S.F. _____ Section 1. Section 455C.1, subsection 6, Code 2019, is 1 amended to read as follows: 2 6. “Dealer agent” means a person who solicits or picks up 3 empty beverage containers from a dealer for the purpose of 4 returning the empty beverage containers to a distributor or 5 manufacturer. 6 Sec. 2. Section 455C.1, Code 2019, is amended by adding the 7 following new subsection: 8 NEW SUBSECTION . 12A. “Participating dealer” means a dealer 9 who accepts the return of empty beverage containers from a 10 consumer. 11 Sec. 3. Section 455C.2, Code 2019, is amended to read as 12 follows: 13 455C.2 Refund values. 14 1. A refund value of not less than five cents shall be paid 15 by the consumer on each beverage container sold in this state 16 by a dealer for consumption off the premises. Upon return of 17 the empty beverage container upon which a refund value has 18 been paid to the participating dealer or person operating 19 a redemption center and acceptance of the empty beverage 20 container by the participating dealer or person operating a 21 redemption center, the participating dealer or person operating 22 a redemption center shall immediately return the amount of 23 the refund value to the consumer. Upon return of the empty 24 beverage container on which a refund value has been paid to a 25 dealer agent, the dealer agent shall return the amount of the 26 refund value to the consumer within a reasonable time. 27 2. Upon delivery of beverages from a distributor to a 28 dealer, the dealer shall pay a one-cent handling fee per 29 container to the distributor. In addition to the refund value 30 provided in subsection 1 of this section , a participating 31 dealer, dealer agent, or person operating a redemption center 32 who redeems empty beverage containers or a dealer agent shall 33 be reimbursed by the distributor required to accept the empty 34 beverage containers an amount which a handling fee that is one 35 -1- LSB 2216XC (5) 88 js/tm 1/ 9

S.F. _____ cent two cents per container. A participating dealer, dealer 1 agent, or person operating a redemption center may compact 2 empty metal beverage containers with the approval of the 3 distributor required to accept the containers. 4 Sec. 4. Section 455C.3, subsections 1, 2, and 4, Code 2019, 5 are amended to read as follows: 6 1. A participating dealer shall not refuse to accept from 7 a consumer any empty beverage container of the kind, size and 8 brand sold by the participating dealer, or refuse to pay to the 9 consumer the refund value of a beverage container as provided 10 under section 455C.2 . 11 2. A distributor shall accept and pick up from a 12 participating dealer served by the distributor or a redemption 13 center for a dealer served by the distributor at least weekly, 14 or when the distributor delivers the beverage product if 15 deliveries are less frequent than weekly, any empty beverage 16 container of the kind, size , and brand sold by the distributor, 17 and shall pay to the participating dealer or person operating 18 a redemption center the refund value of a beverage container 19 and the reimbursement as provided under section 455C.2 within 20 one week following pickup of the containers or when the 21 participating dealer or redemption center normally pays the 22 distributor for the deposit on beverage products purchased from 23 the distributor if less frequent than weekly. A distributor 24 or employee or agent of a distributor is not in violation 25 of this subsection if a redemption center is closed when the 26 distributor attempts to make a regular delivery or a regular 27 pickup of empty beverage containers. This subsection does 28 not apply to a distributor selling alcoholic liquor to the 29 alcoholic beverages division of the department of commerce. 30 4. A distributor shall accept from a dealer agent any empty 31 beverage container of the kind, size, and brand sold by the 32 distributor and which that was picked up by the dealer agent 33 from a participating dealer within the geographic territory 34 served by the distributor and the distributor shall pay the 35 -2- LSB 2216XC (5) 88 js/tm 2/ 9

S.F. _____ dealer agent the refund value of the empty beverage container 1 and the reimbursement as provided in section 455C.2 . 2 Sec. 5. Section 455C.4, Code 2019, is amended to read as 3 follows: 4 455C.4 Refusal to accept containers. 5 1. Except as provided in section 455C.5, subsection 3 , a 6 participating dealer, a person operating a redemption center, a 7 distributor or a manufacturer may refuse to accept any empty 8 beverage container which does not have stated on it a refund 9 value as provided under section 455C.2 . 10 2. A dealer may refuse to accept and to pay the refund value 11 of any empty beverage container if the place of business of the 12 dealer and the kind and brand of empty beverage containers are 13 included in an order of the department approving a redemption 14 center under section 455C.6 after providing notice to the 15 department and if the place of business of the dealer is 16 located within a ten-mile radius of a redemption center or 17 dealer agent . 18 3. A dealer or a distributor may refuse to accept and to pay 19 the refund value of an empty wine or alcoholic liquor container 20 which is marked to indicate that it was sold by a state liquor 21 store. The alcoholic beverages division shall not reimburse 22 a dealer or a distributor the refund value on an empty wine or 23 alcoholic liquor container which is marked to indicate that the 24 container was sold by a state liquor store. 25 4. 3. A class “E” liquor control licensee may refuse to 26 accept and to pay the refund value on an empty alcoholic liquor 27 container from a participating dealer or a redemption center 28 or from a person acting on behalf of or who has received empty 29 alcoholic liquor containers from a participating dealer or a 30 redemption center. 31 5. 4. A manufacturer or distributor may refuse to accept 32 and to pay the refund value and reimbursement as provided in 33 section 455C.2 on any empty beverage container that was picked 34 up by a participating dealer agent from a dealer outside the 35 -3- LSB 2216XC (5) 88 js/tm 3/ 9

