House File 2571 H-8305 Amend the amendment, H-8272, to House File 2571, as follows: 1 1. Page 1, by striking lines 2 through 35 and inserting: 2 < 1. By striking everything after the enacting clause and 3 inserting: 4 < Section 1. Section 123.136, subsection 1, Code 2022, is 5 amended to read as follows: 6 1. In addition to the annual permit fee to be paid by 7 all class “A” beer permittees under this chapter there shall 8 be levied and collected from the permittees on all beer 9 manufactured for sale or sold in this state at wholesale and 10 on all beer imported into this state for sale at wholesale and 11 sold in this state at wholesale, and from special class “A” 12 beer permittees on all beer manufactured for consumption on the 13 premises and on all beer sold at retail at the manufacturing 14 premises for consumption off the premises pursuant to section 15 123.130, subsection 4 , a tax of five and eighty-nine four and 16 three hundredths dollars for every barrel containing thirty-one 17 gallons, and at a like rate for any other quantity or for the 18 fractional part of a barrel. However, no tax shall be levied 19 or collected on beer shipped outside this state by a class “A” 20 beer permittee or special class “A” beer permittee or on beer 21 sold to a class “A” beer permittee by a special class “A” beer 22 permittee or another class “A” beer permittee. 23 Sec. 2. Section 455C.1, subsections 1 and 6, Code 2022, are 24 amended to read as follows: 25 1. “Beverage” means wine as defined in section 123.3, 26 subsection 54 , alcoholic liquor as defined in section 123.3, 27 subsection 5 , beer as defined in section 123.3, subsection 28 7 , high alcoholic content beer as defined in section 123.3, 29 subsection 22, canned cocktail as defined in section 123.3, 30 subsection 11, mineral water, soda water , and similar 31 carbonated soft drinks in liquid form and intended for human 32 consumption. 33 6. “Dealer agent” means a person who solicits or picks 34 up empty beverage containers from a participating dealer for 35 -1- H 8272.4195 (1) 89 (amending this HF 2571 to CONFORM to SF 2378) js/ns 1/ 9 #1.

the purpose of returning the empty beverage containers to a 1 distributor or manufacturer. 2 Sec. 3. Section 455C.1, Code 2022, is amended by adding the 3 following new subsections: 4 NEW SUBSECTION . 11A. “Mobile redemption system” means a 5 redemption center location at which a consumer may return empty 6 beverage containers on which a refund value has been paid that 7 uses innovative technology to process empty beverage containers 8 and return the amount of the refund value to consumers. 9 NEW SUBSECTION . 12A. “Participating dealer” means a dealer 10 who accepts the return of empty beverage containers from a 11 consumer. 12 Sec. 4. Section 455C.2, Code 2022, is amended to read as 13 follows: 14 455C.2 Refund values. 15 1. A refund value of not less than five cents shall be paid 16 by the consumer on each beverage container sold in this state 17 by a dealer for consumption off the premises. Upon return of 18 the empty beverage container upon which a refund value has 19 been paid to the a participating dealer or person operating 20 a redemption center and acceptance of the empty beverage 21 container by the participating dealer or person operating a 22 redemption center, the participating dealer or person operating 23 a redemption center shall return the amount of the refund 24 value to the consumer within a reasonable time not to exceed 25 ten days . A person who attempts to redeem two thousand or 26 more empty beverage containers in one transaction with a 27 participating dealer or a redemption center shall provide proof 28 of residency prior to receiving refund value. 29 2. In addition to the refund value provided in subsection 30 1 of this section , a dealer, or person operating a redemption 31 center who redeems empty beverage containers or a dealer agent 32 shall be reimbursed by the distributor required to accept 33 the empty beverage containers under section 455C.3 shall 34 provide reimbursement in an amount which that is one cent per 35 -2- H 8272.4195 (1) 89 (amending this HF 2571 to CONFORM to SF 2378) js/ns 2/ 9

container , except that the reimbursement amount shall be three 1 cents per container for empty beverage containers accepted by a 2 redemption center . A dealer, dealer agent, or person operating 3 a redemption center may compact empty metal beverage containers 4 with the approval of the distributor required to accept the 5 containers. 6 Sec. 5. Section 455C.3, subsections 1, 2, and 4, Code 2022, 7 are amended to read as follows: 8 1. A participating dealer shall not refuse to accept from a 9 consumer any empty beverage container of the kind, size , and 10 brand sold by the participating dealer, or refuse to pay to the 11 consumer the refund value of a beverage container as provided 12 under section 455C.2 . 13 2. A distributor shall accept and pick up from a 14 participating dealer served by the distributor or a redemption 15 center for a dealer served by the distributor in the 16 distributor’s geographic territory at least weekly, or when the 17 distributor delivers the beverage product if deliveries are 18 less frequent than weekly, any empty beverage container of the 19 kind, size , and brand sold by the distributor, and shall pay 20 to the participating dealer or person operating a redemption 21 center the refund value of a beverage container and the 22 reimbursement as provided under section 455C.2 within one week 23 following pickup of the containers or when the participating 24 dealer or redemption center normally pays the distributor for 25 the deposit on beverage products purchased from the distributor 26 if less frequent than weekly. A distributor or employee or 27 agent of a distributor is not in violation of this subsection 28 if a redemption center is closed when the distributor attempts 29 to make a regular delivery or a regular pickup of empty 30 beverage containers. This subsection does not apply to a 31 distributor selling alcoholic liquor to the alcoholic beverages 32 division of the department of commerce. 33 4. A distributor shall accept from a dealer agent any empty 34 beverage container of the kind, size, and brand sold by the 35 -3- H 8272.4195 (1) 89 (amending this HF 2571 to CONFORM to SF 2378) js/ns 3/ 9

