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House File 412 - IntroducedA Bill ForAn Act 1relating to the acceptance of beverage containers by
2dealers and redemption centers and providing effective date
3provisions.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 455C.1, Code 2019, is amended by adding
2the following new subsection:
3 NEW SUBSECTION. 12A. “Participating dealer” means a dealer
4who accepts the return of empty beverage containers from a
5consumer.
6 Sec. 2. Section 455C.2, Code 2019, is amended to read as
7follows:
8455C.2 Refund values.
91. A refund value of not less than five cents shall be paid
10by the consumer on each beverage container sold in this state
11by a dealer for consumption off the premises. Upon return of
12the empty beverage container upon which a refund value has
13been paid to the participating dealer or person operating
14a redemption center and acceptance of the empty beverage
15container by the participating dealer or person operating a
16redemption center, the participating dealer or person operating
17a redemption center shall return the amount of the refund value
18to the consumer.
192. In addition to the refund value provided in subsection 1
20of this section, a participating dealer, or person operating a
21redemption center who redeems empty beverage containers, or a
22dealer agent shall be reimbursed by the distributor required to
23accept the empty beverage containers an amount which that is
24one cent per container. A participating dealer, dealer agent,
25or person operating a redemption center may compact empty
26metal beverage containers with the approval of the distributor
27required to accept the containers.
28 Sec. 3. Section 455C.3, subsections 1, 2, and 4, Code 2019,
29are amended to read as follows:
301. A participating dealer shall not refuse to accept from a
31consumer any empty beverage container of the kind, size, and
32brand sold by the participating dealer, or refuse to pay to the
33consumer the refund value of a beverage container as provided
34under section 455C.2.
352. A distributor shall accept and pick up from a
-1- 1participating dealer served by the distributor or a redemption
2center for a dealer served by the distributor at least weekly,
3or when the distributor delivers the beverage product if
4deliveries are less frequent than weekly, any empty beverage
5container of the kind, size, and brand sold by the distributor,
6and shall pay to the participating dealer or person operating
7a redemption center the refund value of a beverage container
8and the reimbursement as provided under section 455C.2 within
9one week following pickup of the containers or when the
10participating dealer or redemption center normally pays the
11distributor for the deposit on beverage products purchased from
12the distributor if less frequent than weekly. A distributor
13or employee or agent of a distributor is not in violation
14of this subsection if a redemption center is closed when the
15distributor attempts to make a regular delivery or a regular
16pickup of empty beverage containers. This subsection does
17not apply to a distributor selling alcoholic liquor to the
18alcoholic beverages division of the department of commerce.
194. A distributor shall accept from a dealer agent any empty
20beverage container of the kind, size, and brand sold by the
21distributor and which that was picked up by the dealer agent
22from a participating dealer within the geographic territory
23served by the distributor and the distributor shall pay the
24dealer agent the refund value of the empty beverage container
25and the reimbursement as provided in section 455C.2.
26 Sec. 4. Section 455C.4, Code 2019, is amended to read as
27follows:
28455C.4 Refusal to accept containers.
291. Except as provided in section 455C.5, subsection 3, a
30participating dealer, a person operating a redemption center, a
31distributor or a manufacturer may refuse to accept any empty
32beverage container which does not have stated on it a refund
33value as provided under section 455C.2.
342. A dealer may refuse to accept and to pay the refund value
35of any empty beverage container if the place of business of the
-2-1dealer and the kind and brand of empty beverage containers are
2included in an order of the department approving a redemption
3center under section 455C.6 after providing notice to the
4department.
53. A dealer or a distributor may refuse to accept and to pay
6the refund value of an empty wine or alcoholic liquor container
7which is marked to indicate that it was sold by a state liquor
8store. The alcoholic beverages division shall not reimburse
9a dealer or a distributor the refund value on an empty wine or
10alcoholic liquor container which is marked to indicate that the
11container was sold by a state liquor store.
124. 3. A class “E” liquor control licensee may refuse to
13accept and to pay the refund value on an empty alcoholic liquor
14container from a participating dealer or a redemption center
15or from a person acting on behalf of or who has received empty
16alcoholic liquor containers from a participating dealer or a
17redemption center.
