House File 182 - IntroducedA Bill ForAn Act 1providing for the future repeal of the beverage
2containers control program, making appropriations, and
3including effective date provisions.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2Unpaid refund value
3   Section 1.  Section 16.41, subsection 1, Code 2021, is
4amended to read as follows:
   51.  A shelter assistance fund is created as a revolving
6fund in the state treasury under the control of the authority
7consisting of any moneys appropriated by the general assembly
8and received under section 428A.8 and section 455C.11 for
9costs of operations of shelters for the homeless and domestic
10violence shelters, essential services for the homeless, and
11evaluation and reporting of services for the homeless. Each
12fiscal year, moneys in the fund, in an amount equal to not more
13than three percent of the total moneys distributed as grants
14from the fund during the fiscal year, may be used for purposes
15of administering the fund.
16   Sec. 2.  Section 455C.1, subsections 3, 7, 8, 10, and 12,
17Code 2021, are amended by striking the subsections.
18   Sec. 3.  Section 455C.2, subsection 1, Code 2021, is amended
19to read as follows:
   201.  A refund value of not less than five cents shall be paid
21by the consumer on each beverage container sold in this state
22by a dealer for consumption off the premises.
Upon return of
23the empty beverage container upon which a refund value has been
24paid to the dealer or person operating a redemption center
25and acceptance of the empty beverage container by the dealer
26or person operating a redemption center, the dealer or person
27operating a redemption center shall return the amount of the
28refund value to the consumer.
29   Sec. 4.  NEW SECTION.  455C.11  Unpaid refund value.
   301.  Refund value that has not been paid by a distributor to a
31dealer or redemption center on and after July 1, 2021, shall be
32credited monthly to the treasurer of state for deposit in the
33following manner:
   34a.  Ninety percent of unpaid refund value shall be deposited
35in the unpaid refunds recycling fund established in section
-1-1455C.11A.
   2b.  Ten percent of the unpaid refund value shall be deposited
3in the shelter assistance fund established in section 16.41.
   42.  In the event that a dealer, dealer agent, or redemption
5center lawfully accepts beverage containers and returns
6refund value to consumers prior to September 1, 2024, in an
7amount that exceeds the amount a distributor has available
8due to unpaid refund value previously credited to the
9treasurer of state under subsection 1, the distributor
10shall accept the containers, pay the refund value, and pay
11the reimbursement amount of one cent per container. The
12distributor may submit receipts to the department, in a manner
13prescribed by the department, showing the discrepancy, and
14the commission shall issue a refund from the unpaid refunds
15recycling fund established in section 455C.11A in the amount
16of the discrepancy. The distributor shall not include the
17reimbursement amount of one cent per container upon the
18acceptance of empty beverage containers when demonstrating a
19discrepancy.
   203.  This section is repealed October 1, 2024.
21   Sec. 5.  NEW SECTION.  455C.11A  Unpaid refunds recycling
22grant program — fund created.
   231.  The department shall establish and the commission
24shall administer an unpaid refunds recycling grant program.
25The purpose of the program shall be to provide financial
26assistance to enhance recycling programs. The program shall be
27administered in accordance with rules adopted by the commission
28pursuant to chapter 17A.
   292.  An unpaid refunds recycling fund is established in the
30state treasury under the control of the commission. The fund
31shall consist of moneys appropriated to or deposited in the
32fund. Moneys in the fund are appropriated to the commission
33for purposes of issuing grants under the program as set forth
34under subsection 3. Notwithstanding section 8.33, moneys in
35the fund that remain unencumbered or unobligated at the close
-2-1of a fiscal year shall not revert but shall remain available
2for expenditure for the purposes designated. Notwithstanding
3section 12C.7, subsection 2, interest or earnings on moneys in
4the fund shall be credited to the fund.
   53.  Moneys in the fund shall be used by the commission to
6issue grants under the program in the following manner:
   7a.  Twenty-eight percent shall be allocated for the issuance
8of grants to provide assistance for the establishment of
9recycling systems.
   10b.  Twenty-eight percent shall be allocated for the issuance
11of grants to provide assistance for the expansion of existing
12recycling systems, including dual stream recycling.
   13c.  Thirty-three percent shall be allocated for the issuance
14of grants to provide assistance for existing redemption centers
15to transition to operate as recycling centers.
   16d.  Eleven percent shall be allocated for the issuance of
17grants to provide assistance for new and existing recycling
18education programs.
   194.  This section is repealed October 1, 2024.
20   Sec. 6.  FUTURE REPEAL.  Sections 455C.5, 455C.6, 455C.7, and
21455C.10, Code 2021, are repealed effective July 1, 2024.
22   Sec. 7.  FUTURE REPEAL.  Sections 455C.2, 455C.3, 455C.4,
23455C.9, 455C.12, 455C.13, and 455C.14, Code 2021, are repealed
24effective September 1, 2024.
25   Sec. 8.  FUTURE REPEAL.  The section of this division of
26this Act amending section 16.41 is repealed effective October
271, 2024.
28   Sec. 9.  EFFECTIVE DATE.  The following takes effect July 1,
292024:
   30The section of this division of this Act amending section
31455C.2, subsection 1.
32   Sec. 10.  EFFECTIVE DATE.  The following takes effect October
331, 2024:
   34The section of this division of this Act amending section
35455C.1.
