Senate File 2378 H-8306 Amend Senate File 2378, as amended, passed, and reprinted by 1 the Senate, as follows: 2 1. By striking everything after the enacting clause and 3 inserting: 4 < Section 1. Section 455C.1, subsections 1 and 6, Code 2022, 5 are amended to read as follows: 6 1. “Beverage” means wine as defined in section 123.3, 7 subsection 54 , alcoholic liquor as defined in section 123.3, 8 subsection 5 , beer as defined in section 123.3, subsection 9 7 , high alcoholic content beer as defined in section 123.3, 10 subsection 22, canned cocktail as defined in section 123.3, 11 subsection 11, mineral water, soda water , and similar 12 carbonated soft drinks in liquid form and intended for human 13 consumption. 14 6. “Dealer agent” means a person who solicits or picks up 15 empty beverage containers from a dealer for the purpose of 16 returning the empty beverage containers to a distributor or 17 manufacturer. 18 Sec. 2. Section 455C.1, Code 2022, is amended by adding the 19 following new subsections: 20 NEW SUBSECTION . 11A. “Mobile redemption system” means 21 a location at which a consumer may return empty beverage 22 containers on which a refund value has been paid that uses 23 innovative technology to process empty beverage containers and 24 return the amount of the refund value to consumers. 25 NEW SUBSECTION . 12A. “Participating dealer” means a dealer 26 who accepts the return of empty beverage containers from a 27 consumer. 28 Sec. 3. Section 455C.2, Code 2022, is amended to read as 29 follows: 30 455C.2 Refund values. 31 1. A refund value of not less than five cents shall be paid 32 by the consumer on each beverage container sold in this state 33 by a dealer for consumption off the premises. Upon return of 34 the empty beverage container upon which a refund value has 35 -1- SF 2378.4198 (1) 89 js/ns 1/ 12 #1.

been paid to the participating dealer or person operating 1 a redemption center and acceptance of the empty beverage 2 container by the participating dealer or person operating a 3 redemption center, the participating dealer or person operating 4 a redemption center shall immediately return the amount of 5 the refund value to the consumer. Upon return of the empty 6 beverage container on which a refund value has been paid to a 7 mobile redemption system, the mobile redemption system shall 8 return the amount of the refund value to the consumer within a 9 reasonable time not to exceed ten days. 10 2. In addition to the refund value provided in subsection 11 1 of this section , a participating dealer, dealer agent, or 12 person operating a redemption center or mobile redemption 13 system who redeems empty beverage containers or a dealer agent 14 shall be reimbursed by the distributor required to accept the 15 empty beverage containers an amount which a handling fee that 16 is one cent per container , except as provided in subsection 3 . 17 A participating dealer, dealer agent, or person operating a 18 redemption center or mobile redemption system may compact empty 19 metal beverage containers with the approval of the distributor 20 required to accept the containers. 21 3. a. Upon delivery of beverages from a distributor to 22 a dealer, the dealer shall pay a handling fee of one-half 23 cent per container to the distributor unless the dealer is a 24 participating dealer or unless the dealer refuses to accept 25 empty beverage containers due to the dealer satisfying the 26 requirements set forth in section 455C.4, subsection 2, 27 paragraph “a” , subparagraph (3). This paragraph is repealed 28 July 1, 2028. 29 b. A distributor shall pay an additional one-cent handling 30 fee for each nonalcoholic beverage container accepted. 31 c. A distributor shall pay an additional one-cent handling 32 fee for each beverage container accepted that contained beer, 33 including high-alcoholic content beer. A distributor who pays 34 an additional handling fee pursuant to this paragraph may claim 35 -2- SF 2378.4198 (1) 89 js/ns 2/ 12

