H-8307

   Amend Senate File 2378, as amended, passed, and reprinted by the Senate, as follows:
   1.  By striking everything after the enacting clause and inserting: 
<DIVISION I
CHANGES TO CURRENT BEVERAGE CONTAINERS CONTROL LAW

   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.  01.  “Automatic redemption system” means a location operated by a redemption service provider 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.
   NEW SUBSECTION.  14.  “Redemption service provider” means a dealer agent or a registered redemption center.
   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 a 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 return the amount of the refund value to the consumer.
   2.  a.  In addition to the refund value provided in subsection 1 of this section, a participating dealer, or person operating a redemption center 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 that is one cent per container. A dealer, dealer agent, or person operating a redemption center may compact empty metal beverage containers with the approval of the distributor required to accept the containers.  A redemption center shall be reimbursed an amount that is two cents per container.
   b.  When a distributor delivers beverage containers to a dealer, the dealer shall pay to the distributor as a contribution to the reimbursement required under paragraph “a” one-half of one cent per beverage container for each beverage container delivered.
   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 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 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 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 participating dealer, a person operating a or redemption center, 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 dealer enters a contract with a redemption service provider who will accept beverage containers on the dealer’s behalf.  A dealer may only enter a contract with a registered redemption center under this subsection if the dealer’s place of business is in a county with a population of more than thirty thousand and within five miles of the redemption center or if the dealer’s place of business is in a county with a population of thirty thousand or fewer and within ten miles of the redemption center.
   b.  A dealer who refuses to accept empty beverage containers and enters a contract with a registered redemption center under paragraph “a” shall prominently post on the premises of the dealer’s place of business a sign that includes the location and hours of a registered redemption center with which the dealer has contracted under paragraph “a”.
   c.  A redemption service provider may require as a term of a contract entered into under paragraph “a” that the dealer shall make space available on the dealer’s property for the redemption service provider to collect beverage containers at no cost to the redemption service provider.
   d.  Entering a contract with a dealer agent or a redemption service provider operating an automatic redemption system does not satisfy the contract requirement in paragraph “a” unless the contract requires the dealer agent or redemption service provider operating a mobile redemption system to return refund value to consumers in the form of cash or a voucher immediately redeemable for cash at the time of return.
   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 from a person acting on behalf of or who has received empty alcoholic liquor containers from a participating dealer or a redemption center.
   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.
   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 register with the department pursuant to subsection 2 to establish a redemption center, subject to the approval of the department, at which consumers may return empty beverage containers and receive payment of the refund value of such beverage containers.
   2.  a.  An application for approval of Written notice of the operation of a redemption center shall be filed 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, and the names and addresses of the dealers to be served by the redemption center. The application shall contain such other information as the director may reasonably require include the information listed in paragraph “b”.  Upon filing a proper notice, the redemption center shall be considered registered for purposes of this chapter. 
   b.  A redemption center’s notice filed under paragraph “a” shall be considered proper if it includes all of the following:
   (1)  The name, address, and telephone number of the redemption center. 
   (2)  The name, address, and telephone number of the person or persons responsible for the establishment and operation of the redemption center. 
   (3)  An indication that the redemption center will accept all kinds, sizes, and brands of beverage containers sold by the dealers served by the redemption center. 
   (4)  The names and addresses of the distributors whose beverage containers will be redeemed.
   (5)  The hours during which the redemption center will be open.
   (6)  An indication that the redemption center will be in operation and open to the public for the redemption of beverage containers at least twenty hours per week, four hours of which shall be between the hours of 6:00 p.m. and 10:00 p.m. or on Saturday or Sunday, or a combination thereof.
   5.  All approved redemption centers shall meet applicable health standards.
   Sec. 8.  NEW SECTION.  455C.6A  Automatic redemption systems.
   A redemption service provider may operate an automatic redemption system to accept the return of empty beverage containers and return refund value to consumers.
   Sec. 9.  Section 455C.12, subsection 2, Code 2022, is 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, or consumer is guilty of a fraudulent practice.
