House File 151 - IntroducedA Bill ForAn Act 1relating to the applicability of the beverage containers
2control program and making appropriations.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1   Section 1.  Section 16.41, subsection 1, Code 2021, is
2amended to read as follows:
   31.  A shelter assistance fund is created as a revolving
4fund in the state treasury under the control of the authority
5consisting of any moneys appropriated by the general assembly
6and received under section 428A.8 and section 455C.11 for
7costs of operations of shelters for the homeless and domestic
8violence shelters, essential services for the homeless, and
9evaluation and reporting of services for the homeless. Each
10fiscal year, moneys in the fund, in an amount equal to not more
11than three percent of the total moneys distributed as grants
12from the fund during the fiscal year, may be used for purposes
13of administering the fund.
14   Sec. 2.  Section 190B.201, subsection 1, Code 2021, is
15amended to read as follows:
   161.  An Iowa emergency food purchase program fund is
17established in the state treasury and shall be administered by
18the department of agriculture and land stewardship. The fund
19shall consist of moneys appropriated to the fund pursuant to
20section 602.8108, subsection 11, section 455C.11, subsection 2,
21 and any other moneys appropriated to the fund.
22   Sec. 3.  Section 455C.1, subsections 1 and 6, Code 2021, are
23amended to read as follows:
   241.  “Beverage” means wine as defined in section 123.3,
25subsection 54, alcoholic liquor as defined in section 123.3,
26subsection 5, beer as defined in section 123.3, subsection
277, high alcoholic content beer as defined in section 123.3,
28subsection 22, canned cocktail as defined in section 123.3,
29subsection 11,
mineral water, soda water, and similar
30carbonated soft drinks in liquid form and intended for human
31consumption.
   326.  “Dealer agent” means a person who solicits or picks
33up empty beverage containers from a participating dealer for
34the purpose of returning the empty beverage containers to a
35distributor or manufacturer.
-1-
1   Sec. 4.  Section 455C.1, Code 2021, is amended by adding the
2following new subsection:
3   NEW SUBSECTION.  12A.  “Participating dealer” means a dealer
4who accepts the return of empty beverage containers from a
5consumer.
6   Sec. 5.  Section 455C.2, Code 2021, 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
201 of this section, a participating dealer, dealer agent,
21 or person operating a redemption center who redeems empty
22beverage containers or a dealer agent shall be reimbursed
23by the distributor required to accept the empty beverage
24containers an amount which is one cent two cents per container.
25participating dealer, dealer agent, or person operating a
26redemption center may compact empty metal beverage containers
27with the approval of the distributor required to accept the
28containers.
29   Sec. 6.  Section 455C.3, subsections 1, 2, and 4, Code 2021,
30are amended to read as follows:
   311.  A participating dealer shall not refuse to accept from a
32consumer any empty beverage container of the kind, size, and
33brand sold by the participating dealer, or refuse to pay to the
34consumer the refund value of a beverage container as provided
35under section 455C.2.
-2-
   12.  A distributor shall accept and pick up from a
 2participating dealer served by the distributor or a redemption
3center for a dealer served by the distributor at least weekly,
4or when the distributor delivers the beverage product if
5deliveries are less frequent than weekly, any empty beverage
6container of the kind, size, and brand sold by the distributor,
7and shall pay to the participating dealer or person operating
8a redemption center the refund value of a beverage container
9and the reimbursement as provided under section 455C.2 within
10one week following pickup of the containers or when the
 11participating dealer or redemption center normally pays the
12distributor for the deposit on beverage products purchased from
13the distributor if less frequent than weekly. A distributor
14or employee or agent of a distributor is not in violation
15of this subsection if a redemption center is closed when the
16distributor attempts to make a regular delivery or a regular
17pickup of empty beverage containers. This subsection does
18not apply to a distributor selling alcoholic liquor to the
19alcoholic beverages division of the department of commerce.
   204.  A distributor shall accept from a dealer agent any empty
21beverage container of the kind, size, and brand sold by the
22distributor and which that was picked up by the dealer agent
23from a participating dealer within the geographic territory
24served by the distributor and the distributor shall pay the
25dealer agent the refund value of the empty beverage container
26and the reimbursement as provided in section 455C.2.
