HF 182 (LSB 2115YH (1) 89)

HOUSE FILE 182

BY  OSMUNDSON

A BILL FOR

An Act providing for the future repeal of the beverage containers control program, making appropriations, and including effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

DIVISION I
UNPAID REFUND VALUE

    Section 1.  Section 16.41, subsection 1, Code 2021, is amended to read as follows:
   1.  A shelter assistance fund is created as a revolving fund in the state treasury under the control of the authority consisting of any moneys appropriated by the general assembly and received under section 428A.8 and section 455C.11 for costs of operations of shelters for the homeless and domestic violence shelters, essential services for the homeless, and evaluation and reporting of services for the homeless. Each fiscal year, moneys in the fund, in an amount equal to not more than three percent of the total moneys distributed as grants from the fund during the fiscal year, may be used for purposes of administering the fund.
    Sec. 2.  Section 455C.1, subsections 3, 7, 8, 10, and 12, Code 2021, are amended by striking the subsections.
    Sec. 3.  Section 455C.2, subsection 1, Code 2021, is amended to read as follows:
   1.  A refund value of not less than five cents shall be paid by the consumer on each beverage container sold in this state by a dealer for consumption off the premises. Upon return of the empty beverage container upon which a refund value has been paid to the dealer or person operating a redemption center and acceptance of the empty beverage container by the dealer or person operating a redemption center, the dealer or person operating a redemption center shall return the amount of the refund value to the consumer.
    Sec. 4.  NEW SECTION.  455C.11  Unpaid refund value.
   1.  Refund value that has not been paid by a distributor to a dealer or redemption center on and after July 1, 2021, shall be credited monthly to the treasurer of state for deposit in the following manner:
   a.  Ninety percent of unpaid refund value shall be deposited in the unpaid refunds recycling fund established in section 455C.11A.
   b.  Ten percent of the unpaid refund value shall be deposited in the shelter assistance fund established in section 16.41.
   2.  In the event that a dealer, dealer agent, or redemption center lawfully accepts beverage containers and returns refund value to consumers prior to September 1, 2024, in an amount that exceeds the amount a distributor has available due to unpaid refund value previously credited to the treasurer of state under subsection 1, the distributor shall accept the containers, pay the refund value, and pay the reimbursement amount of one cent per container. The distributor may submit receipts to the department, in a manner prescribed by the department, showing the discrepancy, and the commission shall issue a refund from the unpaid refunds recycling fund established in section 455C.11A in the amount of the discrepancy. The distributor shall not include the reimbursement amount of one cent per container upon the acceptance of empty beverage containers when demonstrating a discrepancy.
   3.  This section is repealed October 1, 2024.
    Sec. 5.  NEW SECTION.  455C.11A  Unpaid refunds recycling grant program —— fund created.
   1.  The department shall establish and the commission shall administer an unpaid refunds recycling grant program. The purpose of the program shall be to provide financial assistance to enhance recycling programs. The program shall be administered in accordance with rules adopted by the commission pursuant to chapter 17A.
   2.  An unpaid refunds recycling fund is established in the state treasury under the control of the commission. The fund shall consist of moneys appropriated to or deposited in the fund. Moneys in the fund are appropriated to the commission for purposes of issuing grants under the program as set forth under subsection 3. Notwithstanding section 8.33, moneys in the fund that remain unencumbered or unobligated at the close of a fiscal year shall not revert but shall remain available for expenditure for the purposes designated. Notwithstanding section 12C.7, subsection 2, interest or earnings on moneys in the fund shall be credited to the fund.
   3.  Moneys in the fund shall be used by the commission to issue grants under the program in the following manner:
   a.  Twenty-eight percent shall be allocated for the issuance of grants to provide assistance for the establishment of recycling systems.
   b.  Twenty-eight percent shall be allocated for the issuance of grants to provide assistance for the expansion of existing recycling systems, including dual stream recycling.
   c.  Thirty-three percent shall be allocated for the issuance of grants to provide assistance for existing redemption centers to transition to operate as recycling centers.
   d.  Eleven percent shall be allocated for the issuance of grants to provide assistance for new and existing recycling education programs.
   4.  This section is repealed October 1, 2024.
    Sec. 6.  FUTURE REPEAL.  Sections 455C.5, 455C.6, 455C.7, and 455C.10, Code 2021, are repealed effective July 1, 2024.
    Sec. 7.  FUTURE REPEAL.  Sections 455C.2, 455C.3, 455C.4, 455C.9, 455C.12, 455C.13, and 455C.14, Code 2021, are repealed effective September 1, 2024.
    Sec. 8.  FUTURE REPEAL.  The section of this division of this Act amending section 16.41 is repealed effective October 1, 2024.
    Sec. 9.  EFFECTIVE DATE.  The following takes effect July 1, 2024:
   The section of this division of this Act amending section 455C.2, subsection 1.
    Sec. 10.  EFFECTIVE DATE.  The following takes effect October 1, 2024:
   The section of this division of this Act amending section 455C.1.
DIVISION II
CONFORMING CHANGES

