House File 809 - Introduced HOUSE FILE 809 BY RINKER A BILL FOR An Act providing for the repeal of the beverage containers 1 control program, and including effective date provisions. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1960YH (6) 91 sb/js
H.F. 809 DIVISION I 1 BEVERAGE CONTAINER DEPOSIT REPEAL 2 Section 1. Section 123.26, Code 2025, is amended to read as 3 follows: 4 123.26 Restrictions on sales seals labeling. 5 Alcoholic liquor shall not be sold by a class E retail 6 alcohol licensee except in a sealed container with identifying 7 markers as prescribed by the director and affixed in the manner 8 prescribed by the director, and no such container shall be 9 opened upon the premises of a state warehouse. The department 10 shall cooperate with the department of natural resources so 11 that only one identifying marker or mark is needed to satisfy 12 the requirements of this section and section 455C.5, subsection 13 1 . Possession of alcoholic liquors which that do not carry the 14 prescribed identifying markers is a violation of this chapter 15 except as provided in section 123.22 . 16 Sec. 2. Section 123.187, subsection 3, paragraph e, Code 17 2025, is amended by striking the paragraph. 18 Sec. 3. Section 455C.2, subsection 1, Code 2025, is amended 19 to read as follows: 20 1. A refund value of five cents shall be paid by the 21 consumer on each beverage container sold in this state by a 22 dealer for consumption off the premises. Upon return of the 23 an empty beverage container upon which a refund value has 24 been paid to a participating dealer or redemption center and 25 acceptance of the empty beverage container by the participating 26 dealer or redemption center, the participating dealer or 27 redemption center shall return the amount of the refund value 28 to the consumer within a reasonable time not to exceed ten 29 days. 30 Sec. 4. Section 455C.4, subsection 1, Code 2025, is amended 31 to read as follows: 32 1. Except as provided in section 455C.5, subsection 3 , a A 33 dealer, a redemption center, a distributor, or a manufacturer 34 may refuse to accept any empty beverage container that does 35 -1- LSB 1960YH (6) 91 sb/js 1/ 6
H.F. 809 not have stated on it a refund value as provided under section 1 455C.2 . 2 Sec. 5. Section 455C.12, subsection 1, Code 2025, is amended 3 to read as follows: 4 1. Any person violating the provisions of section 455C.2 , or 5 455C.3 , or 455C.5 , or a rule adopted under this chapter , shall 6 be guilty of a simple misdemeanor. 7 Sec. 6. Section 455C.14, subsection 1, Code 2025, is amended 8 to read as follows: 9 1. If the a refund value indication required under section 10 455C.5 on an empty nonrefillable metal beverage container 11 is readable but the redemption of the container is lawfully 12 refused by a dealer or person operating a redemption center 13 under other sections of this chapter or rules adopted pursuant 14 to these sections, the container shall be accepted and the 15 refund value paid to a consumer as provided in this section . 16 Each beer distributor selling nonrefillable metal beverage 17 containers in this state shall provide individually or 18 collectively by contract or agreement with a dealer, person 19 operating a redemption center, or another person, at least 20 one facility in the county seat of each county where refused 21 empty nonrefillable metal beverage containers having a 22 readable refund value indication as required by this chapter 23 are accepted and redeemed. In cities having a population of 24 twenty-five thousand or more, the number of the facilities 25 provided shall be one for each twenty-five thousand population 26 or a fractional part of that population. 27 Sec. 7. REPEAL. Sections 455C.5, 455C.6, 455C.7, and 28 455C.10, Code 2025, are repealed. 29 Sec. 8. EFFECTIVE DATE. This division of this Act, being 30 deemed of immediate importance, takes effect upon enactment. 31 DIVISION II 32 BEVERAGE CONTAINER REDEMPTION REPEAL 33 Sec. 9. Section 22.7, subsection 75, Code 2025, is amended 34 by striking the subsection. 35 -2- LSB 1960YH (6) 91 sb/js 2/ 6
H.F. 809 Sec. 10. Section 123.24, subsection 2, paragraph d, Code 1 2025, is amended to read as follows: 2 d. A bottle surcharge in an amount sufficient , when added to 3 the amount not refunded to class E retail alcohol licensees 4 pursuant to section 455C.2 , to pay the costs incurred by 5 the department for collecting and properly disposing of the 6 liquor containers. The amount collected pursuant to this 7 paragraph , in addition to any amounts not refunded to class E 8 retail alcohol licensees pursuant to section 455C.2 , shall be 9 deposited in the beer and liquor control fund established under 10 section 123.17 . 11 Sec. 11. Section 423.6, subsection 3, paragraph a, Code 12 2025, is amended to read as follows: 13 a. Any tangible personal property including containers 14 for which it is intended shall, by means of fabrication, 15 compounding, manufacturing, or germination, become an integral 16 part of other tangible personal property intended to be sold 17 ultimately at retail , and containers used in the collection, 18 recovery, or return of empty beverage containers subject to 19 chapter 455C . 20 Sec. 12. Section 455A.6, subsection 6, paragraph d, Code 21 2025, is amended to read as follows: 22 d. Provide advice and make recommendations regarding the 23 budget request prepared by the director for the programs 24 authorized by chapters 455B , 455C , 455E , 455F , 455H , and 459, 25 subchapters II and III . 26 Sec. 13. Section 455C.1, subsection 15, Code 2025, is 27 amended to read as follows: 28 15. Redemption center means a facility at which consumers 29 may return empty beverage containers and receive payment for 30 the refund value of the empty beverage containers . 31 Sec. 14. Section 455C.1, subsections 3, 6, 7, 8, 10, 12, and 32 13, Code 2025, are amended by striking the subsections. 33 Sec. 15. REPEAL. Sections 455C.2, 455C.3, 455C.4, 455C.9, 34 455C.12, 455C.12A, 455C.12B, 455C.12C, 455C.12D, 455C.13, 35 -3- LSB 1960YH (6) 91 sb/js 3/ 6