185. 4. A manufacturer or distributor may refuse to accept
19and to pay the refund value and reimbursement as provided in
20section 455C.2 on any empty beverage container that was picked
21up by a dealer agent from a participating dealer outside the
22geographic territory served by the manufacturer or distributor.
23 Sec. 5. Section 455C.6, subsections 1, 2, and 5, Code 2019,
24are amended to read as follows:
251. To facilitate the return of empty beverage containers
26and to serve dealers of beverages, any person may establish a
27redemption center, subject to the approval of the department,
28 at which consumers may return empty beverage containers
29and receive payment of the refund value of such beverage
30containers.
312. An application for approval of Written notice of the
32operation of a redemption center shall be filed with the
33department. The application notice shall state the name and
34address of the person responsible for the establishment and
35operation of the redemption center, the kind and brand names
-3-1of the beverage containers which that will be accepted at the
2redemption center, and the names and addresses of the dealers
3to be served by the redemption center. The application notice
4 shall contain such other information as the director may
5reasonably require.
65. All approved redemption centers shall meet applicable
7health standards.
8 Sec. 6. Section 455C.6, subsections 3 and 4, Code 2019, are
9amended by striking the subsections.
10 Sec. 7. Section 455C.12, subsections 2 and 3, Code 2019, are
11amended to read as follows:
122. A distributor who collects or attempts to collect
13a refund value on an empty beverage container when the
14distributor has paid the refund value on the container to a
15participating dealer, redemption center, or consumer is guilty
16of a fraudulent practice.
173. Any person who does any of the following acts is guilty
18of a fraudulent practice:
19a. Collects or attempts to collect the refund value on the
20container a second time, with the knowledge that the refund
21value has once been paid by the distributor to a participating
22 dealer, redemption center, or consumer.
23b. Manufactures, sells, possesses or applies a false or
24counterfeit label or indication which shows or purports to show
25a refund value for a beverage container, with intent to use the
26false or counterfeit label or indication.
27c. Collects or attempts to collect a refund value on
28a container with the use of a false or counterfeit label
29or indication showing a refund value, knowing the label or
30indication to be false or counterfeit.
31 Sec. 8. Section 455C.14, subsection 1, Code 2019, is amended
32to read as follows:
331. If the refund value indication required under section
34455C.5 on an empty nonrefillable metal beverage container
35is readable but the redemption of the container is lawfully
-4-1refused by a participating dealer or person operating a
2redemption center under other sections of this chapter or
3rules adopted pursuant to these sections, the container
4shall be accepted and the refund value paid to a consumer
5as provided in this section. Each beer distributor selling
6nonrefillable metal beverage containers in this state shall
7provide individually or collectively by contract or agreement
8with a dealer, person operating a redemption center, or another
9person, at least one facility in the county seat of each county
10where refused empty nonrefillable metal beverage containers
11having a readable refund value indication as required by
12this chapter are accepted and redeemed. In cities having a
13population of twenty-five thousand or more, the number of the
14facilities provided shall be one for each twenty-five thousand
15population or a fractional part of that population.
16 Sec. 9. REPEAL. Sections 455C.7 and 455C.10, Code 2019,
17are repealed.
18 Sec. 10. EFFECTIVE DATE. The following take effect July 1,
192020:
20The sections of this Act amending sections 455C.1, 455C.2,
21455C.3, and 455C.4.
22 Sec. 11. EFFECTIVE DATE. The following, being deemed of
23immediate importance, take effect upon enactment:
24The sections of this Act amending or repealing sections
25455C.6, 455C.7, 455C.10, 455C.12, and 455C.14.
26EXPLANATION
27The inclusion of this explanation does not constitute agreement with
28the explanation’s substance by the members of the general assembly.
29This bill relates to acceptance of beverage containers by
30dealers and redemption centers.
31Current law allows a consumer to take an eligible beverage
32container to a dealer, dealer agent, or a redemption center and
33receive a 5-cent refund for every eligible beverage container
34that the consumer returns. The bill allows a dealer to refuse
35to accept beverage containers for redemption after providing
-5-1notice to the department of natural resources. The bill
2eliminates the approval process for a redemption center and
3instead requires all redemption centers to provide a written
4notice of operation to the department. The bill also requires
5all redemption centers to meet applicable health standards.
6The sections of the bill amending Code sections 455C.1,
7455C.2, 455C.3, and 455C.4 are effective July 1, 2020. All
8other sections of the bill are effective upon enactment.
