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House File 152 - IntroducedA Bill ForAn Act 1relating to accounting of unpaid beverage container
2refund value.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 455C.1, subsection 1, Code 2021, is
2amended to read as follows:
31. “Beverage” means wine as defined in section 123.3,
4subsection 54, alcoholic liquor as defined in section 123.3,
5subsection 5, beer as defined in section 123.3, subsection
67, high alcoholic content beer as defined in section 123.3,
7subsection 22, canned cocktail as defined in section 123.3,
8subsection 11, mineral water, soda water, and similar
9carbonated soft drinks in liquid form and intended for human
10consumption.
11 Sec. 2. NEW SECTION. 455C.3A Accounting of unpaid refund
12value.
131. As used in this section, “financial institution” means
14any bank, trust company, savings association, insurance company
15or related corporation, partnership, foundation, or other
16institution licensed to do business in the state of Iowa.
172. Each distributor shall open a special interest-bearing
18account at an Iowa branch of a financial institution to the
19credit of the distributor. The distributor shall deposit in
20the account an amount equal to the refund value established
21pursuant to section 455C.2 for each beverage container sold
22by the distributor on or after July 1, 2021. The distributor
23shall make the deposit not more than three business days after
24the date the beverage container is sold to a dealer. All
25interest, dividends, and returns earned on the account shall
26be paid directly into the account. Moneys in the account
27shall be kept separate and apart from all other moneys in the
28distributor’s possession.
293. Reimbursement paid to a dealer, dealer agent, or
30redemption center pursuant to section 455C.2, subsection 2,
31shall be paid from the account created pursuant to subsection
321 of this section.
334. Each distributor shall submit a report to the director by
34October 31, 2021, covering the period beginning July 1, 2021,
35and ending September 30, 2021, and thereafter shall submit a
-1-1quarterly report covering the immediately preceding calendar
2quarter not later than one month after the close of the quarter
3for which the report is prepared. The report shall be on a form
4prescribed by the director and contain such information that
5the director deems necessary, including but not limited to all
6of the following:
7a. The balance in the account at the beginning of the
8quarter for which the report is prepared.
9b. A list of all deposits credited to the account during
10the quarter, including those deposits equivalent to the refund
11values paid to the distributor and all interest, dividends, or
12returns received on the account.
13c. A list of all withdrawals from the account during the
14quarter, all service charges and overdraft charges on the
15account, and all payments made pursuant to subsection 3.
16d. The balance in the account at the close of the quarter
17for which the report is prepared.
185. The treasurer of state may, independently or upon
19request of the director, examine the accounts and records of
20any distributor maintained by the distributor pursuant to this
21section, including receipts, disbursements, and such other
22items as the treasurer of state deems appropriate.
236. The attorney general may, independently or upon request
24of the director, institute any appropriate action or proceeding
25to enforce any provision of this section or any rule adopted
26pursuant to this section.
27EXPLANATION
28The inclusion of this explanation does not constitute agreement with
29the explanation’s substance by the members of the general assembly.
30This bill relates to accounting of unpaid beverage container
31refund value under the beverage containers control law, also
32known as the bottle bill.
33Current law limits beverage containers subject to beverage
34containers control deposit and refund provisions to any sealed
35glass, plastic, or metal bottle, can, jar, or carton holding
-2-1wine, alcoholic liquor, beer, mineral water, soda water, or
2carbonated soft drinks. When a distributor sells beverages
3in eligible containers to a dealer, the distributor charges 5
4cents per eligible container to the sale price. When a dealer
5sells beverages in eligible containers to a consumer, the
6dealer charges the 5-cent deposit on each beverage container.
7A consumer can take eligible beverage containers to a dealer,
8dealer agent, or a redemption center and receive a 5-cent
9refund for every eligible beverage container that the consumer
10returns. A distributor collects eligible containers from a
11dealer, dealer agent, or redemption center, at which time
12the distributor pays the dealer, dealer agent, or redemption
13center 5 cents per eligible container plus a handling fee of an
14additional 1 cent per empty container.
15The bill adds high alcoholic content beer and canned
16cocktails to the definition of “beverage”.
17The bill requires each distributor to open a special
18interest-bearing account at an Iowa branch of a financial
19institution, as defined in the bill, to the credit of the
20distributor. The distributor shall deposit in the account an
21amount equal to the refund value for each beverage container
22sold by the distributor on or after July 1, 2021, and the
23reimbursement of refund value paid by the distributor to a
24dealer, dealer agent, or redemption center shall be paid from
25the account.
26Beginning October 31, 2021, and quarterly thereafter, the
27bill requires each distributor to submit to the director of
28the department of natural resources (DNR) a report covering
29the immediately preceding calendar quarter that includes the
30balance in the account at the beginning of the quarter for
31which the report is prepared, a list of all deposits credited
32to the account during the quarter, a list of all withdrawals
33from the account during the quarter, and the balance in the
34account at the close of the quarter for which the report is
35prepared.
-3- 1The bill authorizes the treasurer of state, independently
2or upon request of the DNR director, to examine the accounts
3and records of any distributor maintained by the distributor
4pursuant to the bill. The bill authorizes the attorney
5general, independently or upon request of the DNR director, to
6institute any appropriate action or proceeding to enforce any
7provision of the bill or any rule adopted pursuant to the bill.
