House File 814 H-1399 Amend House File 814 as follows: 1 1. By striking everything after the enacting clause and 2 inserting: 3 < Section 1. Section 455C.1, subsections 1, 6, and 13, Code 4 2021, are amended to read as follows: 5 1. “Beverage” means wine as defined in section 123.3, 6 subsection 54 , alcoholic liquor as defined in section 123.3, 7 subsection 5 , beer as defined in section 123.3, subsection 8 7 , high alcoholic content beer as defined in section 123.3, 9 subsection 22, canned cocktail as defined in section 123.3, 10 subsection 11, mineral water, soda water , and similar 11 carbonated soft drinks in liquid form and intended for human 12 consumption. 13 6. “Dealer agent” means a person who solicits or picks up 14 empty beverage containers from a dealer for the purpose of 15 returning the empty beverage containers to a distributor or 16 manufacturer. 17 13. “Redemption center” means a facility at which consumers 18 may return empty beverage containers and receive payment for 19 the refund value of the empty beverage containers. “Redemption 20 center” includes a participating dealer registered pursuant to 21 section 455C.6A. 22 Sec. 2. Section 455C.1, Code 2021, is amended by adding the 23 following new subsection: 24 NEW SUBSECTION . 12A. “Participating dealer” means a dealer, 25 whether registered or unregistered, who accepts the return of 26 empty beverage containers from a consumer. 27 Sec. 3. Section 455C.2, Code 2021, is amended to read as 28 follows: 29 455C.2 Refund values. 30 1. A refund value of not less than five cents shall be paid 31 by the consumer on each beverage container sold in this state 32 by a dealer for consumption off the premises. Upon return of 33 the empty beverage container upon which a refund value has 34 been paid to the a participating dealer or person operating 35 -1- HF 814.2156 (2) 89 js/ns 1/ 9 #1.

a redemption center and acceptance of the empty beverage 1 container by the participating dealer or person operating a 2 redemption center, the participating dealer or person operating 3 a redemption center shall immediately return the amount of 4 the refund value to the consumer. Upon return of the empty 5 beverage container on which a refund value has been paid to a 6 dealer agent, the dealer agent shall return the amount of the 7 refund value to the consumer within a reasonable time not to 8 exceed fourteen days. 9 2. a. In addition to the refund value provided in 10 subsection 1 of this section , a participating dealer, or person 11 operating a redemption center , who redeems empty beverage 12 containers or a dealer agent shall be reimbursed by the 13 distributor required to accept the empty beverage containers 14 an amount which that is one cent two cents per container. A 15 participating dealer, dealer agent, or person operating a 16 redemption center may compact empty metal beverage containers 17 with the approval of the distributor required to accept the 18 containers. 19 b. When a distributor delivers beverage containers to 20 a dealer, the dealer shall pay to the distributor as a 21 contribution to the reimbursement required under paragraph “a” 22 one-half of one cent per beverage container for sixty percent 23 of the beverage containers delivered. 24 Sec. 4. Section 455C.3, subsections 1, 2, and 4, Code 2021, 25 are amended to read as follows: 26 1. A participating dealer shall not refuse to accept from a 27 consumer any empty beverage container of the kind, size , and 28 brand sold by the participating dealer, or refuse to pay to the 29 consumer the refund value of a beverage container as provided 30 under section 455C.2 . 31 2. A distributor shall accept and pick up from a 32 participating dealer served by the distributor or a redemption 33 center for a dealer served by the distributor at least weekly, 34 or when the distributor delivers the beverage product if 35 -2- HF 814.2156 (2) 89 js/ns 2/ 9

deliveries are less frequent than weekly, any empty beverage 1 container of the kind, size , and brand sold by the distributor, 2 and shall pay to the participating dealer or person operating 3 a redemption center the refund value of a beverage container 4 and the reimbursement as provided under section 455C.2 within 5 one week following pickup of the containers or when the 6 participating dealer or redemption center normally pays the 7 distributor for the deposit on beverage products purchased from 8 the distributor if less frequent than weekly. A distributor 9 or employee or agent of a distributor is not in violation 10 of this subsection if a redemption center is closed when the 11 distributor attempts to make a regular delivery or a regular 12 pickup of empty beverage containers. This subsection does 13 not apply to a distributor selling alcoholic liquor to the 14 alcoholic beverages division of the department of commerce. 15 4. A distributor shall accept from a dealer agent any 16 empty beverage container of the kind, size, and brand sold by 17 the distributor and which that was picked up by the dealer 18 agent from a dealer within the geographic territory served 19 by the distributor and the distributor shall pay the dealer 20 agent the refund value of the empty beverage container and the 21 reimbursement as provided in section 455C.2 . 22 Sec. 5. Section 455C.4, Code 2021, is amended to read as 23 follows: 24 455C.4 Refusal to accept containers. 25 1. Except as provided in section 455C.5, subsection 3 , 26 a participating dealer, a person operating dealer agent, a 27 redemption center, a distributor , or a manufacturer may refuse 28 to accept any empty beverage container which that does not have 29 stated on it a refund value as provided under section 455C.2 . 30 2. A dealer may refuse to accept and to pay the refund value 31 of any empty beverage container if the place of business of the 32 dealer and the kind and brand of empty beverage containers are 33 included in an order of the department approving a redemption 34 center under section 455C.6. dealer’s place of business is in 35 -3- HF 814.2156 (2) 89 js/ns 3/ 9

