H-8306

   Amend Senate File 2378, as amended, passed, and reprinted by the Senate, as follows:
   1.  By striking everything after the enacting clause and inserting: 
   <Section 1.  Section 455C.1, subsections 1 and 6, Code 2022, are amended to read as follows:
   1.  “Beverage” means wine as defined in section 123.3, subsection 54, alcoholic liquor as defined in section 123.3, subsection 5, beer as defined in section 123.3, subsection 7, high alcoholic content beer as defined in section 123.3, subsection 22, canned cocktail as defined in section 123.3, subsection 11, mineral water, soda water, and similar carbonated soft drinks in liquid form and intended for human consumption.
   6.  “Dealer agent” means a person who solicits or picks up empty beverage containers from a dealer for the purpose of returning the empty beverage containers to a distributor or manufacturer.
   Sec. 2.  Section 455C.1, Code 2022, is amended by adding the following new subsections:
   NEW SUBSECTION.  11A.  “Mobile redemption system” means a location at which a consumer may return empty beverage containers on which a refund value has been paid that uses innovative technology to process empty beverage containers and return the amount of the refund value to consumers.
   NEW SUBSECTION.  12A.  “Participating dealer” means a dealer who accepts the return of empty beverage containers from a consumer.
   Sec. 3.  Section 455C.2, Code 2022, is amended to read as follows:
   455C.2  Refund values.
   1.  A refund value of not less than five cents shall be paid by the consumer on each beverage container sold in this state by a dealer for consumption off the premises. Upon return of the empty beverage container upon which a refund value has been paid to the participating dealer or person operating a redemption center and acceptance of the empty beverage container by the participating dealer or person operating a redemption center, the participating dealer or person operating a redemption center shall immediately return the amount of the refund value to the consumer.  Upon return of the empty beverage container on which a refund value has been paid to a mobile redemption system, the mobile redemption system shall return the amount of the refund value to the consumer within a reasonable time not to exceed ten days.
   2.  In addition to the refund value provided in subsection 1 of this section, a participating dealer, dealer agent, or person operating a redemption center or mobile redemption system who redeems empty beverage containers or a dealer agent shall be reimbursed by the distributor required to accept the empty beverage containers an amount which a handling fee that is one cent per container, except as provided in subsection 3. A participating dealer, dealer agent, or person operating a redemption center or mobile redemption system may compact empty metal beverage containers with the approval of the distributor required to accept the containers.
   3.  a.  Upon delivery of beverages from a distributor to a dealer, the dealer shall pay a handling fee of one-half cent per container to the distributor unless the dealer is a participating dealer or unless the dealer refuses to accept empty beverage containers due to the dealer satisfying the requirements set forth in section 455C.4, subsection 2, paragraph “a”, subparagraph (3). This paragraph is repealed July 1, 2028.
   b.  A distributor shall pay an additional one-cent handling fee for each nonalcoholic beverage container accepted.
   c.  A distributor shall pay an additional one-cent handling fee for each beverage container accepted that contained beer, including high-alcoholic content beer. A distributor who pays an additional handling fee pursuant to this paragraph may claim a refund of the barrel tax established in section 123.136 paid by the distributor in the amount of one-half cent for each applicable beverage container accepted. The department of revenue shall prescribe forms for a distributor to use to claim a refund under this paragraph.
   Sec. 4.  Section 455C.3, subsections 1, 2, and 4, Code 2022, are amended to read as follows:
   1.  A participating dealer shall not refuse to accept from a consumer any empty beverage container of the kind, size, and brand sold by the participating dealer, or refuse to pay to the consumer the refund value of a beverage container as provided under section 455C.2.
   2.  A distributor shall accept and pick up from a participating dealer served by the distributor or a redemption center or mobile redemption system for a dealer served by the distributor at least weekly, or when the distributor delivers the beverage product if deliveries are less frequent than weekly, any empty beverage container of the kind, size, and brand sold by the distributor, and shall pay to the participating dealer or person operating a redemption center or mobile redemption system the refund value of a beverage container and the reimbursement as provided under section 455C.2 within one week following pickup of the containers or when the participating dealer or redemption center normally pays the distributor for the deposit on beverage products purchased from the distributor if less frequent than weekly. A distributor or employee or agent of a distributor is not in violation of this subsection if a redemption center or mobile redemption system is closed when the distributor attempts to make a regular delivery or a regular pickup of empty beverage containers. This subsection does not apply to a distributor selling alcoholic liquor to the alcoholic beverages division of the department of commerce.