a refund of the barrel tax established in section 123.136 paid 1 by the distributor in the amount of one-half cent for each 2 applicable beverage container accepted. The department of 3 revenue shall prescribe forms for a distributor to use to claim 4 a refund under this paragraph. 5 Sec. 4. Section 455C.3, subsections 1, 2, and 4, Code 2022, 6 are amended to read as follows: 7 1. A participating dealer shall not refuse to accept from a 8 consumer any empty beverage container of the kind, size , and 9 brand sold by the participating dealer, or refuse to pay to the 10 consumer the refund value of a beverage container as provided 11 under section 455C.2 . 12 2. A distributor shall accept and pick up from a 13 participating dealer served by the distributor or a redemption 14 center or mobile redemption system for a dealer served by 15 the distributor at least weekly, or when the distributor 16 delivers the beverage product if deliveries are less frequent 17 than weekly, any empty beverage container of the kind, size , 18 and brand sold by the distributor, and shall pay to the 19 participating dealer or person operating a redemption center 20 or mobile redemption system the refund value of a beverage 21 container and the reimbursement as provided under section 22 455C.2 within one week following pickup of the containers or 23 when the participating dealer or redemption center normally 24 pays the distributor for the deposit on beverage products 25 purchased from the distributor if less frequent than weekly. 26 A distributor or employee or agent of a distributor is not in 27 violation of this subsection if a redemption center or mobile 28 redemption system is closed when the distributor attempts to 29 make a regular delivery or a regular pickup of empty beverage 30 containers. This subsection does not apply to a distributor 31 selling alcoholic liquor to the alcoholic beverages division 32 of the department of commerce. 33 4. A distributor shall accept from a dealer agent any 34 empty beverage container of the kind, size, and brand sold by 35 -3- SF 2378.4198 (1) 89 js/ns 3/ 12

the distributor and which that was picked up by the dealer 1 agent from a dealer within the geographic territory served 2 by the distributor and the distributor shall pay the dealer 3 agent the refund value of the empty beverage container and the 4 reimbursement as provided in section 455C.2 . 5 Sec. 5. 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 dealer, a person operating a redemption center or mobile 10 redemption system , a distributor , or a manufacturer may refuse 11 to accept any empty beverage container which that does not have 12 stated on it a refund value as provided under section 455C.2 . 13 2. a. A dealer may refuse to accept and to pay the 14 refund value of any empty beverage container if the place of 15 business of the dealer and the kind and brand of empty beverage 16 containers are included in an order of the department approving 17 a redemption center under section 455C.6 any of the following 18 apply: 19 (1) The dealer sells beverage containers only in single 20 units at or in close proximity to the dealer’s point of sale. 21 (2) The dealer holds a food establishment license under 22 chapter 137F to prepare or serve food, has a certified food 23 protection manager as required by the 2017 United States food 24 and drug administration food code and supplement, and sells 25 time/temperature control for safety food as defined in section 26 137F.2. 27 (3) The dealer has entered an agreement with a mobile 28 redemption system and all of the following apply: 29 (a) The dealer provides adequate space, utilities, and 30 internet connection to operate the mobile redemption system. 31 (b) The agreement does not require additional payment to the 32 dealer or the mobile redemption system. 33 (4) The dealer’s place of business is in a county with a 34 population of more than thirty thousand and within ten miles 35 -4- SF 2378.4198 (1) 89 js/ns 4/ 12

of a redemption center or mobile redemption system or if the 1 dealer’s place of business is in a county with a population 2 of thirty thousand or fewer and within fifteen miles of a 3 redemption center or mobile redemption system. 4 b. A dealer who refuses to accept and to pay the refund 5 value on any empty beverage container pursuant to this 6 subsection shall conspicuously display on the front door of 7 the dealer’s place of business a notice that the dealer does 8 not accept empty beverage containers. The notice shall also 9 provide the location of the nearest redemption center or mobile 10 redemption system to the dealer’s place of business. After the 11 department has made available an electronic method for locating 12 redemption centers and mobile redemption systems pursuant to 13 paragraph “c” , a dealer may direct consumers to such electronic 14 method instead of providing the location of the nearest 15 redemption center or mobile redemption system on the notice. 16 c. By December 31, 2022, the department shall make available 17 to the public an electronic method of locating redemption 18 centers and mobile redemption systems. 19 d. A dealer who provides space for a mobile redemption 20 system pursuant to paragraph “a” , subparagraph (3), shall not be 21 considered to be in violation of any county or city ordinance 22 that would otherwise limit the ability of the dealer to provide 23 such space. 24 3. A dealer or a distributor may refuse to accept and to pay 25 the refund value of an empty wine or alcoholic liquor container 26 which is marked to indicate that it was sold by a state liquor 27 store. The alcoholic beverages division shall not reimburse 28 a dealer or a distributor the refund value on an empty wine or 29 alcoholic liquor container which is marked to indicate that the 30 container was sold by a state liquor store. 31 4. 3. A class “E” liquor control licensee may refuse to 32 accept and to pay the refund value on an empty alcoholic liquor 33 container from a participating dealer , or a redemption center , 34 or a mobile redemption system or from a person acting on behalf 35 -5- SF 2378.4198 (1) 89 js/ns 5/ 12

