Bill

Bill > HF809


IA HF809

IA HF809
A bill for an act providing for the repeal of the beverage containers control program, and including effective date provisions.


summary

Introduced
03/06/2025
In Committee
03/06/2025
Crossed Over
Passed
Dead

Introduced Session

91st General Assembly

Bill Summary

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.

AI Summary

This bill provides for the complete repeal of Iowa's beverage container control program, commonly known as the "bottle bill," which previously required a 5-cent deposit on eligible beverage containers. Upon enactment, the bill immediately strikes provisions requiring dealers to charge consumers a refund value for beverage containers and removes requirements for refund value markings. Six months after enactment, the bill will fully repeal the remaining provisions of the program, including the ability of consumers to return containers for a refund, dealers and redemption centers to return containers to distributors, and associated enforcement mechanisms. The bill includes several transitional provisions, such as allowing a 30-day period for settling unpaid refund values and handling fees, during which distributors can claim a barrel tax refund for certain beer containers. Any unencumbered funds in the bottle bill fund will be transferred to the state's general fund, and after 30 days, any remaining refund values or handling fees will become the property of the distributors. While the bill repeals most of the bottle bill's provisions, it notably maintains the prohibition on disposing of beverage containers in sanitary landfills.

Committee Categories

Business and Industry

Sponsors (1)

Last Action

Introduced, referred to Commerce. H.J. 539. (on 03/06/2025)

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