Senate Study Bill 1160 - IntroducedA Bill ForAn Act 1relating to the redemption and handling of beverage
2containers, providing civil penalties, and including
3effective date provisions.
1   Section 1.  Section 455C.1, subsections 1 and 6, Code 2021,
2are amended 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
   116.  “Dealer agent” means a person who solicits or picks
12up empty beverage containers from a participating dealer for
13the purpose of returning the empty beverage containers to a
14distributor or manufacturer.
15   Sec. 2.  Section 455C.1, Code 2021, is amended by adding the
16following new subsection:
17   NEW SUBSECTION.  12A.  “Participating dealer” means a dealer
18who accepts the return of empty beverage containers from a
20   Sec. 3.  Section 455C.2, Code 2021, is amended to read as
   22455C.2  Refund values.
   231.  A refund value of not less than five cents shall be paid
24by the consumer on each beverage container sold in this state
25by a dealer for consumption off the premises. Upon return of
26the empty beverage container upon which a refund value has
27been paid to the a participating dealer or person operating
28 a redemption center and acceptance of the empty beverage
29container by the participating dealer or person operating a
30 redemption center, the participating dealer or person operating
redemption center shall return the amount of the refund value
32to the consumer.
   332.  In addition to the refund value provided in subsection 1
34of this section, a participating dealer, or person operating a
35redemption center who redeems empty beverage containers, or a
-1-1dealer agent shall be reimbursed by the distributor required
2to accept the empty beverage containers an amount which that
3 is one cent two cents per container. A participating dealer,
4dealer agent, or person operating a redemption center may
5compact empty metal beverage containers with the approval of
6the distributor required to accept the containers.
7   Sec. 4.  Section 455C.3, subsections 1, 2, and 4, Code 2021,
8are amended to read as follows:
   91.  A participating dealer shall not refuse to accept from a
10consumer any empty beverage container of the kind, size, and
11brand sold by the participating dealer, or refuse to pay to the
12consumer the refund value of a beverage container as provided
13under section 455C.2.
   142.  A distributor shall accept and pick up from a
 15participating dealer served by the distributor or a redemption
16center for a dealer served by the distributor at least weekly,
17or when the distributor delivers the beverage product if
18deliveries are less frequent than weekly, any empty beverage
19container of the kind, size, and brand sold by the distributor,
20and shall pay to the participating dealer or person operating
redemption center the refund value of a beverage container
22and the reimbursement as provided under section 455C.2 within
23one week following pickup of the containers or when the
 24participating dealer or redemption center normally pays the
25distributor for the deposit on beverage products purchased from
26the distributor if less frequent than weekly. A distributor
27or employee or agent of a distributor is not in violation
28of this subsection if a redemption center is closed when the
29distributor attempts to make a regular delivery or a regular
30pickup of empty beverage containers. This subsection does
31not apply to a distributor selling alcoholic liquor to the
32alcoholic beverages division of the department of commerce.
   334.  A distributor shall accept from a dealer agent any empty
34beverage container of the kind, size, and brand sold by the
35distributor and which that was picked up by the dealer agent
-2-1from a participating dealer within the geographic territory
2served by the distributor and the distributor shall pay the
3dealer agent the refund value of the empty beverage container
4and the reimbursement as provided in section 455C.2.
5   Sec. 5.  Section 455C.4, Code 2021, is amended to read as
   7455C.4  Refusal to accept containers.
   81.  Except as provided in section 455C.5, subsection 3, a
 9participating dealer, a person operating a redemption center, a
10distributor, or a manufacturer may refuse to accept any empty
11beverage container which that does not have stated on it a
12refund value as provided under section 455C.2.
   132.  A dealer may refuse to accept and to pay the refund value
14of any empty beverage container if the place of business of the
15dealer and the kind and brand of empty beverage containers are
16included in an order of the department approving a redemption
17center under section 455C.6
 by providing notice to the
   193.  A dealer or a distributor may refuse to accept and to pay
20the refund value of an empty wine or alcoholic liquor container
21which is marked to indicate that it was sold by a state liquor
22store. The alcoholic beverages division shall not reimburse
23a dealer or a distributor the refund value on an empty wine or
24alcoholic liquor container which is marked to indicate that the
25container was sold by a state liquor store.
