HF 809 (LSB 1960YH (6) 91)

HOUSE FILE 809

BY  RINKER

A BILL FOR

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

DIVISION I
BEVERAGE CONTAINER DEPOSIT REPEAL

    Section 1.  Section 123.26, Code 2025, is amended to read as follows:
   123.26  Restrictions on sales —— seals —— labeling.
   Alcoholic liquor shall not be sold by a class “E” retail alcohol licensee except in a sealed container with identifying markers as prescribed by the director and affixed in the manner prescribed by the director, and no such container shall be opened upon the premises of a state warehouse. The department 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. 2.  Section 123.187, subsection 3, paragraph e, Code 2025, is amended by striking the paragraph.
    Sec. 3.  Section 455C.2, subsection 1, Code 2025, is amended to read as follows:
   1.  A refund value of 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 an empty beverage container upon which a refund value has been paid to a participating dealer or redemption center and acceptance of the empty beverage container by the participating dealer or redemption center, the participating dealer or redemption center shall return the amount of the refund value to the consumer within a reasonable time not to exceed ten days.
    Sec. 4.  Section 455C.4, subsection 1, Code 2025, is amended to read as follows:
   1.  Except as provided in section 455C.5, subsection 3, a A dealer, a redemption center, a distributor, or a manufacturer may refuse to accept any empty beverage container that does not have stated on it a refund value as provided under section 455C.2.
    Sec. 5.  Section 455C.12, subsection 1, Code 2025, is amended to read as follows:
   1.  Any person violating the provisions of section 455C.2, or 455C.3, or 455C.5, or a rule adopted under this chapter, shall be guilty of a simple misdemeanor.
    Sec. 6.  Section 455C.14, subsection 1, Code 2025, is amended to read as follows:
   1.  If the a refund value indication required under section 455C.5 on an empty nonrefillable metal beverage container is readable but the redemption of the container is lawfully refused by a dealer or person operating a redemption center under other sections of this chapter or rules adopted pursuant to these sections, the container shall be accepted and the refund value paid to a consumer as provided in this section. Each beer distributor selling nonrefillable metal beverage containers in this state shall provide individually or collectively by contract or agreement with a dealer, person operating a redemption center, or another person, at least one facility in the county seat of each county where refused empty nonrefillable metal beverage containers having a readable refund value indication as required by this chapter are accepted and redeemed. In cities having a population of twenty-five thousand or more, the number of the facilities provided shall be one for each twenty-five thousand population or a fractional part of that population.
    Sec. 7.  REPEAL.  Sections 455C.5, 455C.6, 455C.7, and 455C.10, Code 2025, are repealed.
    Sec. 8.  EFFECTIVE DATE.  This division of this Act, being deemed of immediate importance, takes effect upon enactment.
DIVISION II
BEVERAGE CONTAINER REDEMPTION REPEAL

    Sec. 9.  Section 22.7, subsection 75, Code 2025, is amended by striking the subsection.
    Sec. 10.  Section 123.24, subsection 2, paragraph d, Code 2025, is amended to read as follows:
   d.  A bottle surcharge in an amount sufficient, when added to the amount not refunded to class “E” retail alcohol licensees pursuant to section 455C.2, to pay the costs incurred by the department 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” retail alcohol licensees pursuant to section 455C.2, shall be deposited in the beer and liquor control fund established under section 123.17.
    Sec. 11.  Section 423.6, subsection 3, paragraph a, Code 2025, 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. 12.  Section 455A.6, subsection 6, paragraph d, Code 2025, is amended to read as follows:
   d.  Provide advice and make recommendations regarding the budget request prepared by the director for the programs authorized by chapters 455B, 455C, 455E, 455F, 455H, and 459, subchapters II and III. 
    Sec. 13.  Section 455C.1, subsection 15, Code 2025, is amended to read as follows:
   15.  “Redemption center” means a facility at which consumers may return empty beverage containers and receive payment for the refund value of the empty beverage containers.
    Sec. 14.  Section 455C.1, subsections 3, 6, 7, 8, 10, 12, and 13, Code 2025, are amended by striking the subsections.
    Sec. 15.  REPEAL.  Sections 455C.2, 455C.3, 455C.4, 455C.9, 455C.12, 455C.12A, 455C.12B, 455C.12C, 455C.12D, 455C.13, 455C.14, and 455C.18, Code 2025, are repealed.
    Sec. 16.  UNCLAIMED REFUND VALUE AND HANDLING FEES.  Claims for unpaid refund values or handling fees shall be settled within thirty days of the enactment of this division of this Act. Thirty days after enactment of this division of this Act, any amount of refund value or handling fees possessed by a distributor after the distributor has made payments required pursuant to chapter 455C, Code 2025, shall be considered the property of the distributor.
    Sec. 17.  BARREL TAX REFUND.  For a thirty-day period after enactment of this division of this Act, a distributor who pays a handling fee for a beverage container that was sold for consumption off the premises and that used to contain beer, including high alcoholic content beer, may claim a refund of the barrel tax established in section 123.136, Code 2025, paid by the distributor in the amount of one cent for each such beverage container accepted by the distributor. The department of revenue shall prescribe forms for a distributor to use to claim a refund under this section. Identifying information collected by the department of revenue pursuant to this section that can be used to identify a specific distributor shall be considered confidential information pursuant to section 22.7, subsection 75, Code 2025.
    Sec. 18.  TRANSFER OF MONEYS.  Upon enactment of this division of this Act, any unencumbered and unobligated moneys remaining in the bottle bill fund created in section 455C.12D are transferred to the general fund of the state.
    Sec. 19.  EFFECTIVE DATE.  This division of this Act takes effect six months after enactment of division I of this Act.
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 repeal of the beverage containers control program, commonly referred to as the “bottle bill”.
   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 adds the 5-cent deposit to the sale price of each beverage container. A consumer can take eligible beverage containers to a participating dealer 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 participating dealer, dealer agent, or redemption center, at which time the distributor pays the participating dealer, dealer agent, or redemption center 5 cents per eligible container plus a handling fee of an additional 1 cent or 3 cents per eligible container.
   Upon enactment, 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, repeals the requirement that the refund value be stated on containers, and repeals provisions relating to redemption center approval. Six months thereafter, the bill repeals the remaining provisions of the program, including provisions allowing a consumer to return beverage containers in exchange for the refund value, allowing a participating dealer or a person operating a redemption center to return beverage containers to a distributor in exchange for the refund value and handling fee, allowing refusal of beverage containers, and providing for enforcement and associated penalties. Any unencumbered and unobligated moneys remaining in the bottle bill fund are transferred to the general fund of the state. Thirty days later, any amount of refund value or handling fees possessed by a distributor after the distributor has made payments and fees required pursuant to current Code chapter 455C shall be considered the property of the distributor. During the 30-day period, a distributor who pays a handling fee for a beverage container that was sold for consumption off the premises and that used to contain beer, including high alcoholic content beer, may continue to claim a refund of the barrel tax as provided by current law.
   The bill does not repeal Code section 455C.16, which prohibits disposal of beverage containers in a sanitary landfill by a participating dealer, distributor, manufacturer, or a redemption center, or strike the associated definitions in Code section 455C.1.
   The bill amends various Code provisions to conform with changes to the beverage containers control program as changes to the program become effective.