Bill Text: IA SSB1186 | 2017-2018 | 87th General Assembly | Introduced
Bill Title: A bill for an act repealing the beverage containers control program, creating a recycling program and a litter control and community enhancement initiative, imposing certain recycling program fees and litter control and community enhancement excise taxes, repealing and creating funds within the state treasury, and including effective date and transition provisions.
Spectrum: Committee Bill
Status: (N/A - Dead) 2018-03-20 - Subcommittee Meeting: 03/21/2018 2:00PM Senate Lobbyist Lounge [SSB1186 Detail]
Download: Iowa-2017-SSB1186-Introduced.html
Senate
Study
Bill
1186
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
WAYS
AND
MEANS
BILL
BY
CHAIRPERSON
FEENSTRA)
A
BILL
FOR
An
Act
repealing
the
beverage
containers
control
program,
1
creating
a
recycling
program
and
a
litter
control
and
2
community
enhancement
initiative,
imposing
certain
recycling
3
program
fees
and
litter
control
and
community
enhancement
4
excise
taxes,
repealing
and
creating
funds
within
the
5
state
treasury,
and
including
effective
date
and
transition
6
provisions.
7
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
8
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Section
1.
NEW
SECTION
.
15.221
Keep
Iowa
beautiful
fund.
1
1.
a.
A
keep
Iowa
beautiful
fund
is
created
in
the
state
2
treasury
under
the
control
of
the
authority.
The
fund
shall
3
consist
of
moneys
appropriated
to
the
authority
and
any
other
4
moneys
available
to
and
obtained
or
accepted
by
the
authority
5
for
placement
in
the
fund.
6
b.
Repayments
and
recaptures
of
financial
assistance
issued
7
in
accordance
with
section
455C.8
and
this
section
shall
be
8
credited
to
the
fund.
Moneys
in
the
fund
are
not
subject
9
to
section
8.33.
Notwithstanding
section
12C.7,
interest
or
10
earnings
on
moneys
in
the
fund
shall
be
credited
to
the
fund.
11
2.
Moneys
in
the
fund
are
appropriated
to
the
authority
12
and,
with
the
approval
of
the
administrator
of
the
keep
Iowa
13
beautiful
fund,
shall
be
used
to
financially
support
litter
14
control
and
community
enhancement
initiatives
as
set
forth
in
15
section
455C.8.
16
Sec.
2.
NEW
SECTION
.
455C.1
Definitions.
17
1.
“Applicant”
means
a
person
with
an
interest
in
or
18
responsibility
to
manage
solid
waste
in
this
state.
19
2.
“Beverage”
means
wine
as
defined
in
section
123.3,
20
subsection
47,
alcoholic
liquor
as
defined
in
section
123.3,
21
subsection
5,
beer
as
defined
in
section
123.3,
subsection
7,
22
mineral
water,
soda
water,
and
similar
carbonated
soft
drinks
23
in
liquid
form
and
intended
for
human
consumption.
24
3.
“Beverage
container”
means
a
sealed
glass,
plastic,
25
cardboard,
or
metal
bottle,
can,
jar,
or
carton
containing
a
26
beverage.
27
4.
“Commission”
means
the
environmental
protection
28
commission.
29
5.
“Consumer”
means
a
person
who
purchases
a
beverage
in
a
30
beverage
container
for
use
or
consumption.
31
6.
“Core
recyclables”
includes
aluminum
or
steel
cans,
32
plastic
bottles
designated
with
society
of
plastics
industry
33
resin
codes
one
through
seven
as
determined
by
ASTM
(American
34
society
for
testing
and
materials)
international,
glass
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bottles
and
jars,
newspapers,
magazines,
junk
mail,
corrugated
1
cardboard,
boxboard,
mixed
paper,
beverage
cartons,
and
2
additional
materials
designated
periodically
by
the
department.
3
7.
“Dealer”
means
a
person
who
engages
in
the
sale
of
4
beverages
in
beverage
containers
to
a
consumer.
