House File 156 - Introduced HOUSE FILE 156 BY PAUSTIAN A BILL FOR An Act providing for the repeal of the beverage containers 1 control program, and including effective date provisions. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1519YH (5) 89 js/ns

H.F. 156 DIVISION I 1 BEVERAGE CONTAINER DEPOSIT REPEAL 2 Section 1. Section 123.26, Code 2021, is amended to read as 3 follows: 4 123.26 Restrictions on sales —— seals —— labeling. 5 Alcoholic liquor shall not be sold by a class “E” liquor 6 control licensee except in a sealed container with identifying 7 markers as prescribed by the administrator and affixed in the 8 manner prescribed by the administrator, and no such container 9 shall be opened upon the premises of a state warehouse. The 10 division shall cooperate with the department of natural 11 resources so that only one identifying marker or mark is needed 12 to satisfy the requirements of this section and section 455C.5, 13 subsection 1 . Possession of alcoholic liquors which that do 14 not carry the prescribed identifying markers is a violation of 15 this chapter except as provided in section 123.22 . 16 Sec. 2. Section 123.187, subsection 3, paragraph e, Code 17 2021, is amended by striking the paragraph. 18 Sec. 3. Section 455C.1, subsection 1, Code 2021, is amended 19 to read as follows: 20 1. “Beverage” means wine as defined in section 123.3, 21 subsection 54 , alcoholic liquor as defined in section 123.3, 22 subsection 5 , beer as defined in section 123.3, subsection 23 7 , high alcoholic content beer as defined in section 123.3, 24 subsection 22, canned cocktail as defined in section 123.3, 25 subsection 11, mineral water, soda water , and similar 26 carbonated soft drinks in liquid form and intended for human 27 consumption. 28 Sec. 4. Section 455C.2, subsection 1, Code 2021, is amended 29 to read as follows: 30 1. A refund value of not less than five cents shall be paid 31 by the consumer on each beverage container sold in this state 32 by a dealer for consumption off the premises. Upon return 33 of the an empty beverage container upon which a refund value 34 has been paid to the a dealer or person operating a redemption 35 -1- LSB 1519YH (5) 89 js/ns 1/ 4

H.F. 156 center and acceptance of the empty beverage container by the 1 dealer or person operating a redemption center, the dealer or 2 person operating a redemption center shall return the amount of 3 the refund value to the consumer. 4 Sec. 5. REPEAL. Sections 455C.5, 455C.6, 455C.7, and 5 455C.10, Code 2021, are repealed. 6 Sec. 6. EFFECTIVE DATE. This division of this Act, being 7 deemed of immediate importance, takes effect upon enactment. 8 DIVISION II 9 BEVERAGE CONTAINER REDEMPTION REPEAL 10 Sec. 7. Section 123.24, subsection 2, paragraph d, Code 11 2021, is amended to read as follows: 12 d. A bottle surcharge in an amount sufficient , when 13 added to the amount not refunded to class “E” liquor control 14 licensees pursuant to section 455C.2 , to pay the costs incurred 15 by the division for collecting and properly disposing of the 16 liquor containers. The amount collected pursuant to this 17 paragraph , in addition to any amounts not refunded to class “E” 18 liquor control licensees pursuant to section 455C.2 , shall be 19 deposited in the beer and liquor control fund established under 20 section 123.17 . 21 Sec. 8. Section 423.6, subsection 3, paragraph a, Code 2020, 22 is amended to read as follows: 23 a. Any tangible personal property including containers 24 for which it is intended shall, by means of fabrication, 25 compounding, manufacturing, or germination, become an integral 26 part of other tangible personal property intended to be sold 27 ultimately at retail , and containers used in the collection, 28 recovery, or return of empty beverage containers subject to 29 chapter 455C . 30 Sec. 9. Section 455A.6, subsection 6, paragraph d, Code 31 2021, is amended to read as follows: 32 d. Approve the budget request prepared by the director 33 for the programs authorized by chapters 455B , 455C , 455E , 34 455F , 455H , and 459, subchapters II and III . The commission 35 -2- LSB 1519YH (5) 89 js/ns 2/ 4

H.F. 156 shall approve the budget request prepared by the director for 1 programs subject to the rulemaking authority of the commission. 2 The commission may increase, decrease, or strike any item 3 within the department budget request for the specified programs 4 before granting approval. 5 Sec. 10. Section 455C.1, subsections 3, 4, 6, 7, 8, 10, and 6 12, Code 2021, are amended by striking the subsections. 7 Sec. 11. REPEAL. Sections 455C.2, 455C.3, 455C.4, 455C.9, 8 455C.12, 455C.13, and 455C.14, Code 2021, are repealed. 9 Sec. 12. EFFECTIVE DATE. This division of this Act takes 10 effect six months after enactment. 11 EXPLANATION 12 The inclusion of this explanation does not constitute agreement with 13 the explanation’s substance by the members of the general assembly. 14 This bill provides for the repeal of the beverage containers 15 control program, commonly referred to as the “bottle bill”. 16 Under current law, when a distributor sells beverages in 17 eligible containers to a dealer, the distributor adds 5 cents 18 per eligible container to the sale price. When a dealer sells 19 beverages in eligible containers to a consumer, the dealer 20 charges the 5-cent deposit on each beverage container. A 21 consumer can take eligible beverage containers to a dealer, 22 dealer agent, or redemption center and receive a 5-cent 23 refund for every eligible beverage container that the consumer 24 returns. A distributor collects eligible containers from a 25 dealer, dealer agent, or redemption center, at which time 26 the distributor pays the dealer, dealer agent, or redemption 27 center 5 cents per eligible container plus a handling fee of an 28 additional 1 cent per empty container. 29 Upon enactment, the bill strikes the provision of the 30 beverage containers control program that requires a dealer to 31 charge a consumer the refund value for each beverage container. 32 Six months thereafter, the provisions of the program that 33 allow a consumer to return beverage containers in exchange 34 for the refund value and that allow a dealer or a person 35 -3- LSB 1519YH (5) 89 js/ns 3/ 4

H.F. 156 operating a redemption center to return beverage containers to 1 a distributor in exchange for the refund value and handling fee 2 are repealed. 3 The bill amends various Code provisions to conform with 4 changes to the beverage containers control program as changes 5 to the program become effective. 6 -4- LSB 1519YH (5) 89 js/ns 4/ 4