   4.  A distributor shall accept from a dealer agent any empty beverage container of the kind, size, and brand sold by the distributor and which that was picked up by the dealer agent from a dealer within the geographic territory served by the distributor and the distributor shall pay the dealer agent the refund value of the empty beverage container and the reimbursement as provided in section 455C.2.
   Sec. 5.  Section 455C.4, Code 2022, is amended to read as follows:
   455C.4  Refusal to accept containers.
   1.  Except as provided in section 455C.5, subsection 3, a dealer, a person operating a redemption center or mobile redemption system, a distributor, or a manufacturer may refuse to accept any empty beverage container which that does not have stated on it a refund value as provided under section 455C.2.
   2.  a.  A dealer may refuse to accept and to pay the refund value of any empty beverage container if the place of business of the dealer and the kind and brand of empty beverage containers are included in an order of the department approving a redemption center under section 455C.6 any of the following apply:
   (1)  The dealer sells beverage containers only in single units at or in close proximity to the dealer’s point of sale.
   (2)  The dealer holds a food establishment license under chapter 137F to prepare or serve food, has a certified food protection manager as required by the 2017 United States food and drug administration food code and supplement, and sells time/temperature control for safety food as defined in section 137F.2.
   (3)  The dealer has entered an agreement with a mobile redemption system and all of the following apply:
   (a)  The dealer provides adequate space, utilities, and internet connection to operate the mobile redemption system.
   (b)  The agreement does not require additional payment to the dealer or the mobile redemption system.
   (4)  The dealer’s place of business is in a county with a population of more than thirty thousand and within ten miles of a redemption center or mobile redemption system or if the dealer’s place of business is in a county with a population of thirty thousand or fewer and within fifteen miles of a redemption center or mobile redemption system.
   b.  A dealer who refuses to accept and to pay the refund value on any empty beverage container pursuant to this subsection shall conspicuously display on the front door of the dealer’s place of business a notice that the dealer does not accept empty beverage containers. The notice shall also provide the location of the nearest redemption center or mobile redemption system to the dealer’s place of business. After the department has made available an electronic method for locating redemption centers and mobile redemption systems pursuant to paragraph “c”, a dealer may direct consumers to such electronic method instead of providing the location of the nearest redemption center or mobile redemption system on the notice.
   c.  By December 31, 2022, the department shall make available to the public an electronic method of locating redemption centers and mobile redemption systems.
   d.  A dealer who provides space for a mobile redemption system pursuant to paragraph “a”, subparagraph (3), shall not be considered to be in violation of any county or city ordinance that would otherwise limit the ability of the dealer to provide such space.
   3.  A dealer or a distributor may refuse to accept and to pay the refund value of an empty wine or alcoholic liquor container which is marked to indicate that it was sold by a state liquor store. The alcoholic beverages division shall not reimburse a dealer or a distributor the refund value on an empty wine or alcoholic liquor container which is marked to indicate that the container was sold by a state liquor store.
   4.  3.  A class “E” liquor control licensee may refuse to accept and to pay the refund value on an empty alcoholic liquor container from a participating dealer, or a redemption center, or a mobile redemption system or from a person acting on behalf of or who has received empty alcoholic liquor containers from a participating dealer, or a redemption center, or a mobile redemption system.
   5.  4.  A manufacturer or distributor may refuse to accept and to pay the refund value and reimbursement as provided in section 455C.2 on any empty beverage container that was picked up by a dealer agent from a dealer outside the geographic territory served by the manufacturer or distributor.
   Sec. 6.  Section 455C.5, subsection 1, Code 2022, is amended to read as follows:
   1.  Each beverage container sold or offered for sale in this state by a dealer shall clearly indicate the refund value of the container by embossing or by a stamp, label, or other method securely affixed to the container, the refund value of the container. The department shall specify, by rule, the minimum size of the refund value indication on the beverage containers and require registration of the universal product code for each beverage container using a method determined by the department.
   Sec. 7.  Section 455C.6, subsections 1, 2, and 5, Code 2022, are amended to read as follows:
   1.  To facilitate the return of empty beverage containers and to serve dealers of beverages, any person may establish a redemption center, subject to the approval of the department, or mobile redemption system at which consumers may return empty beverage containers and receive payment of the refund value of such beverage containers.  A participating dealer may act as a redemption center for purposes of this chapter.
