House File 2571 H-8277 Amend House File 2571 as follows: 1 1. By striking everything after the enacting clause and 2 inserting: 3 < DIVISION I 4 CHANGES TO CURRENT BEVERAGE CONTAINERS CONTROL LAW 5 Section 1. Section 455C.1, subsections 1 and 6, Code 2022, 6 are amended to read as follows: 7 1. “Beverage” means wine as defined in section 123.3, 8 subsection 54 , alcoholic liquor as defined in section 123.3, 9 subsection 5 , beer as defined in section 123.3, subsection 10 7 , high alcoholic content beer as defined in section 123.3, 11 subsection 22, canned cocktail as defined in section 123.3, 12 subsection 11, mineral water, soda water , and similar 13 carbonated soft drinks in liquid form and intended for human 14 consumption. 15 6. “Dealer agent” means a person who solicits or picks up 16 empty beverage containers from a dealer for the purpose of 17 returning the empty beverage containers to a distributor or 18 manufacturer. 19 Sec. 2. Section 455C.1, Code 2022, is amended by adding the 20 following new subsections: 21 NEW SUBSECTION . 12A. “Participating dealer” means a dealer 22 who accepts the return of empty beverage containers from a 23 consumer. 24 NEW SUBSECTION . 14. “Redemption service provider” means a 25 dealer agent or a registered redemption center. 26 Sec. 3. Section 455C.2, Code 2022, is amended to read as 27 follows: 28 455C.2 Refund values. 29 1. A refund value of not less than five cents shall be paid 30 by the consumer on each beverage container sold in this state 31 by a dealer for consumption off the premises. Upon return of 32 the empty beverage container upon which a refund value has 33 been paid to the a participating dealer or person operating 34 a redemption center and acceptance of the empty beverage 35 -1- HF 2571.4112 (2) 89 js/ns 1/ 22 #1.

container by the participating dealer or person operating a 1 redemption center, the participating dealer or person operating 2 a redemption center shall return the amount of the refund value 3 to the consumer. 4 2. a. In addition to the refund value provided in 5 subsection 1 of this section , a participating dealer , or person 6 operating a redemption center who redeems empty beverage 7 containers or a dealer agent shall be reimbursed by the 8 distributor required to accept the empty beverage containers an 9 amount which that is one cent per container. A dealer, dealer 10 agent, or person operating a redemption center may compact 11 empty metal beverage containers with the approval of the 12 distributor required to accept the containers. A redemption 13 center shall be reimbursed an amount that is two cents per 14 container. 15 b. When a distributor delivers beverage containers to 16 a dealer, the dealer shall pay to the distributor as a 17 contribution to the reimbursement required under paragraph “a” 18 one-half of one cent per beverage container for each beverage 19 container delivered. 20 Sec. 4. Section 455C.3, subsections 1, 2, and 4, Code 2022, 21 are amended to read as follows: 22 1. A participating dealer shall not refuse to accept from a 23 consumer any empty beverage container of the kind, size , and 24 brand sold by the participating dealer, or refuse to pay to the 25 consumer the refund value of a beverage container as provided 26 under section 455C.2 . 27 2. A distributor shall accept and pick up from a 28 participating dealer served by the distributor or a redemption 29 center for a dealer served by the distributor at least weekly, 30 or when the distributor delivers the beverage product if 31 deliveries are less frequent than weekly, any empty beverage 32 container of the kind, size , and brand sold by the distributor, 33 and shall pay to the participating dealer or person operating 34 a redemption center the refund value of a beverage container 35 -2- HF 2571.4112 (2) 89 js/ns 2/ 22

