H.F. 182 DIVISION I 1 UNPAID REFUND VALUE 2 Section 1. Section 16.41, subsection 1, Code 2021, is 3 amended to read as follows: 4 1. A shelter assistance fund is created as a revolving 5 fund in the state treasury under the control of the authority 6 consisting of any moneys appropriated by the general assembly 7 and received under section 428A.8 and section 455C.11 for 8 costs of operations of shelters for the homeless and domestic 9 violence shelters, essential services for the homeless, and 10 evaluation and reporting of services for the homeless. Each 11 fiscal year, moneys in the fund, in an amount equal to not more 12 than three percent of the total moneys distributed as grants 13 from the fund during the fiscal year, may be used for purposes 14 of administering the fund. 15 Sec. 2. Section 455C.1, subsections 3, 7, 8, 10, and 12, 16 Code 2021, are amended by striking the subsections. 17 Sec. 3. Section 455C.2, subsection 1, Code 2021, is amended 18 to read as follows: 19 1. A refund value of not less than five cents shall be paid 20 by the consumer on each beverage container sold in this state 21 by a dealer for consumption off the premises. Upon return of 22 the empty beverage container upon which a refund value has been 23 paid to the dealer or person operating a redemption center 24 and acceptance of the empty beverage container by the dealer 25 or person operating a redemption center, the dealer or person 26 operating a redemption center shall return the amount of the 27 refund value to the consumer. 28 Sec. 4. NEW SECTION . 455C.11 Unpaid refund value. 29 1. Refund value that has not been paid by a distributor to a 30 dealer or redemption center on and after July 1, 2021, shall be 31 credited monthly to the treasurer of state for deposit in the 32 following manner: 33 a. Ninety percent of unpaid refund value shall be deposited 34 in the unpaid refunds recycling fund established in section 35 -1- LSB 2115YH (1) 89 js/ns 1/ 7

H.F. 182 455C.11A. 1 b. Ten percent of the unpaid refund value shall be deposited 2 in the shelter assistance fund established in section 16.41. 3 2. In the event that a dealer, dealer agent, or redemption 4 center lawfully accepts beverage containers and returns 5 refund value to consumers prior to September 1, 2024, in an 6 amount that exceeds the amount a distributor has available 7 due to unpaid refund value previously credited to the 8 treasurer of state under subsection 1, the distributor 9 shall accept the containers, pay the refund value, and pay 10 the reimbursement amount of one cent per container. The 11 distributor may submit receipts to the department, in a manner 12 prescribed by the department, showing the discrepancy, and 13 the commission shall issue a refund from the unpaid refunds 14 recycling fund established in section 455C.11A in the amount 15 of the discrepancy. The distributor shall not include the 16 reimbursement amount of one cent per container upon the 17 acceptance of empty beverage containers when demonstrating a 18 discrepancy. 19 3. This section is repealed October 1, 2024. 20 Sec. 5. NEW SECTION . 455C.11A Unpaid refunds recycling 21 grant program —— fund created. 22 1. The department shall establish and the commission 23 shall administer an unpaid refunds recycling grant program. 24 The purpose of the program shall be to provide financial 25 assistance to enhance recycling programs. The program shall be 26 administered in accordance with rules adopted by the commission 27 pursuant to chapter 17A. 28 2. An unpaid refunds recycling fund is established in the 29 state treasury under the control of the commission. The fund 30 shall consist of moneys appropriated to or deposited in the 31 fund. Moneys in the fund are appropriated to the commission 32 for purposes of issuing grants under the program as set forth 33 under subsection 3. Notwithstanding section 8.33, moneys in 34 the fund that remain unencumbered or unobligated at the close 35 -2- LSB 2115YH (1) 89 js/ns 2/ 7

