Senate File 2378 H-8307 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 < DIVISION I 5 CHANGES TO CURRENT BEVERAGE CONTAINERS CONTROL LAW 6 Section 1. Section 455C.1, subsections 1 and 6, Code 2022, 7 are amended to read as follows: 8 1. “Beverage” means wine as defined in section 123.3, 9 subsection 54 , alcoholic liquor as defined in section 123.3, 10 subsection 5 , beer as defined in section 123.3, subsection 11 7 , high alcoholic content beer as defined in section 123.3, 12 subsection 22, canned cocktail as defined in section 123.3, 13 subsection 11, mineral water, soda water , and similar 14 carbonated soft drinks in liquid form and intended for human 15 consumption. 16 6. “Dealer agent” means a person who solicits or picks up 17 empty beverage containers from a dealer for the purpose of 18 returning the empty beverage containers to a distributor or 19 manufacturer. 20 Sec. 2. Section 455C.1, Code 2022, is amended by adding the 21 following new subsections: 22 NEW SUBSECTION . 01. “Automatic redemption system” means a 23 location operated by a redemption service provider at which a 24 consumer may return empty beverage containers on which a refund 25 value has been paid that uses innovative technology to process 26 empty beverage containers and return the amount of the refund 27 value to consumers. 28 NEW SUBSECTION . 12A. “Participating dealer” means a dealer 29 who accepts the return of empty beverage containers from a 30 consumer. 31 NEW SUBSECTION . 14. “Redemption service provider” means a 32 dealer agent or a registered redemption center. 33 Sec. 3. Section 455C.2, Code 2022, is amended to read as 34 follows: 35 -1- SF 2378.4199 (1) 89 js/ns 1/ 23 #1.

455C.2 Refund values. 1 1. A refund value of not less than five cents shall be paid 2 by the consumer on each beverage container sold in this state 3 by a dealer for consumption off the premises. Upon return of 4 the empty beverage container upon which a refund value has 5 been paid to the a participating dealer or person operating 6 a redemption center and acceptance of the empty beverage 7 container by the participating dealer or person operating a 8 redemption center, the participating dealer or person operating 9 a redemption center shall return the amount of the refund value 10 to the consumer. 11 2. a. In addition to the refund value provided in 12 subsection 1 of this section , a participating dealer , or person 13 operating a redemption center who redeems empty beverage 14 containers or a dealer agent shall be reimbursed by the 15 distributor required to accept the empty beverage containers an 16 amount which that is one cent per container. A dealer, dealer 17 agent, or person operating a redemption center may compact 18 empty metal beverage containers with the approval of the 19 distributor required to accept the containers. A redemption 20 center shall be reimbursed an amount that is two cents per 21 container. 22 b. When a distributor delivers beverage containers to 23 a dealer, the dealer shall pay to the distributor as a 24 contribution to the reimbursement required under paragraph “a” 25 one-half of one cent per beverage container for each beverage 26 container delivered. 27 Sec. 4. Section 455C.3, subsections 1, 2, and 4, Code 2022, 28 are amended to read as follows: 29 1. A participating dealer shall not refuse to accept from a 30 consumer any empty beverage container of the kind, size , and 31 brand sold by the participating dealer, or refuse to pay to the 32 consumer the refund value of a beverage container as provided 33 under section 455C.2 . 34 2. A distributor shall accept and pick up from a 35 -2- SF 2378.4199 (1) 89 js/ns 2/ 23

