H.F. 412 Section 1. Section 455C.1, Code 2019, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 12A. “Participating dealer” means a dealer 3 who accepts the return of empty beverage containers from a 4 consumer. 5 Sec. 2. Section 455C.2, Code 2019, is amended to read as 6 follows: 7 455C.2 Refund values. 8 1. A refund value of not less than five cents shall be paid 9 by the consumer on each beverage container sold in this state 10 by a dealer for consumption off the premises. Upon return of 11 the empty beverage container upon which a refund value has 12 been paid to the participating dealer or person operating 13 a redemption center and acceptance of the empty beverage 14 container by the participating dealer or person operating a 15 redemption center, the participating dealer or person operating 16 a redemption center shall return the amount of the refund value 17 to the consumer. 18 2. In addition to the refund value provided in subsection 1 19 of this section , a participating dealer, or person operating a 20 redemption center who redeems empty beverage containers , or a 21 dealer agent shall be reimbursed by the distributor required to 22 accept the empty beverage containers an amount which that is 23 one cent per container. A participating dealer, dealer agent, 24 or person operating a redemption center may compact empty 25 metal beverage containers with the approval of the distributor 26 required to accept the containers. 27 Sec. 3. Section 455C.3, subsections 1, 2, and 4, Code 2019, 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 -1- LSB 2317YH (2) 88 js/tm 1/ 6

H.F. 412 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 empty 19 beverage container of the kind, size, and brand sold by the 20 distributor and which that was picked up by the dealer agent 21 from a participating dealer within the geographic territory 22 served by the distributor and the distributor shall pay the 23 dealer agent the refund value of the empty beverage container 24 and the reimbursement as provided in section 455C.2 . 25 Sec. 4. Section 455C.4, Code 2019, 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 , a 29 participating dealer, a person operating a redemption center, a 30 distributor or a manufacturer may refuse to accept any empty 31 beverage container which does not have stated on it a refund 32 value as provided under section 455C.2 . 33 2. A dealer may refuse to accept and to pay the refund value 34 of any empty beverage container if the place of business of the 35 -2- LSB 2317YH (2) 88 js/tm 2/ 6

H.F. 412 dealer and the kind and brand of empty beverage containers are 1 included in an order of the department approving a redemption 2 center under section 455C.6 after providing notice to the 3 department . 4 3. A dealer or a distributor may refuse to accept and to pay 5 the refund value of an empty wine or alcoholic liquor container 6 which is marked to indicate that it was sold by a state liquor 7 store. The alcoholic beverages division shall not reimburse 8 a dealer or a distributor the refund value on an empty wine or 9 alcoholic liquor container which is marked to indicate that the 10 container was sold by a state liquor store. 11 4. 3. A class “E” liquor control licensee may refuse to 12 accept and to pay the refund value on an empty alcoholic liquor 13 container from a participating dealer or a redemption center 14 or from a person acting on behalf of or who has received empty 15 alcoholic liquor containers from a participating dealer or a 16 redemption center. 17 5. 4. A manufacturer or distributor may refuse to accept 18 and to pay the refund value and reimbursement as provided in 19 section 455C.2 on any empty beverage container that was picked 20 up by a dealer agent from a participating dealer outside the 21 geographic territory served by the manufacturer or distributor. 22 Sec. 5. Section 455C.6, subsections 1, 2, and 5, Code 2019, 23 are amended to read as follows: 24 1. To facilitate the return of empty beverage containers 25 and to serve dealers of beverages, any person may establish a 26 redemption center , subject to the approval of the department, 27 at which consumers may return empty beverage containers 28 and receive payment of the refund value of such beverage 29 containers. 30 2. An application for approval of Written notice of the 31 operation of a redemption center shall be filed with the 32 department. The application notice shall state the name and 33 address of the person responsible for the establishment and 34 operation of the redemption center, the kind and brand names 35 -3- LSB 2317YH (2) 88 js/tm 3/ 6