H.F. 182 of a fiscal year shall not revert but shall remain available 1 for expenditure for the purposes designated. Notwithstanding 2 section 12C.7, subsection 2, interest or earnings on moneys in 3 the fund shall be credited to the fund. 4 3. Moneys in the fund shall be used by the commission to 5 issue grants under the program in the following manner: 6 a. Twenty-eight percent shall be allocated for the issuance 7 of grants to provide assistance for the establishment of 8 recycling systems. 9 b. Twenty-eight percent shall be allocated for the issuance 10 of grants to provide assistance for the expansion of existing 11 recycling systems, including dual stream recycling. 12 c. Thirty-three percent shall be allocated for the issuance 13 of grants to provide assistance for existing redemption centers 14 to transition to operate as recycling centers. 15 d. Eleven percent shall be allocated for the issuance of 16 grants to provide assistance for new and existing recycling 17 education programs. 18 4. This section is repealed October 1, 2024. 19 Sec. 6. FUTURE REPEAL. Sections 455C.5, 455C.6, 455C.7, and 20 455C.10, Code 2021, are repealed effective July 1, 2024. 21 Sec. 7. FUTURE REPEAL. Sections 455C.2, 455C.3, 455C.4, 22 455C.9, 455C.12, 455C.13, and 455C.14, Code 2021, are repealed 23 effective September 1, 2024. 24 Sec. 8. FUTURE REPEAL. The section of this division of 25 this Act amending section 16.41 is repealed effective October 26 1, 2024. 27 Sec. 9. EFFECTIVE DATE. The following takes effect July 1, 28 2024: 29 The section of this division of this Act amending section 30 455C.2, subsection 1. 31 Sec. 10. EFFECTIVE DATE. The following takes effect October 32 1, 2024: 33 The section of this division of this Act amending section 34 455C.1. 35 -3- LSB 2115YH (1) 89 js/ns 3/ 7

H.F. 182 DIVISION II 1 CONFORMING CHANGES 2 Sec. 11. Section 123.24, subsection 2, paragraph d, Code 3 2021, is amended to read as follows: 4 d. A bottle surcharge in an amount sufficient , when 5 added to the amount not refunded to class “E” liquor control 6 licensees pursuant to section 455C.2 , to pay the costs incurred 7 by the division for collecting and properly disposing of the 8 liquor containers. The amount collected pursuant to this 9 paragraph , in addition to any amounts not refunded to class “E” 10 liquor control licensees pursuant to section 455C.2 , shall be 11 deposited in the beer and liquor control fund established under 12 section 123.17 . 13 Sec. 12. Section 123.26, Code 2021, is amended to read as 14 follows: 15 123.26 Restrictions on sales —— seals —— labeling. 16 Alcoholic liquor shall not be sold by a class “E” liquor 17 control licensee except in a sealed container with identifying 18 markers as prescribed by the administrator and affixed in the 19 manner prescribed by the administrator, and no such container 20 shall be opened upon the premises of a state warehouse. The 21 division shall cooperate with the department of natural 22 resources so that only one identifying marker or mark is needed 23 to satisfy the requirements of this section and section 455C.5, 24 subsection 1 . Possession of alcoholic liquors which that do 25 not carry the prescribed identifying markers is a violation of 26 this chapter except as provided in section 123.22 . 27 Sec. 13. Section 123.187, subsection 3, paragraph e, Code 28 2021, is amended by striking the paragraph. 29 Sec. 14. Section 423.6, subsection 3, paragraph a, Code 30 2021, is amended to read as follows: 31 a. Any tangible personal property including containers 32 for which it is intended shall, by means of fabrication, 33 compounding, manufacturing, or germination, become an integral 34 part of other tangible personal property intended to be sold 35 -4- LSB 2115YH (1) 89 js/ns 4/ 7

