Relating to the applicability of the beverage containers control program, including the redemption and handling of beverage containers, providing penalties, making appropriations, and including effective date and transition provisions

Under current law, a consumer may return an empty beverage container upon which a refund value has been paid to a dealer or a redemption center. When a distributor collects empty beverage containers from a dealer, dealer agent, or redemption center, the distributor reimburses the dealer, dealer agent, or redemption center the refund value plus a 1-cent handling fee for each empty beverage container. Current law also allows any person to establish a redemption center that serves a dealer if it is approved by the department of natural resources (DNR). Any person can also establish an unapproved redemption center. DIVISION I. This bill increases the handling fee for redemption centers to cents per beverage container from the effective date of this division of the bill through December 31, 2023. During that time, the bill requires a dealer to pay one-half of cent per beverage container to the distributor for each beverage container delivered to the dealer as a contribution to the handling fee. The bill expands the definition of “beverage” to include high alcoholic content beer and canned cocktails. The bill amends the definition of “dealer agent” so that a dealer agent is not limited to soliciting or picking up empty beverage containers from a dealer. The bill defines the term “redemption service provider”, which includes a registered redemption center or a dealer agent. Under the bill, a dealer may choose to not accept beverage containers if the dealer enters a contract with a redemption service provider who will accept beverage containers on the dealer’s behalf. A dealer may only enter such a contract with a registered redemption center for this purpose if the dealer’s place of business is in a county with a population of more than 30,000 and within miles of the redemption center or if the dealer’s place of business is in a county with a population of 30,000 or fewer and within miles of the redemption center. The dealer is required to prominently post on the premises of the dealer’s place of business a sign that includes the location and hours of a registered redemption center with which the dealer has contracted. A redemption service provider may require as a term of a contract with a dealer that the dealer shall make space available on the dealer’s property for the redemption service provider to collect beverage containers at no cost to the redemption service provider. A contract between a dealer and a dealer agent will not relieve a dealer of its duty to accept beverage containers from consumers unless the contract requires the dealer agent to return refund value to consumers in the form of cash at the time of return. The bill allows a person to register to establish a redemption center by filing proper notice with DNR. The bill provides requirements that a person must satisfy to properly file notice of operation of a redemption center. The bill creates civil enforcement procedures and penalties for a violation of the provisions of Code chapter 455C, including a civil penalty of up to $2,500 for each day of the violation. The bill establishes a bottle bill enforcement fund in the state treasury under the control of DNR. The fund consists of moneys deposited in the fund from civil penalties collected under the bill and such moneys are appropriated to DNR for purposes of administering and enforcing the beverage containers control program. The bill makes numerous changes throughout Code chapter 455C to change instances of “dealer” to “participating dealer”, remove obsolete language, and stylistically and grammatically update the Code chapter. DIVISION II. The bill repeals the current beverage containers control law (Code chapter 455C) on January 1, 2024, and makes corresponding changes. Upon repeal of Code chapter 455C, all moneys in the bottle bill enforcement fund are transferred to the alcoholic beverages division (ABD) within the department of commerce for deposit in the bottle bill deposit fund created in Division III of the bill. Any moneys credited to the bottle bill enforcement fund on and after January 1, 2024, are transferred to ABD for deposit in the bottle bill deposit fund. DIVISION III. The bill creates a new Code chapter 123B to place beverage containers control provisions under the authority of ABD. The bill further expands the definition of “beverage” to include certain waters, tea or coffee drinks, juices, and sports drinks, but excludes certain substances from the definition. The bill excludes foil pouches and drink boxes from the definition of “beverage container”. Under the new beverage containers control provisions, when a manufacturer transfers beverage containers to a distributor, the manufacturer shall pay to the distributor one-half of cent per beverage container for each beverage container transferred. When a distributor delivers beverage containers to a dealer, the dealer shall pay to the distributor one-half of cent per beverage container for each beverage container delivered.5 cents for each beverage container delivered to the dealer. Additionally, a dealer shall submit to the department of revenue on a monthly basis receipts indicating the number of beverage containers sold by the dealer and the 5-cent refund value collected for each beverage container sold by the dealer. The department of revenue shall credit monthly to the treasurer of state for deposit in the bottle bill deposit fund established in the bill the payments submitted by distributors and the refund value collected from dealers. A consumer may only redeem the refund value by returning an empty beverage container to a registered redemption center facility. The redemption center shall pay refund value to a consumer within days of redemption. After payment of the refund value by a redemption center to a consumer, the redemption center shall dispose of empty beverage containers by transporting the beverage containers to a recycling site. After a redemption center provides proof of recycling, ABD shall reimburse the redemption center the refund value paid to consumers and a handling fee provided by rule, which is contingent on how the redemption center provides refund value to consumers. The reimbursement shall be paid from the bottle bill deposit fund established in the bill. This division of the bill does not require a distributor to pick up beverage containers and reimburse redemption centers. The bill provides penalty provisions primarily based on simple misdemeanors and fraudulent practices in current Code chapter 455C, but also creates the fraudulent practice of intentionally submitting to ABD a request for reimbursement of refund value that does not accurately reflect the number of beverage containers collected and recycled by a redemption center for the period that the redemption center seeks reimbursement. The bill also provides for civil enforcement by ABD, including the imposition of civil penalties not to exceed $2,000 for a general violation of the new beverage containers control provisions or $2,500 for each day of a violation of a compliance order. The bill requires ABD to establish and administer a refund value payment program for the purpose of administering payments of refund value and handling fees to redemption centers. The bill establishes a bottle bill deposit fund in the state treasury under the control of ABD. Moneys in the bottle bill deposit fund may be used for purposes of issuing refund value and the handling fee to a redemption center, covering administrative costs to administer the program, providing grants to expand redemption capacity in underserved areas, providing grants to nonprofit organizations to engage in litter collection in public areas, providing reimbursement for actual and necessary expenses incurred by members of the bottle bill advisory committee established in the bill, and replenishing the bottle bill cash reserve account established within the fund. The bill requires ABD to establish a bottle bill advisory committee that shall meet at least once each year to review the status of the new beverage containers control law. The committee shall submit any recommended changes to ABD and the general assembly. The bill authorizes the auditor of state to establish rules to allow for periodic auditing of entities receiving moneys from the bottle bill deposit fund. This division of the bill takes effect January 1, 2024.