27   Sec. 7.  Section 455C.4, Code 2021, is amended to read as
28follows:
   29455C.4  Refusal to accept containers.
   301.  Except as provided in section 455C.5, subsection 3, a
 31participating dealer, a person operating a redemption center, a
32distributor, or a manufacturer may refuse to accept any empty
33beverage container which that does not have stated on it a
34refund value as provided under section 455C.2.
   352.  A dealer may refuse to accept and to pay the refund value
-3-1of any empty beverage container if the place of business of the
2dealer and the kind and brand of empty beverage containers are
3included in an order of the department approving a redemption
4center under section 455C.6
 after providing notice to the
5department if the place of business of the dealer is located
6within a twenty-mile radius of a redemption center or dealer
7agent or if the dealer sells prepared food for consumption on
8or off the premises
.
   93.  A dealer or a distributor may refuse to accept and to pay
10the refund value of an empty wine or alcoholic liquor container
11which is marked to indicate that it was sold by a state liquor
12store. The alcoholic beverages division shall not reimburse
13a dealer or a distributor the refund value on an empty wine or
14alcoholic liquor container which is marked to indicate that the
15container was sold by a state liquor store.
   164.    3.  A class “E” liquor control licensee may refuse to
17accept and to pay the refund value on an empty alcoholic liquor
18container from a participating dealer or a redemption center
19or from a person acting on behalf of or who has received empty
20alcoholic liquor containers from a participating dealer or a
21redemption center.
   225.    4.  A manufacturer or distributor may refuse to accept
23and to pay the refund value and reimbursement as provided in
24section 455C.2 on any empty beverage container that was picked
25up by a dealer agent from a participating dealer outside the
26geographic territory served by the manufacturer or distributor.
27   Sec. 8.  Section 455C.5, subsection 1, Code 2021, is amended
28to read as follows:
   291.  Each beverage container sold or offered for sale in
30this state by a dealer shall clearly indicate the refund value
31of the container
by embossing or by a stamp, label, or other
32method securely affixed to the container, the refund value of
33the container
. The department shall specify, by rule, the
34minimum size of the refund value indication on the beverage
35containers.
-4-
1   Sec. 9.  Section 455C.7, Code 2021, is amended to read as
2follows:
   3455C.7  Unapproved redemption centers.
   4Any person may establish a redemption center which that has
5not been approved by the department, at which a consumer may
6return empty beverage containers and receive payment of the
7refund value of the beverage containers. The establishment
8of an unapproved redemption center shall not relieve any
9dealer from the responsibility of redeeming any empty beverage
10containers of the kind and brand sold by the dealer except as
11provided in section 455C.4, subsection 2
.
12   Sec. 10.  NEW SECTION.  455C.11  Unpaid refund value.
   131.  Except as provided in subsection 2, a distributor shall
14keep all refund value that has not been paid by the distributor
15to a participating dealer, dealer agent, or redemption
16center. On or before January 31 of each year, the distributor
17shall submit to the department in a manner determined by the
18department a report detailing the amount of unpaid refund value
19that the distributor held at the end of the preceding calendar
20year.
   212.  Fifteen percent of the refund value that has not been
22paid by a distributor to a participating dealer, dealer agent,
23or redemption center on and after July 1, 2021, shall be
24credited monthly to the treasurer of state for deposit in the
25following manner:
   26a.  One-third of the amount credited to the treasurer of
27state shall be deposited in the redemption rate improvement
28projects fund established in section 455C.11A.
   29b.  One-third of the amount credited to the treasurer
30of state shall be deposited in the shelter assistance fund
31established in section 16.41.
   32c.  One-third of the amount credited to the treasurer of
33state shall be deposited in the Iowa emergency food purchase
34program fund established in section 190B.201.
35   Sec. 11.  NEW SECTION.  455C.11A  Redemption rate improvement
-5-1projects program — fund created.
   21.  The department shall establish and the commission shall
3administer a redemption rate improvement projects program. The
4purpose of the program shall be to launch initiatives with
5interested parties to increase the redemption rate of beverage
6containers in the state. The program shall be administered in
7accordance with rules adopted by the commission pursuant to
8chapter 17A.