and the reimbursement as provided under section 455C.2 within 1 one week following pickup of the containers or when the 2 participating dealer or redemption center normally pays the 3 distributor for the deposit on beverage products purchased from 4 the distributor if less frequent than weekly. A distributor 5 or employee or agent of a distributor is not in violation 6 of this subsection if a redemption center is closed when the 7 distributor attempts to make a regular delivery or a regular 8 pickup of empty beverage containers. This subsection does 9 not apply to a distributor selling alcoholic liquor to the 10 alcoholic beverages division of the department of commerce. 11 4. A distributor shall accept from a dealer agent any 12 empty beverage container of the kind, size, and brand sold by 13 the distributor and which that was picked up by the dealer 14 agent from a dealer within the geographic territory served 15 by the distributor and the distributor shall pay the dealer 16 agent the refund value of the empty beverage container and the 17 reimbursement as provided in section 455C.2 . 18 Sec. 5. Section 455C.4, Code 2022, is amended to read as 19 follows: 20 455C.4 Refusal to accept containers. 21 1. Except as provided in section 455C.5, subsection 3 , 22 a participating dealer , a person operating a or redemption 23 center , a distributor or a manufacturer may refuse to accept 24 any empty beverage container which that does not have stated on 25 it a refund value as provided under section 455C.2 . 26 2. a. A dealer may refuse to accept and to pay the 27 refund value of any empty beverage container if the place of 28 business of the dealer and the kind and brand of empty beverage 29 containers are included in an order of the department approving 30 a redemption center under section 455C.6 dealer enters a 31 contract with a redemption service provider who will accept 32 beverage containers on the dealer’s behalf . A dealer may only 33 enter a contract with a registered redemption center under this 34 subsection if the dealer’s place of business is in a county 35 -3- HF 2571.4112 (2) 89 js/ns 3/ 22

with a population of more than thirty thousand and within five 1 miles of the redemption center or if the dealer’s place of 2 business is in a county with a population of thirty thousand or 3 fewer and within ten miles of the redemption center. 4 b. A dealer who refuses to accept empty beverage containers 5 and enters a contract with a registered redemption center under 6 paragraph “a” shall prominently post on the premises of the 7 dealer’s place of business a sign that includes the location 8 and hours of a registered redemption center with which the 9 dealer has contracted under paragraph “a” . 10 c. A redemption service provider may require as a term of 11 a contract entered into under paragraph “a” that the dealer 12 shall make space available on the dealer’s property for the 13 redemption service provider to collect beverage containers at 14 no cost to the redemption service provider. 15 d. Entering a contract with a dealer agent does not satisfy 16 the contract requirement in paragraph “a” unless the contract 17 requires the dealer agent to return refund value to consumers 18 in the form of cash at the time of return. 19 3. A dealer or a distributor may refuse to accept and to pay 20 the refund value of an empty wine or alcoholic liquor container 21 which is marked to indicate that it was sold by a state liquor 22 store. The alcoholic beverages division shall not reimburse 23 a dealer or a distributor the refund value on an empty wine or 24 alcoholic liquor container which is marked to indicate that the 25 container was sold by a state liquor store. 26 4. 3. A class “E” liquor control licensee may refuse to 27 accept and to pay the refund value on an empty alcoholic liquor 28 container from a participating dealer or a redemption center 29 or from a person acting on behalf of or who has received empty 30 alcoholic liquor containers from a participating dealer or a 31 redemption center. 32 5. 4. A manufacturer or distributor may refuse to accept 33 and to pay the refund value and reimbursement as provided in 34 section 455C.2 on any empty beverage container that was picked 35 -4- HF 2571.4112 (2) 89 js/ns 4/ 22

up by a dealer agent from a dealer outside the geographic 1 territory served by the manufacturer or distributor. 2 Sec. 6. Section 455C.5, subsection 1, Code 2022, is amended 3 to read as follows: 4 1. Each beverage container sold or offered for sale in 5 this state by a dealer shall clearly indicate the refund value 6 of the container by embossing or by a stamp, label , or other 7 method securely affixed to the container , the refund value of 8 the container . The department shall specify, by rule, the 9 minimum size of the refund value indication on the beverage 10 containers. 11 Sec. 7. Section 455C.6, subsections 1, 2, and 5, Code 2022, 12 are amended to read as follows: 13 1. To facilitate the return of empty beverage containers and 14 to serve dealers of beverages, any person may register with the 15 department pursuant to subsection 2 to establish a redemption 16 center , subject to the approval of the department, at which 17 consumers may return empty beverage containers and receive 18 payment of the refund value of such beverage containers. 19 2. a. An application for approval of Written notice of 20 the operation of a redemption center shall be filed with the 21 department. The application notice shall state the name and 22 address of the person responsible for the establishment and 23 operation of the redemption center, the kind and brand names 24 of the beverage containers which will be accepted at the 25 redemption center, and the names and addresses of the dealers 26 to be served by the redemption center. The application shall 27 contain such other information as the director may reasonably 28 require include the information listed in paragraph “b” . 29 Upon filing a proper notice, the redemption center shall be 30 considered registered for purposes of this chapter. 31 b. A redemption center’s notice filed under paragraph “a” 32 shall be considered proper if it includes all of the following: 33 (1) The name, address, and telephone number of the 34 redemption center. 35 -5- HF 2571.4112 (2) 89 js/ns 5/ 22