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1DIVISION II
2Conforming changes
3   Sec. 11.  Section 123.24, subsection 2, paragraph d, Code
42021, is amended to read as follows:
   5d.  A bottle surcharge in an amount sufficient, when
6added to the amount not refunded to class “E” liquor control
7licensees pursuant to section 455C.2,
to pay the costs incurred
8by the division for collecting and properly disposing of the
9liquor containers. The amount collected pursuant to this
10paragraph, in addition to any amounts not refunded to class “E”
11liquor control licensees pursuant to section 455C.2,
shall be
12deposited in the beer and liquor control fund established under
13section 123.17.
14   Sec. 12.  Section 123.26, Code 2021, is amended to read as
15follows:
   16123.26  Restrictions on sales — seals — labeling.
   17Alcoholic liquor shall not be sold by a class “E” liquor
18control licensee except in a sealed container with identifying
19markers as prescribed by the administrator and affixed in the
20manner prescribed by the administrator, and no such container
21shall be opened upon the premises of a state warehouse. The
22division shall cooperate with the department of natural
23resources so that only one identifying marker or mark is needed
24to satisfy the requirements of this section and section 455C.5,
25subsection 1.
Possession of alcoholic liquors which that do
26not carry the prescribed identifying markers is a violation of
27this chapter except as provided in section 123.22.
28   Sec. 13.  Section 123.187, subsection 3, paragraph e, Code
292021, is amended by striking the paragraph.
30   Sec. 14.  Section 423.6, subsection 3, paragraph a, Code
312021, is amended to read as follows:
   32a.  Any tangible personal property including containers
 33for which it is intended shall, by means of fabrication,
34compounding, manufacturing, or germination, become an integral
35part of other tangible personal property intended to be sold
-4-1ultimately at retail, and containers used in the collection,
2recovery, or return of empty beverage containers subject to
3chapter 455C
.
4   Sec. 15.  Section 455A.6, subsection 6, paragraph d, Code
52021, is amended to read as follows:
   6d.  Approve the budget request prepared by the director
7for the programs authorized by chapters 455B, 455C, 455E,
8455F, 455H, and 459, subchapters II and III. The commission
9shall approve the budget request prepared by the director for
10programs subject to the rulemaking authority of the commission.
11The commission may increase, decrease, or strike any item
12within the department budget request for the specified programs
13before granting approval.
14   Sec. 16.  EFFECTIVE DATE.  The following take effect July 1,
152024:
   161.  The section of this division of this Act amending section
17123.26.
   182.  The section of this division of this Act amending section
19123.187, subsection 3, paragraph “e”.
20   Sec. 17.  EFFECTIVE DATE.  The following takes effect
21September 1, 2024:
   22The section of this division of this Act amending section
23123.24, subsection 2, paragraph “d”.
24   Sec. 18.  EFFECTIVE DATE.  The following take effect October
251, 2024:
   261.  The section of this division of this Act amending section
27423.6, subsection 3, paragraph “a”.
   282.  The section of this division of this Act amending section
29455A.6, subsection 6, paragraph “d”.
30EXPLANATION
31The inclusion of this explanation does not constitute agreement with
32the explanation’s substance by the members of the general assembly.
   33This bill provides for the future repeal of the beverage
34containers control program, commonly referred to as the “bottle
35bill”, and makes appropriations to certain funds.
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   1Under current law, when a distributor sells beverages in
2eligible containers to a dealer, the distributor adds 5 cents
3per eligible container to the sale price. When a dealer sells
4beverages in eligible containers to a consumer, the dealer
5charges the 5-cent deposit on each beverage container. A
6consumer can take eligible beverage containers to a dealer,
7dealer agent, or redemption center and receive a 5-cent
8refund for every eligible beverage container that the consumer
9returns. A distributor collects eligible containers from a
10dealer, dealer agent, or redemption center, at which time
11the distributor pays the dealer, dealer agent, or redemption
12center 5 cents per eligible container plus a handling fee of an
13additional 1 cent per empty container.
   14On July 1, 2024, the bill strikes the provision of the
15beverage containers control program that requires a dealer to
16charge a consumer the refund value for each beverage container.
17The provisions of the program that allow a consumer to return
18beverage containers in exchange for the refund value and that
19allow a dealer or a person operating a redemption center to
20return beverage containers to a distributor in exchange for
21the refund value and handling fee are repealed on September 1,
222024.
   23On a monthly basis beginning July 1, 2021, unpaid refund
24value shall be credited to the treasurer of state. Ninety
25percent of the unpaid refund value shall be deposited in
26the unpaid refunds recycling fund, which is created by
27the bill in the state treasury under the control of the
28environmental protection commission. Moneys in the fund shall
29be administered by the commission and shall be allocated for
30purposes relating to recycling systems and education as part
31of the unpaid refunds recycling grant program. The remaining
3210 percent of unpaid refund value shall be deposited in the
33shelter assistance fund administered by the Iowa finance
34authority.
   35In the event that a dealer, dealer agent, or redemption
-6-1center lawfully accepts beverage containers and returns refund
2value to consumers prior to September 1, 2024, in an amount
3that exceeds the amount a distributor has available due to
4unpaid refund value being previously credited to the treasurer
5of state, the distributor shall accept the beverage containers
6and pay the refund value and handling fee. The distributor may
7then submit receipts to the department of natural resources
8showing the discrepancy. The commission shall issue a refund
9in the amount of the discrepancy. The distributor shall not
10include the handling fee when demonstrating a discrepancy.
   11The sections of the bill relating to the distribution of
12unpaid refund value, establishing the unpaid refunds recycling
13grant program and unpaid refunds recycling fund, and amending
14the shelter assistance fund are repealed October 1, 2024. The
15bill amends various Code provisions to conform with changes
16to the beverage containers control program as changes to the
17program become effective.
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