Senate File 2378 H-8359 Amend Senate File 2378, as amended, passed, and reprinted by 1 the Senate, as follows: 2 1. By striking everything after the enacting clause and 3 inserting: 4 < Section 1. Section 455C.1, subsections 1 and 6, Code 2022, 5 are amended to read as follows: 6 1. “Beverage” means wine as defined in section 123.3, 7 subsection 54 , alcoholic liquor as defined in section 123.3, 8 subsection 5 , beer as defined in section 123.3, subsection 9 7 , high alcoholic content beer as defined in section 123.3, 10 subsection 22, canned cocktail as defined in section 123.3, 11 subsection 11, mineral water, soda water , and similar 12 carbonated soft drinks in liquid form and intended for human 13 consumption. 14 6. “Dealer agent” means a person who solicits or picks up 15 empty beverage containers from a dealer for the purpose of 16 returning the empty beverage containers to a distributor or 17 manufacturer. 18 Sec. 2. Section 455C.1, Code 2022, is amended by adding the 19 following new subsections: 20 NEW SUBSECTION . 11A. “Mobile redemption system” means a 21 redemption center location at which a consumer may return empty 22 beverage containers on which a refund value has been paid that 23 uses innovative technology to process empty beverage containers 24 and return the amount of the refund value to consumers. 25 NEW SUBSECTION . 12A. “Participating dealer” means a dealer 26 who accepts the return of empty beverage containers from a 27 consumer. 28 Sec. 3. Section 455C.2, Code 2022, is amended to read as 29 follows: 30 455C.2 Refund values. 31 1. A refund value of not less than five cents shall be paid 32 by the consumer on each beverage container sold in this state 33 by a dealer for consumption off the premises. Upon return of 34 the empty beverage container upon which a refund value has 35 -1- SF 2378.4368 (2) 89 js/ns 1/ 11 #1.

been paid to the a participating dealer or person operating 1 a redemption center and acceptance of the empty beverage 2 container by the participating dealer or person operating a 3 redemption center, the participating dealer or person operating 4 a redemption center shall return the amount of the refund value 5 to the consumer within a reasonable time not to exceed ten 6 days . 7 2. a. In addition to the refund value provided in 8 subsection 1 of this section , a dealer, or person operating a 9 redemption center who redeems empty beverage containers or a 10 dealer agent shall be reimbursed by the distributor required 11 to accept the empty beverage containers under section 455C.3 12 shall provide reimbursement in an amount which that is one 13 cent per container for containers accepted from a dealer agent 14 and three cents per container for containers accepted from a 15 participating dealer or redemption center . A dealer, dealer 16 agent, or person operating a redemption center may compact 17 empty metal beverage containers with the approval of the 18 distributor required to accept the containers. 19 b. A distributor who pays a handling fee for beverage 20 containers that used to contain beer, including high-alcoholic 21 content beer, may claim a refund of the barrel tax established 22 in section 123.136 paid by the distributor in the amount of one 23 cent for each such beverage container accepted. The department 24 of revenue shall prescribe forms for a distributor to use to 25 claim a refund under this paragraph. 26 Sec. 4. Section 455C.3, subsections 1, 2, and 4, Code 2022, 27 are amended to read as follows: 28 1. A participating dealer shall not refuse to accept from a 29 consumer any empty beverage container of the kind, size , and 30 brand sold by the participating dealer, or refuse to pay to the 31 consumer the refund value of a beverage container as provided 32 under section 455C.2 . 33 2. A distributor shall accept and pick up from a 34 participating dealer served by the distributor or a redemption 35 -2- SF 2378.4368 (2) 89 js/ns 2/ 11

