H.F. 151 Section 1. Section 16.41, subsection 1, Code 2021, is 1 amended to read as follows: 2 1. A shelter assistance fund is created as a revolving 3 fund in the state treasury under the control of the authority 4 consisting of any moneys appropriated by the general assembly 5 and received under section 428A.8 and section 455C.11 for 6 costs of operations of shelters for the homeless and domestic 7 violence shelters, essential services for the homeless, and 8 evaluation and reporting of services for the homeless. Each 9 fiscal year, moneys in the fund, in an amount equal to not more 10 than three percent of the total moneys distributed as grants 11 from the fund during the fiscal year, may be used for purposes 12 of administering the fund. 13 Sec. 2. Section 190B.201, subsection 1, Code 2021, is 14 amended to read as follows: 15 1. An Iowa emergency food purchase program fund is 16 established in the state treasury and shall be administered by 17 the department of agriculture and land stewardship. The fund 18 shall consist of moneys appropriated to the fund pursuant to 19 section 602.8108, subsection 11 , section 455C.11, subsection 2, 20 and any other moneys appropriated to the fund. 21 Sec. 3. Section 455C.1, subsections 1 and 6, Code 2021, are 22 amended to read as follows: 23 1. “Beverage” means wine as defined in section 123.3, 24 subsection 54 , alcoholic liquor as defined in section 123.3, 25 subsection 5 , beer as defined in section 123.3, subsection 26 7 , high alcoholic content beer as defined in section 123.3, 27 subsection 22, canned cocktail as defined in section 123.3, 28 subsection 11, mineral water, soda water , and similar 29 carbonated soft drinks in liquid form and intended for human 30 consumption. 31 6. “Dealer agent” means a person who solicits or picks 32 up empty beverage containers from a participating dealer for 33 the purpose of returning the empty beverage containers to a 34 distributor or manufacturer. 35 -1- LSB 1407YH (4) 89 js/ns 1/ 8

H.F. 151 Sec. 4. Section 455C.1, Code 2021, is amended by adding the 1 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. 5. Section 455C.2, Code 2021, 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 19 1 of this section , a participating dealer, dealer agent, 20 or person operating a redemption center who redeems empty 21 beverage containers or a dealer agent shall be reimbursed 22 by the distributor required to accept the empty beverage 23 containers an amount which is one cent two cents per container. 24 A participating dealer, dealer agent, or person operating a 25 redemption center may compact empty metal beverage containers 26 with the approval of the distributor required to accept the 27 containers. 28 Sec. 6. Section 455C.3, subsections 1, 2, and 4, Code 2021, 29 are amended to read as follows: 30 1. A participating dealer shall not refuse to accept from a 31 consumer any empty beverage container of the kind, size , and 32 brand sold by the participating dealer, or refuse to pay to the 33 consumer the refund value of a beverage container as provided 34 under section 455C.2 . 35 -2- LSB 1407YH (4) 89 js/ns 2/ 8

H.F. 151 2. A distributor shall accept and pick up from a 1 participating dealer served by the distributor or a redemption 2 center for a dealer served by the distributor at least weekly, 3 or when the distributor delivers the beverage product if 4 deliveries are less frequent than weekly, any empty beverage 5 container of the kind, size , and brand sold by the distributor, 6 and shall pay to the participating dealer or person operating 7 a redemption center the refund value of a beverage container 8 and the reimbursement as provided under section 455C.2 within 9 one week following pickup of the containers or when the 10 participating dealer or redemption center normally pays the 11 distributor for the deposit on beverage products purchased from 12 the distributor if less frequent than weekly. A distributor 13 or employee or agent of a distributor is not in violation 14 of this subsection if a redemption center is closed when the 15 distributor attempts to make a regular delivery or a regular 16 pickup of empty beverage containers. This subsection does 17 not apply to a distributor selling alcoholic liquor to the 18 alcoholic beverages division of the department of commerce. 19 4. A distributor shall accept from a dealer agent any empty 20 beverage container of the kind, size, and brand sold by the 21 distributor and which that was picked up by the dealer agent 22 from a participating dealer within the geographic territory 23 served by the distributor and the distributor shall pay the 24 dealer agent the refund value of the empty beverage container 25 and the reimbursement as provided in section 455C.2 . 26 Sec. 7. Section 455C.4, Code 2021, is amended to read as 27 follows: 28 455C.4 Refusal to accept containers. 29 1. Except as provided in section 455C.5, subsection 3 , a 30 participating dealer, a person operating a redemption center, a 31 distributor , or a manufacturer may refuse to accept any empty 32 beverage container which that does not have stated on it a 33 refund value as provided under section 455C.2 . 34 2. A dealer may refuse to accept and to pay the refund value 35 -3- LSB 1407YH (4) 89 js/ns 3/ 8

