H.F. _____ Section 1. Section 455C.1, subsection 1, Code 2020, is 1 amended to read as follows: 2 1. “Beverage” means wine as defined in section 123.3, 3 subsection 54 , alcoholic liquor as defined in section 123.3, 4 subsection 5 , beer as defined in section 123.3, subsection 5 7 , high alcoholic content beer as defined in section 123.3, 6 subsection 22, canned cocktail as defined in section 123.3, 7 subsection 11, mineral water, soda water , and similar 8 carbonated soft drinks in liquid form and intended for human 9 consumption. 10 Sec. 2. Section 455C.1, subsection 6, Code 2020, is amended 11 to read as follows: 12 6. “Dealer agent” means a person who solicits or picks up 13 empty beverage containers from a dealer for the purpose of 14 returning the empty beverage containers to a distributor or 15 manufacturer. 16 Sec. 3. Section 455C.1, Code 2020, is amended by adding the 17 following new subsection: 18 NEW SUBSECTION . 12A. “Participating dealer” means a dealer 19 who accepts the return of empty beverage containers from a 20 consumer. 21 Sec. 4. Section 455C.2, Code 2020, is amended to read as 22 follows: 23 455C.2 Refund values. 24 1. A refund value of not less than five cents shall be paid 25 by the consumer on each beverage container sold in this state 26 by a dealer for consumption off the premises. Upon return of 27 the empty beverage container upon which a refund value has 28 been paid to the participating dealer or person operating 29 a redemption center and acceptance of the empty beverage 30 container by the participating dealer or person operating a 31 redemption center, the participating dealer or person operating 32 a redemption center shall immediately return the amount of 33 the refund value to the consumer. Upon return of the empty 34 beverage container on which a refund value has been paid to a 35 -1- LSB 5256YC (3) 88 js/ns 1/ 9

H.F. _____ dealer agent, the dealer agent shall return the amount of the 1 refund value to the consumer within a reasonable time. 2 2. Upon delivery of beverages from a distributor to a 3 dealer, the dealer shall pay a one-cent handling fee per 4 container to the distributor. In addition to the refund value 5 provided in subsection 1 of this section , a participating 6 dealer, dealer agent, or person operating a redemption center 7 who redeems empty beverage containers or a dealer agent shall 8 be reimbursed by the distributor required to accept the empty 9 beverage containers an amount which a handling fee that is one 10 cent two cents per container. A participating dealer, dealer 11 agent, or person operating a redemption center may compact 12 empty metal beverage containers with the approval of the 13 distributor required to accept the containers. 14 Sec. 5. Section 455C.3, subsections 1, 2, and 4, Code 2020, 15 are amended to read as follows: 16 1. A participating dealer shall not refuse to accept from 17 a consumer any empty beverage container of the kind, size and 18 brand sold by the participating dealer, or refuse to pay to the 19 consumer the refund value of a beverage container as provided 20 under section 455C.2 . 21 2. A distributor shall accept and pick up from a 22 participating dealer served by the distributor or a redemption 23 center for a dealer served by the distributor at least weekly, 24 or when the distributor delivers the beverage product if 25 deliveries are less frequent than weekly, any empty beverage 26 container of the kind, size , and brand sold by the distributor, 27 and shall pay to the participating dealer or person operating 28 a redemption center the refund value of a beverage container 29 and the reimbursement as provided under section 455C.2 within 30 one week following pickup of the containers or when the 31 participating dealer or redemption center normally pays the 32 distributor for the deposit on beverage products purchased from 33 the distributor if less frequent than weekly. A distributor 34 or employee or agent of a distributor is not in violation 35 -2- LSB 5256YC (3) 88 js/ns 2/ 9

H.F. _____ of this subsection if a redemption center is closed when the 1 distributor attempts to make a regular delivery or a regular 2 pickup of empty beverage containers. This subsection does 3 not apply to a distributor selling alcoholic liquor to the 4 alcoholic beverages division of the department of commerce. 5 4. A distributor shall accept from a dealer agent any empty 6 beverage container of the kind, size, and brand sold by the 7 distributor and which that was picked up by the dealer agent 8 from a participating dealer within the geographic territory 9 served by the distributor and the distributor shall pay the 10 dealer agent the refund value of the empty beverage container 11 and the reimbursement as provided in section 455C.2 . 12 Sec. 6. Section 455C.4, Code 2020, is amended to read as 13 follows: 14 455C.4 Refusal to accept containers. 15 1. Except as provided in section 455C.5, subsection 3 , a 16 participating dealer, a person operating a redemption center, a 17 distributor , or a manufacturer may refuse to accept any empty 18 beverage container which that does not have stated on it a 19 refund value as provided under section 455C.2 . 20 2. A dealer may refuse to accept and to pay the refund value 21 of any empty beverage container if the place of business of the 22 dealer and the kind and brand of empty beverage containers are 23 included in an order of the department approving a redemption 24 center under section 455C.6 after providing notice to the 25 department and if the place of business of the dealer is 26 located within a ten-mile radius of a redemption center or 27 dealer agent . 28 3. A dealer or a distributor may refuse to accept and to pay 29 the refund value of an empty wine or alcoholic liquor container 30 which is marked to indicate that it was sold by a state liquor 31 store. The alcoholic beverages division shall not reimburse 32 a dealer or a distributor the refund value on an empty wine or 33 alcoholic liquor container which is marked to indicate that the 34 container was sold by a state liquor store. 35 -3- LSB 5256YC (3) 88 js/ns 3/ 9