   264.    3.  A class “E” liquor control licensee may refuse to
27accept and to pay the refund value on an empty alcoholic liquor
28container from a participating dealer or a redemption center
29or from a person acting on behalf of or who has received empty
30alcoholic liquor containers from a participating dealer or a
31redemption center.
   325.    4.  A manufacturer or distributor may refuse to accept
33and to pay the refund value and reimbursement as provided in
34section 455C.2 on any empty beverage container that was picked
35up by a dealer agent from a participating dealer outside the
-3-1geographic territory served by the manufacturer or distributor.
2   Sec. 6.  Section 455C.5, subsection 1, Code 2021, is amended
3to read as follows:
   41.  Each beverage container sold or offered for sale in
5this state by a dealer shall clearly indicate the refund value
6of the container
by embossing or by a stamp, label, or other
7method securely affixed to the container, the refund value of
8the container
. The department shall specify, by rule, the
9minimum size of the refund value indication on the beverage
10containers and require registration of the universal product
11code for each beverage container in a format required by the
13   Sec. 7.  Section 455C.6, subsections 1, 2, and 5, Code 2021,
14are amended to read as follows:
   151.  To facilitate the return of empty beverage containers
16and to serve dealers of beverages, any person may establish a
17redemption center, subject to the approval of the department,
18 at which consumers may return empty beverage containers
19and receive payment of the refund value of such beverage
   212.  An application for approval of Written notice of the
22operation of
a redemption center shall be filed with the
23department. The application notice shall state the name and
24address of the person responsible for the establishment and
25operation of the redemption center, the kind and brand names
26of the beverage containers which will be accepted at the
27redemption center,
and the names and addresses of the dealers
28to be served by the redemption center. The application notice
29 shall contain such other information as the director may
30reasonably require.
   315.  All approved redemption centers shall meet applicable
32health standards.
33   Sec. 8.  Section 455C.6, subsections 3 and 4, Code 2021, are
34amended by striking the subsections.
35   Sec. 9.  Section 455C.12, subsections 2 and 3, Code 2021, are
-4-1amended to read as follows:
   22.  A distributor who collects or attempts to collect
3a refund value on an empty beverage container when the
4distributor has paid the refund value on the container to a
 5participating dealer, redemption center, or consumer is guilty
6of a fraudulent practice.
   73.  Any person who does any of the following acts is guilty
8of a fraudulent practice:
   9a.  Collects or attempts to collect the refund value on the
10container a second time, with the knowledge that the refund
11value has once been paid by the distributor to a participating
12 dealer, redemption center, or consumer.
   13b.  Manufactures, sells, possesses, or applies a false or
14counterfeit label or indication which that shows or purports to
15show a refund value for a beverage container, with intent to
16use the false or counterfeit label or indication.
   17c.  Collects or attempts to collect a refund value on
18a container with the use of a false or counterfeit label
19or indication showing a refund value, knowing the label or
20indication to be false or counterfeit.
21   Sec. 10.  Section 455C.12, Code 2021, is amended by adding
22the following new subsection:
23   NEW SUBSECTION.  6.  A person who violates any provision of
24this chapter shall be subject to a civil penalty that shall
25be established, assessed, and collected in the same manner as
26provided in section 455B.109. Any civil penalty collected
27under this chapter shall be deposited in the general fund of
28the state.
29   Sec. 11.  NEW SECTION.  455C.12A  Administrative enforcement
30— compliance orders.
   31The director may issue any order necessary to secure
32compliance with or prevent a violation of the provisions of
33this chapter or any rule adopted or permit or order issued
34pursuant to this chapter. The person to whom the compliance
35order is issued may cause to be commenced a contested case
-5-1within the meaning of chapter 17A by filing within thirty
2days a notice of appeal to the commission. On appeal, the
3commission may affirm, modify, or vacate the order of the
5   Sec. 12.  NEW SECTION.  455C.12B  Judicial review.
   6Judicial review of any order or other action of the
7commission or director may be sought in accordance with the
8terms of chapter 17A. Notwithstanding the terms of chapter
917A, petitions for judicial review may be filed in the district
10court of the county in which the alleged offense was committed.
11   Sec. 13.  NEW SECTION.  455C.12C  Civil actions for compliance
12— penalties.
   131.  The attorney general, on request of the department, shall
14institute any legal proceedings necessary to obtain compliance
15with an order of the commission or the director, including
16proceedings for a temporary injunction, or prosecuting any
17person for a violation of an order of the commission or the
18director or the provisions of this chapter or any rules adopted
19or permit or order issued pursuant to this chapter.
