House Amendment to Senate File 2378 S-5127 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 22.7, Code 2022, is amended by adding 5 the following new subsection: 6 NEW SUBSECTION . 75. Identifying information submitted 7 to the department of revenue from a distributor pursuant to 8 section 455C.2, subsection 2, paragraph “b” . However, this 9 subsection shall not be construed to prohibit the dissemination 10 of aggregated information that does not identify a specific 11 distributor. 12 Sec. 2. Section 455C.1, subsections 1 and 6, Code 2022, are 13 amended to read as follows: 14 1. “Beverage” means wine as defined in section 123.3, 15 subsection 54 , alcoholic liquor as defined in section 123.3, 16 subsection 5 , beer as defined in section 123.3, subsection 17 7 , high alcoholic content beer as defined in section 123.3, 18 subsection 22, canned cocktail as defined in section 123.3, 19 subsection 11, mineral water, soda water , and similar 20 carbonated soft drinks in liquid form and intended for human 21 consumption. 22 6. “Dealer agent” means a person who solicits or picks up 23 empty beverage containers from a dealer for the purpose of 24 returning the empty beverage containers to a distributor or 25 manufacturer. 26 Sec. 3. Section 455C.1, Code 2022, is amended by adding the 27 following new subsections: 28 NEW SUBSECTION . 11A. “Mobile redemption system” means a 29 redemption center location at which a consumer may return empty 30 beverage containers on which a refund value has been paid that 31 uses innovative technology to process empty beverage containers 32 and return the amount of the refund value to consumers. 33 NEW SUBSECTION . 12A. “Participating dealer” means a dealer 34 who accepts the return of empty beverage containers from a 35 -1- SF 2378.4387.H (3) 89 md 1/ 11 #1.

consumer. 1 Sec. 4. Section 455C.2, Code 2022, is amended to read as 2 follows: 3 455C.2 Refund values. 4 1. A refund value of not less than five cents shall be paid 5 by the consumer on each beverage container sold in this state 6 by a dealer for consumption off the premises. Upon return of 7 the empty beverage container upon which a refund value has 8 been paid to the a participating dealer or person operating 9 a redemption center and acceptance of the empty beverage 10 container by the participating dealer or person operating a 11 redemption center, the participating dealer or person operating 12 a redemption center shall return the amount of the refund value 13 to the consumer within a reasonable time not to exceed ten 14 days . 15 2. a. In addition to the refund value provided in 16 subsection 1 of this section , a dealer, or person operating a 17 redemption center who redeems empty beverage containers or a 18 dealer agent shall be reimbursed by the distributor required 19 to accept the empty beverage containers under section 455C.3 20 shall provide reimbursement in an amount which that is one 21 cent per container for containers accepted from a dealer agent 22 and three cents per container for containers accepted from a 23 participating dealer or redemption center . A dealer, dealer 24 agent, or person operating a redemption center may compact 25 empty metal beverage containers with the approval of the 26 distributor required to accept the containers. 27 b. A distributor who pays a handling fee for beverage 28 containers that used to contain beer, including high-alcoholic 29 content beer, may claim a refund of the barrel tax established 30 in section 123.136 paid by the distributor in the amount of one 31 cent for each such beverage container accepted. The department 32 of revenue shall prescribe forms for a distributor to use to 33 claim a refund under this paragraph. Identifying information 34 collected by the department of revenue pursuant to this 35 -2- SF 2378.4387.H (3) 89 md 2/ 11

paragraph that can be used to identify a specific distributor 1 shall be considered confidential information pursuant to 2 section 22.7, subsection 75. 3 Sec. 5. Section 455C.3, subsections 1, 2, and 4, Code 2022, 4 are amended to read as follows: 5 1. A participating dealer shall not refuse to accept from a 6 consumer any empty beverage container of the kind, size , and 7 brand sold by the participating dealer, or refuse to pay to the 8 consumer the refund value of a beverage container as provided 9 under section 455C.2 . 10 2. A distributor shall accept and pick up from a 11 participating dealer served by the distributor or a redemption 12 center for a dealer served by the distributor at least weekly, 13 or when the distributor delivers the beverage product if 14 deliveries are less frequent than weekly, any empty beverage 15 container of the kind, size , and brand sold by the distributor, 16 and shall pay to the participating dealer or person operating 17 a redemption center the refund value of a beverage container 18 and the reimbursement as provided under section 455C.2 within 19 one week following pickup of the containers or when the 20 participating dealer or redemption center normally pays the 21 distributor for the deposit on beverage products purchased from 22 the distributor if less frequent than weekly. A distributor 23 or employee or agent of a distributor is not in violation 24 of this subsection if a redemption center is closed when the 25 distributor attempts to make a regular delivery or a regular 26 pickup of empty beverage containers. This subsection does 27 not apply to a distributor selling alcoholic liquor to the 28 alcoholic beverages division of the department of commerce. 29 4. A distributor shall accept from a dealer agent any 30 empty beverage container of the kind, size, and brand sold by 31 the distributor and which that was picked up by the dealer 32 agent from a dealer within the geographic territory served 33 by the distributor and the distributor shall pay the dealer 34 agent the refund value of the empty beverage container and the 35 -3- SF 2378.4387.H (3) 89 md 3/ 11