center for a dealer served by the distributor at least weekly, 1 or when the distributor delivers the beverage product if 2 deliveries are less frequent than weekly, any empty beverage 3 container of the kind, size , and brand sold by the distributor, 4 and shall pay to the participating dealer or person operating 5 a redemption center the refund value of a beverage container 6 and the reimbursement as provided under section 455C.2 within 7 one week following pickup of the containers or when the 8 participating dealer or redemption center normally pays the 9 distributor for the deposit on beverage products purchased from 10 the distributor if less frequent than weekly. A distributor 11 or employee or agent of a distributor is not in violation 12 of this subsection if a redemption center is closed when the 13 distributor attempts to make a regular delivery or a regular 14 pickup of empty beverage containers. This subsection does 15 not apply to a distributor selling alcoholic liquor to the 16 alcoholic beverages division of the department of commerce. 17 4. A distributor shall accept from a dealer agent any 18 empty beverage container of the kind, size, and brand sold by 19 the distributor and which that was picked up by the dealer 20 agent from a dealer within the geographic territory served 21 by the distributor and the distributor shall pay the dealer 22 agent the refund value of the empty beverage container and the 23 reimbursement as provided in section 455C.2 . 24 Sec. 5. Section 455C.4, Code 2022, is amended to read as 25 follows: 26 455C.4 Refusal to accept containers. 27 1. Except as provided in section 455C.5, subsection 3 , a 28 dealer, a person operating a redemption center, a distributor , 29 or a manufacturer may refuse to accept any empty beverage 30 container which that does not have stated on it a refund value 31 as provided under section 455C.2 . 32 2. a. A dealer may refuse to accept and to pay the 33 refund value of any empty beverage container if the place of 34 business of the dealer and the kind and brand of empty beverage 35 -3- SF 2378.4368 (2) 89 js/ns 3/ 11

containers are included in an order of the department approving 1 a redemption center under section 455C.6 any of the following 2 apply: 3 (1) The dealer holds a food establishment license under 4 chapter 137F to prepare or serve food, has a certified food 5 protection manager as required by the 2017 United States food 6 and drug administration food code and supplement, and sells 7 time/temperature control for safety food as defined in section 8 137F.2. 9 (2) The dealer has entered an agreement with an approved 10 redemption center for the operation of a mobile redemption 11 system and all of the following apply: 12 (a) The dealer provides adequate space, utilities, and 13 internet connection to operate the mobile redemption system. 14 (b) The agreement does not require additional payment to the 15 dealer or the mobile redemption system. 16 (3) The dealer’s place of business is in a county with a 17 population of more than thirty thousand and within ten miles 18 of an approved redemption center or if the dealer’s place of 19 business is in a county with a population of thirty thousand 20 or fewer and within fifteen miles of an approved redemption 21 center. 22 b. A dealer who refuses to accept and to pay the refund 23 value on any empty beverage container pursuant to this 24 subsection shall conspicuously display on the front door of 25 the dealer’s place of business a notice that the dealer does 26 not accept empty beverage containers. The notice shall also 27 provide the location of the nearest approved redemption center 28 to the dealer’s place of business. After the department has 29 made available an electronic method for locating approved 30 redemption centers pursuant to paragraph “c” , a dealer may 31 direct consumers to such electronic method instead of providing 32 the location of the nearest approved redemption center on the 33 notice. 34 c. The department shall make available to the public an 35 -4- SF 2378.4368 (2) 89 js/ns 4/ 11

electronic method of locating approved redemption centers. 1 d. A dealer who provides space for a mobile redemption 2 system pursuant to paragraph “a” , subparagraph (2), shall not be 3 considered to be in violation of any county or city ordinance 4 that would otherwise limit the ability of the dealer to provide 5 such space as long as the mobile redemption system operates 6 in a location that is not zoned primarily for residential 7 purposes. 8 3. A dealer or a distributor may refuse to accept and to pay 9 the refund value of an empty wine or alcoholic liquor container 10 which is marked to indicate that it was sold by a state liquor 11 store. The alcoholic beverages division shall not reimburse 12 a dealer or a distributor the refund value on an empty wine or 13 alcoholic liquor container which is marked to indicate that the 14 container was sold by a state liquor store. 15 4. 3. A class “E” liquor control licensee may refuse to 16 accept and to pay the refund value on an empty alcoholic liquor 17 container from a participating dealer or a redemption center 18 or from a person acting on behalf of or who has received empty 19 alcoholic liquor containers from a participating dealer or a 20 redemption center. 21 5. 4. A manufacturer or distributor may refuse to accept 22 and to pay the refund value and reimbursement as provided in 23 section 455C.2 on any empty beverage container that was picked 24 up by a dealer agent from a dealer outside the geographic 25 territory served by the manufacturer or distributor. 26 Sec. 6. Section 455C.5, subsection 1, Code 2022, is amended 27 to read as follows: 28 1. a. Each beverage container sold or offered for sale in 29 this state by a dealer shall clearly indicate the refund value 30 of the container by embossing or by a stamp, label , or other 31 method securely affixed to the container , the refund value of 32 the container . The department shall specify, by rule, the 33 minimum size of the refund value indication on the beverage 34 containers. 35 -5- SF 2378.4368 (2) 89 js/ns 5/ 11