(2) The name, address, and telephone number of the person or 1 persons responsible for the establishment and operation of the 2 redemption center. 3 (3) An indication that the redemption center will accept 4 all kinds, sizes, and brands of beverage containers sold by the 5 dealers served by the redemption center. 6 (4) The names and addresses of the distributors whose 7 beverage containers will be redeemed. 8 (5) The hours during which the redemption center will be 9 open. 10 (6) An indication that the redemption center will be in 11 operation and open to the public for the redemption of beverage 12 containers at least twenty hours per week, four hours of which 13 shall be between the hours of 6:00 p.m. and 10:00 p.m. or on 14 Saturday or Sunday, or a combination thereof. 15 5. All approved redemption centers shall meet applicable 16 health standards. 17 Sec. 8. Section 455C.12, subsection 2, Code 2022, is amended 18 to read as follows: 19 2. A distributor who collects or attempts to collect 20 a refund value on an empty beverage container when the 21 distributor has paid the refund value on the container to a 22 participating dealer, redemption center, or consumer is guilty 23 of a fraudulent practice. 24 Sec. 9. Section 455C.12, subsection 3, paragraphs a and b, 25 Code 2022, are amended to read as follows: 26 a. Collects or attempts to collect the refund value on the 27 container a second time, with the knowledge that the refund 28 value has once been paid by the distributor to a participating 29 dealer, redemption center , or consumer. 30 b. Manufactures, sells, possesses , or applies a false or 31 counterfeit label or indication which that shows or purports to 32 show a refund value for a beverage container, with intent to 33 use the false or counterfeit label or indication. 34 Sec. 10. Section 455C.12, Code 2022, is amended by adding 35 -6- HF 2571.4112 (2) 89 js/ns 6/ 22

the following new subsection: 1 NEW SUBSECTION . 6. A person who violates any provision of 2 this chapter, or any rule, permit, or order adopted or issued 3 under this chapter, shall be subject to a civil penalty not 4 to exceed two thousand five hundred dollars for each day of 5 the violation. The department shall adopt rules establishing 6 a schedule of civil penalties based on the severity of the 7 violation. Any civil penalty collected under this chapter 8 shall be deposited in the bottle bill enforcement fund 9 established in section 455C.12D. 10 Sec. 11. NEW SECTION . 455C.12A Administrative enforcement 11 —— compliance orders. 12 1. The director may issue any order necessary to secure 13 compliance with or prevent a violation of the provisions of 14 this chapter or any rule adopted or permit or order issued 15 pursuant to this chapter. Any order issued pursuant to this 16 section may impose a civil penalty authorized pursuant to 17 section 455C.12, subsection 6, for a violation of the order, 18 to be collected administratively by the department. The 19 person to whom the compliance order is issued may cause to be 20 commenced a contested case within the meaning of chapter 17A by 21 filing within thirty days a notice of appeal to the director. 22 Following a contested case hearing and a proposed decision 23 issued by the department, the commission may affirm, modify, or 24 vacate the proposed decision. 25 2. If a person continues an alleged violation during the 26 appeals process and the commission affirms that the person has 27 committed a violation, the department may assess penalties for 28 each day the violation continued through the appeals process. 29 Sec. 12. NEW SECTION . 455C.12B Judicial review. 30 Judicial review of any final order or other final action of 31 the commission or director may be sought in accordance with the 32 terms of chapter 17A. Notwithstanding the terms of chapter 33 17A, petitions for judicial review may be filed in the district 34 court of the county in which the alleged offense was committed. 35 -7- HF 2571.4112 (2) 89 js/ns 7/ 22