reimbursement as provided in section 455C.2 . 1 Sec. 6. Section 455C.4, Code 2022, is amended to read as 2 follows: 3 455C.4 Refusal to accept containers. 4 1. Except as provided in section 455C.5, subsection 3 , a 5 dealer, a person operating a redemption center, a distributor , 6 or a manufacturer may refuse to accept any empty beverage 7 container which that does not have stated on it a refund value 8 as provided under section 455C.2 . 9 2. a. A dealer may refuse to accept and to pay the 10 refund value of any empty beverage container if the place of 11 business of the dealer and the kind and brand of empty beverage 12 containers are included in an order of the department approving 13 a redemption center under section 455C.6 any of the following 14 apply: 15 (1) The dealer holds a food establishment license under 16 chapter 137F to prepare or serve food, has a certified food 17 protection manager as required by the 2017 United States food 18 and drug administration food code and supplement, and sells 19 time/temperature control for safety food as defined in section 20 137F.2. 21 (2) The dealer has entered an agreement with an approved 22 redemption center for the operation of a mobile redemption 23 system and all of the following apply: 24 (a) The dealer provides adequate space, utilities, and 25 internet connection to operate the mobile redemption system. 26 (b) The agreement does not require additional payment to the 27 dealer or the mobile redemption system. 28 (3) The dealer’s place of business is in a county with a 29 population of more than thirty thousand and within ten miles 30 of an approved redemption center or if the dealer’s place of 31 business is in a county with a population of thirty thousand 32 or fewer and within fifteen miles of an approved redemption 33 center. 34 b. A dealer who refuses to accept and to pay the refund 35 -4- SF 2378.4387.H (3) 89 md 4/ 11

value on any empty beverage container pursuant to this 1 subsection shall conspicuously display on the front door of 2 the dealer’s place of business a notice that the dealer does 3 not accept empty beverage containers. The notice shall also 4 provide the location of the nearest approved redemption center 5 to the dealer’s place of business. After the department has 6 made available an electronic method for locating approved 7 redemption centers pursuant to paragraph “c” , a dealer may 8 direct consumers to such electronic method instead of providing 9 the location of the nearest approved redemption center on the 10 notice. 11 c. The department shall make available to the public an 12 electronic method of locating approved redemption centers. 13 d. A dealer who provides space for a mobile redemption 14 system pursuant to paragraph “a” , subparagraph (2), shall not be 15 considered to be in violation of any county or city ordinance 16 that would otherwise limit the ability of the dealer to provide 17 such space as long as the mobile redemption system operates 18 in a location that is not zoned primarily for residential 19 purposes. 20 3. A dealer or a distributor may refuse to accept and to pay 21 the refund value of an empty wine or alcoholic liquor container 22 which is marked to indicate that it was sold by a state liquor 23 store. The alcoholic beverages division shall not reimburse 24 a dealer or a distributor the refund value on an empty wine or 25 alcoholic liquor container which is marked to indicate that the 26 container was sold by a state liquor store. 27 4. 3. A class “E” liquor control licensee may refuse to 28 accept and to pay the refund value on an empty alcoholic liquor 29 container from a participating dealer or a redemption center 30 or from a person acting on behalf of or who has received empty 31 alcoholic liquor containers from a participating dealer or a 32 redemption center. 33 5. 4. A manufacturer or distributor may refuse to accept 34 and to pay the refund value and reimbursement as provided in 35 -5- SF 2378.4387.H (3) 89 md 5/ 11