of or who has received empty alcoholic liquor containers from 1 a participating dealer , or a redemption center , or a mobile 2 redemption system . 3 5. 4. A manufacturer or distributor may refuse to accept 4 and to pay the refund value and reimbursement as provided in 5 section 455C.2 on any empty beverage container that was picked 6 up by a dealer agent from a dealer outside the geographic 7 territory served by the manufacturer or distributor. 8 Sec. 6. Section 455C.5, subsection 1, Code 2022, is amended 9 to read as follows: 10 1. Each beverage container sold or offered for sale in 11 this state by a dealer shall clearly indicate the refund value 12 of the container by embossing or by a stamp, label , or other 13 method securely affixed to the container , the refund value of 14 the container . The department shall specify, by rule, the 15 minimum size of the refund value indication on the beverage 16 containers and require registration of the universal product 17 code for each beverage container using a method determined by 18 the department . 19 Sec. 7. Section 455C.6, subsections 1, 2, and 5, Code 2022, 20 are amended to read as follows: 21 1. To facilitate the return of empty beverage containers 22 and to serve dealers of beverages, any person may establish a 23 redemption center , subject to the approval of the department, 24 or mobile redemption system at which consumers may return empty 25 beverage containers and receive payment of the refund value of 26 such beverage containers. A participating dealer may act as a 27 redemption center for purposes of this chapter. 28 2. An application for approval of a A person operating 29 a redemption center or a mobile redemption system shall file 30 written notice of the operation of the redemption center shall 31 be filed or mobile redemption system with the department. The 32 application notice shall state the name and address of the 33 person responsible for the establishment and operation of the 34 redemption center , the kind and brand names of the beverage 35 -6- SF 2378.4198 (1) 89 js/ns 6/ 12

containers which will be accepted at the redemption center, 1 or mobile redemption system and the names and addresses of 2 the dealers to be served by the redemption center or mobile 3 redemption system . The application notice shall contain such 4 other information as the director may reasonably require. 5 5. All approved redemption centers and mobile redemption 6 systems shall meet applicable health standards. 7 Sec. 8. Section 455C.6, subsections 3 and 4, Code 2022, are 8 amended by striking the subsections. 9 Sec. 9. Section 455C.12, subsections 2 and 3, Code 2022, are 10 amended to read as follows: 11 2. A distributor who collects or attempts to collect 12 a refund value on an empty beverage container when the 13 distributor has paid the refund value on the container to a 14 participating dealer, redemption center, mobile redemption 15 system, or consumer is guilty of a fraudulent practice. 16 3. Any person who does any of the following acts is guilty 17 of a fraudulent practice: 18 a. Collects or attempts to collect the refund value on the 19 container a second time, with the knowledge that the refund 20 value has once been paid by the distributor to a participating 21 dealer, redemption center , mobile redemption system, or 22 consumer. 23 b. Manufactures, sells, possesses , or applies a false or 24 counterfeit label or indication which that shows or purports to 25 show a refund value for a beverage container, with intent to 26 use the false or counterfeit label or indication. 27 c. Collects or attempts to collect a refund value on 28 a container with the use of a false or counterfeit label 29 or indication showing a refund value, knowing the label or 30 indication to be false or counterfeit. 31 Sec. 10. Section 455C.12, Code 2022, is amended by adding 32 the following new subsection: 33 NEW SUBSECTION . 6. A person who violates any provision of 34 this chapter, or any rule, permit, or order adopted or issued 35 -7- SF 2378.4198 (1) 89 js/ns 7/ 12

