Iowa 2009 bill text

House File 150

The following text was found at http://coolice.legis.state.ia.us/Cool-ICE/default.asp?Category=billinfo&Service=Billbook&menu=false&hbill=HF150

A BILL FOR  
  
  1 An Act relating to beverage container control by expanding the  
  2    number of beverage containers covered, eliminating the  
  3    requirement of distributors to collect and pay refund values,  
  4    and making conforming changes.  
  5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:  
  6 TLSB 1796HH 83  
  7 tm/rj/5    PAG LIN    
  
  
  1  1    Section 1.  Section 123.24, subsection 5, Code 2009, is  
  1  2 amended to read as follows:  
  1  3    5.  Notwithstanding subsection 4, the division shall assess  
  1  4 a bottle surcharge to be included in the price of alcoholic  
  1  5 liquor in an amount sufficient, when added to the amount not  
  1  6 refunded to class "E" liquor control licensees pursuant to  
  1  7 section 455C.2,
 to pay the costs incurred by the division for  
  1  8 collecting and properly disposing of the liquor containers.  
  1  9 The amount collected pursuant to this subsection, in addition  
  1 10 to any amounts not refunded to class "E" liquor control  
  1 11 licensees pursuant to section 455C.2,
 shall be deposited in  
  1 12 the beer and liquor control fund established under section  
  1 13 123.53.  
  1 14    Sec. 2.  Section 455B.313, subsection 1, Code 2009, is  
  1 15 amended to read as follows:  
  1 16    1.  A distributor as defined in section 455C.1, subsection  
  1 17 9,
 shall not sell or offer to sell any beverage container if  
  1 18 the beverage container is connected to another beverage  
  1 19 container by a device constructed of a material which is not  
  1 20 biodegradable or photodegradable.  
  1 21    Sec. 3.  Section 455C.1, subsections 1 and 2, Code 2009,  
  1 22 are amended by striking the subsections and inserting in lieu  
  1 23 thereof the following:  
  1 24    1.  "Beverage" means any liquid intended for human  
  1 25 consumption and packaged in a beverage container for sale to  
  1 26 consumers.  "Beverage" does not include the following:  
  1 27    a.  A liquid typically ingested in very small quantities  
  1 28 and consumed for medicinal purposes only.  
  1 29    b.  A liquid designed to be consumed only as a nutritional  
  1 30 supplement.  
  1 31    c.  A product intended to be consumed, or packaged and sold  
  1 32 to consumers or institutions, in a frozen state.  
  1 33    d.  A powdered drink mix.  
  1 34    e.  A soup or broth, including seafood, meat, or vegetable  
  1 35 broth.  
  2  1    f.  Farm=produced apple cider which has not been heated,  
  2  2 pasteurized, or otherwise processed.  
  2  3    g.  A liquid which is any of the following:  
  2  4    (1)  A syrup.  
  2  5    (2)  A concentrate.  
  2  6    (3)  Typically added as a minor flavoring ingredient in  
  2  7 food or drink, such as extracts, cooking additives, sauces, or  
  2  8 condiments.  
  2  9    h.  Milk or other primarily dairy=based drinks.  
  2 10    2.  "Beverage container" means any container, filled and  
  2 11 sealed by the manufacturer and containing a beverage, which is  
  2 12 at least five and one=half fluid ounces or one hundred  
  2 13 sixty=two milliliters but not more than sixty=eight fluid  
  2 14 ounces or two liters in size.  
  2 15    Sec. 4.  Section 455C.2, Code 2009, is amended to read as  
  2 16 follows:  
  2 17    455C.2  REFUND VALUES.  
  2 18    1.  A refund value of not less than five ten cents shall be  
  2 19 paid by the consumer on each beverage container sold in this  
  2 20 state by a dealer for consumption off the premises.  Upon  
  2 21 return of the empty beverage container upon which a refund  
  2 22 value has been paid to the dealer or person operating a  
  2 23 redemption center and acceptance of the empty beverage  
  2 24 container by the dealer or person operating a redemption  
  2 25 center, the dealer or person operating a redemption center  
  2 26 shall return the amount of the refund value to the consumer.
    2 27 The dealer shall remit all refund values paid by a consumer to  
  2 28 an approved redemption center serving the dealer pursuant to  
  2 29 section 455C.6.  However, a dealer may operate its own  
  2 30 approved redemption center, and if it does so, may retain the  
  2 31 refund values.
  