Sec. 13. NEW SECTION . 455C.12C Civil actions for compliance 1 —— penalties. 2 The attorney general, on request of the department, shall 3 institute any legal proceedings necessary to obtain compliance 4 with an order of the commission or the director, including 5 proceedings for a temporary injunction, or prosecuting any 6 person for a violation of the provisions of this chapter or 7 any rules adopted or permit or order issued pursuant to this 8 chapter. 9 Sec. 14. NEW SECTION . 455C.12D Bottle bill enforcement 10 fund. 11 A bottle bill enforcement fund is established in the state 12 treasury under the control of the department. The fund shall 13 consist of moneys deposited in the fund pursuant to section 14 455C.12, subsection 6, and any other moneys appropriated to or 15 deposited in the fund. Moneys in the fund are appropriated 16 to the department for purposes of administering and enforcing 17 this chapter. Notwithstanding section 8.33, moneys in the 18 fund that remain unencumbered or unobligated at the close of 19 a fiscal year shall not revert but shall remain available for 20 expenditure for the purposes designated. Notwithstanding 21 section 12C.7, subsection 2, interest or earnings on moneys in 22 the fund shall be credited to the fund. 23 Sec. 15. Section 455C.13, Code 2022, is amended to read as 24 follows: 25 455C.13 Distributors’ Collection and disposal agreements 26 authorized. 27 1. A distributor , dealer, or redemption center may enter 28 into a contract or agreement with any other distributor, 29 manufacturer , or person for the purpose of collecting or paying 30 the refund value on, or disposing of , beverage containers as 31 provided in this chapter . 32 2. For purposes of this chapter, any contracts entered into 33 pursuant to this section for the collection or disposal of 34 empty beverage containers shall not be deemed to interfere with 35 -8- HF 2571.4112 (2) 89 js/ns 8/ 22

the refund value pursuant to section 455C.2. 1 Sec. 16. Section 455C.14, subsection 1, Code 2022, is 2 amended to read as follows: 3 1. If the refund value indication required under section 4 455C.5 on an empty nonrefillable metal beverage container 5 is readable but the redemption of the container is lawfully 6 refused by a participating dealer or person operating a 7 redemption center under other sections of this chapter or 8 rules adopted pursuant to these sections, the container 9 shall be accepted and the refund value paid to a consumer 10 as provided in this section . Each beer distributor selling 11 nonrefillable metal beverage containers in this state shall 12 provide individually or collectively by contract or agreement 13 with a dealer, person operating a redemption center , or another 14 person, at least one facility in the county seat of each county 15 where refused empty nonrefillable metal beverage containers 16 having a readable refund value indication as required by 17 this chapter are accepted and redeemed. In cities having a 18 population of twenty-five thousand or more, the number of the 19 facilities provided shall be one for each twenty-five thousand 20 population or a fractional part of that population. 21 Sec. 17. Section 455C.16, Code 2022, is amended to read as 22 follows: 23 455C.16 Beverage containers —— disposal at sanitary landfill 24 prohibited. 25 Beginning July 1, 1990, the The final disposal of beverage 26 containers by a dealer, distributor, or manufacturer, or 27 person operating a redemption center, in a sanitary landfill, 28 is prohibited. Beginning September 1, 1992 , including the 29 final disposal of beverage containers that used to contain 30 alcoholic liquor as defined in section 123.3, subsection 5 , 31 by a participating dealer, distributor, or manufacturer, or 32 person operating a redemption center in a sanitary landfill , 33 is prohibited. 34 DIVISION II 35 -9- HF 2571.4112 (2) 89 js/ns 9/ 22