H.F. 151 of any empty beverage container if the place of business of the 1 dealer and the kind and brand of empty beverage containers are 2 included in an order of the department approving a redemption 3 center under section 455C.6 after providing notice to the 4 department if the place of business of the dealer is located 5 within a twenty-mile radius of a redemption center or dealer 6 agent or if the dealer sells prepared food for consumption on 7 or off the premises . 8 3. A dealer or a distributor may refuse to accept and to pay 9 the refund value of an empty wine or alcoholic liquor container 10 which is marked to indicate that it was sold by a state liquor 11 store. The alcoholic beverages division shall not reimburse 12 a dealer or a distributor the refund value on an empty wine or 13 alcoholic liquor container which is marked to indicate that the 14 container was sold by a state liquor store. 15 4. 3. A class “E” liquor control licensee may refuse to 16 accept and to pay the refund value on an empty alcoholic liquor 17 container from a participating dealer or a redemption center 18 or from a person acting on behalf of or who has received empty 19 alcoholic liquor containers from a participating dealer or a 20 redemption center. 21 5. 4. A manufacturer or distributor may refuse to accept 22 and to pay the refund value and reimbursement as provided in 23 section 455C.2 on any empty beverage container that was picked 24 up by a dealer agent from a participating dealer outside the 25 geographic territory served by the manufacturer or distributor. 26 Sec. 8. Section 455C.5, subsection 1, Code 2021, is amended 27 to read as follows: 28 1. Each beverage container sold or offered for sale in 29 this state by a dealer shall clearly indicate the refund value 30 of the container by embossing or by a stamp, label , or other 31 method securely affixed to the container , the refund value of 32 the container . The department shall specify, by rule, the 33 minimum size of the refund value indication on the beverage 34 containers. 35 -4- LSB 1407YH (4) 89 js/ns 4/ 8

H.F. 151 Sec. 9. Section 455C.7, Code 2021, is amended to read as 1 follows: 2 455C.7 Unapproved redemption centers. 3 Any person may establish a redemption center which that has 4 not been approved by the department, at which a consumer may 5 return empty beverage containers and receive payment of the 6 refund value of the beverage containers. The establishment 7 of an unapproved redemption center shall not relieve any 8 dealer from the responsibility of redeeming any empty beverage 9 containers of the kind and brand sold by the dealer except as 10 provided in section 455C.4, subsection 2 . 11 Sec. 10. NEW SECTION . 455C.11 Unpaid refund value. 12 1. Except as provided in subsection 2, a distributor shall 13 keep all refund value that has not been paid by the distributor 14 to a participating dealer, dealer agent, or redemption 15 center. On or before January 31 of each year, the distributor 16 shall submit to the department in a manner determined by the 17 department a report detailing the amount of unpaid refund value 18 that the distributor held at the end of the preceding calendar 19 year. 20 2. Fifteen percent of the refund value that has not been 21 paid by a distributor to a participating dealer, dealer agent, 22 or redemption center on and after July 1, 2021, shall be 23 credited monthly to the treasurer of state for deposit in the 24 following manner: 25 a. One-third of the amount credited to the treasurer of 26 state shall be deposited in the redemption rate improvement 27 projects fund established in section 455C.11A. 28 b. One-third of the amount credited to the treasurer 29 of state shall be deposited in the shelter assistance fund 30 established in section 16.41. 31 c. One-third of the amount credited to the treasurer of 32 state shall be deposited in the Iowa emergency food purchase 33 program fund established in section 190B.201. 34 Sec. 11. NEW SECTION . 455C.11A Redemption rate improvement 35 -5- LSB 1407YH (4) 89 js/ns 5/ 8