   2.  An application for approval of a A person operating a redemption center or a mobile redemption system shall file written notice of the operation of the redemption center shall be filed or mobile redemption system with the department. The application notice shall state the name and address of the person responsible for the establishment and operation of the redemption center, the kind and brand names of the beverage containers which will be accepted at the redemption center, or mobile redemption system and the names and addresses of the dealers to be served by the redemption center or mobile redemption system. The application notice shall contain such other information as the director may reasonably require.
   5.  All approved redemption centers and mobile redemption systems shall meet applicable health standards.
   Sec. 8.  Section 455C.6, subsections 3 and 4, Code 2022, are amended by striking the subsections.
   Sec. 9.  Section 455C.12, subsections 2 and 3, Code 2022, are amended to read as follows:
   2.  A distributor who collects or attempts to collect a refund value on an empty beverage container when the distributor has paid the refund value on the container to a participating dealer, redemption center, mobile redemption system, or consumer is guilty of a fraudulent practice.
   3.  Any person who does any of the following acts is guilty of a fraudulent practice:
   a.  Collects or attempts to collect the refund value on the container a second time, with the knowledge that the refund value has once been paid by the distributor to a participating dealer, redemption center, mobile redemption system, or consumer.
   b.  Manufactures, sells, possesses, or applies a false or counterfeit label or indication which that shows or purports to show a refund value for a beverage container, with intent to use the false or counterfeit label or indication.
   c.  Collects or attempts to collect a refund value on a container with the use of a false or counterfeit label or indication showing a refund value, knowing the label or indication to be false or counterfeit.
   Sec. 10.  Section 455C.12, Code 2022, is amended by adding the following new subsection:
   NEW SUBSECTION.  6.  A person who violates any provision of this chapter, or any rule, permit, or order adopted or issued under this chapter, shall be subject to a civil penalty not to exceed two thousand five hundred dollars for each day of the violation. However, a person who knowingly attempts to redeem a beverage container that is not properly marked as required by section 455C.5, subsection 1, shall be subject to a civil penalty not to exceed ten dollars per improperly marked beverage container, but not to exceed five thousand dollars total per attempted transaction. The department shall adopt rules establishing a schedule of civil penalties based on the severity of the violation. Any civil penalty collected under this chapter shall be deposited in the bottle bill fund established in section 455C.12C.
   Sec. 11.  NEW SECTION.  455C.12A  Administrative enforcement —— compliance orders.
   1.  The director may issue any order necessary to secure compliance with or prevent a violation of the provisions of this chapter or any rule adopted or permit or order issued pursuant to this chapter. Any order issued pursuant to this section may impose a civil penalty authorized pursuant to section 455C.12, subsection 6, for a violation of the order, to be collected administratively by the department. The person to whom the compliance order is issued may cause to be commenced a contested case within the meaning of chapter 17A by filing within thirty days a notice of appeal to the director. Following a contested case hearing and a proposed decision issued by the department, the commission may affirm, modify, or vacate the proposed decision.
   2.  If a person continues an alleged violation during the appeals process and the commission affirms that the person has committed a violation, the department may assess penalties for each day the violation continued through the appeals process.
   Sec. 12.  NEW SECTION.  455C.12B  Civil actions for compliance —— penalties.
   1.  The attorney general shall institute any legal proceedings necessary to obtain compliance with the provisions of this chapter, including any rule, permit, or compliance order issued pursuant to this chapter, relating to the redemption of beverage containers, including provisions relating to the redemption of nonrefillable metal beverage containers, and the duties and obligations of redemption centers and mobile redemption systems.
   2.  Notwithstanding section 455C.12, subsection 6, any person who violates a provision of this chapter, including a rule, permit, or compliance order issued pursuant to this chapter, relating to the redemption of beverage containers, including provisions relating to the redemption of nonrefillable metal beverage containers, or the duties and obligations of redemption centers or mobile redemption systems, as determined pursuant to a legal proceeding under this section, shall be subject to a civil penalty not to exceed ten thousand dollars for each day of such violation. Moneys collected from civil penalties under this section shall be deposited in the bottle bill fund established in section 455C.12C.