REPEAL OF CURRENT BEVERAGE CONTAINERS CONTROL LAW 1 Sec. 18. Section 123.24, subsection 2, paragraph d, Code 2 2022, is amended by striking the paragraph. 3 Sec. 19. Section 123.26, Code 2022, is amended to read as 4 follows: 5 123.26 Restrictions on sales —— seals —— labeling. 6 Alcoholic liquor shall not be sold by a class “E” liquor 7 control licensee except in a sealed container with identifying 8 markers as prescribed by the administrator and affixed in the 9 manner prescribed by the administrator, and no such container 10 shall be opened upon the premises of a state warehouse. The 11 division shall cooperate with the department of natural 12 resources so ensure that only one identifying marker or mark is 13 needed to satisfy the requirements of this section and section 14 455C.5 123B.4 , subsection 1 . Possession of alcoholic liquors 15 which that do not carry the prescribed identifying markers is a 16 violation of this chapter except as provided in section 123.22 . 17 Sec. 20. Section 123.187, subsection 3, paragraph e, Code 18 2022, is amended by striking the paragraph. 19 Sec. 21. Section 423.6, subsection 3, paragraph a, Code 20 2022, is amended to read as follows: 21 a. Any tangible personal property including containers 22 for which it is intended shall, by means of fabrication, 23 compounding, manufacturing, or germination, become an integral 24 part of other tangible personal property intended to be sold 25 ultimately at retail, and containers used in the collection, 26 recovery, or return of empty beverage containers subject to 27 chapter 455C 123B . 28 Sec. 22. Section 455A.4, subsection 1, paragraph b, Code 29 2022, is amended to read as follows: 30 b. Provide overall supervision, direction, and coordination 31 of functions to be administered by the administrators under 32 chapters 321G , 321I , 455B , 455C , 456A , 456B , 457A , 458A , 459 , 33 459A , 459B , 461A , 462A , 462B , 464A , 465C , 473 , 481A , 481B , 34 483A , 484A , and 484B . 35 -10- HF 2571.4112 (2) 89 js/ns 10/ 22

Sec. 23. Section 455A.6, subsection 6, paragraphs a, b, and 1 d, Code 2022, are amended to read as follows: 2 a. Establish policy for the department and adopt rules, 3 pursuant to chapter 17A , necessary to provide for the effective 4 administration of chapter 455B , 455C , or 459 . 5 b. Hear appeals in contested cases pursuant to chapter 17A 6 on matters relating to actions taken by the director under 7 chapter 455C, 458A , 464B , or 473 . 8 d. Approve the budget request prepared by the director 9 for the programs authorized by chapters 455B , 455C , 455E , 10 455F , 455H , and 459, subchapters II and III . The commission 11 shall approve the budget request prepared by the director for 12 programs subject to the rulemaking authority of the commission. 13 The commission may increase, decrease, or strike any item 14 within the department budget request for the specified programs 15 before granting approval. 16 Sec. 24. Section 455B.313, subsection 1, Code 2022, is 17 amended to read as follows: 18 1. A distributor as defined in section 455C.1, subsection 19 9 , shall not sell or offer to sell any beverage container 20 if the beverage container is connected to another beverage 21 container by a device constructed of a material which that is 22 not biodegradable or photodegradable. 23 Sec. 25. Section 455B.313, Code 2022, is amended by adding 24 the following new subsection: 25 NEW SUBSECTION . 3. For purposes of this section, 26 “distributor” means any person who engages in the sale of 27 beverages in beverage containers to a dealer in this state, 28 as those terms are defined in section 123B.1, including any 29 manufacturer who engages in such sales. 30 Sec. 26. REPEAL. Chapter 455C, Code 2022, is repealed. 31 Sec. 27. TRANSITION PROVISIONS. Upon repeal of chapter 32 455C and the creation of the bottle bill deposit fund pursuant 33 to section 123B.11, as enacted by this Act, all moneys in the 34 bottle bill enforcement fund created in section 455C.12D, as 35 -11- HF 2571.4112 (2) 89 js/ns 11/ 22