H.F. 412 of the beverage containers which that will be accepted at the 1 redemption center, and the names and addresses of the dealers 2 to be served by the redemption center. The application notice 3 shall contain such other information as the director may 4 reasonably require. 5 5. All approved redemption centers shall meet applicable 6 health standards. 7 Sec. 6. Section 455C.6, subsections 3 and 4, Code 2019, are 8 amended by striking the subsections. 9 Sec. 7. Section 455C.12, subsections 2 and 3, Code 2019, are 10 amended to read as follows: 11 2. A distributor who collects or attempts to collect 12 a refund value on an empty beverage container when the 13 distributor has paid the refund value on the container to a 14 participating dealer, redemption center, or consumer is guilty 15 of a fraudulent practice. 16 3. Any person who does any of the following acts is guilty 17 of a fraudulent practice: 18 a. Collects or attempts to collect the refund value on the 19 container a second time, with the knowledge that the refund 20 value has once been paid by the distributor to a participating 21 dealer, redemption center , or consumer. 22 b. Manufactures, sells, possesses or applies a false or 23 counterfeit label or indication which shows or purports to show 24 a refund value for a beverage container, with intent to use the 25 false or counterfeit label or indication. 26 c. Collects or attempts to collect a refund value on 27 a container with the use of a false or counterfeit label 28 or indication showing a refund value, knowing the label or 29 indication to be false or counterfeit. 30 Sec. 8. Section 455C.14, subsection 1, Code 2019, is amended 31 to read as follows: 32 1. If the refund value indication required under section 33 455C.5 on an empty nonrefillable metal beverage container 34 is readable but the redemption of the container is lawfully 35 -4- LSB 2317YH (2) 88 js/tm 4/ 6

H.F. 412 refused by a participating dealer or person operating a 1 redemption center under other sections of this chapter or 2 rules adopted pursuant to these sections, the container 3 shall be accepted and the refund value paid to a consumer 4 as provided in this section . Each beer distributor selling 5 nonrefillable metal beverage containers in this state shall 6 provide individually or collectively by contract or agreement 7 with a dealer, person operating a redemption center , or another 8 person, at least one facility in the county seat of each county 9 where refused empty nonrefillable metal beverage containers 10 having a readable refund value indication as required by 11 this chapter are accepted and redeemed. In cities having a 12 population of twenty-five thousand or more, the number of the 13 facilities provided shall be one for each twenty-five thousand 14 population or a fractional part of that population. 15 Sec. 9. REPEAL. Sections 455C.7 and 455C.10, Code 2019, 16 are repealed. 17 Sec. 10. EFFECTIVE DATE. The following take effect July 1, 18 2020: 19 The sections of this Act amending sections 455C.1, 455C.2, 20 455C.3, and 455C.4. 21 Sec. 11. EFFECTIVE DATE. The following, being deemed of 22 immediate importance, take effect upon enactment: 23 The sections of this Act amending or repealing sections 24 455C.6, 455C.7, 455C.10, 455C.12, and 455C.14. 25 EXPLANATION 26 The inclusion of this explanation does not constitute agreement with 27 the explanation’s substance by the members of the general assembly. 28 This bill relates to acceptance of beverage containers by 29 dealers and redemption centers. 30 Current law allows a consumer to take an eligible beverage 31 container to a dealer, dealer agent, or a redemption center and 32 receive a 5-cent refund for every eligible beverage container 33 that the consumer returns. The bill allows a dealer to refuse 34 to accept beverage containers for redemption after providing 35 -5- LSB 2317YH (2) 88 js/tm 5/ 6

H.F. 412 notice to the department of natural resources. The bill 1 eliminates the approval process for a redemption center and 2 instead requires all redemption centers to provide a written 3 notice of operation to the department. The bill also requires 4 all redemption centers to meet applicable health standards. 5 The sections of the bill amending Code sections 455C.1, 6 455C.2, 455C.3, and 455C.4 are effective July 1, 2020. All 7 other sections of the bill are effective upon enactment. 8 -6- LSB 2317YH (2) 88 js/tm 6/ 6