  2 32    2.  In addition to the refund value provided in subsection  
  2 33 1 of this section, a dealer, or person operating a redemption  
  2 34 center who redeems empty beverage containers or a dealer agent  
  2 35 shall be reimbursed by the distributor required to accept the  
  3  1 empty beverage containers an amount which is one cent per  
  3  2 container.  A dealer, dealer agent, or person operating a  
  3  3 redemption center may compact empty metal beverage containers  
  3  4 with the approval of the distributor required to accept the  
  3  5 containers.
    3  6    Sec. 5.  Section 455C.3, Code 2009, is amended by striking  
  3  7 the section and inserting in lieu thereof the following:  
  3  8    455C.3  ACCEPTANCE OF EMPTY BEVERAGE CONTAINERS AND REFUSAL  
  3  9 TO PAY REFUND VALUES.  
  3 10    1.  A dealer may refuse to accept an empty beverage  
  3 11 container from a consumer if the dealer is served by an  
  3 12 approved redemption center.  If a dealer is operating an  
  3 13 approved redemption center, the dealer shall not refuse to  
  3 14 accept an empty beverage container.  
  3 15    2.  A person operating an approved redemption center shall  
  3 16 not refuse to accept an empty beverage container from a  
  3 17 consumer.  
  3 18    3.  A person operating an approved redemption center may  
  3 19 refuse to pay a refund value to the consumer for the empty  
  3 20 beverage container if the refund value is not stated on the  
  3 21 container as required pursuant to section 455C.5, or if the  
  3 22 empty beverage container was purchased outside the state.  
  3 23    4.  A distributor shall not be required to pay to a  
  3 24 manufacturer, a dealer, a dealer agent, or a consumer a refund  
  3 25 value on a nonrefillable beverage container.  
  3 26    Sec. 6.  Section 455C.5, subsection 1, Code 2009, is  
  3 27 amended to read as follows:  
  3 28    1.  Each beverage container sold or offered for sale in  
  3 29 this state by a dealer shall clearly indicate by embossing or  
  3 30 by a stamp, label or other method securely affixed to the  
  3 31 container by a manufacturer or distributor, the refund value  
  3 32 of the container.  The department shall specify, by rule, the  
  3 33 minimum size of the refund value indication on the beverage  
  3 34 containers.  
  3 35    Sec. 7.  Section 455C.6, subsections 2 and 3, Code 2009,  
  4  1 are amended to read as follows:  
  4  2    2.  An application for approval of a redemption center  
  4  3 shall be filed with the department.  The application shall  
  4  4 state the name and address of the person responsible for the  
  4  5 establishment and operation of the redemption center, the kind  
  4  6 and brand names of the beverage containers which will be  
  4  7 accepted at the redemption center,
 and the names and addresses  
  4  8 of the dealers to be served by the redemption center.  The  
  4  9 application shall contain such other information as the  
  4 10 director may reasonably require.  
  4 11    3.  The department shall approve a redemption center if it  
  4 12 finds that the redemption center will provide a convenient  
  4 13 service to consumers for the return of empty beverage  
  4 14 containers.  The order of the department approving a  
  4 15 redemption center shall state the dealers to be served by the  
  4 16 redemption center and the kind and brand names of empty  
  4 17 beverage containers which the redemption center must accept
.  
  4 18 The order may contain such other provisions to insure that the  
  4 19 redemption center will provide a convenient service to the  
  4 20 public as the director may determine.  
  4 21    Sec. 8.  Section 455C.12, Code 2009, is amended to read as  
  4 22 follows:  
  4 23    455C.12  PENALTIES.  
  4 24    1.  Any person violating the provisions of section 455C.2,  
  4 25 455C.3, 455C.5, and 455C.8, or a rule adopted under this  
  4 26 chapter shall be guilty of a simple misdemeanor.  
  4 27    2.  A distributor who collects or attempts to collect a  
  4 28 refund value on an empty beverage container when the  
  4 29 distributor has paid the refund value on the container to a  
  4 30 dealer, redemption center, or consumer is guilty of a  
  4 31 fraudulent practice.
    4 32    3.  2.  Any person who does any of the following acts is  
  4 33 guilty of a fraudulent practice:  
  4 34    a.  Collects or attempts to collect the refund value on the  