participating dealer served by the distributor or a redemption 1 center for a dealer served by the distributor at least weekly, 2 or when the distributor delivers the beverage product if 3 deliveries are less frequent than weekly, any empty beverage 4 container of the kind, size , and brand sold by the distributor, 5 and shall pay to the participating dealer or person operating 6 a redemption center the refund value of a beverage container 7 and the reimbursement as provided under section 455C.2 within 8 one week following pickup of the containers or when the 9 participating dealer or redemption center normally pays the 10 distributor for the deposit on beverage products purchased from 11 the distributor if less frequent than weekly. A distributor 12 or employee or agent of a distributor is not in violation 13 of this subsection if a redemption center is closed when the 14 distributor attempts to make a regular delivery or a regular 15 pickup of empty beverage containers. This subsection does 16 not apply to a distributor selling alcoholic liquor to the 17 alcoholic beverages division of the department of commerce. 18 4. A distributor shall accept from a dealer agent any 19 empty beverage container of the kind, size, and brand sold by 20 the distributor and which that was picked up by the dealer 21 agent from a dealer within the geographic territory served 22 by the distributor and the distributor shall pay the dealer 23 agent the refund value of the empty beverage container and the 24 reimbursement as provided in section 455C.2 . 25 Sec. 5. Section 455C.4, Code 2022, is amended to read as 26 follows: 27 455C.4 Refusal to accept containers. 28 1. Except as provided in section 455C.5, subsection 3 , 29 a participating dealer , a person operating a or redemption 30 center , a distributor or a manufacturer may refuse to accept 31 any empty beverage container which that does not have stated on 32 it a refund value as provided under section 455C.2 . 33 2. a. A dealer may refuse to accept and to pay the 34 refund value of any empty beverage container if the place of 35 -3- SF 2378.4199 (1) 89 js/ns 3/ 23

business of the dealer and the kind and brand of empty beverage 1 containers are included in an order of the department approving 2 a redemption center under section 455C.6 dealer enters a 3 contract with a redemption service provider who will accept 4 beverage containers on the dealer’s behalf . A dealer may only 5 enter a contract with a registered redemption center under this 6 subsection if the dealer’s place of business is in a county 7 with a population of more than thirty thousand and within five 8 miles of the redemption center or if the dealer’s place of 9 business is in a county with a population of thirty thousand or 10 fewer and within ten miles of the redemption center. 11 b. A dealer who refuses to accept empty beverage containers 12 and enters a contract with a registered redemption center under 13 paragraph “a” shall prominently post on the premises of the 14 dealer’s place of business a sign that includes the location 15 and hours of a registered redemption center with which the 16 dealer has contracted under paragraph “a” . 17 c. A redemption service provider may require as a term of 18 a contract entered into under paragraph “a” that the dealer 19 shall make space available on the dealer’s property for the 20 redemption service provider to collect beverage containers at 21 no cost to the redemption service provider. 22 d. Entering a contract with a dealer agent or a redemption 23 service provider operating an automatic redemption system does 24 not satisfy the contract requirement in paragraph “a” unless 25 the contract requires the dealer agent or redemption service 26 provider operating a mobile redemption system to return refund 27 value to consumers in the form of cash or a voucher immediately 28 redeemable for cash at the time of return. 29 3. A dealer or a distributor may refuse to accept and to pay 30 the refund value of an empty wine or alcoholic liquor container 31 which is marked to indicate that it was sold by a state liquor 32 store. The alcoholic beverages division shall not reimburse 33 a dealer or a distributor the refund value on an empty wine or 34 alcoholic liquor container which is marked to indicate that the 35 -4- SF 2378.4199 (1) 89 js/ns 4/ 23

container was sold by a state liquor store. 1 4. 3. A class “E” liquor control licensee may refuse to 2 accept and to pay the refund value on an empty alcoholic liquor 3 container from a participating dealer or a redemption center 4 or from a person acting on behalf of or who has received empty 5 alcoholic liquor containers from a participating dealer or a 6 redemption center. 7 5. 4. A manufacturer or distributor may refuse to accept 8 and to pay the refund value and reimbursement as provided in 9 section 455C.2 on any empty beverage container that was picked 10 up by a dealer agent from a dealer outside the geographic 11 territory served by the manufacturer or distributor. 12 Sec. 6. Section 455C.5, subsection 1, Code 2022, is amended 13 to read as follows: 14 1. Each beverage container sold or offered for sale in 15 this state by a dealer shall clearly indicate the refund value 16 of the container by embossing or by a stamp, label , or other 17 method securely affixed to the container , the refund value of 18 the container . The department shall specify, by rule, the 19 minimum size of the refund value indication on the beverage 20 containers. 21 Sec. 7. Section 455C.6, subsections 1, 2, and 5, Code 2022, 22 are amended to read as follows: 23 1. To facilitate the return of empty beverage containers and 24 to serve dealers of beverages, any person may register with the 25 department pursuant to subsection 2 to establish a redemption 26 center , subject to the approval of the department, at which 27 consumers may return empty beverage containers and receive 28 payment of the refund value of such beverage containers. 29 2. a. An application for approval of Written notice of 30 the operation of a redemption center shall be filed with the 31 department. The application notice shall state the name and 32 address of the person responsible for the establishment and 33 operation of the redemption center, the kind and brand names 34 of the beverage containers which will be accepted at the 35 -5- SF 2378.4199 (1) 89 js/ns 5/ 23

