Providing for the future repeal of the beverage containers control program, making appropriations, and including effective date provisions

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 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 cents per eligible container plus a handling fee of an additional 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redemption center to return beverage containers to a distributor in exchange for the refund value and handling fee are repealed on September 1, 2024.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 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.