section 455C.2 on any empty beverage container that was picked 1 up by a dealer agent from a dealer outside the geographic 2 territory served by the manufacturer or distributor. 3 Sec. 7. Section 455C.5, subsection 1, Code 2022, is amended 4 to read as follows: 5 1. a. Each beverage container sold or offered for sale in 6 this state by a dealer shall clearly indicate the refund value 7 of the container by embossing or by a stamp, label , or other 8 method securely affixed to the container , the refund value of 9 the container . The department shall specify, by rule, the 10 minimum size of the refund value indication on the beverage 11 containers. 12 b. The department of revenue shall require the registration 13 of the universal product code for each beverage container 14 using a method of registration determined by the department of 15 revenue. 16 Sec. 8. Section 455C.6, subsection 1, Code 2022, is amended 17 to read as follows: 18 1. To facilitate the return of empty beverage containers 19 and to serve dealers of beverages, any person may establish a 20 redemption center, subject to the approval of the department, 21 at which consumers may return empty beverage containers 22 and receive payment of the refund value of such beverage 23 containers. A participating dealer may act as a redemption 24 center for purposes of this chapter. 25 Sec. 9. Section 455C.12, subsections 2 and 3, Code 2022, are 26 amended to read as follows: 27 2. A distributor who collects or attempts to collect 28 a refund value on an empty beverage container when the 29 distributor has paid the refund value on the container to a 30 participating dealer, redemption center, or consumer is guilty 31 of a fraudulent practice. 32 3. Any person who does any of the following acts is guilty 33 of a fraudulent practice: 34 a. Collects or attempts to collect the refund value on the 35 -6- SF 2378.4387.H (3) 89 md 6/ 11

container a second time, with the knowledge that the refund 1 value has once been paid by the distributor to a participating 2 dealer, redemption center , or consumer. 3 b. Manufactures, sells, possesses , or applies a false or 4 counterfeit label or indication which that shows or purports to 5 show a refund value for a beverage container, with intent to 6 use the false or counterfeit label or indication. 7 c. Collects or attempts to collect a refund value on 8 a container with the use of a false or counterfeit label 9 or indication showing a refund value, knowing the label or 10 indication to be false or counterfeit. 11 Sec. 10. Section 455C.12, Code 2022, is amended by adding 12 the following new subsections: 13 NEW SUBSECTION . 6. A person who knowingly attempts to 14 redeem a beverage container that is not properly marked as 15 required by section 455C.5, subsection 1, shall be subject to a 16 civil penalty not to exceed ten dollars per improperly marked 17 beverage container, but not to exceed five thousand dollars 18 total per attempted transaction. 19 NEW SUBSECTION . 7. Except as provided in subsection 6, 20 a person who violates any provision of this chapter shall 21 be subject to a civil penalty of two thousand dollars per 22 violation, which shall be assessed and collected in the same 23 manner as provided in section 455B.109. Any civil penalty 24 collected under this chapter shall be deposited in the bottle 25 bill fund established in section 455C.12D. 26 Sec. 11. NEW SECTION . 455C.12A Administrative enforcement 27 —— compliance orders. 28 The director may issue any order necessary to secure 29 compliance with or prevent a violation of the provisions of 30 this chapter or any rule adopted or permit or order issued 31 pursuant to this chapter. The person to whom such compliance 32 order is issued may cause to be commenced a contested case 33 within the meaning of chapter 17A by filing within thirty 34 days a notice of appeal to the commission. On appeal, the 35 -7- SF 2378.4387.H (3) 89 md 7/ 11

commission may affirm, modify, or vacate the order of the 1 director. 2 Sec. 12. NEW SECTION . 455C.12B Judicial review. 3 Judicial review of any order or other action of the 4 commission or director may be sought in accordance with the 5 terms of chapter 17A. Notwithstanding the terms of chapter 6 17A, petitions for judicial review may be filed in the district 7 court of the county in which the alleged offense was committed. 8 Sec. 13. NEW SECTION . 455C.12C Civil actions for compliance 9 —— penalties. 10 1. The attorney general, on request of the department, shall 11 institute any legal proceedings necessary to obtain compliance 12 with an order of the commission or the director, including 13 proceedings for a temporary injunction, or prosecuting any 14 person for a violation of an order of the commission or the 15 director, the provisions of this chapter, or any rules adopted 16 or permit or order issued pursuant to this chapter. 17 2. Any person who violates any order issued pursuant to 18 section 455C.12A shall be subject to a civil penalty not to 19 exceed two thousand dollars for each day of such violation. 20 Sec. 14. NEW SECTION . 455C.12D Bottle bill fund. 21 A bottle bill fund is established in the state treasury 22 under the control of the department. The fund shall consist 23 of moneys deposited in the fund pursuant to section 455C.12, 24 subsection 7, and any other moneys appropriated to or deposited 25 in the fund. Moneys in the fund are appropriated to the 26 department for purposes of administering and enforcing this 27 chapter, including reimbursing the attorney general for costs 28 incurred by the attorney general in enforcing this chapter. 29 Notwithstanding section 8.33, moneys in the fund that remain 30 unencumbered or unobligated at the close of a fiscal year shall 31 not revert but shall remain available for expenditure for the 32 purposes designated. Notwithstanding section 12C.7, subsection 33 2, interest or earnings on moneys in the fund shall be credited 34 to the fund. 35 -8- SF 2378.4387.H (3) 89 md 8/ 11