redemption center, and the names and addresses of the dealers 1 to be served by the redemption center. The application shall 2 contain such other information as the director may reasonably 3 require include the information listed in paragraph “b” . 4 Upon filing a proper notice, the redemption center shall be 5 considered registered for purposes of this chapter. 6 b. A redemption center’s notice filed under paragraph “a” 7 shall be considered proper if it includes all of the following: 8 (1) The name, address, and telephone number of the 9 redemption center. 10 (2) The name, address, and telephone number of the person or 11 persons responsible for the establishment and operation of the 12 redemption center. 13 (3) An indication that the redemption center will accept 14 all kinds, sizes, and brands of beverage containers sold by the 15 dealers served by the redemption center. 16 (4) The names and addresses of the distributors whose 17 beverage containers will be redeemed. 18 (5) The hours during which the redemption center will be 19 open. 20 (6) An indication that the redemption center will be in 21 operation and open to the public for the redemption of beverage 22 containers at least twenty hours per week, four hours of which 23 shall be between the hours of 6:00 p.m. and 10:00 p.m. or on 24 Saturday or Sunday, or a combination thereof. 25 5. All approved redemption centers shall meet applicable 26 health standards. 27 Sec. 8. NEW SECTION . 455C.6A Automatic redemption systems. 28 A redemption service provider may operate an automatic 29 redemption system to accept the return of empty beverage 30 containers and return refund value to consumers. 31 Sec. 9. Section 455C.12, subsection 2, Code 2022, is amended 32 to read as follows: 33 2. A distributor who collects or attempts to collect 34 a refund value on an empty beverage container when the 35 -6- SF 2378.4199 (1) 89 js/ns 6/ 23

distributor has paid the refund value on the container to a 1 participating dealer, redemption center, or consumer is guilty 2 of a fraudulent practice. 3 Sec. 10. Section 455C.12, subsection 3, paragraphs a and b, 4 Code 2022, are amended to read as follows: 5 a. Collects or attempts to collect the refund value on the 6 container a second time, with the knowledge that the refund 7 value has once been paid by the distributor to a participating 8 dealer, redemption center , or consumer. 9 b. Manufactures, sells, possesses , or applies a false or 10 counterfeit label or indication which that shows or purports to 11 show a refund value for a beverage container, with intent to 12 use the false or counterfeit label or indication. 13 Sec. 11. Section 455C.12, Code 2022, is amended by adding 14 the following new subsection: 15 NEW SUBSECTION . 6. A person who violates any provision of 16 this chapter, or any rule, permit, or order adopted or issued 17 under this chapter, shall be subject to a civil penalty not 18 to exceed two thousand five hundred dollars for each day of 19 the violation. The department shall adopt rules establishing 20 a schedule of civil penalties based on the severity of the 21 violation. Any civil penalty collected under this chapter 22 shall be deposited in the bottle bill enforcement fund 23 established in section 455C.12D. 24 Sec. 12. NEW SECTION . 455C.12A Administrative enforcement 25 —— compliance orders. 26 1. The director may issue any order necessary to secure 27 compliance with or prevent a violation of the provisions of 28 this chapter or any rule adopted or permit or order issued 29 pursuant to this chapter. Any order issued pursuant to this 30 section may impose a civil penalty authorized pursuant to 31 section 455C.12, subsection 6, for a violation of the order, 32 to be collected administratively by the department. The 33 person to whom the compliance order is issued may cause to be 34 commenced a contested case within the meaning of chapter 17A by 35 -7- SF 2378.4199 (1) 89 js/ns 7/ 23