S.F. _____ geographic territory served by the manufacturer or distributor. 1 Sec. 6. Section 455C.5, subsection 1, Code 2019, is amended 2 to read as follows: 3 1. Each beverage container sold or offered for sale in 4 this state by a dealer shall clearly indicate by embossing or 5 by a stamp, label , or other method securely affixed to the 6 container , the refund value of the container. The department 7 shall specify, by rule, the minimum size of the refund value 8 indication on the beverage containers and require registration 9 of the universal product code for each beverage container in a 10 format required by the department . 11 Sec. 7. Section 455C.6, subsections 1, 2, and 5, Code 2019, 12 are amended to read as follows: 13 1. To facilitate the return of empty beverage containers 14 and to serve dealers of beverages, any person may establish a 15 redemption center , subject to the approval of the department, 16 at which consumers may return empty beverage containers 17 and receive payment of the refund value of such beverage 18 containers. 19 2. An application for approval of Written notice of the 20 operation of a redemption center shall be filed with the 21 department. The application notice shall state the name and 22 address of the person responsible for the establishment and 23 operation of the redemption center , the kind and brand names 24 of the beverage containers which will be accepted at the 25 redemption center, and the names and addresses of the dealers 26 to be served by the redemption center. The application notice 27 shall contain such other information as the director may 28 reasonably require. 29 5. All approved redemption centers shall meet applicable 30 health standards. 31 Sec. 8. Section 455C.6, subsections 3 and 4, Code 2019, are 32 amended by striking the subsections. 33 Sec. 9. Section 455C.12, subsections 2 and 3, Code 2019, are 34 amended to read as follows: 35 -4- LSB 2216XC (5) 88 js/tm 4/ 9

S.F. _____ 2. A distributor who collects or attempts to collect 1 a refund value on an empty beverage container when the 2 distributor has paid the refund value on the container to a 3 participating dealer, redemption center, or consumer is guilty 4 of a fraudulent practice. 5 3. Any person who does any of the following acts is guilty 6 of a fraudulent practice: 7 a. Collects or attempts to collect the refund value on the 8 container a second time, with the knowledge that the refund 9 value has once been paid by the distributor to a participating 10 dealer, redemption center , or consumer. 11 b. Manufactures, sells, possesses , or applies a false or 12 counterfeit label or indication which shows or purports to show 13 a refund value for a beverage container, with intent to use the 14 false or counterfeit label or indication. 15 c. Collects or attempts to collect a refund value on 16 a container with the use of a false or counterfeit label 17 or indication showing a refund value, knowing the label or 18 indication to be false or counterfeit. 19 Sec. 10. Section 455C.12, Code 2019, is amended by adding 20 the following new subsection: 21 NEW SUBSECTION . 6. A person who violates any provision 22 of this chapter shall be subject to a civil penalty of two 23 thousand five hundred dollars per violation, which shall be 24 assessed and collected in the same manner as provided in 25 section 455B.109. Any civil penalty shall be deposited in the 26 general fund of the state. 27 Sec. 11. NEW SECTION . 455C.12A Administrative enforcement 28 —— compliance orders. 29 The director may issue any order necessary to secure 30 compliance with or prevent a violation of the provisions of 31 this chapter or any rule adopted or permit or order issued 32 pursuant to this chapter. The person to whom such compliance 33 order is issued may cause to be commenced a contested case 34 within the meaning of chapter 17A by filing within thirty 35 -5- LSB 2216XC (5) 88 js/tm 5/ 9

S.F. _____ days a notice of appeal to the commission. On appeal, the 1 commission may affirm, modify, or vacate the order of the 2 director. 3 Sec. 12. NEW SECTION . 455C.12B Judicial review. 4 Judicial review of any order or other action of the 5 commission or director may be sought in accordance with the 6 terms of chapter 17A. Notwithstanding the terms of chapter 7 17A, petitions for judicial review may be filed in the district 8 court of the county in which the alleged offense was committed. 9 Sec. 13. NEW SECTION . 455C.12C Civil actions for compliance 10 —— penalties. 11 1. The attorney general, on request of the department, shall 12 institute any legal proceedings necessary to obtain compliance 13 with an order of the commission or the director, including 14 proceedings for a temporary injunction, or prosecuting any 15 person for a violation of an order of the commission or the 16 director, the provisions of this chapter, or any rules adopted 17 or permit or order issued pursuant to this chapter. 18 2. Any person who violates any order issued pursuant to 19 section 455C.12A shall be subject to a civil penalty not to 20 exceed ten thousand dollars for each day of such violation. 21 Sec. 14. Section 455C.13, Code 2019, is amended to read as 22 follows: 23 455C.13 Distributors’ agreements authorized. 24 1. A distributor , dealer, or person operating a redemption 25 center may enter into a contract or agreement with any other 26 distributor, manufacturer , or person for the purpose of 27 collecting or paying the refund value on, or disposing of, 28 beverage containers as provided in this chapter . 29 2. For purposes of this chapter, any contracts entered into 30 pursuant to this section for the collecting or disposal of 31 empty beverage containers shall not be deemed to interfere with 32 the refund value pursuant to section 455C.2. 33 Sec. 15. Section 455C.14, subsection 1, Code 2019, is 34 amended to read as follows: 35 -6- LSB 2216XC (5) 88 js/tm 6/ 9