  4 35 container a second time, with the knowledge that the refund  
  5  1 value has once been paid by the distributor to a dealer,  
  5  2 redemption center or to a consumer.  
  5  3    b.  Manufactures, sells, possesses or applies a false or  
  5  4 counterfeit label or indication which shows or purports to  
  5  5 show a refund value for a beverage container, with intent to  
  5  6 use the false or counterfeit label or indication.  
  5  7    c.  Collects or attempts to collect a refund value on a  
  5  8 container with the use of a false or counterfeit label or  
  5  9 indication showing a refund value, knowing the label or  
  5 10 indication to be false or counterfeit.  
  5 11    4.  3.  As used in this section, a false or counterfeit  
  5 12 label or indication means a label or indication purporting to  
  5 13 show a valid refund value which has not been initially applied  
  5 14 as authorized by a manufacturer or distributor.  
  5 15    5.  4.  Subsection 2 and subsection 3, paragraph "a" of  
  5 16 this section have
 has no application to empty beverage  
  5 17 containers which are intended to be refillable and are in a  
  5 18 standard of condition except for sanitization to be refillable  
  5 19 by the manufacturer.  
  5 20    Sec. 9.  Section 455C.16, Code 2009, is amended to read as  
  5 21 follows:  
  5 22    455C.16  BEVERAGE CONTAINERS == DISPOSAL AT SANITARY  
  5 23 LANDFILL PROHIBITED.  
  5 24    Beginning July 1, 1990, the The final disposal of empty  
  5 25 beverage containers by a dealer, distributor, or manufacturer,  
  5 26 or person operating a redemption center, in a sanitary  
  5 27 landfill, is prohibited.  Beginning September 1, 1992, the  
  5 28 final disposal of beverage containers used to contain  
  5 29 alcoholic liquor as defined in section 123.3, subsection 5, by  
  5 30 a dealer, distributor, or manufacturer, or person operating a  
  5 31 redemption center in a sanitary landfill, is prohibited.
    5 32    Sec. 10.  Sections 455C.4, 455C.7, 455C.13, and 455C.14,  
  5 33 Code 2009, are repealed.  
  5 34                           EXPLANATION  
  5 35    This bill relates to the control of empty beverage  
  6  1 containers and makes changes to Code chapter 455C, commonly  
  6  2 referred to as the bottle bill.  
  6  3    The bill expands the definitions of beverage and beverage  
  6  4 container to require more beverage containers to carry refund  
  6  5 values.  
  6  6    The bill increases to 10 cents the refund value on beverage  
  6  7 containers.  The refund value is currently 5 cents per  
  6  8 beverage container.  
  6  9    The bill makes significant changes to the way refund values  
  6 10 are collected and empty beverage containers are accepted.  
  6 11 Currently, distributors collect 5 cents on each container from  
  6 12 dealers who in turn charge 5 cents to consumers.  Consumers  
  6 13 who return the empty beverage containers are refunded the 5  
  6 14 cents by the dealer who returns the empty beverage containers  
  6 15 to the distributor and is also refunded the 5 cents.  Dealers,  
  6 16 however, also receive an amount of 1 cent per container from  
  6 17 the distributor, which is commonly referred to as the handling  
  6 18 fee.  
  6 19    The bill eliminates most of the requirements placed on  
  6 20 distributors by the current law.  The bill requires dealers to  
  6 21 collect the refund values from consumers and then remit the  
  6 22 refund value to an approved redemption center.  Consumers  
  6 23 return the empty beverage containers to the redemption center  
  6 24 instead of the dealer and the redemption center pays them the  
  6 25 refund value.  Distributors no longer have to collect or pay  
  6 26 refund values, and they no longer have to accept the empty  
  6 27 beverage containers from dealers.  Instead, the empty beverage  
  6 28 containers will be disposed of by the redemption centers.  
  6 29    The bill requires a redemption center to accept all empty  
  6 30 beverage containers, but it does not require them to pay the  
  6 31 refund value to the consumer if the container does not bear a  
  6 32 refund value indication or if the container was purchased out  
  6 33 of the state.  
  6 34    The bill makes conforming amendments and strikes or repeals  
  6 35 a number of outdated provisions.  
  7  1 LSB 1796HH 83  
  7  2 tm/rj/5