H.F. 182 ultimately at retail , and containers used in the collection, 1 recovery, or return of empty beverage containers subject to 2 chapter 455C . 3 Sec. 15. Section 455A.6, subsection 6, paragraph d, Code 4 2021, is amended to read as follows: 5 d. Approve the budget request prepared by the director 6 for the programs authorized by chapters 455B , 455C , 455E , 7 455F , 455H , and 459, subchapters II and III . The commission 8 shall approve the budget request prepared by the director for 9 programs subject to the rulemaking authority of the commission. 10 The commission may increase, decrease, or strike any item 11 within the department budget request for the specified programs 12 before granting approval. 13 Sec. 16. EFFECTIVE DATE. The following take effect July 1, 14 2024: 15 1. The section of this division of this Act amending section 16 123.26. 17 2. The section of this division of this Act amending section 18 123.187, subsection 3, paragraph “e”. 19 Sec. 17. EFFECTIVE DATE. The following takes effect 20 September 1, 2024: 21 The section of this division of this Act amending section 22 123.24, subsection 2, paragraph “d”. 23 Sec. 18. EFFECTIVE DATE. The following take effect October 24 1, 2024: 25 1. The section of this division of this Act amending section 26 423.6, subsection 3, paragraph “a”. 27 2. The section of this division of this Act amending section 28 455A.6, subsection 6, paragraph “d”. 29 EXPLANATION 30 The inclusion of this explanation does not constitute agreement with 31 the explanation’s substance by the members of the general assembly. 32 This bill provides for the future repeal of the beverage 33 containers control program, commonly referred to as the “bottle 34 bill”, and makes appropriations to certain funds. 35 -5- LSB 2115YH (1) 89 js/ns 5/ 7

H.F. 182 Under current law, when a distributor sells beverages in 1 eligible containers to a dealer, the distributor adds 5 cents 2 per eligible container to the sale price. When a dealer sells 3 beverages in eligible containers to a consumer, the dealer 4 charges the 5-cent deposit on each beverage container. A 5 consumer can take eligible beverage containers to a dealer, 6 dealer agent, or redemption center and receive a 5-cent 7 refund for every eligible beverage container that the consumer 8 returns. A distributor collects eligible containers from a 9 dealer, dealer agent, or redemption center, at which time 10 the distributor pays the dealer, dealer agent, or redemption 11 center 5 cents per eligible container plus a handling fee of an 12 additional 1 cent per empty container. 13 On July 1, 2024, the bill strikes the provision of the 14 beverage containers control program that requires a dealer to 15 charge a consumer the refund value for each beverage container. 16 The provisions of the program that allow a consumer to return 17 beverage containers in exchange for the refund value and that 18 allow a dealer or a person operating a redemption center to 19 return beverage containers to a distributor in exchange for 20 the refund value and handling fee are repealed on September 1, 21 2024. 22 On a monthly basis beginning July 1, 2021, unpaid refund 23 value shall be credited to the treasurer of state. Ninety 24 percent of the unpaid refund value shall be deposited in 25 the unpaid refunds recycling fund, which is created by 26 the bill in the state treasury under the control of the 27 environmental protection commission. Moneys in the fund shall 28 be administered by the commission and shall be allocated for 29 purposes relating to recycling systems and education as part 30 of the unpaid refunds recycling grant program. The remaining 31 10 percent of unpaid refund value shall be deposited in the 32 shelter assistance fund administered by the Iowa finance 33 authority. 34 In the event that a dealer, dealer agent, or redemption 35 -6- LSB 2115YH (1) 89 js/ns 6/ 7

H.F. 182 center lawfully accepts beverage containers and returns refund 1 value to consumers prior to September 1, 2024, in an amount 2 that exceeds the amount a distributor has available due to 3 unpaid refund value being previously credited to the treasurer 4 of state, the distributor shall accept the beverage containers 5 and pay the refund value and handling fee. The distributor may 6 then submit receipts to the department of natural resources 7 showing the discrepancy. The commission shall issue a refund 8 in the amount of the discrepancy. The distributor shall not 9 include the handling fee when demonstrating a discrepancy. 10 The sections of the bill relating to the distribution of 11 unpaid refund value, establishing the unpaid refunds recycling 12 grant program and unpaid refunds recycling fund, and amending 13 the shelter assistance fund are repealed October 1, 2024. The 14 bill amends various Code provisions to conform with changes 15 to the beverage containers control program as changes to the 16 program become effective. 17 -7- LSB 2115YH (1) 89 js/ns 7/ 7