filing within thirty days a notice of appeal to the director. 1 Following a contested case hearing and a proposed decision 2 issued by the department, the commission may affirm, modify, or 3 vacate the proposed decision. 4 2. If a person continues an alleged violation during the 5 appeals process and the commission affirms that the person has 6 committed a violation, the department may assess penalties for 7 each day the violation continued through the appeals process. 8 Sec. 13. NEW SECTION . 455C.12B Judicial review. 9 Judicial review of any final order or other final action of 10 the commission or director may be sought in accordance with the 11 terms of chapter 17A. Notwithstanding the terms of chapter 12 17A, petitions for judicial review may be filed in the district 13 court of the county in which the alleged offense was committed. 14 Sec. 14. NEW SECTION . 455C.12C Civil actions for compliance 15 —— penalties. 16 The attorney general, on request of the department, shall 17 institute any legal proceedings necessary to obtain compliance 18 with an order of the commission or the director, including 19 proceedings for a temporary injunction, or prosecuting any 20 person for a violation of the provisions of this chapter or 21 any rules adopted or permit or order issued pursuant to this 22 chapter. 23 Sec. 15. NEW SECTION . 455C.12D Bottle bill enforcement 24 fund. 25 A bottle bill enforcement fund is established in the state 26 treasury under the control of the department. The fund shall 27 consist of moneys deposited in the fund pursuant to section 28 455C.12, subsection 6, and any other moneys appropriated to or 29 deposited in the fund. Moneys in the fund are appropriated 30 to the department for purposes of administering and enforcing 31 this chapter. Notwithstanding section 8.33, moneys in the 32 fund that remain unencumbered or unobligated at the close of 33 a fiscal year shall not revert but shall remain available for 34 expenditure for the purposes designated. Notwithstanding 35 -8- SF 2378.4199 (1) 89 js/ns 8/ 23

section 12C.7, subsection 2, interest or earnings on moneys in 1 the fund shall be credited to the fund. 2 Sec. 16. Section 455C.13, Code 2022, is amended to read as 3 follows: 4 455C.13 Distributors’ Collection and disposal agreements 5 authorized. 6 1. A distributor , dealer, or redemption center may enter 7 into a contract or agreement with any other distributor, 8 manufacturer , or person for the purpose of collecting or paying 9 the refund value on, or disposing of , beverage containers as 10 provided in this chapter . 11 2. For purposes of this chapter, any contracts entered into 12 pursuant to this section for the collection or disposal of 13 empty beverage containers shall not be deemed to interfere with 14 the refund value pursuant to section 455C.2. 15 Sec. 17. Section 455C.14, subsection 1, Code 2022, is 16 amended to read as follows: 17 1. If the refund value indication required under section 18 455C.5 on an empty nonrefillable metal beverage container 19 is readable but the redemption of the container is lawfully 20 refused by a participating dealer or person operating a 21 redemption center under other sections of this chapter or 22 rules adopted pursuant to these sections, the container 23 shall be accepted and the refund value paid to a consumer 24 as provided in this section . Each beer distributor selling 25 nonrefillable metal beverage containers in this state shall 26 provide individually or collectively by contract or agreement 27 with a dealer, person operating a redemption center , or another 28 person, at least one facility in the county seat of each county 29 where refused empty nonrefillable metal beverage containers 30 having a readable refund value indication as required by 31 this chapter are accepted and redeemed. In cities having a 32 population of twenty-five thousand or more, the number of the 33 facilities provided shall be one for each twenty-five thousand 34 population or a fractional part of that population. 35 -9- SF 2378.4199 (1) 89 js/ns 9/ 23