distributor and which that was picked up by the dealer agent 1 from a participating dealer within the geographic territory 2 served by the distributor and the distributor shall pay the 3 dealer agent the refund value of the empty beverage container 4 and the reimbursement as provided in section 455C.2 . 5 Sec. 6. Section 455C.4, Code 2022, is amended to read as 6 follows: 7 455C.4 Refusal to accept containers. 8 1. Except as provided in section 455C.5, subsection 3 , 9 a participating dealer , a person operating a or redemption 10 center , a distributor or a manufacturer may refuse to accept 11 any empty beverage container which that does not have stated on 12 it a refund value as provided under section 455C.2 . 13 2. A On and after July 1, 2023, a dealer may refuse to 14 accept and to pay the refund value of any empty beverage 15 container if the place of business of the dealer and the kind 16 and brand of empty beverage containers are included in an order 17 of the department approving a redemption center under section 18 455C.6 . 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- H 8272.4195 (1) 89 (amending this HF 2571 to CONFORM to SF 2378) js/ns 4/ 9

up by a dealer agent from a dealer outside the geographic 1 territory served by the manufacturer or distributor. 2 Sec. 7. Section 455C.5, subsection 1, Code 2022, is amended 3 to read as follows: 4 1. a. 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 b. On and after November 15, 2023, the department of revenue 12 shall require the registration of the universal product code 13 for each beverage container using a method determined by the 14 department of revenue. 15 Sec. 8. Section 455C.6, subsections 1, 2, and 5, Code 2022, 16 are amended to read as follows: 17 1. To facilitate the return of empty beverage containers 18 and to serve dealers of beverages, any person may establish a 19 redemption center , subject to the approval of the department, 20 at which consumers may return empty beverage containers 21 and receive payment of the refund value of such beverage 22 containers. 23 2. An application for approval of a A person operating a 24 redemption center shall file written notice of the operation 25 of the redemption center shall be filed with the department. 26 The application notice shall state the name and address of the 27 person responsible for the establishment and operation of the 28 redemption center , the kind and brand names of the beverage 29 containers which will be accepted at the redemption center, 30 and the names and addresses of the dealers to be served by 31 the redemption center. The application notice shall contain 32 such other information as the director may reasonably require. 33 However, on and after July 1, 2023, a redemption center does 34 not need to provide in its notice the names and addresses of 35 -5- H 8272.4195 (1) 89 (amending this HF 2571 to CONFORM to SF 2378) js/ns 5/ 9

dealers to be served by the redemption center. 1 5. All approved redemption centers shall meet applicable 2 health standards. 3 Sec. 9. Section 455C.6, subsections 3 and 4, Code 2022, are 4 amended by striking the subsections. 5 Sec. 10. Section 455C.6, Code 2022, is amended by adding the 6 following new subsection: 7 NEW SUBSECTION . 6. A mobile redemption system shall 8 not be considered to be in violation of any county or city 9 ordinance that would otherwise limit the operation of the 10 mobile redemption system as long as the mobile redemption 11 system operates in a location that is not zoned primarily for 12 residential purposes. 13 Sec. 11. Section 455C.12, subsections 2 and 3, Code 2022, 14 are amended to read as follows: 15 2. A distributor who collects or attempts to collect 16 a refund value on an empty beverage container when the 17 distributor has paid the refund value on the container to a 18 participating dealer, redemption center, or consumer is guilty 19 of a fraudulent practice. 20 3. Any person who does any of the following acts is guilty 21 of a fraudulent practice: 22 a. Collects or attempts to collect the refund value on the 23 container a second time, with the knowledge that the refund 24 value has once been paid by the distributor to a participating 25 dealer, redemption center , or consumer. 26 b. Manufactures, sells, possesses , or applies a false or 27 counterfeit label or indication which that shows or purports to 28 show a refund value for a beverage container, with intent to 29 use the false or counterfeit label or indication. 30 c. Collects or attempts to collect a refund value on 31 a container with the use of a false or counterfeit label 32 or indication showing a refund value, knowing the label or 33 indication to be false or counterfeit. 34 Sec. 12. Section 455C.12, Code 2022, is amended by adding 35 -6- H 8272.4195 (1) 89 (amending this HF 2571 to CONFORM to SF 2378) js/ns 6/ 9