enacted by this Act, are transferred to the alcoholic beverages 1 division for deposit in the bottle bill deposit fund. Any 2 moneys credited to the bottle bill enforcement fund on and 3 after January 1, 2024, are transferred to the division for 4 deposit in the bottle bill deposit fund. 5 Sec. 28. EFFECTIVE DATE. This division of this Act takes 6 effect January 1, 2024. 7 DIVISION III 8 NEW BEVERAGE CONTAINERS CONTROL LAW 9 Sec. 29. NEW SECTION . 123B.1 Definitions. 10 As used in this chapter, unless the context otherwise 11 requires: 12 1. a. “Beverage” means any of the following: 13 (1) Wine as defined in section 123.3, subsection 54. 14 (2) Alcoholic liquor as defined in section 123.3, 15 subsection 5. 16 (3) Beer as defined in section 123.3, subsection 7. 17 (4) High alcoholic content beer as defined in section 123.3, 18 subsection 22. 19 (5) Canned cocktail as defined in section 123.3, subsection 20 11. 21 (6) Mineral water, soda water, and similar carbonated soft 22 drinks. 23 (7) Any liquid identified through the use of letters, 24 words, or symbols on its product label as a type of water, 25 including any flavored water or nutritionally enhanced water, 26 in a container greater than or equal to four fluid ounces and 27 less than three liters. 28 (8) Tea or coffee drinks, regardless of dairy-derived 29 content, in a container greater than or equal to four fluid 30 ounces and less than three liters. 31 (9) Juice derived from one or more fruits or vegetables that 32 is intended for direct human consumption and not as a base or 33 additive to any beverage or food, in a container greater than 34 or equal to four fluid ounces and less than three liters. 35 -12- HF 2571.4112 (2) 89 js/ns 12/ 22

(10) Sports drinks, which are soft drinks designed or 1 marketed for consumption in conjunction with sporting activity 2 or strenuous exercise, and which typically contain electrolytes 3 such as sodium, potassium, and chloride, and a high percentage 4 of sugar to restore energy, in a container greater than or 5 equal to four fluid ounces and less than three liters. 6 (11) Any other liquid that is intended for human consumption 7 and is in a container greater than or equal to four fluid 8 ounces and less than three liters. 9 b. For purposes of this chapter, the term “beverage” 10 excludes all of the following: 11 (1) A liquid that is a syrup, in a concentrated form, 12 or typically added as a minor flavoring ingredient in food 13 or drink, including but not limited to extracts, cooking 14 additives, sauces, or condiments. 15 (2) A liquid that is a drug, medical food, or infant formula 16 as defined by the federal Food, Drug, and Cosmetic Act, 21 17 U.S.C. §301 et seq. 18 (3) A liquid that is designed and consumed only as a 19 dietary supplement as defined in the Dietary Supplement Health 20 and Education Act of 1994, Pub. L. No. 103-417, and not as a 21 beverage. 22 (4) Instant drink powders. 23 (5) Milk, or any product marketed as a plant-based milk, and 24 all other dairy-derived products, except tea or coffee drinks 25 included in paragraph “a” , subparagraph (8). 26 2. “Beverage container” means any sealed glass, plastic, 27 or metal bottle, can, jar, or carton containing a beverage. 28 “Beverage container” does not include foil pouches or drink 29 boxes. 30 3. “Commission” means the alcoholic beverages commission 31 established in chapter 123. 32 4. “Consumer” means any person who purchases a beverage in a 33 beverage container for use or consumption. 34 5. “Dealer” means any person who engages in the sale of 35 -13- HF 2571.4112 (2) 89 js/ns 13/ 22

