HSB 507

When a dealer sells beverages in eligible containers to a consumer, the dealer charges the 5-cent deposit on each beverage container. A consumer can take eligible beverage containers to a dealer, dealer agent, or a redemption center and receive a 5-cent refund for every eligible beverage container that the consumer returns. A distributor collects eligible containers from a dealer, dealer agent, or redemption center, at which time the distributor pays the dealer, dealer agent, or redemption center cents per eligible container plus a handling fee of an additional cent per empty container. The bill adds high alcoholic content beer and canned cocktails to the definition of “beverage”. The bill creates a definition for “participating dealer”. The bill requires any dealer to pay a 1-cent handling fee to a distributor upon delivery of beverages and increases the handling fee that a participating dealer, dealer agent, or redemption center will charge a distributor from cent to cents. The bill requires a participating dealer to accept and pay the refund value of any beverage container, except as currently provided by law. The bill requires a participating dealer or a redemption center to immediately return the refund value to a consumer upon the return and acceptance of a beverage container for which the refund value has been paid. _____ refund value has been paid. A dealer can choose to not be a participating dealer by providing notice to the department of natural resources and only if the place of business of the dealer is within a 10-mile radius of a redemption center or dealer agent. The bill requires the registration of the universal product code for each beverage container in a format provided by the department. The bill requires a redemption center to file a notice with the department but does not require the department to grant approval for any redemption centers. The bill removes provisions of Code chapter 455C that relate to the department’s authority to approve redemption centers. The bill also allows a dealer or person operating a redemption center to enter into contracts or agreements for the collection or disposal of beverage containers. The bill authorizes the department to establish a civil penalty of $2,500 for a violation of any provision of Code chapter 455C. The bill allows the department to issue compliance orders, subject to judicial review, that may be enforced by the attorney general’s office. A violation of a compliance order is subject to a fine of not more than $10,000 per day per violation. The bill takes effect July 1, 2021.