S.F. 59 Section 1. Section 455C.1, subsections 6 and 10, Code 2019, 1 are amended by striking the subsections. 2 Sec. 2. Section 455C.2, Code 2019, is amended to read as 3 follows: 4 455C.2 Refund values. 5 1. A refund value of not less than five cents shall be paid 6 by the consumer on each beverage container sold in this state 7 by a dealer for consumption off the premises. Upon return of 8 the empty beverage container upon which a refund value has been 9 paid to the dealer or a person operating a redemption center 10 and acceptance of the empty beverage container by the dealer 11 or person operating a redemption center, the dealer or person 12 operating a redemption center shall return the amount of the 13 refund value to the consumer. 14 2. In addition to the refund value provided in subsection 15 1 of this section , a dealer, or person operating a redemption 16 center who redeems empty beverage containers or a dealer agent 17 shall be reimbursed by the distributor required to accept the 18 empty beverage containers an amount which that is one cent 19 two cents per container. A dealer, dealer agent, or person 20 operating a redemption center may compact empty metal beverage 21 containers with the approval of the distributor required to 22 accept the containers. 23 Sec. 3. Section 455C.3, subsections 1 and 4, Code 2019, are 24 amended by striking the subsections. 25 Sec. 4. Section 455C.3, subsection 2, Code 2019, is amended 26 to read as follows: 27 2. A distributor shall accept and pick up from a dealer 28 served by the distributor or a redemption center for a 29 dealer served by the distributor at least weekly , or when the 30 distributor delivers the beverage product if deliveries are 31 less frequent than weekly, any empty beverage container of the 32 kind, size , and brand sold by the distributor, and shall pay to 33 the dealer or person operating a redemption center the refund 34 value of a beverage container and the reimbursement as provided 35 -1- LSB 1152XS (4) 88 js/tm 1/ 5

S.F. 59 under section 455C.2 within one week following pickup of the 1 containers or when the dealer or redemption center normally 2 pays the distributor for the deposit on beverage products 3 purchased from the distributor if less frequent than weekly . 4 A distributor or employee or agent of a distributor is not in 5 violation of this subsection if a redemption center is closed 6 when the distributor attempts to make a regular delivery or a 7 regular pickup of empty beverage containers. This subsection 8 does not apply to a distributor selling alcoholic liquor to the 9 alcoholic beverages division of the department of commerce. 10 Sec. 5. Section 455C.4, subsections 1 and 4, Code 2019, are 11 amended to read as follows: 12 1. Except as provided in section 455C.5, subsection 3 , a 13 dealer, a person operating a redemption center, a distributor , 14 or a manufacturer may refuse to accept any empty beverage 15 container which that does not have stated on it a refund value 16 as provided under section 455C.2 . 17 4. A class “E” liquor control licensee may refuse to accept 18 and to pay the refund value on an empty alcoholic liquor 19 container from a dealer or a redemption center or from a person 20 acting on behalf of or who has received empty alcoholic liquor 21 containers from a dealer or a redemption center. 22 Sec. 6. Section 455C.4, subsections 2, 3, and 5, Code 2019, 23 are amended by striking the subsections. 24 Sec. 7. Section 455C.6, subsections 1, 2, 3, and 4, Code 25 2019, are amended to read as follows: 26 1. To facilitate the return of empty beverage containers and 27 to serve dealers of beverages, any Any person may establish a 28 redemption center, subject to the approval of the department, 29 at which consumers may return empty beverage containers 30 and receive payment of the refund value of such beverage 31 containers. 32 2. An application for approval of a redemption center 33 shall be filed with the department. The application shall 34 state the name and address of the person responsible for the 35 -2- LSB 1152XS (4) 88 js/tm 2/ 5