   Sec. 10.  Section 455C.12, subsection 3, paragraphs a and b, Code 2022, are amended to read as follows:
   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, 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.
   Sec. 11.  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. 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 enforcement fund established in section 455C.12D.
   Sec. 12.  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. 13.  NEW SECTION.  455C.12B  Judicial review.
   Judicial review of any final order or other final action of the commission or director may be sought in accordance with the terms of chapter 17A. Notwithstanding the terms of chapter 17A, petitions for judicial review may be filed in the district court of the county in which the alleged offense was committed.
   Sec. 14.  NEW SECTION.  455C.12C  Civil actions for compliance —— penalties.
   The attorney general, on request of the department, shall institute any legal proceedings necessary to obtain compliance with an order of the commission or the director, including proceedings for a temporary injunction, or prosecuting any person for a violation of the provisions of this chapter or any rules adopted or permit or order issued pursuant to this chapter.
   Sec. 15.  NEW SECTION.  455C.12D  Bottle bill enforcement fund.
   A bottle bill enforcement 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, 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. 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. 16.  Section 455C.13, Code 2022, is amended to read as follows:
   455C.13  Distributors’ Collection and disposal agreements authorized.
   1.  A distributor, dealer, or redemption center 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. 17.  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 participating dealer or person operating a redemption center 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 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.
   Sec. 18.  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 in a sanitary landfill, is prohibited.
DIVISION II
REPEAL OF CURRENT BEVERAGE CONTAINERS CONTROL LAW

   Sec. 19.  Section 123.24, subsection 2, paragraph d, Code 2022, is amended by striking the paragraph.
   Sec. 20.  Section 123.26, Code 2022, is amended to read as follows:
   123.26  Restrictions on sales —— seals —— labeling.
   Alcoholic liquor shall not be sold by a class “E” liquor control licensee except in a sealed container with identifying markers as prescribed by the administrator and affixed in the manner prescribed by the administrator, and no such container shall be opened upon the premises of a state warehouse. The division shall cooperate with the department of natural resources so ensure that only one identifying marker or mark is needed to satisfy the requirements of this section and section 455C.5 123B.4, subsection 1. Possession of alcoholic liquors which that do not carry the prescribed identifying markers is a violation of this chapter except as provided in section 123.22.
   Sec. 21.  Section 123.187, subsection 3, paragraph e, Code 2022, is amended by striking the paragraph.
   Sec. 22.  Section 423.6, subsection 3, paragraph a, Code 2022, is amended to read as follows:
   a.  Any tangible personal property including containers for which it is intended shall, by means of fabrication, compounding, manufacturing, or germination, become an integral part of other tangible personal property intended to be sold ultimately at retail, and containers used in the collection, recovery, or return of empty beverage containers subject to chapter 455C 123B.
   Sec. 23.  Section 455A.4, subsection 1, paragraph b, Code 2022, is amended to read as follows:
   b.  Provide overall supervision, direction, and coordination of functions to be administered by the administrators under chapters 321G, 321I, 455B, 455C, 456A, 456B, 457A, 458A, 459, 459A, 459B, 461A, 462A, 462B, 464A, 465C, 473, 481A, 481B, 483A, 484A, and 484B.
   Sec. 24.  Section 455A.6, subsection 6, paragraphs a, b, and d, Code 2022, are amended to read as follows:
   a.  Establish policy for the department and adopt rules, pursuant to chapter 17A, necessary to provide for the effective administration of chapter 455B, 455C, or 459.
   b.  Hear appeals in contested cases pursuant to chapter 17A on matters relating to actions taken by the director under chapter 455C, 458A, 464B, or 473.
   d.  Approve the budget request prepared by the director for the programs authorized by chapters 455B, 455C, 455E, 455F, 455H, and 459, subchapters II and III. The commission shall approve the budget request prepared by the director for programs subject to the rulemaking authority of the commission. The commission may increase, decrease, or strike any item within the department budget request for the specified programs before granting approval.