   202.  Any person who violates an order issued pursuant to
21section 455C.12A shall be subject to a civil penalty, not to
22exceed ten thousand dollars for each day of such violation.
23   Sec. 14.  Section 455C.13, Code 2021, is amended to read as
   25455C.13  Distributors’ agreements authorized.
   261.  A distributor, dealer, or redemption center may enter
27into a contract or agreement with any other distributor,
28manufacturer, or person for the purpose of collecting or paying
29the refund value on, or disposing of, beverage containers as
30provided in this chapter.
   312.  For purposes of this chapter, any contracts entered into
32pursuant to this section for the collection or disposal of
33empty beverage containers shall not be deemed to interfere with
34the refund value pursuant to section 455C.2. A contract shall
35not authorize a person to offer and pay a refund value of less
-6-1than five cents.
2   Sec. 15.  Section 455C.14, subsection 1, Code 2021, is
3amended to read as follows:
   41.  If the refund value indication required under section
5455C.5 on an empty nonrefillable metal beverage container
6is readable but the redemption of the container is lawfully
7refused by a participating dealer or person operating a
8redemption center under other sections of this chapter or
9rules adopted pursuant to these sections, the container
10shall be accepted and the refund value paid to a consumer
11as provided in this section. Each beer distributor selling
12nonrefillable metal beverage containers in this state shall
13provide individually or collectively by contract or agreement
14with a dealer, person operating a redemption center, or another
15person, at least one facility in the county seat of each county
16where refused empty nonrefillable metal beverage containers
17having a readable refund value indication as required by
18this chapter are accepted and redeemed. In cities having a
19population of twenty-five thousand or more, the number of the
20facilities provided shall be one for each twenty-five thousand
21population or a fractional part of that population.
22   Sec. 16.  Section 455C.16, Code 2021, is amended to read as
   24455C.16  Beverage containers — disposal at sanitary landfill
   26Beginning July 1, 1990, the The final disposal of beverage
27containers by a dealer, distributor, or manufacturer, or person
28operating a redemption center, in a sanitary landfill, is
29prohibited. Beginning September 1, 1992
including the final
30disposal of beverage containers that used to contain alcoholic
31liquor as defined in section 123.3, subsection 5, by a dealer,
32 distributor, or manufacturer, or person operating a redemption
33center in a sanitary landfill, is prohibited.
34   Sec. 17.  REPEAL.  Sections 455C.7 and 455C.10, Code 2021,
35are repealed.
1   Sec. 18.  EFFECTIVE DATE.  The following take effect July 1,
   3The sections of this Act amending sections 455C.3 and
5   Sec. 19.  EFFECTIVE DATE.  The following, being deemed of
6immediate importance, take effect upon enactment:
   7The sections of this Act amending or repealing sections
8455C.1, 455C.2, 455C.5, 455C.6, 455C.7, 455C.10, 455C.13,
9455C.14, and 455C.16.
11The inclusion of this explanation does not constitute agreement with
12the explanation’s substance by the members of the general assembly.
   13Under current law, a consumer may return an empty beverage
14container upon which a refund value has been paid to a dealer
15or a redemption center. When a distributor collects empty
16beverage containers from a dealer, dealer agent, or redemption
17center, the distributor reimburses the dealer, dealer agent, or
18redemption center the refund value plus a 1-cent handling fee
19for each empty beverage container. Current law also allows any
20person to establish a redemption center that serves a dealer
21if it is approved by the department of natural resources. Any
22person can also establish an unapproved redemption center.
   23Under this bill, a dealer may choose to not accept beverage
24containers by providing notice to the department beginning July
251, 2022.
   26The bill raises the handling fee paid by a distributor to
272 cents for each empty beverage container. The bill allows a
28person to establish a redemption center by providing notice to
29the department. The bill also requires each beverage container
30to have a registered universal product code in a format
31required by the department.
   32The bill creates civil enforcement procedures and penalties
33for a violation of the provisions of the bill.
   34The bill makes numerous changes throughout Code chapter 455C
35to change instances of “dealer” to “participating dealer”,
-8-1remove obsolete language, and stylistically and grammatically
2update the Code chapter.
   3Except as otherwise provided, the bill takes effect upon