H.F. _____ 4. 3. A class “E” liquor control licensee may refuse to 1 accept and to pay the refund value on an empty alcoholic liquor 2 container from a participating dealer or a redemption center 3 or from a person acting on behalf of or who has received empty 4 alcoholic liquor containers from a participating dealer or a 5 redemption center. 6 5. 4. A manufacturer or distributor may refuse to accept 7 and to pay the refund value and reimbursement as provided in 8 section 455C.2 on any empty beverage container that was picked 9 up by a participating dealer agent from a dealer outside the 10 geographic territory served by the manufacturer or distributor. 11 Sec. 7. Section 455C.5, subsection 1, Code 2020, is amended 12 to read as follows: 13 1. Each beverage container sold or offered for sale in 14 this state by a dealer shall clearly indicate the refund value 15 of the container by embossing or by a stamp, label , or other 16 method securely affixed to the container , the refund value of 17 the container . The department shall specify, by rule, the 18 minimum size of the refund value indication on the beverage 19 containers and require registration of the universal product 20 code for each beverage container in a format required by the 21 department . 22 Sec. 8. Section 455C.6, subsections 1, 2, and 5, Code 2020, 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 a A person operating a 31 redemption center shall file written notice of the operation 32 of the redemption center shall be filed with the department. 33 The application notice shall state the name and address of the 34 person responsible for the establishment and operation of the 35 -4- LSB 5256YC (3) 88 js/ns 4/ 9

H.F. _____ redemption center , the kind and brand names of the beverage 1 containers which will be accepted at the redemption center, 2 and the names and addresses of the dealers to be served by the 3 redemption center. The application notice shall contain such 4 other information as the director may reasonably require. 5 5. All approved redemption centers shall meet applicable 6 health standards. 7 Sec. 9. Section 455C.6, subsections 3 and 4, Code 2020, are 8 amended by striking the subsections. 9 Sec. 10. Section 455C.12, subsections 2 and 3, Code 2020, 10 are 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 that shows or purports to 24 show a refund value for a beverage container, with intent to 25 use the 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. 11. Section 455C.12, Code 2020, is amended by adding 31 the following new subsection: 32 NEW SUBSECTION . 6. A person who violates any provision 33 of this chapter shall be subject to a civil penalty of two 34 thousand five hundred dollars per violation, which shall 35 -5- LSB 5256YC (3) 88 js/ns 5/ 9

H.F. _____ be assessed and collected in the same manner as provided 1 in section 455B.109. Any civil penalty collected shall be 2 deposited in the general fund of the state. 3 Sec. 12. NEW SECTION . 455C.12A Administrative enforcement 4 —— compliance orders. 5 The director may issue any order necessary to secure 6 compliance with or prevent a violation of the provisions of 7 this chapter or any rule adopted or permit or order issued 8 pursuant to this chapter. The person to whom such compliance 9 order is issued may cause to be commenced a contested case 10 within the meaning of chapter 17A by filing within thirty 11 days a notice of appeal to the commission. On appeal, the 12 commission may affirm, modify, or vacate the order of the 13 director. 14 Sec. 13. NEW SECTION . 455C.12B Judicial review. 15 Judicial review of any order or other action of the 16 commission or director may be sought in accordance with the 17 terms of chapter 17A. Notwithstanding the terms of chapter 18 17A, petitions for judicial review may be filed in the district 19 court of the county in which the alleged offense was committed. 20 Sec. 14. NEW SECTION . 455C.12C Civil actions for compliance 21 —— penalties. 22 1. The attorney general, on request of the department, shall 23 institute any legal proceedings necessary to obtain compliance 24 with an order of the commission or the director, including 25 proceedings for a temporary injunction, or prosecuting any 26 person for a violation of an order of the commission or the 27 director, the provisions of this chapter, or any rules adopted 28 or permit or order issued pursuant to this chapter. 29 2. Any person who violates any order issued pursuant to 30 section 455C.12A shall be subject to a civil penalty not to 31 exceed ten thousand dollars for each day of such violation. 32 Sec. 15. Section 455C.13, Code 2020, is amended to read as 33 follows: 34 455C.13 Distributors’ agreements authorized. 35 -6- LSB 5256YC (3) 88 js/ns 6/ 9