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2dealers and redemption centers and providing effective date
3provisions.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 455C.1, Code 2019, is amended by adding
2the following new subsection:
3 NEW SUBSECTION. 12A. “Participating dealer” means a dealer
4who accepts the return of empty beverage containers from a
5consumer.
6 Sec. 2. Section 455C.2, Code 2019, is amended to read as
7follows:
8455C.2 Refund values.
91. A refund value of not less than five cents shall be paid
10by the consumer on each beverage container sold in this state
11by a dealer for consumption off the premises. Upon return of
12the empty beverage container upon which a refund value has
13been paid to the participating dealer or person operating
14a redemption center and acceptance of the empty beverage
15container by the participating dealer or person operating a
16redemption center, the participating dealer or person operating
17a redemption center shall return the amount of the refund value
18to the consumer.
192. In addition to the refund value provided in subsection 1
20of this section, a participating dealer, or person operating a
21redemption center who redeems empty beverage containers, or a
22dealer agent shall be reimbursed by the distributor required to
23accept the empty beverage containers an amount which that is
24one cent per container. A participating dealer, dealer agent,
25or person operating a redemption center may compact empty
26metal beverage containers with the approval of the distributor
27required to accept the containers.
28 Sec. 3. Section 455C.3, subsections 1, 2, and 4, Code 2019,
29are amended to read as follows:
301. A participating dealer shall not refuse to accept from a
31consumer any empty beverage container of the kind, size, and
32brand sold by the participating dealer, or refuse to pay to the
33consumer the refund value of a beverage container as provided
34under section 455C.2.
352. A distributor shall accept and pick up from a
-1- 1participating dealer served by the distributor or a redemption
2center for a dealer served by the distributor at least weekly,
3or when the distributor delivers the beverage product if
4deliveries are less frequent than weekly, any empty beverage
5container of the kind, size, and brand sold by the distributor,
6and shall pay to the participating dealer or person operating
7a redemption center the refund value of a beverage container
8and the reimbursement as provided under section 455C.2 within
9one week following pickup of the containers or when the
10participating dealer or redemption center normally pays the
11distributor for the deposit on beverage products purchased from
12the distributor if less frequent than weekly. A distributor
13or employee or agent of a distributor is not in violation
14of this subsection if a redemption center is closed when the
15distributor attempts to make a regular delivery or a regular
16pickup of empty beverage containers. This subsection does
17not apply to a distributor selling alcoholic liquor to the
18alcoholic beverages division of the department of commerce.
194. A distributor shall accept from a dealer agent any empty
20beverage container of the kind, size, and brand sold by the
21distributor and which that was picked up by the dealer agent
22from a participating dealer within the geographic territory
23served by the distributor and the distributor shall pay the
24dealer agent the refund value of the empty beverage container
25and the reimbursement as provided in section 455C.2.
26 Sec. 4. Section 455C.4, Code 2019, is amended to read as
27follows:
28455C.4 Refusal to accept containers.
291. Except as provided in section 455C.5, subsection 3, a
30participating dealer, a person operating a redemption center, a
31distributor or a manufacturer may refuse to accept any empty
32beverage container which does not have stated on it a refund
33value as provided under section 455C.2.
342. A dealer may refuse to accept and to pay the refund value
35of any empty beverage container if the place of business of the
-2-1dealer and the kind and brand of empty beverage containers are
2included in an order of the department approving a redemption
3center under section 455C.6 after providing notice to the
4department.
53. A dealer or a distributor may refuse to accept and to pay
6the refund value of an empty wine or alcoholic liquor container
7which is marked to indicate that it was sold by a state liquor
8store. The alcoholic beverages division shall not reimburse
9a dealer or a distributor the refund value on an empty wine or
10alcoholic liquor container which is marked to indicate that the
11container was sold by a state liquor store.
124. 3. A class “E” liquor control licensee may refuse to
13accept and to pay the refund value on an empty alcoholic liquor
14container from a participating dealer or a redemption center
15or from a person acting on behalf of or who has received empty
16alcoholic liquor containers from a participating dealer or a
17redemption center.
185. 4. A manufacturer or distributor may refuse to accept
19and to pay the refund value and reimbursement as provided in
20section 455C.2 on any empty beverage container that was picked
21up by a dealer agent from a participating dealer outside the
22geographic territory served by the manufacturer or distributor.