under this chapter, shall be subject to a civil penalty not 1 to exceed two thousand five hundred dollars for each day of 2 the violation. However, a person who knowingly attempts to 3 redeem a beverage container that is not properly marked as 4 required by section 455C.5, subsection 1, shall be subject 5 to a civil penalty not to exceed ten dollars per improperly 6 marked beverage container, but not to exceed five thousand 7 dollars total per attempted transaction. The department shall 8 adopt rules establishing a schedule of civil penalties based 9 on the severity of the violation. Any civil penalty collected 10 under this chapter shall be deposited in the bottle bill fund 11 established in section 455C.12C. 12 Sec. 11. NEW SECTION . 455C.12A Administrative enforcement 13 —— compliance orders. 14 1. 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. Any order issued pursuant to this 18 section may impose a civil penalty authorized pursuant to 19 section 455C.12, subsection 6, for a violation of the order, 20 to be collected administratively by the department. The 21 person to whom the compliance order is issued may cause to be 22 commenced a contested case within the meaning of chapter 17A by 23 filing within thirty days a notice of appeal to the director. 24 Following a contested case hearing and a proposed decision 25 issued by the department, the commission may affirm, modify, or 26 vacate the proposed decision. 27 2. If a person continues an alleged violation during the 28 appeals process and the commission affirms that the person has 29 committed a violation, the department may assess penalties for 30 each day the violation continued through the appeals process. 31 Sec. 12. NEW SECTION . 455C.12B Civil actions for compliance 32 —— penalties. 33 1. The attorney general shall institute any legal 34 proceedings necessary to obtain compliance with the provisions 35 -8- SF 2378.4198 (1) 89 js/ns 8/ 12

of this chapter, including any rule, permit, or compliance 1 order issued pursuant to this chapter, relating to the 2 redemption of beverage containers, including provisions 3 relating to the redemption of nonrefillable metal beverage 4 containers, and the duties and obligations of redemption 5 centers and mobile redemption systems. 6 2. Notwithstanding section 455C.12, subsection 6, any 7 person who violates a provision of this chapter, including 8 a rule, permit, or compliance order issued pursuant to 9 this chapter, relating to the redemption of beverage 10 containers, including provisions relating to the redemption 11 of nonrefillable metal beverage containers, or the duties 12 and obligations of redemption centers or mobile redemption 13 systems, as determined pursuant to a legal proceeding under 14 this section, shall be subject to a civil penalty not to 15 exceed ten thousand dollars for each day of such violation. 16 Moneys collected from civil penalties under this section shall 17 be deposited in the bottle bill fund established in section 18 455C.12C. 19 Sec. 13. NEW SECTION . 455C.12C Bottle bill fund. 20 A bottle bill fund is established in the state treasury 21 under the control of the department. The fund shall consist 22 of moneys deposited in the fund pursuant to section 455C.12, 23 subsection 6, or section 455C.12B, subsection 2, and any other 24 moneys appropriated to or deposited in the fund. Moneys in 25 the fund are appropriated to the department for purposes of 26 administering and enforcing this chapter, including reimbursing 27 the attorney general for costs incurred by the attorney general 28 in enforcing this chapter. Notwithstanding section 8.33, 29 moneys in the fund that remain unencumbered or unobligated 30 at the close of a fiscal year shall not revert but shall 31 remain available for expenditure for the purposes designated. 32 Notwithstanding section 12C.7, subsection 2, interest or 33 earnings on moneys in the fund shall be credited to the fund. 34 Sec. 14. Section 455C.13, Code 2022, is amended to read as 35 -9- SF 2378.4198 (1) 89 js/ns 9/ 12

