KTIV News Channel 4

Le Mars, IA Redemption Center Unsure About 'Bottle Bill' Benefit

Iowa Governor Chet Culver proposed $100-million in new spending during Tuesday's "Condition of the State" speech. Among those fees... an expansion of the state's "bottle bill", which doubles the deposit from 5-cents to 10-cents. Here's the catch, you would only get back 8-cents when you redeem them.

Culver defended the proposal in front of teachers and students at Sioux City's East High school, Wednesday afternoon.

The democrat said the other two cents would be split between grocers and centers that redeem those cans and bottles... and a state environmental fund. "I think we need a dime to make it work financially," Culver said. "We need to help especially here in Northwest Iowa in rural parts of our state those smaller redemption centers."

But, some local redemption centers-- which Culver says would benefit from the expanded bottle bill-- don't think the proposal is such a good idea. Since the "bottle bill's" inception in 1978, redemption centers, like the "Can Farm" in Le Mars have only received one cent per can or bottle. Over the years, owner Cheryl Juhl says they haven't had an increase since and with her costs going up, she wants at least a penny more but she doesn't think it's right to pass the cost onto the consumer.
"I think he's over optimistic on what he wants to do," said Juhl. "I do not agree with not giving the consumer back the ten cents."

Instead of a 5-cent increase to consumers, Juhl would like to see the environmental program to be funded by unclaimed deposits. "It has never been a tax to the consumer, and he's going to make it a tax if this would go through," Juhl said.

Republicans agree that an expanded bottle deposit would amount to a tax. "If you don't get the money back, it's not a deposit, it's a tax increase," said Rep. Christopher Rants, (R) Sioux City.

But, some consumers believe the proposal would work and they say they wouldn't mind paying a dime but only getting eight cents back. "On the whole it's probably a good idea and I do think that the people that are handling the product, the empty cans deserve an increase," said Robert Henke, Cleghorn.

But, Juhl isn't very optimistic about this bill going through the legislature. "We haven't been able to get one penny out of the legislature for all these years, I can't see this happening and we need that extra penny that has to be where our focus is," Juhl said. Juhl says that without some kind of support from the legislature her business will eventually close.

Culver's proposal also wants to expand the types of containers covered by the law. It could cover water bottles... and things like sports drinks and energy drinks. That's an additional 335-million containers.

Video available at http://www.ktiv.com/News/index.php?ID=21592