   Sec. 25.  Section 455B.313, subsection 1, Code 2022, is amended to read as follows:
   1.  A distributor as defined in section 455C.1, subsection 9, shall not sell or offer to sell any beverage container if the beverage container is connected to another beverage container by a device constructed of a material which that is not biodegradable or photodegradable.
   Sec. 26.  Section 455B.313, Code 2022, is amended by adding the following new subsection:
   NEW SUBSECTION.  3.  For purposes of this section, “distributor” means any person who engages in the sale of beverages in beverage containers to a dealer in this state, as those terms are defined in section 123B.1, including any manufacturer who engages in such sales.
   Sec. 27.  REPEAL.  Chapter 455C, Code 2022, is repealed.
   Sec. 28.  TRANSITION PROVISIONS.  Upon repeal of chapter 455C and the creation of the bottle bill deposit fund pursuant to section 123B.11, as enacted in this Act, all moneys in the bottle bill enforcement fund created in section 455C.12D, as enacted in this Act, are transferred to the alcoholic beverages division for deposit in the bottle bill deposit fund. Any moneys credited to the bottle bill enforcement fund on and after January 1, 2024, are transferred to the division for deposit in the bottle bill deposit fund.
   Sec. 29.  EFFECTIVE DATE.  This division of this Act takes effect January 1, 2024.
DIVISION III
NEW BEVERAGE CONTAINERS CONTROL LAW

   Sec. 30.  NEW SECTION.  123B.1  Definitions.
   As used in this chapter, unless the context otherwise requires:
   1.  a.  “Beverage” means any of the following:
   (1)  Wine as defined in section 123.3, subsection 54.
   (2)  Alcoholic liquor as defined in section 123.3, subsection 5.
   (3)  Beer as defined in section 123.3, subsection 7.
   (4)  High alcoholic content beer as defined in section 123.3, subsection 22.
   (5)  Canned cocktail as defined in section 123.3, subsection 11.
   (6)  Mineral water, soda water, and similar carbonated soft drinks.
   (7)  Any liquid identified through the use of letters, words, or symbols on its product label as a type of water, including any flavored water or nutritionally enhanced water, in a container greater than or equal to four fluid ounces and less than three liters.
   (8)  Tea or coffee drinks, regardless of dairy-derived content, in a container greater than or equal to four fluid ounces and less than three liters.
   (9)  Juice derived from one or more fruits or vegetables that is intended for direct human consumption and not as a base or additive to any beverage or food, in a container greater than or equal to four fluid ounces and less than three liters.
   (10)  Sports drinks, which are soft drinks designed or marketed for consumption in conjunction with sporting activity or strenuous exercise, and which typically contain electrolytes such as sodium, potassium, and chloride, and a high percentage of sugar to restore energy, in a container greater than or equal to four fluid ounces and less than three liters.
   (11)  Any other liquid that is intended for human consumption and is in a container greater than or equal to four fluid ounces and less than three liters.
   b.  For purposes of this chapter, the term “beverage” excludes all of the following:
   (1)  A liquid that is a syrup, in a concentrated form, or typically added as a minor flavoring ingredient in food or drink, including but not limited to extracts, cooking additives, sauces, or condiments.
   (2)  A liquid that is a drug, medical food, or infant formula as defined by the federal Food, Drug, and Cosmetic Act, 21 U.S.C. §301 et seq.
   (3)  A liquid that is designed and consumed only as a dietary supplement as defined in the Dietary Supplement Health and Education Act of 1994, Pub. L. No. 103-417, and not as a beverage.
   (4)  Instant drink powders.
   (5)  Milk, or any product marketed as a plant-based milk, and all other dairy-derived products, except tea or coffee drinks included in paragraph “a”, subparagraph (8).
   2.  “Beverage container” means any sealed glass, plastic, or metal bottle, can, jar, or carton containing a beverage. “Beverage container” does not include foil pouches or drink boxes.