b. The department of revenue shall require the registration 1 of the universal product code for each beverage container 2 using a method of registration determined by the department of 3 revenue. 4 Sec. 7. Section 455C.6, subsection 1, Code 2022, is amended 5 to read as follows: 6 1. To facilitate the return of empty beverage containers 7 and to serve dealers of beverages, any person may establish a 8 redemption center, subject to the approval of the department, 9 at which consumers may return empty beverage containers 10 and receive payment of the refund value of such beverage 11 containers. A participating dealer may act as a redemption 12 center for purposes of this chapter. 13 Sec. 8. Section 455C.12, subsections 2 and 3, Code 2022, are 14 amended to read as follows: 15 2. A distributor who collects or attempts to collect 16 a refund value on an empty beverage container when the 17 distributor has paid the refund value on the container to a 18 participating dealer, redemption center, or consumer is guilty 19 of a fraudulent practice. 20 3. Any person who does any of the following acts is guilty 21 of a fraudulent practice: 22 a. Collects or attempts to collect the refund value on the 23 container a second time, with the knowledge that the refund 24 value has once been paid by the distributor to a participating 25 dealer, redemption center , or consumer. 26 b. Manufactures, sells, possesses , or applies a false or 27 counterfeit label or indication which that shows or purports to 28 show a refund value for a beverage container, with intent to 29 use the false or counterfeit label or indication. 30 c. Collects or attempts to collect a refund value on 31 a container with the use of a false or counterfeit label 32 or indication showing a refund value, knowing the label or 33 indication to be false or counterfeit. 34 Sec. 9. Section 455C.12, Code 2022, is amended by adding the 35 -6- SF 2378.4368 (2) 89 js/ns 6/ 11

following new subsections: 1 NEW SUBSECTION . 6. A person who knowingly attempts to 2 redeem a beverage container that is not properly marked as 3 required by section 455C.5, subsection 1, shall be subject to a 4 civil penalty not to exceed ten dollars per improperly marked 5 beverage container, but not to exceed five thousand dollars 6 total per attempted transaction. 7 NEW SUBSECTION . 7. Except as provided in subsection 6, 8 a person who violates any provision of this chapter shall 9 be subject to a civil penalty of two thousand dollars per 10 violation, which shall be assessed and collected in the same 11 manner as provided in section 455B.109. Any civil penalty 12 collected under this chapter shall be deposited in the bottle 13 bill fund established in section 455C.12D. 14 Sec. 10. NEW SECTION . 455C.12A Administrative enforcement 15 —— compliance orders. 16 The director may issue any order necessary to secure 17 compliance with or prevent a violation of the provisions of 18 this chapter or any rule adopted or permit or order issued 19 pursuant to this chapter. The person to whom such compliance 20 order is issued may cause to be commenced a contested case 21 within the meaning of chapter 17A by filing within thirty 22 days a notice of appeal to the commission. On appeal, the 23 commission may affirm, modify, or vacate the order of the 24 director. 25 Sec. 11. NEW SECTION . 455C.12B Judicial review. 26 Judicial review of any order or other action of the 27 commission or director may be sought in accordance with the 28 terms of chapter 17A. Notwithstanding the terms of chapter 29 17A, petitions for judicial review may be filed in the district 30 court of the county in which the alleged offense was committed. 31 Sec. 12. NEW SECTION . 455C.12C Civil actions for compliance 32 —— penalties. 33 1. The attorney general, on request of the department, shall 34 institute any legal proceedings necessary to obtain compliance 35 -7- SF 2378.4368 (2) 89 js/ns 7/ 11

with an order of the commission or the director, including 1 proceedings for a temporary injunction, or prosecuting any 2 person for a violation of an order of the commission or the 3 director, the provisions of this chapter, or any rules adopted 4 or permit or order issued pursuant to this chapter. 5 2. Any person who violates any order issued pursuant to 6 section 455C.12A shall be subject to a civil penalty not to 7 exceed two thousand dollars for each day of such violation. 8 Sec. 13. NEW SECTION . 455C.12D Bottle bill fund. 9 A bottle bill fund is established in the state treasury 10 under the control of the department. The fund shall consist 11 of moneys deposited in the fund pursuant to section 455C.12, 12 subsection 7, and any other moneys appropriated to or deposited 13 in the fund. Moneys in the fund are appropriated to the 14 department for purposes of administering and enforcing this 15 chapter, including reimbursing the attorney general for costs 16 incurred by the attorney general in enforcing this chapter. 17 Notwithstanding section 8.33, moneys in the fund that remain 18 unencumbered or unobligated at the close of a fiscal year shall 19 not revert but shall remain available for expenditure for the 20 purposes designated. Notwithstanding section 12C.7, subsection 21 2, interest or earnings on moneys in the fund shall be credited 22 to the fund. 23 Sec. 14. Section 455C.13, Code 2022, is amended to read as 24 follows: 25 455C.13 Distributors’ Collection and disposal agreements 26 authorized. 27 1. A distributor , dealer, or redemption center may enter 28 into a contract or agreement with any other distributor, 29 manufacturer , or person for the purpose of collecting or paying 30 the refund value on, or disposing of , beverage containers as 31 provided in this chapter . 32 2. For purposes of this chapter, any contracts entered into 33 pursuant to this section for the collection or disposal of 34 empty beverage containers shall not be deemed to interfere with 35 -8- SF 2378.4368 (2) 89 js/ns 8/ 11