5
8.
“Department”
means
the
department
of
natural
resources
6
created
in
section
455A.2.
7
9.
“Director”
means
the
director
of
the
department.
8
10.
“Distributor”
means
a
person
who
engages
in
the
sale
9
of
beverages
in
beverage
containers
to
a
dealer
in
this
state,
10
including
any
manufacturer
who
engages
in
such
sales.
11
11.
“Financial
assistance”
means
monetary
assistance
in
12
the
form
of
grants,
loans,
or
forgivable
loans
awarded
to
an
13
applicant
pursuant
to
this
chapter.
14
12.
“High-value
materials”
means
aluminum,
plastic,
paper,
15
and
cardboard
products
that
qualify
as
core
recyclables.
16
13.
“Manufacturer”
means
a
person
who
fills
beverage
17
containers
with
beverages
for
sale
to
distributors
or
dealers.
18
14.
“Recycling”
means
the
same
as
defined
in
section
455D.1.
19
Sec.
3.
NEW
SECTION
.
455C.2
Duties
of
the
director.
20
The
director
shall
do
all
of
the
following:
21
1.
Unless
otherwise
specified
in
this
chapter,
recommend
22
rules
to
the
commission
necessary
to
administer
this
chapter.
23
2.
Administer
the
recycling
program
created
by
this
24
chapter.
25
3.
Enter
into
contracts
and
agreements
with
local
units
of
26
government,
other
state
agencies,
governments
of
other
states,
27
governmental
agencies
of
the
United
States,
other
public
and
28
private
contractors,
and
other
persons
as
may
be
necessary
or
29
beneficial
in
carrying
out
the
department’s
duties
under
this
30
chapter,
with
commission
approval
required
for
contracts
or
31
agreements
in
excess
of
twenty-five
thousand
dollars.
32
4.
Organize
an
application
review
team
to
review
proposals
33
submitted
to
the
department
in
accordance
with
this
chapter.
34
Sec.
4.
NEW
SECTION
.
455C.3
Rules.
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The
commission
may
adopt
rules
pursuant
to
chapter
17A
1
necessary
to
administer
this
chapter.
2
Sec.
5.
NEW
SECTION
.
455C.4
Recycling
program
planning.
3
1.
An
applicant
may
submit
a
recycling
program
proposal
to
4
the
department
on
or
before
January
1,
2019.
5
a.
The
department
may
provide
proposal
guidance
and
funding
6
assistance
to
an
applicant.
7
b.
The
department
may
encourage
and
reward
regionalized
8
and
public-private
partnership
efforts
through
its
recycling
9
program
proposal
funding
assistance
decisions.
10
c.
The
department
may
encourage
and
reward
applicants
11
who
create
recycling
services
in
areas
of
the
state
without
12
recycling
services
or
in
underserved
areas
of
the
state
that
13
would
benefit
from
additional
access
to
recycling
services.
14
2.
A
proposal
submitted
by
an
applicant
must
include
all
of
15
the
following:
16
a.
An
inventory
of
the
applicant’s
existing
recycling
17
programs
and
infrastructure.
18
b.
New
investment
and
personnel
required
to
comply
with
19
recycling
program
requirements.
20
c.
Planned
recycling
education
and
outreach
initiatives.
21
d.
Projected
landfill
diversion
results
from
the
expenditure
22
of
the
requested
funding
assistance.
23
e.
Projected
economic
benefits
to
cities
and
counties.
24
f.
A
business
plan
to
ensure
successful
operation
after
25
funding
assistance
ends.
26
g.
Planned
initiatives
to
encourage
innovation
regarding
use
27
of
recycling
materials.
28
3.
Proposals
submitted
by
applicants
must
prioritize
the
29
recovery
of
high-value
materials
from
the
waste
stream
and
30
emphasize
the
highest
and
best
use
for
recovered
materials
31
given
economic
and
logistic
constraints.
32
4.
The
department
shall
review
and
may
approve
submitted
33
proposals
according
to
criteria
developed
by
the
department.