   3.  “Commission” means the alcoholic beverages commission established in chapter 123.
   4.  “Consumer” means any person who purchases a beverage in a beverage container for use or consumption.
   5.  “Dealer” means any person who engages in the sale of beverages in beverage containers to a consumer.
   6.  “Division” means the alcoholic beverages division of the department of commerce established in chapter 123.
   7.  “Redemption center” means a business that provides one or more facilities at which consumers may return empty beverage containers and receive payment for the refund value of the empty beverage containers.
   Sec. 31.  NEW SECTION.  123B.2  Refund values —— recycling —— reimbursement.
   1.  a.  A refund value of five cents shall be paid by a consumer to a dealer on each beverage container sold in this state by the dealer for consumption off the premises.
   b.  On a monthly basis, a dealer shall submit to the department of revenue, in a form and manner determined by the department, receipts indicating the number of beverage containers sold by the dealer and the five-cent refund value collected for each beverage container sold by the dealer pursuant to paragraph “a”. The department of revenue shall credit monthly to the treasurer of state for deposit in the bottle bill deposit fund established in section 123B.11 the refund value collected from dealers under this paragraph.
   2.  a.  When a manufacturer transfers beverage containers to a distributor, the manufacturer shall pay to the distributor one-half of one cent per beverage container for each beverage container transferred.
   b.  When a distributor delivers beverage containers to a dealer, the dealer shall pay to the distributor one-half of one cent per beverage container for each beverage container delivered.
   c.  Within fourteen days of providing an invoice to a dealer for beverage containers delivered to the dealer, a distributor shall submit to the department of revenue, in a form and manner determined by the department, receipts indicating the number of beverage containers delivered to the dealer by the distributor and payment in an amount equal to one and one-half cents for each beverage container delivered to the dealer. The department of revenue shall credit monthly to the treasurer of state for deposit in the bottle bill deposit fund established in section 123B.11 the moneys collected from a distributor under this paragraph.
   3.  A consumer may only redeem the refund value by returning a beverage container to a registered redemption center facility. Upon return of the empty beverage container, upon which a refund value has been paid, to a registered redemption center facility and acceptance of the empty beverage container by the redemption center, the redemption center shall pay the amount of the refund value to the consumer within ten days.
   4.  A redemption center shall dispose of beverage containers by transporting or causing the transport of the beverage containers to a recycling site.
   5.  On a monthly basis, a redemption center shall be reimbursed by the division from the bottle bill deposit fund established in section 123B.11 the amount of refund value that the redemption center has paid to consumers and the handling fee. The division shall establish the handling fee by rule in an amount that is three cents per beverage container, except that the handling fee shall be one cent per beverage container for a redemption center that does not provide refund value to consumers in the form of cash at the time of return. The division may establish accuracy standards to account for discrepancies in the weight of recycled material and the number of beverage containers the redemption center claims to have been recycled.
   Sec. 32.  NEW SECTION.  123B.3  Refusal to accept containers.
   A redemption center may refuse to accept any empty beverage container that does not have stated on it a refund value as provided under section 123B.4.
   Sec. 33.  NEW SECTION.  123B.4  Refund value stated on container —— exceptions.
   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 division 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 in a format required by the division.
   2.  A person, except a distributor, shall not import into this state a beverage container that does not have securely affixed to the container the refund value indication. This subsection does not apply under any of the following circumstances:
   a.  For beverage containers containing alcoholic liquor as defined in section 123.3, subsection 5, the total capacity of the containers is not more than one quart or, in the case of alcoholic liquor personally obtained outside the United States, one gallon.
   b.  For beverage containers containing beer as defined in section 123.3, subsection 7, the total capacity of the containers is not more than two hundred eighty-eight fluid ounces.
   c.  For all other beverage containers, the total capacity of the containers is not more than five hundred seventy-six fluid ounces.