H.F. 151 projects program —— fund created. 1 1. The department shall establish and the commission shall 2 administer a redemption rate improvement projects program. The 3 purpose of the program shall be to launch initiatives with 4 interested parties to increase the redemption rate of beverage 5 containers in the state. The program shall be administered in 6 accordance with rules adopted by the commission pursuant to 7 chapter 17A. 8 2. A redemption rate improvement projects program fund is 9 established in the state treasury under the control of the 10 commission. The fund shall consist of moneys appropriated to 11 or deposited in the fund. Moneys in the fund are appropriated 12 to the commission for purposes set forth under subsection 3. 13 Notwithstanding section 8.33, moneys in the fund that remain 14 unencumbered or unobligated at the close of a fiscal year shall 15 not revert but shall remain available for expenditure for the 16 purposes designated. Notwithstanding section 12C.7, subsection 17 2, interest or earnings on moneys in the fund shall be credited 18 to the fund. 19 3. Moneys in the fund shall be used by the commission to 20 cover costs for the administration of the program, purchase and 21 distribute materials for marketing the program, and provide 22 public education and outreach relating to beverage container 23 redemption. 24 Sec. 12. Section 455C.12, subsections 2 and 3, Code 2021, 25 are amended to read as follows: 26 2. A distributor who collects or attempts to collect 27 a refund value on an empty beverage container when the 28 distributor has paid the refund value on the container to a 29 participating dealer, redemption center, or consumer is guilty 30 of a fraudulent practice. 31 3. Any person who does any of the following acts is guilty 32 of a fraudulent practice: 33 a. Collects or attempts to collect the refund value on the 34 container a second time, with the knowledge that the refund 35 -6- LSB 1407YH (4) 89 js/ns 6/ 8

H.F. 151 value has once been paid by the distributor to a participating 1 dealer, redemption center , or consumer. 2 b. Manufactures, sells, possesses , or applies a false or 3 counterfeit label or indication which that shows or purports to 4 show a refund value for a beverage container, with intent to 5 use the false or counterfeit label or indication. 6 c. Collects or attempts to collect a refund value on 7 a container with the use of a false or counterfeit label 8 or indication showing a refund value, knowing the label or 9 indication to be false or counterfeit. 10 EXPLANATION 11 The inclusion of this explanation does not constitute agreement with 12 the explanation’s substance by the members of the general assembly. 13 This bill relates to the applicability of the beverage 14 containers control program. 15 Under current law, when a distributor sells beverages in 16 eligible containers to a dealer, the distributor adds 5 cents 17 per eligible container to the sale price. When a dealer sells 18 beverages in eligible containers to a consumer, the dealer 19 charges the 5-cent deposit on each beverage container. A 20 consumer can take eligible beverage containers to a dealer, 21 dealer agent, or redemption center and receive a 5-cent 22 refund for every eligible beverage container that the consumer 23 returns. A distributor collects eligible containers from a 24 dealer, dealer agent, or redemption center, at which time 25 the distributor pays the dealer, dealer agent, or redemption 26 center 5 cents per eligible container plus a handling fee of 27 an additional 1 cent per empty container. The bill raises the 28 handling fee paid by a distributor to 2 cents for each empty 29 beverage container. 30 Under the bill, a dealer may choose to not accept beverage 31 containers by providing notice to the department of natural 32 resources (DNR) if the dealer’s place of business is within a 33 20-mile radius of a redemption center or dealer agent or if 34 the dealer sells prepared food for consumption on or off the 35 -7- LSB 1407YH (4) 89 js/ns 7/ 8

H.F. 151 premises. The bill refers to dealers that accept beverage 1 containers as “participating dealers”. 2 The bill requires a distributor to keep all refund value 3 that has not been paid by the distributor to a participating 4 dealer, dealer agent, or redemption center and provide an 5 annual report to DNR detailing the amount of unpaid refund 6 value that the distributor held at the end of the preceding 7 calendar year. On a monthly basis beginning July 1, 2021, 8 15 percent of the unpaid refund value that the distributor 9 holds shall be credited to the treasurer of state. One-third 10 of the amount credited shall be deposited in the shelter 11 assistance fund administered by the Iowa finance authority. 12 One-third of the amount credited shall be deposited in the 13 Iowa emergency food purchase program fund administered by the 14 department of agriculture and land stewardship. The remaining 15 one-third of the amount credited shall be deposited in the 16 redemption rates improvement projects fund, which is created 17 by the bill in the state treasury under the control of the 18 environmental protection commission. Moneys in the fund shall 19 be administered by the commission and shall be allocated for 20 purposes of launching and administering initiatives to increase 21 the rate of redemption of beverage containers. 22 The bill makes numerous changes throughout Code chapter 455C 23 to change instances of “dealer” to “participating dealer”, 24 remove obsolete language, and stylistically and grammatically 25 update the Code chapter. 26 -8- LSB 1407YH (4) 89 js/ns 8/ 8