Sec. 18. Section 455C.16, Code 2022, is amended to read as 1 follows: 2 455C.16 Beverage containers —— disposal at sanitary landfill 3 prohibited. 4 Beginning July 1, 1990, the The final disposal of beverage 5 containers by a dealer, distributor, or manufacturer, or 6 person operating a redemption center, in a sanitary landfill, 7 is prohibited. Beginning September 1, 1992 , including the 8 final disposal of beverage containers that used to contain 9 alcoholic liquor as defined in section 123.3, subsection 5 , 10 by a participating dealer, distributor, or manufacturer, or 11 person operating a redemption center in a sanitary landfill , 12 is prohibited. 13 DIVISION II 14 REPEAL OF CURRENT BEVERAGE CONTAINERS CONTROL LAW 15 Sec. 19. Section 123.24, subsection 2, paragraph d, Code 16 2022, is amended by striking the paragraph. 17 Sec. 20. Section 123.26, Code 2022, is amended to read as 18 follows: 19 123.26 Restrictions on sales —— seals —— labeling. 20 Alcoholic liquor shall not be sold by a class “E” liquor 21 control licensee except in a sealed container with identifying 22 markers as prescribed by the administrator and affixed in the 23 manner prescribed by the administrator, and no such container 24 shall be opened upon the premises of a state warehouse. The 25 division shall cooperate with the department of natural 26 resources so ensure that only one identifying marker or mark is 27 needed to satisfy the requirements of this section and section 28 455C.5 123B.4 , subsection 1 . Possession of alcoholic liquors 29 which that do not carry the prescribed identifying markers is a 30 violation of this chapter except as provided in section 123.22 . 31 Sec. 21. Section 123.187, subsection 3, paragraph e, Code 32 2022, is amended by striking the paragraph. 33 Sec. 22. Section 423.6, subsection 3, paragraph a, Code 34 2022, is amended to read as follows: 35 -10- SF 2378.4199 (1) 89 js/ns 10/ 23

a. Any tangible personal property including containers 1 for which it is intended shall, by means of fabrication, 2 compounding, manufacturing, or germination, become an integral 3 part of other tangible personal property intended to be sold 4 ultimately at retail, and containers used in the collection, 5 recovery, or return of empty beverage containers subject to 6 chapter 455C 123B . 7 Sec. 23. Section 455A.4, subsection 1, paragraph b, Code 8 2022, is amended to read as follows: 9 b. Provide overall supervision, direction, and coordination 10 of functions to be administered by the administrators under 11 chapters 321G , 321I , 455B , 455C , 456A , 456B , 457A , 458A , 459 , 12 459A , 459B , 461A , 462A , 462B , 464A , 465C , 473 , 481A , 481B , 13 483A , 484A , and 484B . 14 Sec. 24. Section 455A.6, subsection 6, paragraphs a, b, and 15 d, Code 2022, are amended to read as follows: 16 a. Establish policy for the department and adopt rules, 17 pursuant to chapter 17A , necessary to provide for the effective 18 administration of chapter 455B , 455C , or 459 . 19 b. Hear appeals in contested cases pursuant to chapter 17A 20 on matters relating to actions taken by the director under 21 chapter 455C, 458A , 464B , or 473 . 22 d. Approve the budget request prepared by the director 23 for the programs authorized by chapters 455B , 455C , 455E , 24 455F , 455H , and 459, subchapters II and III . The commission 25 shall approve the budget request prepared by the director for 26 programs subject to the rulemaking authority of the commission. 27 The commission may increase, decrease, or strike any item 28 within the department budget request for the specified programs 29 before granting approval. 30 Sec. 25. Section 455B.313, subsection 1, Code 2022, is 31 amended to read as follows: 32 1. A distributor as defined in section 455C.1, subsection 33 9 , shall not sell or offer to sell any beverage container 34 if the beverage container is connected to another beverage 35 -11- SF 2378.4199 (1) 89 js/ns 11/ 23