34
The
department
shall
return
unsatisfactory
proposals
to
35
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applicants
for
revision
and
resubmission.
Applicants
whose
1
proposals
are
not
approved
by
the
department
are
not
eligible
2
for
assistance
from
the
recycling
program.
3
5.
Proposals
must
include
a
means
of
collecting
core
4
recyclables
based
on
best
practices
for
improving
accessibility
5
and
convenience
in
the
applicant’s
region
of
the
state,
and
6
may
include
special
handling
or
exclusion
of
glass
containers.
7
Applicants
are
encouraged
to
pursue
revenue-sharing
clauses
in
8
contracts
for
the
sale
of
recyclables
that
allow
for
incentives
9
to
maintain
high-volume
and
high-value
materials
recycling
10
streams.
11
Sec.
6.
NEW
SECTION
.
455C.5
Recycling
program
——
12
utilization.
13
The
recycling
program
shall
do
the
following:
14
1.
Provide
financial
assistance
to
applicants
for
the
15
preparation
of
recycling
program
proposals
submitted
under
16
section
455C.4.
Funding
assistance
for
recycling
proposals
17
submitted
in
accordance
with
section
455C.4
may
be
awarded
18
beginning
January
1,
2018,
subject
to
availability
of
funds.
19
2.
Include
review
by
the
department
of
recycling
proposals,
20
conducting
baseline
recycling
research,
and
enforcing
21
provisions
of
this
chapter,
including
enforcement
of
the
22
payment
of
the
recycling
program
fee.
23
3.
Provide
financial
assistance
for
capital
investment
24
needed
for
collection,
transportation,
processing,
or
marketing
25
of
core
recyclables
and
other
recyclables.
Priorities
for
this
26
financial
assistance
include
all
of
the
following:
27
a.
Projects
and
proposals
that
increase
convenience
and
28
accessibility
in
locations
for
residents
and
businesses
to
29
recycle
core
recyclables.
30
b.
Projects
and
proposals
demonstrating
cost-effective
solid
31
waste
diversion
programs.
32
c.
Projects
and
proposals
from
businesses
dependent
upon
the
33
beverage
containers
control
program
prior
to
January
1,
2018,
34
to
transition
into
recycling
system
entities
including
but
not
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limited
to
redemption
centers,
collectors,
and
transportation
1
providers.
2
d.
Projects
and
proposals
demonstrating
a
public-private
3
partnership.
4
e.
Projects
and
proposals
that
establish
local
markets
and
5
end
uses
in
this
state
for
core
recyclables.
6
Sec.
7.
NEW
SECTION
.
455C.6
Recycling
program
fee.
7
1.
As
of
January
1,
2018,
the
department
shall
impose
a
8
recycling
program
fee
of
one
cent
per
beverage
container
on
9
distributors
until
recycling
program
fee
revenues
equal
sixty
10
million
dollars,
at
which
point
the
recycling
program
fee
shall
11
no
longer
be
imposed.
12
2.
Revenue
generated
from
the
recycling
program
fee
shall
13
not
be
subject
to
appropriation
and
shall
be
deposited
in
the
14
solid
waste
account
of
the
groundwater
protection
fund
created
15
in
section
455E.11,
subsection
2,
to
be
utilized
as
provided
in
16
section
455E.11,
subsection
2,
paragraph
“a”
,
subparagraph
(1),
17
subparagraph
division
(f).
18
3.
The
department
shall
examine
other
more
diversified
19
funding
mechanisms
to
provide
ongoing
support
for
recycling
20
programs
after
the
recycling
program
fee
is
no
longer
imposed.
21
4.
Expenditures
for
recycling
program
administration
and
22
support
may
be
paid
using
moneys
received
for
deposit
in
the
23
solid
waste
account
under
this
section
but
shall
not
exceed
24
five
percent
of
the
total
moneys
received
for
deposit
each
25
fiscal
year.
26
5.