a county with a population of more than thirty thousand and 1 within ten miles of a registered redemption center or if the 2 dealer’s place of business is in a county with a population 3 of thirty thousand or fewer and within fifteen miles of a 4 registered redemption center. 5 3. A dealer or a distributor may refuse to accept and to pay 6 the refund value of an empty wine or alcoholic liquor container 7 which is marked to indicate that it was sold by a state liquor 8 store. The alcoholic beverages division shall not reimburse 9 a dealer or a distributor the refund value on an empty wine or 10 alcoholic liquor container which is marked to indicate that the 11 container was sold by a state liquor store. 12 4. 3. A class “E” liquor control licensee may refuse to 13 accept and to pay the refund value on an empty alcoholic liquor 14 container from a participating dealer or a redemption center 15 or from a person acting on behalf of or who has received empty 16 alcoholic liquor containers from a dealer or a redemption 17 center. 18 5. 4. A manufacturer or distributor may refuse to accept 19 and to pay the refund value and reimbursement as provided in 20 section 455C.2 on any empty beverage container that was picked 21 up by a dealer agent from a dealer outside the geographic 22 territory served by the manufacturer or distributor. 23 Sec. 6. Section 455C.5, subsection 1, Code 2021, is amended 24 to read as follows: 25 1. Each beverage container sold or offered for sale in 26 this state by a dealer shall clearly indicate the refund value 27 of the container by embossing or by a stamp, label , or other 28 method securely affixed to the container , the refund value of 29 the container . The department shall specify, by rule, the 30 minimum size of the refund value indication on the beverage 31 containers. 32 Sec. 7. Section 455C.6, subsections 1, 2, and 5, Code 2021, 33 are amended to read as follows: 34 1. To facilitate the return of empty beverage containers 35 -4- HF 814.2156 (2) 89 js/ns 4/ 9

and to serve dealers of beverages, any person may establish a 1 redemption center , subject to the approval of the department, 2 at which consumers may return empty beverage containers 3 and receive payment of the refund value of such beverage 4 containers. 5 2. An application for approval of Written notice of the 6 operation of a redemption center shall be filed with the 7 department. The application notice shall state the name 8 and address of the person responsible for the establishment 9 and operation of the redemption center , the kind and brand 10 names of the beverage containers which will be accepted at 11 the redemption center, and the names and addresses of the 12 dealers to be served by the redemption center. The application 13 notice shall contain such other information as the director 14 may reasonably require. Upon filing a proper notice, the 15 redemption center shall be considered registered for purposes 16 of this chapter. 17 5. All approved redemption centers shall meet applicable 18 health standards. 19 Sec. 8. Section 455C.6, subsections 3 and 4, Code 2021, are 20 amended by striking the subsections. 21 Sec. 9. NEW SECTION . 455C.6A Participating dealer acting as 22 registered redemption center. 23 A participating dealer may register with the department to 24 act as a registered redemption center for purposes of this 25 chapter. 26 Sec. 10. Section 455C.12, subsections 2 and 3, Code 2021, 27 are amended to read as follows: 28 2. A distributor who collects or attempts to collect 29 a refund value on an empty beverage container when the 30 distributor has paid the refund value on the container to a 31 participating dealer, dealer agent, redemption center, or 32 consumer is guilty of a fraudulent practice. 33 3. Any person who does any of the following acts is guilty 34 of a fraudulent practice: 35 -5- HF 814.2156 (2) 89 js/ns 5/ 9