S.F. _____ 1. If the refund value indication required under section 1 455C.5 on an empty nonrefillable metal beverage container 2 is readable but the redemption of the container is lawfully 3 refused by a participating dealer or person operating a 4 redemption center under other sections of this chapter or rules 5 adopted pursuant to these sections, the container shall be 6 accepted and the refund value paid to a consumer as provided 7 in this section . Each beer distributor selling nonrefillable 8 metal beverage containers in this state shall provide 9 individually or collectively by contract or agreement with a 10 dealer, person operating a redemption center or another person, 11 at least one facility in the county seat of each county where 12 refused empty nonrefillable metal beverage containers having a 13 readable refund value indication as required by this chapter 14 are accepted and redeemed. In cities having a population of 15 twenty-five thousand or more, the number of the facilities 16 provided shall be one for each twenty-five thousand population 17 or a fractional part of that population. 18 Sec. 16. REPEAL. Sections 455C.7 and 455C.10, Code 2019, 19 are repealed. 20 Sec. 17. EFFECTIVE DATE. This Act takes effect July 1, 21 2020. 22 EXPLANATION 23 The inclusion of this explanation does not constitute agreement with 24 the explanation’s substance by the members of the general assembly. 25 This bill relates to the beverage container control law, 26 also known as the bottle bill. 27 Current law limits beverage containers subject to beverage 28 containers control deposit and refund provisions to any sealed 29 glass, plastic, or metal bottle, can, jar, or carton holding 30 wine, alcoholic liquor, beer, mineral water, soda water, and 31 carbonated soft drinks. When a distributor sells beverages 32 in eligible containers to a dealer, the distributor charges 5 33 cents per eligible container to the sale price. When a dealer 34 sells beverages in eligible containers to a consumer, the 35 -7- LSB 2216XC (5) 88 js/tm 7/ 9

S.F. _____ dealer charges the 5-cent deposit on each beverage container. 1 A consumer can take eligible beverage containers to a dealer, 2 dealer agent, or a redemption center and receive a 5-cent 3 refund for every eligible beverage container that the consumer 4 returns. A distributor collects eligible containers from a 5 dealer, dealer agent, or redemption center, at which time 6 the distributor pays the dealer, dealer agent, or redemption 7 center 5 cents per eligible container plus a handling fee of an 8 additional 1 cent per empty container. 9 The bill creates a definition for “participating dealer”. 10 The bill requires any dealer to pay a 1-cent handling fee to 11 a distributor upon delivery of beverages and increases the 12 handling fee that a participating dealer, dealer agent, or 13 redemption center will charge a distributor from 1 cent to 2 14 cents. The bill requires a participating dealer to accept 15 and pay the refund value of any beverage container, except as 16 currently provided by law. The bill requires a participating 17 dealer or a redemption center to immediately return the 18 refund value to a consumer upon the return and acceptance 19 of a beverage container for which the refund value has been 20 paid. However, a dealer agent shall return the refund value 21 to a consumer within a reasonable time for the return of a 22 beverage container for which the refund value has been paid. A 23 dealer can choose to not be a participating dealer by providing 24 notice to the department of natural resources and only if the 25 place of business of the dealer is within a 10-mile radius of 26 a redemption center or dealer agent. The bill requires the 27 registration of the universal product code for each beverage 28 container in a format provided by the department of natural 29 resources. The bill requires a redemption center to file a 30 notice with the department of natural resources but does not 31 require the department of natural resources to grant approval 32 for any redemption centers. The bill also allows a dealer or 33 person operating a redemption center to enter into contracts 34 or agreements for the collection or disposal of beverage 35 -8- LSB 2216XC (5) 88 js/tm 8/ 9

S.F. _____ containers. 1 The bill authorizes the department to establish a civil 2 penalty of $2,500 for a violation of any provision of Code 3 chapter 455C. The bill allows the department to issue 4 compliance orders, subject to judicial review, that may be 5 enforced by the attorney general’s office. A violation of a 6 compliance order is subject to a fine of not more than $10,000 7 per day per violation. 8 The bill takes effect July 1, 2020. 9 -9- LSB 2216XC (5) 88 js/tm 9/ 9