container by a device constructed of a material which that is 1 not biodegradable or photodegradable. 2 Sec. 26. Section 455B.313, Code 2022, is amended by adding 3 the following new subsection: 4 NEW SUBSECTION . 3. For purposes of this section, 5 “distributor” means any person who engages in the sale of 6 beverages in beverage containers to a dealer in this state, 7 as those terms are defined in section 123B.1, including any 8 manufacturer who engages in such sales. 9 Sec. 27. REPEAL. Chapter 455C, Code 2022, is repealed. 10 Sec. 28. TRANSITION PROVISIONS. Upon repeal of chapter 11 455C and the creation of the bottle bill deposit fund pursuant 12 to section 123B.11, as enacted in this Act, all moneys in the 13 bottle bill enforcement fund created in section 455C.12D, as 14 enacted in this Act, are transferred to the alcoholic beverages 15 division for deposit in the bottle bill deposit fund. Any 16 moneys credited to the bottle bill enforcement fund on and 17 after January 1, 2024, are transferred to the division for 18 deposit in the bottle bill deposit fund. 19 Sec. 29. EFFECTIVE DATE. This division of this Act takes 20 effect January 1, 2024. 21 DIVISION III 22 NEW BEVERAGE CONTAINERS CONTROL LAW 23 Sec. 30. NEW SECTION . 123B.1 Definitions. 24 As used in this chapter, unless the context otherwise 25 requires: 26 1. a. “Beverage” means any of the following: 27 (1) Wine as defined in section 123.3, subsection 54. 28 (2) Alcoholic liquor as defined in section 123.3, 29 subsection 5. 30 (3) Beer as defined in section 123.3, subsection 7. 31 (4) High alcoholic content beer as defined in section 123.3, 32 subsection 22. 33 (5) Canned cocktail as defined in section 123.3, subsection 34 11. 35 -12- SF 2378.4199 (1) 89 js/ns 12/ 23

(6) Mineral water, soda water, and similar carbonated soft 1 drinks. 2 (7) Any liquid identified through the use of letters, 3 words, or symbols on its product label as a type of water, 4 including any flavored water or nutritionally enhanced water, 5 in a container greater than or equal to four fluid ounces and 6 less than three liters. 7 (8) Tea or coffee drinks, regardless of dairy-derived 8 content, in a container greater than or equal to four fluid 9 ounces and less than three liters. 10 (9) Juice derived from one or more fruits or vegetables that 11 is intended for direct human consumption and not as a base or 12 additive to any beverage or food, in a container greater than 13 or equal to four fluid ounces and less than three liters. 14 (10) Sports drinks, which are soft drinks designed or 15 marketed for consumption in conjunction with sporting activity 16 or strenuous exercise, and which typically contain electrolytes 17 such as sodium, potassium, and chloride, and a high percentage 18 of sugar to restore energy, in a container greater than or 19 equal to four fluid ounces and less than three liters. 20 (11) Any other liquid that is intended for human consumption 21 and is in a container greater than or equal to four fluid 22 ounces and less than three liters. 23 b. For purposes of this chapter, the term “beverage” 24 excludes all of the following: 25 (1) A liquid that is a syrup, in a concentrated form, 26 or typically added as a minor flavoring ingredient in food 27 or drink, including but not limited to extracts, cooking 28 additives, sauces, or condiments. 29 (2) A liquid that is a drug, medical food, or infant formula 30 as defined by the federal Food, Drug, and Cosmetic Act, 21 31 U.S.C. §301 et seq. 32 (3) A liquid that is designed and consumed only as a 33 dietary supplement as defined in the Dietary Supplement Health 34 and Education Act of 1994, Pub. L. No. 103-417, and not as a 35 -13- SF 2378.4199 (1) 89 js/ns 13/ 23