23 Sec. 5. Section 455C.6, subsections 1, 2, and 5, Code 2019,
24are amended to read as follows:
251. To facilitate the return of empty beverage containers
26and to serve dealers of beverages, any person may establish a
27redemption center, subject to the approval of the department,
28 at which consumers may return empty beverage containers
29and receive payment of the refund value of such beverage
30containers.
312. An application for approval of Written notice of the
32operation of a redemption center shall be filed with the
33department. The application notice shall state the name and
34address of the person responsible for the establishment and
35operation of the redemption center, the kind and brand names
-3-1of the beverage containers which that will be accepted at the
2redemption center, and the names and addresses of the dealers
3to be served by the redemption center. The application notice
4 shall contain such other information as the director may
5reasonably require.
65. All approved redemption centers shall meet applicable
7health standards.
8 Sec. 6. Section 455C.6, subsections 3 and 4, Code 2019, are
9amended by striking the subsections.
10 Sec. 7. Section 455C.12, subsections 2 and 3, Code 2019, are
11amended to read as follows:
122. A distributor who collects or attempts to collect
13a refund value on an empty beverage container when the
14distributor has paid the refund value on the container to a
15participating dealer, redemption center, or consumer is guilty
16of a fraudulent practice.
173. Any person who does any of the following acts is guilty
18of a fraudulent practice:
19a. Collects or attempts to collect the refund value on the
20container a second time, with the knowledge that the refund
21value has once been paid by the distributor to a participating
22 dealer, redemption center, or consumer.
23b. Manufactures, sells, possesses or applies a false or
24counterfeit label or indication which shows or purports to show
25a refund value for a beverage container, with intent to use the
26false or counterfeit label or indication.
27c. Collects or attempts to collect a refund value on
28a container with the use of a false or counterfeit label
29or indication showing a refund value, knowing the label or
30indication to be false or counterfeit.
31 Sec. 8. Section 455C.14, subsection 1, Code 2019, is amended
32to read as follows:
331. If the refund value indication required under section
34455C.5 on an empty nonrefillable metal beverage container
35is readable but the redemption of the container is lawfully
-4-1refused by a participating dealer or person operating a
2redemption center under other sections of this chapter or
3rules adopted pursuant to these sections, the container
4shall be accepted and the refund value paid to a consumer
5as provided in this section. Each beer distributor selling
6nonrefillable metal beverage containers in this state shall
7provide individually or collectively by contract or agreement
8with a dealer, person operating a redemption center, or another
9person, at least one facility in the county seat of each county
10where refused empty nonrefillable metal beverage containers
11having a readable refund value indication as required by
12this chapter are accepted and redeemed. In cities having a
13population of twenty-five thousand or more, the number of the
14facilities provided shall be one for each twenty-five thousand
15population or a fractional part of that population.
16 Sec. 9. REPEAL. Sections 455C.7 and 455C.10, Code 2019,
17are repealed.
18 Sec. 10. EFFECTIVE DATE. The following take effect July 1,
192020:
20The sections of this Act amending sections 455C.1, 455C.2,
21455C.3, and 455C.4.
22 Sec. 11. EFFECTIVE DATE. The following, being deemed of
23immediate importance, take effect upon enactment:
24The sections of this Act amending or repealing sections
25455C.6, 455C.7, 455C.10, 455C.12, and 455C.14.
26EXPLANATION
27The inclusion of this explanation does not constitute agreement with
28the explanation’s substance by the members of the general assembly.
29This bill relates to acceptance of beverage containers by
30dealers and redemption centers.
31Current law allows a consumer to take an eligible beverage
32container to a dealer, dealer agent, or a redemption center and
33receive a 5-cent refund for every eligible beverage container
34that the consumer returns. The bill allows a dealer to refuse
35to accept beverage containers for redemption after providing
-5-1notice to the department of natural resources. The bill
2eliminates the approval process for a redemption center and
3instead requires all redemption centers to provide a written
4notice of operation to the department. The bill also requires
5all redemption centers to meet applicable health standards.
6The sections of the bill amending Code sections 455C.1,
7455C.2, 455C.3, and 455C.4 are effective July 1, 2020. All
8other sections of the bill are effective upon enactment.
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