Fees
imposed
by
this
section
shall
be
paid
by
27
distributors
to
the
department
on
a
quarterly
basis
with
28
payment
due
by
no
more
than
ninety
days
following
the
quarter
29
during
which
the
fees
were
collected.
The
payment
shall
be
30
accompanied
by
a
return
which
shall
identify
the
amount
of
fees
31
to
be
deposited
in
the
solid
waste
account
of
the
groundwater
32
protection
fund.
33
Sec.
8.
NEW
SECTION
.
455C.7
Litter
control
and
community
34
enhancement
initiatives.
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The
keep
Iowa
beautiful
fund
created
in
section
15.221
may
1
be
used
to
provide
financial
assistance
to
litter
control
and
2
community
enhancement
initiatives
that
do
any
of
the
following:
3
1.
Conduct
statewide
surveys
every
ten
years
to
allow
4
tracking
of
litter
control
and
prevention
progress.
5
2.
Develop
and
utilize
public
relations
campaigns
primarily
6
focused
on
litter
control
and
community
enhancement.
7
3.
Promote
teachers-going-green-program
lesson
plans
that
8
meet
core
federal
and
state
education
requirements.
9
4.
Coordinate
community
service
outreach
grant
programs
10
targeted
at
youth
groups,
elementary
school
fundraisers,
11
and
religious
and
community
improvement
clubs,
schools,
or
12
specialized
programs.
13
5.
Develop
and
coordinate
a
litter
control
and
community
14
enhancement
grant
program
according
to
criteria
determined
by
15
the
administrator
of
the
keep
Iowa
beautiful
fund.
Inadequate
16
or
incomplete
proposals
shall
be
returned
to
the
applicant
for
17
revision
and
resubmission.
Applicants
whose
proposals
are
not
18
approved
by
the
administrator
of
the
keep
Iowa
beautiful
fund
19
shall
not
be
eligible
for
funding
assistance
from
the
keep
Iowa
20
beautiful
fund.
21
Sec.
9.
NEW
SECTION
.
455C.8
Litter
control
and
community
22
enhancement
fee.
23
1.
A
litter
control
and
community
enhancement
fee
is
24
imposed
effective
January
1,
2019,
as
an
excise
tax
collected
25
by
the
department
of
revenue
at
a
rate
of
fifteen-thousandths
26
of
one
percent
upon
the
sales
price
of
beverages
in
beverage
27
containers
from
dealers.
28
2.
All
revenue
generated
from
the
litter
control
and
29
community
enhancement
fee
shall
be
deposited
into
a
separate
30
account
in
the
keep
Iowa
beautiful
fund.
Revenue
generated
31
from
the
litter
control
and
community
enhancement
fee
shall
not
32
be
used
for
any
purpose
other
than
those
referenced
in
section
33
455C.7
and
shall
not
be
subject
to
appropriation
for
any
other
34
purpose.
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3.
Fees
imposed
by
this
section
shall
be
paid
to
the
1
department
on
a
quarterly
basis
with
payment
due
by
no
more
2
than
ninety
days
following
the
quarter
during
which
the
fees
3
were
collected.
The
payment
shall
be
accompanied
by
a
return
4
which
shall
identify
the
amount
of
fees
to
be
deposited
in
the
5
keep
Iowa
beautiful
fund.
6
4.
The
director
of
revenue
shall
administer
the
litter
7
control
and
community
enhancement
fee
as
an
excise
tax
on
the
8
sale
of
beverages
in
beverage
containers
as
nearly
as
possible
9
in
conjunction
with
the
administration
of
the
state
sales
and
10
use
tax
law,
except
that
portion
of
the
law
that
implements
the
11
streamlined
sales
and
use
tax
agreement.
The
director
shall
12
provide
appropriate
forms,
or
provide
on
the
regular
state
tax
13
forms,
for
reporting
the
excise
tax
liability.
14
Sec.
10.
Section
123.24,
subsection
5,
Code
2017,
is
amended
15
by
striking
the
subsection.
16
Sec.
11.