a. Collects or attempts to collect the refund value on the 1 container a second time, with the knowledge that the refund 2 value has once been paid by the distributor to a participating 3 dealer, dealer agent, redemption center , or consumer. 4 b. Manufactures, sells, possesses , or applies a false or 5 counterfeit label or indication which that shows or purports to 6 show a refund value for a beverage container, with intent to 7 use the false or counterfeit label or indication. 8 c. Collects or attempts to collect a refund value on 9 a container with the use of a false or counterfeit label 10 or indication showing a refund value, knowing the label or 11 indication to be false or counterfeit. 12 Sec. 11. Section 455C.12, Code 2021, is amended by adding 13 the following new subsection: 14 NEW SUBSECTION . 6. A person who violates any provision of 15 this chapter, or any rule, permit, or order adopted or issued 16 under this chapter, shall be subject to a civil penalty not 17 to exceed two thousand five hundred dollars for each day of 18 the violation. The department shall adopt rules establishing 19 a schedule of civil penalties based on the severity of the 20 violation. Any civil penalty collected under this chapter 21 shall be deposited in the bottle bill fund established in 22 section 455C.12D. 23 Sec. 12. NEW SECTION . 455C.12A Administrative enforcement 24 —— compliance orders. 25 1. The director may issue any order necessary to secure 26 compliance with or prevent a violation of the provisions of 27 this chapter or any rule adopted or permit or order issued 28 pursuant to this chapter. Any order issued pursuant to this 29 section may impose a civil penalty authorized pursuant to 30 section 455C.12, subsection 6, for a violation of the order, 31 to be collected administratively by the department. The 32 person to whom the compliance order is issued may cause to be 33 commenced a contested case within the meaning of chapter 17A by 34 filing within thirty days a notice of appeal to the director. 35 -6- HF 814.2156 (2) 89 js/ns 6/ 9

Following a contested case hearing and a proposed decision 1 issued by the department, the commission may affirm, modify, or 2 vacate the proposed decision. 3 2. If a person continues an alleged violation during the 4 appeals process and the commission affirms that the person has 5 committed a violation, the department may assess penalties for 6 each day the violation continued through the appeals process. 7 Sec. 13. NEW SECTION . 455C.12B Judicial review. 8 Judicial review of any final order or other final action of 9 the commission or director may be sought in accordance with the 10 terms of chapter 17A. Notwithstanding the terms of chapter 11 17A, petitions for judicial review may be filed in the district 12 court of the county in which the alleged offense was committed. 13 Sec. 14. NEW SECTION . 455C.12C Civil actions for compliance 14 —— penalties. 15 The attorney general, on request of the department, shall 16 institute any legal proceedings necessary to obtain compliance 17 with an order of the commission or the director, including 18 proceedings for a temporary injunction, or prosecuting any 19 person for a violation of the provisions of this chapter or 20 any rules adopted or permit or order issued pursuant to this 21 chapter. 22 Sec. 15. NEW SECTION . 455C.12D Bottle bill fund. 23 A bottle bill fund is established in the state treasury 24 under the control of the department. The fund shall consist 25 of moneys deposited in the fund pursuant to section 455C.12, 26 subsection 6, and any other moneys appropriated to or deposited 27 in the fund. Moneys in the fund are appropriated to the 28 department for purposes of administering and enforcing this 29 chapter. Notwithstanding section 8.33, moneys in the fund 30 that remain unencumbered or unobligated at the close of a 31 fiscal year shall not revert but shall remain available for 32 expenditure for the purposes designated. Notwithstanding 33 section 12C.7, subsection 2, interest or earnings on moneys in 34 the fund shall be credited to the fund. 35 -7- HF 814.2156 (2) 89 js/ns 7/ 9

Sec. 16. Section 455C.13, Code 2021, is amended to read as 1 follows: 2 455C.13 Distributors’ agreements authorized. 3 1. A distributor , dealer, or redemption center may enter 4 into a contract or agreement with any other distributor, 5 manufacturer , or person for the purpose of collecting or paying 6 the refund value on, or disposing of, beverage containers as 7 provided in this chapter . 8 2. For purposes of this chapter, any contracts entered into 9 pursuant to this section for the collection or disposal of 10 empty beverage containers shall not be deemed to interfere with 11 the refund value pursuant to section 455C.2. A contract shall 12 not authorize a person to offer and pay a refund value of less 13 than five cents. 14 Sec. 17. REPEAL. Sections 455C.7, 455C.10, and 455C.14, 15 Code 2021, are repealed. 16 Sec. 18. LEGISLATIVE FISCAL COMMITTEE REVIEW. 17 1. The legislative fiscal committee established in 18 section 2.45 shall hold a meeting during the legislative 19 interim immediately preceding the 2025 regular legislative 20 session. During the meeting, the committee shall review the 21 enforcement of chapter 455C by the department of natural 22 resources, including the collection of civil penalties, the 23 report submitted by the attorney general pursuant to subsection 24 2, whether and how many redemption centers and participating 25 dealers registered with the department, and the adequacy of 26 the reimbursement amount under section 455C.2, subsection 27 2. The committee shall submit a report of its findings and 28 recommendations to the general assembly no later than January 29 31, 2025. 30 2. The attorney general shall submit a report to the 31 general assembly prior to the legislative fiscal committee’s 32 meetings under subsection 1. The report shall detail any legal 33 proceedings arising under chapter 455C since the effective date 34 of this Act. 35 -8- HF 814.2156 (2) 89 js/ns 8/ 9