dealer agent, or redemption
14center, the distributor reimburses the dealer, dealer agent, or
15redemption center the refund value plus a 1-cent handling fee
16for each empty beverage container. Current law also allows any
17person to establish a redemption center that serves a dealer
18if it is approved by the department of natural resources. Any
19person can also establish an unapproved redemption center.
   20Under this bill, a consumer must return an empty beverage
21container to a redemption center if the consumer seeks
22to redeem a refund value paid for the beverage container.
23Additionally, the handling fee paid by a distributor is
24increased to 2 cents for each empty beverage container. A
25distributor must pick up from a redemption center empty
26beverage containers on at least a weekly basis. The bill makes
27conforming changes throughout Code chapter 455C to remove
28instances of “dealer” and “dealer agent” from provisions
29dealing with redemption. Lastly, the bill requires all
30redemption centers to be approved by the department; any
31unapproved redemption center that currently exists can continue
32operating without approval until December 1, 2020.
   33The bill takes effect on July 1, 2020.
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