-4-js/ns
2refund value.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 455C.1, subsection 1, Code 2021, is
2amended to read as follows:
31. “Beverage” means wine as defined in section 123.3,
4subsection 54, alcoholic liquor as defined in section 123.3,
5subsection 5, beer as defined in section 123.3, subsection
67, high alcoholic content beer as defined in section 123.3,
7subsection 22, canned cocktail as defined in section 123.3,
8subsection 11, mineral water, soda water, and similar
9carbonated soft drinks in liquid form and intended for human
10consumption.
11 Sec. 2. NEW SECTION. 455C.3A Accounting of unpaid refund
12value.
131. As used in this section, “financial institution” means
14any bank, trust company, savings association, insurance company
15or related corporation, partnership, foundation, or other
16institution licensed to do business in the state of Iowa.
172. Each distributor shall open a special interest-bearing
18account at an Iowa branch of a financial institution to the
19credit of the distributor. The distributor shall deposit in
20the account an amount equal to the refund value established
21pursuant to section 455C.2 for each beverage container sold
22by the distributor on or after July 1, 2021. The distributor
23shall make the deposit not more than three business days after
24the date the beverage container is sold to a dealer. All
25interest, dividends, and returns earned on the account shall
26be paid directly into the account. Moneys in the account
27shall be kept separate and apart from all other moneys in the
28distributor’s possession.
293. Reimbursement paid to a dealer, dealer agent, or
30redemption center pursuant to section 455C.2, subsection 2,
31shall be paid from the account created pursuant to subsection
321 of this section.
334. Each distributor shall submit a report to the director by
34October 31, 2021, covering the period beginning July 1, 2021,
35and ending September 30, 2021, and thereafter shall submit a
-1-1quarterly report covering the immediately preceding calendar
2quarter not later than one month after the close of the quarter
3for which the report is prepared. The report shall be on a form
4prescribed by the director and contain such information that
5the director deems necessary, including but not limited to all
6of the following:
7a. The balance in the account at the beginning of the
8quarter for which the report is prepared.
9b. A list of all deposits credited to the account during
10the quarter, including those deposits equivalent to the refund
11values paid to the distributor and all interest, dividends, or
12returns received on the account.
13c. A list of all withdrawals from the account during the
14quarter, all service charges and overdraft charges on the
15account, and all payments made pursuant to subsection 3.
16d. The balance in the account at the close of the quarter
17for which the report is prepared.
185. The treasurer of state may, independently or upon
19request of the director, examine the accounts and records of
20any distributor maintained by the distributor pursuant to this
21section, including receipts, disbursements, and such other
22items as the treasurer of state deems appropriate.
236. The attorney general may, independently or upon request
24of the director, institute any appropriate action or proceeding
25to enforce any provision of this section or any rule adopted
26pursuant to this section.
27EXPLANATION
28The inclusion of this explanation does not constitute agreement with
29the explanation’s substance by the members of the general assembly.
30This bill relates to accounting of unpaid beverage container
31refund value under the beverage containers control law, also
32known as the bottle bill.
33Current law limits beverage containers subject to beverage
34containers control deposit and refund provisions to any sealed
35glass, plastic, or metal bottle, can, jar, or carton holding
-2-1wine, alcoholic liquor, beer, mineral water, soda water, or
2carbonated soft drinks. When a distributor sells beverages
3in eligible containers to a dealer, the distributor charges 5
4cents per eligible container to the sale price. When a dealer
5sells beverages in eligible containers to a consumer, the
6dealer charges the 5-cent deposit on each beverage container.
7A consumer can take eligible beverage containers to a dealer,
8dealer agent, or a redemption center and receive a 5-cent
9refund for every eligible beverage container that the consumer
10returns. A distributor collects eligible containers from a
11dealer, dealer agent, or redemption center, at which time
12the distributor pays the dealer, dealer agent, or redemption
13center 5 cents per eligible container plus a handling fee of an
14additional 1 cent per empty container.
15The bill adds high alcoholic content beer and canned
16cocktails to the definition of “beverage”.
17The bill requires each distributor to open a special
18interest-bearing account at an Iowa branch of a financial
19institution, as defined in the bill, to the credit of the
20distributor. The distributor shall deposit in the account an
21amount equal to the refund value for each beverage container
22sold by the distributor on or after July 1, 2021, and the
23reimbursement of refund value paid by the distributor to a
24dealer, dealer agent, or redemption center shall be paid from
25the account.
26Beginning October 31, 2021, and quarterly thereafter, the
27bill requires each distributor to submit to the director of
28the department of natural resources (DNR) a report covering
29the immediately preceding calendar quarter that includes the
30balance in the account at the beginning of the quarter for
31which the report is prepared, a list of all deposits credited
32to the account during the quarter, a list of all withdrawals
33from the account during the quarter, and the balance in the
34account at the close of the quarter for which the report is
35prepared.
-3- 1The bill authorizes the treasurer of state, independently
2or upon request of the DNR director, to examine the accounts
3and records of any distributor maintained by the distributor
4pursuant to the bill. The bill authorizes the attorney
5general, independently or upon request of the DNR director, to
6institute any appropriate action or proceeding to enforce any
7provision of the bill or any rule adopted pursuant to the bill.
-4-js/ns