Sec. 15. Section 455C.13, Code 2022, is amended to read as 1 follows: 2 455C.13 Distributors’ Collection and disposal agreements 3 authorized. 4 1. A distributor , dealer, or redemption center may enter 5 into a contract or agreement with any other distributor, 6 manufacturer , or person for the purpose of collecting or paying 7 the refund value on, or disposing of , beverage containers as 8 provided in this chapter . 9 2. For purposes of this chapter, any contracts entered into 10 pursuant to this section for the collection or disposal of 11 empty beverage containers shall not be deemed to interfere with 12 the refund value pursuant to section 455C.2. 13 Sec. 16. Section 455C.16, Code 2022, is amended to read as 14 follows: 15 455C.16 Beverage containers —— disposal at sanitary landfill 16 prohibited. 17 Beginning July 1, 1990, the The final disposal of beverage 18 containers by a dealer, distributor, or manufacturer, or 19 person operating a redemption center, in a sanitary landfill, 20 is prohibited. Beginning September 1, 1992 , including the 21 final disposal of beverage containers that used to contain 22 alcoholic liquor as defined in section 123.3, subsection 5 , 23 by a participating dealer, distributor, or manufacturer, or 24 person operating a redemption center in a sanitary landfill , 25 is prohibited. 26 Sec. 17. NEW SECTION . 455C.18 Unclaimed refund value and 27 handling fees. 28 Any amount of refund value or handling fees possessed by a 29 distributor after the distributor has made payments required 30 pursuant to this chapter shall be considered the property of 31 the distributor. 32 Sec. 18. LEGISLATIVE FISCAL COMMITTEE REVIEW. 33 1. The legislative fiscal committee established in section 34 2.45 shall hold a meeting during the legislative interim 35 -9- SF 2378.4387.H (3) 89 md 9/ 11

immediately preceding the 2026 regular legislative session. 1 During the meeting, the committee shall review the enforcement 2 of chapter 455C by the department of natural resources, 3 including the collection of civil penalties, the report 4 submitted by the attorney general pursuant to subsection 2, 5 whether and how many redemption centers have been approved 6 by the department, the adequacy of the reimbursement amount 7 under section 455C.2, and any other information the committee 8 deems important. The committee shall submit a report of its 9 findings and recommendations to the general assembly no later 10 than January 31, 2026. 11 2. The attorney general shall submit a report to the 12 general assembly prior to the legislative fiscal committee’s 13 meeting under subsection 1. The report shall detail any legal 14 proceedings arising under chapter 455C since January 1, 2023. 15 Sec. 19. REFUSAL TO ACCEPT BEVERAGE CONTAINERS. 16 1. A dealer may refuse to accept beverage containers before 17 January 1, 2023, if any of the following apply: 18 a. The dealer has entered an agreement with an approved 19 redemption center for the operation of a mobile redemption 20 system and all of the following apply: 21 (1) The dealer provides adequate space, utilities, and 22 internet connection to operate the mobile redemption system. 23 (2) The agreement does not require additional payment to the 24 dealer or the mobile redemption system. 25 b. The dealer’s place of business is in a county with a 26 population of more than thirty thousand and within ten miles 27 of an approved redemption center or if the dealer’s place of 28 business is in a county with a population of thirty thousand 29 or fewer and within fifteen miles of an approved redemption 30 center. 31 2. A dealer who refuses to accept beverage containers 32 pursuant to this section shall conspicuously display on the 33 front door of the dealer’s place of business a notice that 34 the dealer does not accept empty beverage containers. The 35 -10- SF 2378.4387.H (3) 89 md 10/ 11

notice shall also provide the location of the nearest approved 1 redemption center to the dealer’s place of business. 2 Sec. 20. EFFECTIVE DATE. 3 1. Except as provided in subsections 2 or 3, this Act takes 4 effect January 1, 2023. 5 2. The section of this Act amending section 455C.5, 6 subsection 1, takes effect November 15, 2023. 7 3. The section of this Act allowing a dealer to refuse to 8 accept beverage containers before January 1, 2023, being deemed 9 of immediate importance, takes effect upon enactment. > 10 2. Title page, by striking lines 1 through 4 and inserting 11 < An Act relating to beverage containers control provisions, 12 including handling fees, refund value, applicability to certain 13 beverages, and acceptance of beverage containers, providing 14 penalties, and including effective date provisions. > 15 -11- SF 2378.4387.H (3) 89 md 11/ 11