follows: 1 455C.13 Distributors’ agreements authorized. 2 1. A distributor , dealer, or person operating a redemption 3 center or mobile redemption system may enter into a contract or 4 agreement with any other distributor, manufacturer , or person 5 for the purpose of collecting or paying the refund value on, or 6 disposing of, beverage containers as provided in this chapter . 7 2. For purposes of this chapter, any contracts entered into 8 pursuant to this section for the collection or disposal of 9 empty beverage containers shall not be deemed to interfere with 10 the refund value pursuant to section 455C.2. 11 Sec. 15. Section 455C.14, subsection 1, Code 2022, is 12 amended to read as follows: 13 1. If the refund value indication required under section 14 455C.5 on an empty nonrefillable metal beverage container 15 is readable but the redemption of the container is lawfully 16 refused by a dealer or person operating a redemption center 17 or mobile redemption system under other sections of this 18 chapter or rules adopted pursuant to these sections, the 19 container shall be accepted and the refund value paid to a 20 consumer as provided in this section . Each beer distributor 21 selling nonrefillable metal beverage containers in this 22 state shall provide individually or collectively by contract 23 or agreement with a dealer, person operating a redemption 24 center or mobile redemption system, or another person, at 25 least one facility in the county seat of each county where 26 refused empty nonrefillable metal beverage containers having a 27 readable refund value indication as required by this chapter 28 are accepted and redeemed. In cities having a population of 29 twenty-five thousand or more, the number of the facilities 30 provided shall be one for each twenty-five thousand population 31 or a fractional part of that population. Such facility may be 32 a mobile redemption system. 33 Sec. 16. Section 455C.16, Code 2022, is amended to read as 34 follows: 35 -10- SF 2378.4198 (1) 89 js/ns 10/ 12

455C.16 Beverage containers —— disposal at sanitary landfill 1 prohibited. 2 Beginning July 1, 1990, the The final disposal of beverage 3 containers by a dealer, distributor, or manufacturer, or 4 person operating a redemption center, in a sanitary landfill, 5 is prohibited. Beginning September 1, 1992 , including the 6 final disposal of beverage containers that used to contain 7 alcoholic liquor as defined in section 123.3, subsection 5 , by 8 a participating dealer, distributor, or manufacturer, or person 9 operating a redemption center or mobile redemption system in a 10 sanitary landfill , is prohibited. 11 Sec. 17. LEGISLATIVE FISCAL COMMITTEE REVIEW. 12 1. The legislative fiscal committee established in section 13 2.45 shall hold a meeting during the legislative interim 14 immediately preceding the 2026 regular legislative session. 15 During the meeting, the committee shall review the enforcement 16 of chapter 455C by the department of natural resources, 17 including the collection of civil penalties, the report 18 submitted by the attorney general pursuant to subsection 2, 19 whether and how many redemption centers, participating dealers, 20 and mobile redemption systems have filed a written notice of 21 operation with the department, an estimate of the redemption 22 rate based on the barrel tax refunded to distributors pursuant 23 to section 455C.2, subsection 3, paragraph “a”, and the 24 adequacy of the reimbursement amount under section 455C.2, 25 subsections 2 and 3. The committee shall submit a report of 26 its findings and recommendations to the general assembly no 27 later than January 31, 2026. 28 2. The attorney general shall submit a report to the 29 general assembly prior to the legislative fiscal committee’s 30 meeting under subsection 1. The report shall detail any legal 31 proceedings arising under chapter 455C since the effective date 32 of section 455C.12B, as enacted in this Act. 33 Sec. 18. REPEAL. Sections 455C.7 and 455C.10, Code 2022, 34 are repealed. 35 -11- SF 2378.4198 (1) 89 js/ns 11/ 12

Sec. 19. EFFECTIVE DATE. The section of this Act enacting 1 section 455C.12B takes effect July 1, 2023. > 2 2. Title page, by striking lines 1 through 4 and inserting 3 < An Act relating to beverage containers control provisions, 4 including handling fees, refund value, applicability to certain 5 beverages, and acceptance of beverage containers, providing 6 penalties, and including effective date provisions. > 7 ______________________________ LOHSE of Polk -12- SF 2378.4198 (1) 89 js/ns 12/ 12 #2.