   3.  Subsections 1 and 2 do not apply to a refillable glass beverage container that has a brand name permanently marked on it and that has a refund value of five cents, to any other refillable beverage container that has a refund value of five cents and that is exempted by rules adopted by the commission, or to a beverage container sold aboard a commercial airliner or passenger train for consumption on the premises.
   Sec. 34.  NEW SECTION.  123B.5  Redemption centers.
   1.  To facilitate the return of empty beverage containers, any person may register with the division to establish a redemption center facility at which consumers may return empty beverage containers and receive payment of the refund value of such beverage containers.
   2.  a.  Written notice of the operation of a redemption center facility shall be filed with the division. The notice shall include the information listed in paragraph “b”. Upon filing a proper notice, the redemption center facility shall be considered registered for purposes of this chapter.
   b.  A notice filed under paragraph “a” shall be considered proper if it includes all of the following:
   (1)  The name, address, and telephone number of the redemption center facility.
   (2)  The name, address, and telephone number of the person or persons responsible for the establishment and operation of the redemption center facility.
   (3)  An indication that the redemption center facility will accept all kinds, sizes, and brands of beverage containers sold by all dealers within five miles of the redemption center facility if the redemption center facility is in a county with a population of more than thirty thousand or sold by all dealers within ten miles of the redemption center facility if the redemption center facility is in a county with a population of thirty thousand or fewer.
   (4)  The names and addresses of the distributors whose beverage containers will be redeemed.
   (5)  The hours during which the redemption center will be open.
   (6)  An indication that the redemption center facility will be in operation and open to the public for the redemption of beverage containers at least twenty hours per week, four hours of which shall be between the hours of 6:00 p.m. and 10:00 p.m. or on Saturday or Sunday, or a combination thereof.
   Sec. 35.  NEW SECTION.  123B.6  Rules.
   The commission shall adopt, upon recommendation of the division, rules necessary to carry out the provisions of this chapter, subject to the provisions of chapter 17A.
   Sec. 36.  NEW SECTION.  123B.7  Penalties.
   1.  Except as provided in subsection 2, any person violating the provisions of section 123B.2 or 123B.4, or a rule adopted under this chapter, shall be guilty of a simple misdemeanor.
   2.  Any person who does any of the following acts is guilty of a fraudulent practice under chapter 714:
   a.  Collects or attempts to collect the refund value on a beverage container a second time, with the knowledge that the refund value has once been paid by the redemption center to a consumer.
   b.  Manufactures, sells, possesses, or applies a false or counterfeit label or indication 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.
   d.  Intentionally submits to the division a request for reimbursement of refund value that does not accurately reflect the number of beverage containers collected and recycled by a redemption center for the period that the redemption center seeks reimbursement.
   3.  As used in this section, “a false or counterfeit label or indication” means a label or indication purporting to show a valid refund value that has not been initially applied as authorized by a distributor.
   4.  Subsection 2, paragraph “a”, does not apply to empty beverage containers that are intended to be refillable and are in a standard of condition to be refillable by the manufacturer, notwithstanding any standard for sanitization.
   5.  A person who violates any provision of this chapter shall be subject to a civil penalty that shall be established, assessed, and collected by the division by rule, but shall not exceed two thousand dollars per violation, except as provided in section 123B.10. Any civil penalty collected under this chapter shall be deposited in the general fund of the state.
   Sec. 37.  NEW SECTION.  123B.8  Administrative enforcement —— compliance orders.
   1.  The administrator of the division 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. 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 commission. On appeal, the commission may affirm, modify, or vacate the order of the administrator of the division.
   2.  If a person continues an alleged violation during the appeals process and the commission affirms that the person has committed a violation, the division may assess penalties for each day the violation continued through the appeals process.
   Sec. 38.  NEW SECTION.  123B.9  Judicial review.
   Judicial review of any order or other action of the commission or administrator of the division may be sought in accordance with the terms of chapter 17A. Notwithstanding the terms of chapter 17A, petitions for judicial review may be filed in the district court of the county in which the alleged offense was committed.