S.F. 59 establishment and operation of the redemption center , and the 1 kind and brand names of the beverage containers which that 2 will be accepted at the redemption center , and the names and 3 addresses of the dealers to be served by the redemption center . 4 The application shall contain such other information as the 5 director may reasonably require. A person who operates an 6 unapproved redemption center prior to July 1, 2020, shall have 7 until December 1, 2020, to gain approval and may continue to 8 operate until such date. 9 3. The department shall approve a redemption center if it 10 finds that the redemption center will provide a convenient 11 service to consumers for the return of empty beverage 12 containers. The order of the department approving a redemption 13 center shall state the dealers to be served by the redemption 14 center and the kind and brand names of empty beverage 15 containers which that the redemption center must accept. The 16 order may contain such other provisions to insure ensure that 17 the redemption center will provide a convenient service to the 18 public as the director may determine. 19 4. The department may review the approval of any redemption 20 center at any time. After written notice to the person 21 responsible for the establishment and operation of the 22 redemption center, and to the dealers served by the redemption 23 center, the commission may, after hearing, withdraw approval of 24 a redemption center if the commission finds there has not been 25 compliance with the department’s order approving the redemption 26 center, or if the redemption center no longer provides a 27 convenient service to the public. 28 Sec. 8. Section 455C.12, subsection 2, Code 2019, is amended 29 to read as follows: 30 2. A distributor who collects or attempts to collect 31 a refund value on an empty beverage container when the 32 distributor has paid the refund value on the container to 33 a dealer, redemption center , or consumer is guilty of a 34 fraudulent practice. 35 -3- LSB 1152XS (4) 88 js/tm 3/ 5

S.F. 59 Sec. 9. Section 455C.12, subsection 3, paragraph a, Code 1 2019, is amended to read as follows: 2 a. Collects or attempts to collect the refund value on the 3 container a second time, with the knowledge that the refund 4 value has once been paid by the distributor to a dealer, 5 redemption center or consumer. 6 Sec. 10. Section 455C.14, subsection 1, Code 2019, is 7 amended to read as follows: 8 1. If the refund value indication required under section 9 455C.5 on an empty nonrefillable metal beverage container 10 is readable but the redemption of the container is lawfully 11 refused by a dealer or person operating a redemption center 12 under other sections of this chapter or rules adopted pursuant 13 to these sections, the container shall be accepted and the 14 refund value paid to a consumer as provided in this section . 15 Each beer distributor selling nonrefillable metal beverage 16 containers in this state shall provide individually or 17 collectively by contract or agreement with a dealer, person 18 operating a redemption center or another person , at least 19 one facility in the county seat of each county where refused 20 empty nonrefillable metal beverage containers having a 21 readable refund value indication as required by this chapter 22 are accepted and redeemed. In cities having a population of 23 twenty-five thousand or more, the number of the facilities 24 provided shall be one for each twenty-five thousand population 25 or a fractional part of that population. 26 Sec. 11. Section 455C.16, Code 2019, is amended to read as 27 follows: 28 455C.16 Beverage containers —— disposal at sanitary landfill 29 prohibited. 30 Beginning July 1, 1990, the The final disposal of beverage 31 containers by a dealer, distributor, or manufacturer, or person 32 operating a redemption center, in a sanitary landfill, is 33 prohibited. Beginning September 1, 1992 , including the final 34 disposal of beverage containers that used to contain alcoholic 35 -4- LSB 1152XS (4) 88 js/tm 4/ 5

S.F. 59 liquor as defined in section 123.3, subsection 5 , by a dealer, 1 distributor, or manufacturer, or person operating a redemption 2 center in a sanitary landfill , is prohibited. 3 Sec. 12. REPEAL. Section 455C.7, Code 2019, is repealed. 4 Sec. 13. EFFECTIVE DATE. This Act takes effect July 1, 5 2020. 6 EXPLANATION 7 The inclusion of this explanation does not constitute agreement with 8 the explanation’s substance by the members of the general assembly. 9 Under current law, a consumer may return an empty beverage 10 container upon which a refund value has been paid to a dealer 11 or a redemption center. When a distributor collects empty 12 beverage containers from a dealer, dealer agent, or redemption 13 center, the distributor reimburses the dealer, dealer agent, or 14 redemption center the refund value plus a 1-cent handling fee 15 for each empty beverage container. Current law also allows any 16 person to establish a redemption center that serves a dealer 17 if it is approved by the department of natural resources. Any 18 person can also establish an unapproved redemption center. 19 Under this bill, a consumer must return an empty beverage 20 container to a redemption center if the consumer seeks 21 to redeem a refund value paid for the beverage container. 22 Additionally, the handling fee paid by a distributor is 23 increased to 2 cents for each empty beverage container. A 24 distributor must pick up from a redemption center empty 25 beverage containers on at least a weekly basis. The bill makes 26 conforming changes throughout Code chapter 455C to remove 27 instances of “dealer” and “dealer agent” from provisions 28 dealing with redemption. Lastly, the bill requires all 29 redemption centers to be approved by the department; any 30 unapproved redemption center that currently exists can continue 31 operating without approval until December 1, 2020. 32 The bill takes effect on July 1, 2020. 33 -5- LSB 1152XS (4) 88 js/tm 5/ 5