Section
123.26,
Code
2017,
is
amended
to
read
as
17
follows:
18
123.26
Restrictions
on
sales
——
seals
——
labeling.
19
Alcoholic
liquor
shall
not
be
sold
by
a
class
“E”
liquor
20
control
licensee
except
in
a
sealed
container
with
identifying
21
markers
as
prescribed
by
the
administrator
and
affixed
in
the
22
manner
prescribed
by
the
administrator,
and
no
such
container
23
shall
be
opened
upon
the
premises
of
a
state
warehouse.
The
24
division
shall
cooperate
with
the
department
of
natural
25
resources
so
that
only
one
identifying
marker
or
mark
is
needed
26
to
satisfy
the
requirements
of
this
section
and
section
455C.5,
27
subsection
1
.
Possession
of
alcoholic
liquors
which
do
not
28
carry
the
prescribed
identifying
markers
is
a
violation
of
this
29
chapter
except
as
provided
in
section
123.22
.
30
Sec.
12.
Section
123.187,
subsection
4,
paragraph
b,
Code
31
2017,
is
amended
by
striking
the
paragraph.
32
Sec.
13.
Section
423.6,
subsection
3,
paragraph
a,
Code
33
2017,
is
amended
to
read
as
follows:
34
a.
Any
tangible
personal
property
including
containers
which
35
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it
is
intended
shall,
by
means
of
fabrication,
compounding,
1
manufacturing,
or
germination,
become
an
integral
part
of
other
2
tangible
personal
property
intended
to
be
sold
ultimately
at
3
retail
,
and
containers
used
in
the
collection,
recovery,
or
4
return
of
empty
beverage
containers
subject
to
chapter
455C
.
5
Sec.
14.
Section
455B.313,
subsection
1,
Code
2017,
is
6
amended
to
read
as
follows:
7
1.
A
distributor
as
defined
in
section
455C.1
,
subsection
8
9
,
shall
not
sell
or
offer
to
sell
any
beverage
container
9
if
the
beverage
container
is
connected
to
another
beverage
10
container
by
a
device
constructed
of
a
material
which
is
not
11
biodegradable
or
photodegradable.
12
Sec.
15.
Section
455E.11,
subsection
2,
paragraph
a,
13
subparagraph
(1),
subparagraph
division
(d),
Code
2017,
is
14
amended
to
read
as
follows:
15
(d)
Up
to
thirty
percent
of
the
tonnage
fees
remitted
shall
16
be
used
for
grants
to
environmental
management
systems
as
17
provided
in
section
455J.7
.
18
Sec.
16.
Section
455E.11,
subsection
2,
paragraph
a,
19
subparagraph
(1),
subparagraph
division
(f),
Code
2017,
is
20
amended
to
read
as
follows:
21
(f)
The
balance
of
the
remaining
funds
shall
be
used
by
the
22
department
to
develop
do
the
following:
23
(i)
Develop
and
implement
demonstration
projects
for
24
landfill
alternatives
to
solid
waste
disposal
including
25
recycling
programs.
These
funds
may
also
be
used
to
assist
26
(ii)
Assist
planning
areas
which
have
not
been
designated
27
as
environmental
management
systems
in
meeting
the
designation
28
requirements
of
section
455J.3
.
29
(iii)
Provide
financial
assistance
for
recycling
programs
30
described
in
section
455C.5
using
revenue
from
fees
imposed
31
under
section
455C.6.
32
Sec.
17.
REPEAL.
Chapter
455C,
Code
2017,
is
repealed.
33
Sec.
18.
REPEAL.
Section
314.28,
Code
2017,
is
repealed.
34
Sec.
19.
TRANSITION
AND
IMPLEMENTATION.
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1.
The
department
of
natural
resources,
the
economic
1
development
authority,
and
the
administrator
of
the
keep
Iowa
2
beautiful
board
may
begin
preparations
to
implement
this
Act,
3
including
adoption
of
administrative
rules,
prior
to
January
1,
4
2018,
to
the
extent
necessary
to
transition
from
the
beverage
5
containers
control
law
to
full
implementation
of
the
provisions
6
relating
to
the
recycling
program
and
litter
control
and
7
community
enhancement
initiatives.