beverage. 1 (4) Instant drink powders. 2 (5) Milk, or any product marketed as a plant-based milk, and 3 all other dairy-derived products, except tea or coffee drinks 4 included in paragraph “a” , subparagraph (8). 5 2. “Beverage container” means any sealed glass, plastic, 6 or metal bottle, can, jar, or carton containing a beverage. 7 “Beverage container” does not include foil pouches or drink 8 boxes. 9 3. “Commission” means the alcoholic beverages commission 10 established in chapter 123. 11 4. “Consumer” means any person who purchases a beverage in a 12 beverage container for use or consumption. 13 5. “Dealer” means any person who engages in the sale of 14 beverages in beverage containers to a consumer. 15 6. “Division” means the alcoholic beverages division of the 16 department of commerce established in chapter 123. 17 7. “Redemption center” means a business that provides one or 18 more facilities at which consumers may return empty beverage 19 containers and receive payment for the refund value of the 20 empty beverage containers. 21 Sec. 31. NEW SECTION . 123B.2 Refund values —— recycling 22 —— reimbursement. 23 1. a. A refund value of five cents shall be paid by a 24 consumer to a dealer on each beverage container sold in this 25 state by the dealer for consumption off the premises. 26 b. On a monthly basis, a dealer shall submit to the 27 department of revenue, in a form and manner determined by 28 the department, receipts indicating the number of beverage 29 containers sold by the dealer and the five-cent refund value 30 collected for each beverage container sold by the dealer 31 pursuant to paragraph “a” . The department of revenue shall 32 credit monthly to the treasurer of state for deposit in the 33 bottle bill deposit fund established in section 123B.11 the 34 refund value collected from dealers under this paragraph. 35 -14- SF 2378.4199 (1) 89 js/ns 14/ 23

2. a. When a manufacturer transfers beverage containers to 1 a distributor, the manufacturer shall pay to the distributor 2 one-half of one cent per beverage container for each beverage 3 container transferred. 4 b. When a distributor delivers beverage containers to a 5 dealer, the dealer shall pay to the distributor one-half of 6 one cent per beverage container for each beverage container 7 delivered. 8 c. Within fourteen days of providing an invoice to a dealer 9 for beverage containers delivered to the dealer, a distributor 10 shall submit to the department of revenue, in a form and 11 manner determined by the department, receipts indicating the 12 number of beverage containers delivered to the dealer by the 13 distributor and payment in an amount equal to one and one-half 14 cents for each beverage container delivered to the dealer. The 15 department of revenue shall credit monthly to the treasurer of 16 state for deposit in the bottle bill deposit fund established 17 in section 123B.11 the moneys collected from a distributor 18 under this paragraph. 19 3. A consumer may only redeem the refund value by returning 20 a beverage container to a registered redemption center 21 facility. Upon return of the empty beverage container, upon 22 which a refund value has been paid, to a registered redemption 23 center facility and acceptance of the empty beverage container 24 by the redemption center, the redemption center shall pay the 25 amount of the refund value to the consumer within ten days. 26 4. A redemption center shall dispose of beverage containers 27 by transporting or causing the transport of the beverage 28 containers to a recycling site. 29 5. On a monthly basis, a redemption center shall be 30 reimbursed by the division from the bottle bill deposit fund 31 established in section 123B.11 the amount of refund value that 32 the redemption center has paid to consumers and the handling 33 fee. The division shall establish the handling fee by rule 34 in an amount that is three cents per beverage container, 35 -15- SF 2378.4199 (1) 89 js/ns 15/ 23

except that the handling fee shall be one cent per beverage 1 container for a redemption center that does not provide refund 2 value to consumers in the form of cash at the time of return. 3 The division may establish accuracy standards to account for 4 discrepancies in the weight of recycled material and the number 5 of beverage containers the redemption center claims to have 6 been recycled. 7 Sec. 32. NEW SECTION . 123B.3 Refusal to accept containers. 8 A redemption center may refuse to accept any empty beverage 9 container that does not have stated on it a refund value as 10 provided under section 123B.4. 11 Sec. 33. NEW SECTION . 123B.4 Refund value stated on 12 container —— exceptions. 13 1. Each beverage container sold or offered for sale in 14 this state by a dealer shall clearly indicate the refund 15 value of the container by embossing or by a stamp, label, or 16 other method securely affixed to the container. The division 17 shall specify, by rule, the minimum size of the refund value 18 indication on the beverage containers and require registration 19 of the universal product code for each beverage container in a 20 format required by the division. 21 2. A person, except a distributor, shall not import 22 into this state a beverage container that does not have 23 securely affixed to the container the refund value indication. 24 This subsection does not apply under any of the following 25 circumstances: 26 a. For beverage containers containing alcoholic liquor as 27 defined in section 123.3, subsection 5, the total capacity of 28 the containers is not more than one quart or, in the case of 29 alcoholic liquor personally obtained outside the United States, 30 one gallon. 31 b. For beverage containers containing beer as defined 32 in section 123.3, subsection 7, the total capacity of the 33 containers is not more than two hundred eighty-eight fluid 34 ounces. 35 -16- SF 2378.4199 (1) 89 js/ns 16/ 23