H.F. 809 455C.14, and 455C.18, Code 2025, are repealed. 1 Sec. 16. UNCLAIMED REFUND VALUE AND HANDLING FEES. Claims 2 for unpaid refund values or handling fees shall be settled 3 within thirty days of the enactment of this division of this 4 Act. Thirty days after enactment of this division of this Act, 5 any amount of refund value or handling fees possessed by a 6 distributor after the distributor has made payments required 7 pursuant to chapter 455C, Code 2025, shall be considered the 8 property of the distributor. 9 Sec. 17. BARREL TAX REFUND. For a thirty-day period after 10 enactment of this division of this Act, a distributor who pays 11 a handling fee for a beverage container that was sold for 12 consumption off the premises and that used to contain beer, 13 including high alcoholic content beer, may claim a refund of 14 the barrel tax established in section 123.136, Code 2025, paid 15 by the distributor in the amount of one cent for each such 16 beverage container accepted by the distributor. The department 17 of revenue shall prescribe forms for a distributor to use to 18 claim a refund under this section. Identifying information 19 collected by the department of revenue pursuant to this section 20 that can be used to identify a specific distributor shall be 21 considered confidential information pursuant to section 22.7, 22 subsection 75, Code 2025. 23 Sec. 18. TRANSFER OF MONEYS. Upon enactment of this 24 division of this Act, any unencumbered and unobligated moneys 25 remaining in the bottle bill fund created in section 455C.12D 26 are transferred to the general fund of the state. 27 Sec. 19. EFFECTIVE DATE. This division of this Act takes 28 effect six months after enactment of division I of this Act. 29 EXPLANATION 30 The inclusion of this explanation does not constitute agreement with 31 the explanations substance by the members of the general assembly. 32 This bill provides for the repeal of the beverage containers 33 control program, commonly referred to as the bottle bill. 34 Under current law, when a distributor sells beverages in 35 -4- LSB 1960YH (6) 91 sb/js 4/ 6
H.F. 809 eligible containers to a dealer, the distributor adds 5 cents 1 per eligible container to the sale price. When a dealer sells 2 beverages in eligible containers to a consumer, the dealer 3 adds the 5-cent deposit to the sale price of each beverage 4 container. A consumer can take eligible beverage containers 5 to a participating dealer or redemption center and receive a 6 5-cent refund for every eligible beverage container that the 7 consumer returns. A distributor collects eligible containers 8 from a participating dealer, dealer agent, or redemption 9 center, at which time the distributor pays the participating 10 dealer, dealer agent, or redemption center 5 cents per eligible 11 container plus a handling fee of an additional 1 cent or 3 12 cents per eligible container. 13 Upon enactment, the bill strikes the provision of the 14 beverage containers control program that requires a dealer to 15 charge a consumer the refund value for each beverage container, 16 repeals the requirement that the refund value be stated on 17 containers, and repeals provisions relating to redemption 18 center approval. Six months thereafter, the bill repeals the 19 remaining provisions of the program, including provisions 20 allowing a consumer to return beverage containers in exchange 21 for the refund value, allowing a participating dealer or 22 a person operating a redemption center to return beverage 23 containers to a distributor in exchange for the refund value 24 and handling fee, allowing refusal of beverage containers, 25 and providing for enforcement and associated penalties. Any 26 unencumbered and unobligated moneys remaining in the bottle 27 bill fund are transferred to the general fund of the state. 28 Thirty days later, any amount of refund value or handling fees 29 possessed by a distributor after the distributor has made 30 payments and fees required pursuant to current Code chapter 31 455C shall be considered the property of the distributor. 32 During the 30-day period, a distributor who pays a handling 33 fee for a beverage container that was sold for consumption off 34 the premises and that used to contain beer, including high 35 -5- LSB 1960YH (6) 91 sb/js 5/ 6
H.F. 809 alcoholic content beer, may continue to claim a refund of the 1 barrel tax as provided by current law. 2 The bill does not repeal Code section 455C.16, which 3 prohibits disposal of beverage containers in a sanitary 4 landfill by a participating dealer, distributor, manufacturer, 5 or a redemption center, or strike the associated definitions 6 in Code section 455C.1. 7 The bill amends various Code provisions to conform with 8 changes to the beverage containers control program as changes 9 to the program become effective. 10 -6- LSB 1960YH (6) 91 sb/js 6/ 6