the following new subsections: 1 NEW SUBSECTION . 6. A person who attempts to redeem beverage 2 containers obtained outside the state commits a serious 3 misdemeanor and is also subject to a civil penalty of five 4 thousand dollars per violation. 5 NEW SUBSECTION . 7. Except as provided in subsection 6, 6 a person who violates any provision of this chapter shall 7 be subject to a civil penalty of two thousand dollars per 8 violation, which shall be assessed and collected in the same 9 manner as provided in section 455B.109. Any civil penalty 10 collected under this chapter shall be deposited in the general 11 fund of the state. 12 Sec. 13. NEW SECTION . 455C.12A Administrative enforcement 13 —— compliance orders. 14 The director may issue any order necessary to secure 15 compliance with or prevent a violation of the provisions of 16 this chapter or any rule adopted or permit or order issued 17 pursuant to this chapter. The person to whom such compliance 18 order is issued may cause to be commenced a contested case 19 within the meaning of chapter 17A by filing within thirty 20 days a notice of appeal to the commission. On appeal, the 21 commission may affirm, modify, or vacate the order of the 22 director. 23 Sec. 14. NEW SECTION . 455C.12B Judicial review. 24 Judicial review of any order or other action of the 25 commission or director may be sought in accordance with the 26 terms of chapter 17A. Notwithstanding the terms of chapter 27 17A, petitions for judicial review may be filed in the district 28 court of the county in which the alleged offense was committed. 29 Sec. 15. NEW SECTION . 455C.12C Civil actions for compliance 30 —— penalties. 31 1. The attorney general, on request of the department, shall 32 institute any legal proceedings necessary to obtain compliance 33 with an order of the commission or the director, including 34 proceedings for a temporary injunction, or prosecuting any 35 -7- H 8272.4195 (1) 89 (amending this HF 2571 to CONFORM to SF 2378) js/ns 7/ 9

person for a violation of an order of the commission or the 1 director, the provisions of this chapter, or any rules adopted 2 or permit or order issued pursuant to this chapter. 3 2. Any person who violates any order issued pursuant to 4 section 455C.12A shall be subject to a civil penalty not to 5 exceed two thousand dollars for each day of such violation. 6 Sec. 16. Section 455C.13, Code 2022, is amended to read as 7 follows: 8 455C.13 Distributors’ Collection and disposal agreements 9 authorized. 10 1. A distributor , dealer, or redemption center may enter 11 into a contract or agreement with any other distributor, 12 manufacturer , or person for the purpose of collecting or paying 13 the refund value on, or disposing of , beverage containers as 14 provided in this chapter . 15 2. For purposes of this chapter, any contracts entered into 16 pursuant to this section for the collection or disposal of 17 empty beverage containers shall not be deemed to interfere with 18 the refund value pursuant to section 455C.2. 19 Sec. 17. Section 455C.16, Code 2022, is amended to read as 20 follows: 21 455C.16 Beverage containers —— disposal at sanitary landfill 22 prohibited. 23 Beginning July 1, 1990, the The final disposal of beverage 24 containers by a dealer, distributor, or manufacturer, or 25 person operating a redemption center, in a sanitary landfill, 26 is prohibited. Beginning September 1, 1992 , including the 27 final disposal of beverage containers that used to contain 28 alcoholic liquor as defined in section 123.3, subsection 5 , 29 by a participating dealer, distributor, or manufacturer, or 30 person operating a redemption center in a sanitary landfill , 31 is prohibited. 32 Sec. 18. NEW SECTION . 455C.18 Unclaimed refund value and 33 handling fees. 34 Any amount of refund value or handling fees possessed by a 35 -8- H 8272.4195 (1) 89 (amending this HF 2571 to CONFORM to SF 2378) js/ns 8/ 9

distributor after the distributor has made payments required 1 pursuant to this chapter shall be considered the property of 2 the distributor. 3 Sec. 19. REPEAL. Sections 455C.7 and 455C.10, Code 2022, 4 are repealed. 5 Sec. 20. EFFECTIVE DATE. The section of this Act amending 6 section 123.136 takes effect July 1, 2023. > 7 2. Title page, by striking lines 1 through 5 and inserting 8 < An Act relating to beverages, including the barrel tax and the 9 acceptance of beverage containers for refund value, providing 10 penalties, and including effective date provisions. >> 11 ______________________________ LOHSE of Polk -9- H 8272.4195 (1) 89 (amending this HF 2571 to CONFORM to SF 2378) js/ns 9/ 9 #2.