   Sec. 39.  NEW SECTION.  123B.10  Civil actions for compliance —— penalties.
   1.  The attorney general, on request of the division, shall institute any legal proceedings necessary to obtain compliance with an order of the commission or the administrator of the division, including proceedings for a temporary injunction, or prosecuting any person for a violation of an order of the commission or the administrator of the division or the provisions of this chapter or any rules adopted or permit or order issued pursuant to this chapter.
   2.  Any person who violates an order issued pursuant to section 123B.8 shall be subject to a civil penalty, not to exceed two thousand five hundred dollars for each day of such violation.
   Sec. 40.  NEW SECTION.  123B.11  Refund value payment program —— fund created.
   1.  The division shall establish and administer a refund value payment program. The purpose of the program shall be to administer payments of refund value and handling fees to redemption centers after the redemption centers accept empty beverage containers from consumers. The program shall be administered in accordance with rules adopted by the commission pursuant to chapter 17A.
   2.  A bottle bill deposit fund is established in the state treasury under the control of the division. The fund shall consist of moneys deposited in the fund pursuant to section 123B.2 and any other moneys appropriated to or deposited in the fund. Moneys in the fund are appropriated to the division for purposes designated in subsection 4. 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.
   3.  A bottle bill cash reserve account is established within the bottle bill deposit fund. Moneys in the bottle bill deposit fund on July 1, 2025, shall be deposited in the account. The division shall use moneys in the account in the event that the other moneys in the bottle bill deposit fund are insufficient to issue reimbursement and handling fees to redemption centers. At the end of each fiscal year, the account shall be replenished to the original amount deposited on July 1, 2025, from the other moneys in the bottle bill deposit fund if such other moneys are available. 
   4.  Moneys in the fund shall be used by the division for all of the following purposes:
   a.  Issuing reimbursement of refund value to a redemption center after the redemption center accepts empty beverage containers from and pays the refund value to a consumer.
   b.  Issuing the handling fee to a redemption center for each beverage container that a redemption center accepts from a consumer.
   c.  Covering administrative costs to administer the refund value payment program in an amount determined by the commission by rule.
   d.  Providing grants to expand redemption capacity in underserved areas.
   e.  Providing grants to nonprofit organizations to engage in litter collection in public areas.
   f.  Providing reimbursement for actual and necessary expenses incurred by members of the committee established in section 123B.12 in the performance of their duties.
   g.  Replenishing the bottle bill cash reserve account when necessary.
   Sec. 41.  NEW SECTION.  123B.12  Bottle bill advisory committee.
   1.  The division shall establish a bottle bill advisory committee. The division shall determine by rule how many members shall serve on the committee and the length of terms for the members. The committee shall include at least one member involved in the manufacturing of beverages, one member involved in the distribution of beverage containers, one member involved in the sale of beverage containers, one member involved in the redemption of beverage containers, one member involved in the recycling of beverage containers, and one member representing consumer interests.
   2.  The members of the committee shall be reimbursed for actual and necessary expenses incurred in the performance of their duties. Expenses shall be paid by the division from the bottle bill deposit fund created in section 123B.11.
   3.  The committee shall meet at least once each year to review the status of the beverage containers control law as provided in this chapter. The committee shall submit any recommended changes to the division and to the general assembly.
   Sec. 42.  NEW SECTION.  123B.13  Auditing.
   The auditor of state may establish rules to allow for periodic auditing of entities receiving moneys under section 123B.11, subsection 4.
   Sec. 43.  NEW SECTION.  455D.9B  Disposal of beverage containers at sanitary landfill prohibited.
   The final disposal of beverage containers, as defined in section 123B.1, including the final disposal of beverage containers that used to contain alcoholic liquor as defined in section 123.3, subsection 5, by a redemption center, as defined in section 123B.1, in a sanitary landfill is prohibited.
   Sec. 44.  EFFECTIVE DATE.  This division of this Act takes effect January 1, 2024.>

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ISENHART of Dubuque