   92.  A redemption rate improvement projects program fund is
10established in the state treasury under the control of the
11commission. The fund shall consist of moneys appropriated to
12or deposited in the fund. Moneys in the fund are appropriated
13to the commission for purposes set forth under subsection 3.
14Notwithstanding section 8.33, moneys in the fund that remain
15unencumbered or unobligated at the close of a fiscal year shall
16not revert but shall remain available for expenditure for the
17purposes designated. Notwithstanding section 12C.7, subsection
182, interest or earnings on moneys in the fund shall be credited
19to the fund.
   203.  Moneys in the fund shall be used by the commission to
21cover costs for the administration of the program, purchase and
22distribute materials for marketing the program, and provide
23public education and outreach relating to beverage container
24redemption.
25   Sec. 12.  Section 455C.12, subsections 2 and 3, Code 2021,
26are amended to read as follows:
   272.  A distributor who collects or attempts to collect
28a refund value on an empty beverage container when the
29distributor has paid the refund value on the container to a
 30participating dealer, redemption center, or consumer is guilty
31of a fraudulent practice.
   323.  Any person who does any of the following acts is guilty
33of a fraudulent practice:
   34a.  Collects or attempts to collect the refund value on the
35container a second time, with the knowledge that the refund
-6-1value has once been paid by the distributor to a participating
2 dealer, redemption center, or consumer.
   3b.  Manufactures, sells, possesses, or applies a false or
4counterfeit label or indication which that shows or purports to
5show a refund value for a beverage container, with intent to
6use the false or counterfeit label or indication.
   7c.  Collects or attempts to collect a refund value on
8a container with the use of a false or counterfeit label
9or indication showing a refund value, knowing the label or
10indication to be false or counterfeit.
11EXPLANATION
12The inclusion of this explanation does not constitute agreement with
13the explanation’s substance by the members of the general assembly.
   14This bill relates to the applicability of the beverage
15containers control program.
   16Under current law, when a distributor sells beverages in
17eligible containers to a dealer, the distributor adds 5 cents
18per eligible container to the sale price. When a dealer sells
19beverages in eligible containers to a consumer, the dealer
20charges the 5-cent deposit on each beverage container. A
21consumer can take eligible beverage containers to a dealer,
22dealer agent, or redemption center and receive a 5-cent
23refund for every eligible beverage container that the consumer
24returns. A distributor collects eligible containers from a
25dealer, dealer agent, or redemption center, at which time
26the distributor pays the dealer, dealer agent, or redemption
27center 5 cents per eligible container plus a handling fee of
28an additional 1 cent per empty container. The bill raises the
29handling fee paid by a distributor to 2 cents for each empty
30beverage container.
   31Under the bill, a dealer may choose to not accept beverage
32containers by providing notice to the department of natural
33resources (DNR) if the dealer’s place of business is within a
3420-mile radius of a redemption center or dealer agent or if
35the dealer sells prepared food for consumption on or off the
-7-1premises. The bill refers to dealers that accept beverage
2containers as “participating dealers”.
   3The bill requires a distributor to keep all refund value
4that has not been paid by the distributor to a participating
5dealer, dealer agent, or redemption center and provide an
6annual report to DNR detailing the amount of unpaid refund
7value that the distributor held at the end of the preceding
8calendar year. On a monthly basis beginning July 1, 2021,
915 percent of the unpaid refund value that the distributor
10holds shall be credited to the treasurer of state. One-third
11of the amount credited shall be deposited in the shelter
12assistance fund administered by the Iowa finance authority.
13One-third of the amount credited shall be deposited in the
14Iowa emergency food purchase program fund administered by the
15department of agriculture and land stewardship. The remaining
16one-third of the amount credited shall be deposited in the
17redemption rates improvement projects fund, which is created
18by the bill in the state treasury under the control of the
19environmental protection commission. Moneys in the fund shall
20be administered by the commission and shall be allocated for
21purposes of launching and administering initiatives to increase
22the rate of redemption of beverage containers.
   23The bill makes numerous changes throughout Code chapter 455C
24to change instances of “dealer” to “participating dealer”,
25remove obsolete language, and stylistically and grammatically
26update the Code chapter.
-8-
js/ns