beverages in beverage containers to a consumer. 1 6. “Division” means the alcoholic beverages division of the 2 department of commerce established in chapter 123. 3 7. “Redemption center” means a business that provides one or 4 more facilities at which consumers may return empty beverage 5 containers and receive payment for the refund value of the 6 empty beverage containers. 7 Sec. 30. NEW SECTION . 123B.2 Refund values —— recycling 8 —— reimbursement. 9 1. a. A refund value of five cents shall be paid by a 10 consumer to a dealer on each beverage container sold in this 11 state by the dealer for consumption off the premises. 12 b. On a monthly basis, a dealer shall submit to the 13 department of revenue, in a form and manner determined by 14 the department, receipts indicating the number of beverage 15 containers sold by the dealer and the five-cent refund value 16 collected for each beverage container sold by the dealer 17 pursuant to paragraph “a” . The department of revenue shall 18 credit monthly to the treasurer of state for deposit in the 19 bottle bill deposit fund established in section 123B.11 the 20 refund value collected from dealers under this paragraph. 21 2. a. When a manufacturer transfers beverage containers to 22 a distributor, the manufacturer shall pay to the distributor 23 one-half of one cent per beverage container for each beverage 24 container transferred. 25 b. When a distributor delivers beverage containers to a 26 dealer, the dealer shall pay to the distributor one-half of 27 one cent per beverage container for each beverage container 28 delivered. 29 c. Within fourteen days of providing an invoice to a dealer 30 for beverage containers delivered to the dealer, a distributor 31 shall submit to the department of revenue, in a form and 32 manner determined by the department, receipts indicating the 33 number of beverage containers delivered to the dealer by the 34 distributor and payment in an amount equal to one and one-half 35 -14- HF 2571.4112 (2) 89 js/ns 14/ 22

cents for each beverage container delivered to the dealer. The 1 department of revenue shall credit monthly to the treasurer of 2 state for deposit in the bottle bill deposit fund established 3 in section 123B.11 the moneys collected from a distributor 4 under this paragraph. 5 3. A consumer may only redeem the refund value by returning 6 a beverage container to a registered redemption center 7 facility. Upon return of the empty beverage container, upon 8 which a refund value has been paid, to a registered redemption 9 center facility and acceptance of the empty beverage container 10 by the redemption center, the redemption center shall pay the 11 amount of the refund value to the consumer within ten days. 12 4. A redemption center shall dispose of beverage containers 13 by transporting or causing the transport of the beverage 14 containers to a recycling site. 15 5. On a monthly basis, a redemption center shall be 16 reimbursed by the division from the bottle bill deposit fund 17 established in section 123B.11 the amount of refund value that 18 the redemption center has paid to consumers and the handling 19 fee. The division shall establish the handling fee by rule 20 in an amount that is three cents per beverage container, 21 except that the handling fee shall be one cent per beverage 22 container for a redemption center that does not provide refund 23 value to consumers in the form of cash at the time of return. 24 The division may establish accuracy standards to account for 25 discrepancies in the weight of recycled material and the number 26 of beverage containers the redemption center claims to have 27 been recycled. 28 Sec. 31. NEW SECTION . 123B.3 Refusal to accept containers. 29 A redemption center may refuse to accept any empty beverage 30 container that does not have stated on it a refund value as 31 provided under section 123B.4. 32 Sec. 32. NEW SECTION . 123B.4 Refund value stated on 33 container —— exceptions. 34 1. Each beverage container sold or offered for sale in 35 -15- HF 2571.4112 (2) 89 js/ns 15/ 22

this state by a dealer shall clearly indicate the refund 1 value of the container by embossing or by a stamp, label, or 2 other method securely affixed to the container. The division 3 shall specify, by rule, the minimum size of the refund value 4 indication on the beverage containers and require registration 5 of the universal product code for each beverage container in a 6 format required by the division. 7 2. A person, except a distributor, shall not import 8 into this state a beverage container that does not have 9 securely affixed to the container the refund value indication. 10 This subsection does not apply under any of the following 11 circumstances: 12 a. For beverage containers containing alcoholic liquor as 13 defined in section 123.3, subsection 5, the total capacity of 14 the containers is not more than one quart or, in the case of 15 alcoholic liquor personally obtained outside the United States, 16 one gallon. 17 b. For beverage containers containing beer as defined 18 in section 123.3, subsection 7, the total capacity of the 19 containers is not more than two hundred eighty-eight fluid 20 ounces. 21 c. For all other beverage containers, the total capacity of 22 the containers is not more than five hundred seventy-six fluid 23 ounces. 24 3. Subsections 1 and 2 do not apply to a refillable glass 25 beverage container that has a brand name permanently marked 26 on it and that has a refund value of five cents, to any other 27 refillable beverage container that has a refund value of five 28 cents and that is exempted by rules adopted by the commission, 29 or to a beverage container sold aboard a commercial airliner or 30 passenger train for consumption on the premises. 31 Sec. 33. NEW SECTION . 123B.5 Redemption centers. 32 1. To facilitate the return of empty beverage containers, 33 any person may register with the division to establish a 34 redemption center facility at which consumers may return empty 35 -16- HF 2571.4112 (2) 89 js/ns 16/ 22