   Sec. 13.  NEW SECTION.  455C.12C  Bottle bill fund.
   A bottle bill fund is established in the state treasury under the control of the department. The fund shall consist of moneys deposited in the fund pursuant to section 455C.12, subsection 6, or section 455C.12B, subsection 2, and any other moneys appropriated to or deposited in the fund. Moneys in the fund are appropriated to the department for purposes of administering and enforcing this chapter, including reimbursing the attorney general for costs incurred by the attorney general in enforcing this chapter. Notwithstanding section 8.33, moneys in the fund that remain unencumbered or unobligated at the close of a fiscal year shall not revert but shall remain available for expenditure for the purposes designated. Notwithstanding section 12C.7, subsection 2, interest or earnings on moneys in the fund shall be credited to the fund.
   Sec. 14.  Section 455C.13, Code 2022, is amended to read as follows:
   455C.13  Distributors’ agreements authorized.
   1.  A distributor, dealer, or person operating a redemption center or mobile redemption system may enter into a contract or agreement with any other distributor, manufacturer, or person for the purpose of collecting or paying the refund value on, or disposing of, beverage containers as provided in this chapter.
   2.  For purposes of this chapter, any contracts entered into pursuant to this section for the collection or disposal of empty beverage containers shall not be deemed to interfere with the refund value pursuant to section 455C.2.
   Sec. 15.  Section 455C.14, subsection 1, Code 2022, is amended to read as follows:
   1.  If the refund value indication required under section 455C.5 on an empty nonrefillable metal beverage container is readable but the redemption of the container is lawfully refused by a dealer or person operating a redemption center or mobile redemption system under other sections of this chapter or rules adopted pursuant to these sections, the container shall be accepted and the refund value paid to a consumer as provided in this section. Each beer distributor selling nonrefillable metal beverage containers in this state shall provide individually or collectively by contract or agreement with a dealer, person operating a redemption center or mobile redemption system, or another person, at least one facility in the county seat of each county where refused empty nonrefillable metal beverage containers having a readable refund value indication as required by this chapter are accepted and redeemed. In cities having a population of twenty-five thousand or more, the number of the facilities provided shall be one for each twenty-five thousand population or a fractional part of that population.  Such facility may be a mobile redemption system.
   Sec. 16.  Section 455C.16, Code 2022, is amended to read as follows:
   455C.16  Beverage containers —— disposal at sanitary landfill prohibited.
   Beginning July 1, 1990, the The final disposal of beverage containers by a dealer, distributor, or manufacturer, or person operating a redemption center, in a sanitary landfill, is prohibited. Beginning September 1, 1992, including the final disposal of beverage containers that used to contain alcoholic liquor as defined in section 123.3, subsection 5, by a participating dealer, distributor, or manufacturer, or person operating a redemption center or mobile redemption system in a sanitary landfill, is prohibited.
   Sec. 17.  LEGISLATIVE FISCAL COMMITTEE REVIEW.
   1.  The legislative fiscal committee established in section 2.45 shall hold a meeting during the legislative interim immediately preceding the 2026 regular legislative session. During the meeting, the committee shall review the enforcement of chapter 455C by the department of natural resources, including the collection of civil penalties, the report submitted by the attorney general pursuant to subsection 2, whether and how many redemption centers, participating dealers, and mobile redemption systems have filed a written notice of operation with the department, an estimate of the redemption rate based on the barrel tax refunded to distributors pursuant to section 455C.2, subsection 3, paragraph “a”, and the adequacy of the reimbursement amount under section 455C.2, subsections 2 and 3. The committee shall submit a report of its findings and recommendations to the general assembly no later than January 31, 2026.
   2.  The attorney general shall submit a report to the general assembly prior to the legislative fiscal committee’s meeting under subsection 1. The report shall detail any legal proceedings arising under chapter 455C since the effective date of section 455C.12B, as enacted in this Act.
   Sec. 18.  REPEAL.  Sections 455C.7 and 455C.10, Code 2022, are repealed.
   Sec. 19.  EFFECTIVE DATE.  The section of this Act enacting section 455C.12B takes effect July 1, 2023.>
   2.  Title page, by striking lines 1 through 4 and inserting <An Act relating to beverage containers control provisions, including handling fees, refund value, applicability to certain beverages, and acceptance of beverage containers, providing penalties, and including effective date provisions.>

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LOHSE of Polk