the refund value pursuant to section 455C.2. 1 Sec. 15. Section 455C.16, Code 2022, is amended to read as 2 follows: 3 455C.16 Beverage containers —— disposal at sanitary landfill 4 prohibited. 5 Beginning July 1, 1990, the The final disposal of beverage 6 containers by a dealer, distributor, or manufacturer, or 7 person operating a redemption center, in a sanitary landfill, 8 is prohibited. Beginning September 1, 1992 , including the 9 final disposal of beverage containers that used to contain 10 alcoholic liquor as defined in section 123.3, subsection 5 , 11 by a participating dealer, distributor, or manufacturer, or 12 person operating a redemption center in a sanitary landfill , 13 is prohibited. 14 Sec. 16. NEW SECTION . 455C.18 Unclaimed refund value and 15 handling fees. 16 Any amount of refund value or handling fees possessed by a 17 distributor after the distributor has made payments required 18 pursuant to this chapter shall be considered the property of 19 the distributor. 20 Sec. 17. LEGISLATIVE FISCAL COMMITTEE REVIEW. 21 1. The legislative fiscal committee established in section 22 2.45 shall hold a meeting during the legislative interim 23 immediately preceding the 2026 regular legislative session. 24 During the meeting, the committee shall review the enforcement 25 of chapter 455C by the department of natural resources, 26 including the collection of civil penalties, the report 27 submitted by the attorney general pursuant to subsection 2, 28 whether and how many redemption centers have been approved 29 by the department, the adequacy of the reimbursement amount 30 under section 455C.2, and any other information the committee 31 deems important. The committee shall submit a report of its 32 findings and recommendations to the general assembly no later 33 than January 31, 2026. 34 2. The attorney general shall submit a report to the 35 -9- SF 2378.4368 (2) 89 js/ns 9/ 11

general assembly prior to the legislative fiscal committee’s 1 meeting under subsection 1. The report shall detail any legal 2 proceedings arising under chapter 455C since January 1, 2023. 3 Sec. 18. REFUSAL TO ACCEPT BEVERAGE CONTAINERS. 4 1. A dealer may refuse to accept beverage containers before 5 January 1, 2023, if any of the following apply: 6 a. The dealer has entered an agreement with an approved 7 redemption center for the operation of a mobile redemption 8 system and all of the following apply: 9 (1) The dealer provides adequate space, utilities, and 10 internet connection to operate the mobile redemption system. 11 (2) The agreement does not require additional payment to the 12 dealer or the mobile redemption system. 13 b. The dealer’s place of business is in a county with a 14 population of more than thirty thousand and within ten miles 15 of an approved redemption center or if the dealer’s place of 16 business is in a county with a population of thirty thousand 17 or fewer and within fifteen miles of an approved redemption 18 center. 19 2. A dealer who refuses to accept beverage containers 20 pursuant to this section shall conspicuously display on the 21 front door of the dealer’s place of business a notice that the 22 dealer does not accept empty beverage containers. The notice 23 shall also provide the location of the nearest redemption 24 center to the dealer’s place of business. 25 Sec. 19. EFFECTIVE DATE. 26 1. Except as provided in subsections 2 or 3, this Act takes 27 effect January 1, 2023. 28 2. The section of this Act amending section 455C.5, 29 subsection 1, takes effect November 15, 2023. 30 3. The section of this Act allowing a dealer to refuse to 31 accept beverage containers before January 1, 2023, being deemed 32 of immediate importance, takes effect upon enactment. > 33 2. Title page, by striking lines 1 through 4 and inserting 34 < An Act relating to beverage containers control provisions, 35 -10- SF 2378.4368 (2) 89 js/ns 10/ 11