beverage containers and receive payment of the refund value of 1 such beverage containers. 2 2. a. Written notice of the operation of a redemption 3 center facility shall be filed with the division. The notice 4 shall include the information listed in paragraph “b” . Upon 5 filing a proper notice, the redemption center facility shall be 6 considered registered for purposes of this chapter. 7 b. A notice filed under paragraph “a” shall be considered 8 proper if it includes all of the following: 9 (1) The name, address, and telephone number of the 10 redemption center facility. 11 (2) The name, address, and telephone number of the person or 12 persons responsible for the establishment and operation of the 13 redemption center facility. 14 (3) An indication that the redemption center facility will 15 accept all kinds, sizes, and brands of beverage containers 16 sold by all dealers within five miles of the redemption center 17 facility if the redemption center facility is in a county 18 with a population of more than thirty thousand or sold by all 19 dealers within ten miles of the redemption center facility if 20 the redemption center facility is in a county with a population 21 of thirty thousand or fewer. 22 (4) The names and addresses of the distributors whose 23 beverage containers will be redeemed. 24 (5) The hours during which the redemption center will be 25 open. 26 (6) An indication that the redemption center facility will 27 be in operation and open to the public for the redemption of 28 beverage containers at least twenty hours per week, four hours 29 of which shall be between the hours of 6:00 p.m. and 10:00 p.m. 30 or on Saturday or Sunday, or a combination thereof. 31 Sec. 34. NEW SECTION . 123B.6 Rules. 32 The commission shall adopt, upon recommendation of the 33 division, rules necessary to carry out the provisions of this 34 chapter, subject to the provisions of chapter 17A. 35 -17- HF 2571.4112 (2) 89 js/ns 17/ 22

Sec. 35. NEW SECTION . 123B.7 Penalties. 1 1. Except as provided in subsection 2, any person violating 2 the provisions of section 123B.2 or 123B.4, or a rule adopted 3 under this chapter, shall be guilty of a simple misdemeanor. 4 2. Any person who does any of the following acts is guilty 5 of a fraudulent practice under chapter 714: 6 a. Collects or attempts to collect the refund value on a 7 beverage container a second time, with the knowledge that the 8 refund value has once been paid by the redemption center to a 9 consumer. 10 b. Manufactures, sells, possesses, or applies a false or 11 counterfeit label or indication that shows or purports to show 12 a refund value for a beverage container, with intent to use the 13 false or counterfeit label or indication. 14 c. Collects or attempts to collect a refund value on 15 a container with the use of a false or counterfeit label 16 or indication showing a refund value, knowing the label or 17 indication to be false or counterfeit. 18 d. Intentionally submits to the division a request for 19 reimbursement of refund value that does not accurately reflect 20 the number of beverage containers collected and recycled by a 21 redemption center for the period that the redemption center 22 seeks reimbursement. 23 3. As used in this section, “a false or counterfeit label 24 or indication” means a label or indication purporting to show 25 a valid refund value that has not been initially applied as 26 authorized by a distributor. 27 4. Subsection 2, paragraph “a” , does not apply to empty 28 beverage containers that are intended to be refillable 29 and are in a standard of condition to be refillable by the 30 manufacturer, notwithstanding any standard for sanitization. 31 5. A person who violates any provision of this chapter 32 shall be subject to a civil penalty that shall be established, 33 assessed, and collected by the division by rule, but shall not 34 exceed two thousand dollars per violation, except as provided 35 -18- HF 2571.4112 (2) 89 js/ns 18/ 22