H.F. _____ 1. A distributor , dealer, or person operating a redemption 1 center may enter into a contract or agreement with any other 2 distributor, manufacturer , or person for the purpose of 3 collecting or paying the refund value on, or disposing of, 4 beverage containers as provided in this chapter . 5 2. For purposes of this chapter, any contracts entered into 6 pursuant to this section for the collecting or disposal of 7 empty beverage containers shall not be deemed to interfere with 8 the refund value pursuant to section 455C.2. 9 Sec. 16. Section 455C.14, subsection 1, Code 2020, is 10 amended to read as follows: 11 1. If the refund value indication required under section 12 455C.5 on an empty nonrefillable metal beverage container 13 is readable but the redemption of the container is lawfully 14 refused by a participating dealer or person operating a 15 redemption center under other sections of this chapter or rules 16 adopted pursuant to these sections, the container shall be 17 accepted and the refund value paid to a consumer as provided 18 in this section . Each beer distributor selling nonrefillable 19 metal beverage containers in this state shall provide 20 individually or collectively by contract or agreement with a 21 dealer, person operating a redemption center or another person, 22 at least one facility in the county seat of each county where 23 refused empty nonrefillable metal beverage containers having a 24 readable refund value indication as required by this chapter 25 are accepted and redeemed. In cities having a population of 26 twenty-five thousand or more, the number of the facilities 27 provided shall be one for each twenty-five thousand population 28 or a fractional part of that population. 29 Sec. 17. REPEAL. Sections 455C.7 and 455C.10, Code 2020, 30 are repealed. 31 Sec. 18. EFFECTIVE DATE. This Act takes effect July 1, 32 2021. 33 EXPLANATION 34 The inclusion of this explanation does not constitute agreement with 35 -7- LSB 5256YC (3) 88 js/ns 7/ 9

H.F. _____ the explanation’s substance by the members of the general assembly. 1 This bill relates to the beverage containers control law, 2 also known as the bottle bill. 3 Current law limits beverage containers subject to beverage 4 containers control deposit and refund provisions to any sealed 5 glass, plastic, or metal bottle, can, jar, or carton holding 6 wine, alcoholic liquor, beer, mineral water, soda water, and 7 carbonated soft drinks. When a distributor sells beverages 8 in eligible containers to a dealer, the distributor charges 5 9 cents per eligible container to the sale price. When a dealer 10 sells beverages in eligible containers to a consumer, the 11 dealer charges the 5-cent deposit on each beverage container. 12 A consumer can take eligible beverage containers to a dealer, 13 dealer agent, or a redemption center and receive a 5-cent 14 refund for every eligible beverage container that the consumer 15 returns. A distributor collects eligible containers from a 16 dealer, dealer agent, or redemption center, at which time 17 the distributor pays the dealer, dealer agent, or redemption 18 center 5 cents per eligible container plus a handling fee of an 19 additional 1 cent per empty container. 20 The bill adds high alcoholic content beer and canned 21 cocktails to the definition of “beverage”. The bill creates 22 a definition for “participating dealer”. The bill requires 23 any dealer to pay a 1-cent handling fee to a distributor upon 24 delivery of beverages and increases the handling fee that a 25 participating dealer, dealer agent, or redemption center will 26 charge a distributor from 1 cent to 2 cents. The bill requires 27 a participating dealer to accept and pay the refund value of 28 any beverage container, except as currently provided by law. 29 The bill requires a participating dealer or a redemption center 30 to immediately return the refund value to a consumer upon the 31 return and acceptance of a beverage container for which the 32 refund value has been paid. However, a dealer agent shall 33 return the refund value to a consumer within a reasonable 34 time for the return of a beverage container for which the 35 -8- LSB 5256YC (3) 88 js/ns 8/ 9

H.F. _____ refund value has been paid. A dealer can choose to not be 1 a participating dealer by providing notice to the department 2 of natural resources and only if the place of business of 3 the dealer is within a 10-mile radius of a redemption center 4 or dealer agent. The bill requires the registration of the 5 universal product code for each beverage container in a format 6 provided by the department. The bill requires a redemption 7 center to file a notice with the department but does not 8 require the department to grant approval for any redemption 9 centers. The bill removes provisions of Code chapter 455C that 10 relate to the department’s authority to approve redemption 11 centers. The bill also allows a dealer or person operating a 12 redemption center to enter into contracts or agreements for the 13 collection or disposal of beverage containers. 14 The bill authorizes the department to establish a civil 15 penalty of $2,500 for a violation of any provision of Code 16 chapter 455C. The bill allows the department to issue 17 compliance orders, subject to judicial review, that may be 18 enforced by the attorney general’s office. A violation of a 19 compliance order is subject to a fine of not more than $10,000 20 per day per violation. 21 The bill takes effect July 1, 2021. 22 -9- LSB 5256YC (3) 88 js/ns 9/ 9