8
2.
Any
moneys
remaining
in
the
keep
Iowa
beautiful
9
fund
created
in
section
314.28
on
June
30,
2017,
shall
be
10
transferred
to
the
keep
Iowa
beautiful
fund
created
in
section
11
15.221.
12
Sec.
20.
EFFECTIVE
DATE.
This
Act
takes
effect
January
1,
13
2018,
except
as
otherwise
provided
in
this
Act.
14
Sec.
21.
EFFECTIVE
DATE
——
TRANSITION
AND
15
IMPLEMENTATION.
The
section
of
this
Act
providing
for
16
transition
and
implementation
takes
effect
July
1,
2017.
17
Sec.
22.
CODE
EDITOR
DIRECTIVE.
18
1.
The
Code
editor
is
directed
to
transfer
section
455B.313
19
to
section
455D.8.
20
2.
The
Code
editor
shall
correct
internal
references
in
the
21
Code
and
in
any
enacted
legislation
as
necessary
due
to
the
22
enactment
of
this
section.
23
EXPLANATION
24
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
25
the
explanation’s
substance
by
the
members
of
the
general
assembly.
26
This
bill
repeals
current
Code
chapter
455C,
the
beverage
27
containers
control
law,
and
replaces
it
with
new
statewide
28
recycling,
litter
control,
and
community
enhancement
programs.
29
The
bill
requires
an
applicant
to
submit
a
recycling
program
30
proposal
to
the
department
of
natural
resources
on
or
before
31
January
1,
2018,
outlining
its
proposals
regarding
recycling,
32
litter
control,
and
community
enhancement
programs
set
forth
33
in
new
Code
sections
455C.4
and
455C.7.
Applicants
without
34
approved
proposals
will
not
be
eligible
for
funding
assistance
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from
the
new
programs
created
in
the
new
Code
chapter.
1
The
bill
deposits
moneys
into
the
solid
waste
account
of
the
2
groundwater
protection
fund
created
in
Code
section
455E.11(2)
3
for
use
by
the
recycling
program
collected
through
a
recycling
4
program
fee
imposed
by
the
department
of
natural
resources.
5
The
recycling
program
fee
is
a
temporary
assessment
that
will
6
remain
in
place
until
$60
million
is
raised,
at
which
point
the
7
recycling
program
fee
is
no
longer
imposed.
8
The
bill
requires
applicants
to
submit
litter
control
9
and
community
enhancement
proposals
to
the
administrator
of
10
the
keep
Iowa
beautiful
fund.
The
bill
repeals
the
current
11
keep
Iowa
beautiful
fund
established
in
Code
section
314.28
12
and
creates
a
new
keep
Iowa
beautiful
fund
within
the
state
13
treasury
under
the
control
of
the
economic
development
14
authority.
The
keep
Iowa
beautiful
fund
receives
moneys
from
a
15
new
litter
control
and
community
enhancement
fee
collected
by
16
the
department
of
revenue
at
a
rate
of
fifteen-thousandths
of
1
17
percent
of
the
sales
price
of
beverages
in
beverage
containers.
18
The
bill
authorizes
the
environmental
protection
commission
19
to
adopt
rules
pursuant
to
Code
chapter
17A
necessary
to
20
administer
the
new
Code
chapter
455C
provisions.
21
The
bill
takes
effect
January
1,
2018,
except
that
the
22
department
of
natural
resources,
the
economic
development
23
authority,
and
the
administrator
of
the
keep
Iowa
beautiful
24
fund
may
begin
implementation
on
July
1,
2017,
to
the
extent
25
necessary
to
transition
from
the
beverage
containers
control
26
law
to
full
implementation
of
the
provisions
relating
to
the
27
recycling
program
and
litter
control
and
community
enhancement
28
initiative.
29
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