    Sec. 11.  Section 123.24, subsection 2, paragraph d, Code 2021, is amended to read as follows:
   d.  A bottle surcharge in an amount sufficient, when added to the amount not refunded to class “E” liquor control licensees pursuant to section 455C.2, to pay the costs incurred by the division for collecting and properly disposing of the liquor containers. The amount collected pursuant to this paragraph, in addition to any amounts not refunded to class “E” liquor control licensees pursuant to section 455C.2, shall be deposited in the beer and liquor control fund established under section 123.17.
    Sec. 12.  Section 123.26, Code 2021, is amended to read as follows:
   123.26  Restrictions on sales —— seals —— labeling.
   Alcoholic liquor shall not be sold by a class “E” liquor control licensee except in a sealed container with identifying markers as prescribed by the administrator and affixed in the manner prescribed by the administrator, and no such container shall be opened upon the premises of a state warehouse. The division shall cooperate with the department of natural resources so that only one identifying marker or mark is needed to satisfy the requirements of this section and section 455C.5, subsection 1. Possession of alcoholic liquors which that do not carry the prescribed identifying markers is a violation of this chapter except as provided in section 123.22.
    Sec. 13.  Section 123.187, subsection 3, paragraph e, Code 2021, is amended by striking the paragraph.
    Sec. 14.  Section 423.6, subsection 3, paragraph a, Code 2021, is amended to read as follows:
   a.  Any tangible personal property including containers for which it is intended shall, by means of fabrication, compounding, manufacturing, or germination, become an integral part of other tangible personal property intended to be sold ultimately at retail, and containers used in the collection, recovery, or return of empty beverage containers subject to chapter 455C.
    Sec. 15.  Section 455A.6, subsection 6, paragraph d, Code 2021, is amended to read as follows:
   d.  Approve the budget request prepared by the director for the programs authorized by chapters 455B, 455C, 455E, 455F, 455H, and 459, subchapters II and III. The commission shall approve the budget request prepared by the director for programs subject to the rulemaking authority of the commission. The commission may increase, decrease, or strike any item within the department budget request for the specified programs before granting approval.
    Sec. 16.  EFFECTIVE DATE.  The following take effect July 1, 2024:
   1.  The section of this division of this Act amending section 123.26.
   2.  The section of this division of this Act amending section 123.187, subsection 3, paragraph “e”.
    Sec. 17.  EFFECTIVE DATE.  The following takes effect September 1, 2024:
   The section of this division of this Act amending section 123.24, subsection 2, paragraph “d”.
    Sec. 18.  EFFECTIVE DATE.  The following take effect October 1, 2024:
   1.  The section of this division of this Act amending section 423.6, subsection 3, paragraph “a”.
   2.  The section of this division of this Act amending section 455A.6, subsection 6, paragraph “d”.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill provides for the future repeal of the beverage containers control program, commonly referred to as the “bottle bill”, and makes appropriations to certain funds.
   Under current law, when a distributor sells beverages in eligible containers to a dealer, the distributor adds 5 cents per eligible container to the sale price. 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 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 5 cents per eligible container plus a handling fee of an additional 1 cent per empty container.
   On July 1, 2024, the bill strikes the provision of the beverage containers control program that requires a dealer to charge a consumer the refund value for each beverage container. The provisions of the program that allow a consumer to return beverage containers in exchange for the refund value and that allow a dealer or a person operating a redemption center to return beverage containers to a distributor in exchange for the refund value and handling fee are repealed on September 1, 2024.
   On a monthly basis beginning July 1, 2021, unpaid refund value shall be credited to the treasurer of state. Ninety percent of the unpaid refund value shall be deposited in the unpaid refunds recycling fund, which is created by the bill in the state treasury under the control of the environmental protection commission. Moneys in the fund shall be administered by the commission and shall be allocated for purposes relating to recycling systems and education as part of the unpaid refunds recycling grant program. The remaining 10 percent of unpaid refund value shall be deposited in the shelter assistance fund administered by the Iowa finance authority.
   In the event that a dealer, dealer agent, or redemption center lawfully accepts beverage containers and returns refund value to consumers prior to September 1, 2024, in an amount that exceeds the amount a distributor has available due to unpaid refund value being previously credited to the treasurer of state, the distributor shall accept the beverage containers and pay the refund value and handling fee. The distributor may then submit receipts to the department of natural resources showing the discrepancy. The commission shall issue a refund in the amount of the discrepancy. The distributor shall not include the handling fee when demonstrating a discrepancy.
   The sections of the bill relating to the distribution of unpaid refund value, establishing the unpaid refunds recycling grant program and unpaid refunds recycling fund, and amending the shelter assistance fund are repealed October 1, 2024. The bill amends various Code provisions to conform with changes to the beverage containers control program as changes to the program become effective.