c. For all other beverage containers, the total capacity of 1 the containers is not more than five hundred seventy-six fluid 2 ounces. 3 3. Subsections 1 and 2 do not apply to a refillable glass 4 beverage container that has a brand name permanently marked 5 on it and that has a refund value of five cents, to any other 6 refillable beverage container that has a refund value of five 7 cents and that is exempted by rules adopted by the commission, 8 or to a beverage container sold aboard a commercial airliner or 9 passenger train for consumption on the premises. 10 Sec. 34. NEW SECTION . 123B.5 Redemption centers. 11 1. To facilitate the return of empty beverage containers, 12 any person may register with the division to establish a 13 redemption center facility at which consumers may return empty 14 beverage containers and receive payment of the refund value of 15 such beverage containers. 16 2. a. Written notice of the operation of a redemption 17 center facility shall be filed with the division. The notice 18 shall include the information listed in paragraph “b” . Upon 19 filing a proper notice, the redemption center facility shall be 20 considered registered for purposes of this chapter. 21 b. A notice filed under paragraph “a” shall be considered 22 proper if it includes all of the following: 23 (1) The name, address, and telephone number of the 24 redemption center facility. 25 (2) The name, address, and telephone number of the person or 26 persons responsible for the establishment and operation of the 27 redemption center facility. 28 (3) An indication that the redemption center facility will 29 accept all kinds, sizes, and brands of beverage containers 30 sold by all dealers within five miles of the redemption center 31 facility if the redemption center facility is in a county 32 with a population of more than thirty thousand or sold by all 33 dealers within ten miles of the redemption center facility if 34 the redemption center facility is in a county with a population 35 -17- SF 2378.4199 (1) 89 js/ns 17/ 23

of thirty thousand or fewer. 1 (4) The names and addresses of the distributors whose 2 beverage containers will be redeemed. 3 (5) The hours during which the redemption center will be 4 open. 5 (6) An indication that the redemption center facility will 6 be in operation and open to the public for the redemption of 7 beverage containers at least twenty hours per week, four hours 8 of which shall be between the hours of 6:00 p.m. and 10:00 p.m. 9 or on Saturday or Sunday, or a combination thereof. 10 Sec. 35. NEW SECTION . 123B.6 Rules. 11 The commission shall adopt, upon recommendation of the 12 division, rules necessary to carry out the provisions of this 13 chapter, subject to the provisions of chapter 17A. 14 Sec. 36. NEW SECTION . 123B.7 Penalties. 15 1. Except as provided in subsection 2, any person violating 16 the provisions of section 123B.2 or 123B.4, or a rule adopted 17 under this chapter, shall be guilty of a simple misdemeanor. 18 2. Any person who does any of the following acts is guilty 19 of a fraudulent practice under chapter 714: 20 a. Collects or attempts to collect the refund value on a 21 beverage container a second time, with the knowledge that the 22 refund value has once been paid by the redemption center to a 23 consumer. 24 b. Manufactures, sells, possesses, or applies a false or 25 counterfeit label or indication that shows or purports to show 26 a refund value for a beverage container, with intent to use the 27 false or counterfeit label or indication. 28 c. Collects or attempts to collect a refund value on 29 a container with the use of a false or counterfeit label 30 or indication showing a refund value, knowing the label or 31 indication to be false or counterfeit. 32 d. Intentionally submits to the division a request for 33 reimbursement of refund value that does not accurately reflect 34 the number of beverage containers collected and recycled by a 35 -18- SF 2378.4199 (1) 89 js/ns 18/ 23