House File 2440 - Introduced HOUSE FILE 2440 BY ISENHART , DONAHUE , BOHANNAN , B. MEYER , STAED , ANDERSON , WINCKLER , McCONKEY , ABDUL-SAMAD , and KURTH A BILL FOR An Act relating to the applicability of the beverage containers 1 control program, including the redemption and handling 2 of beverage containers, providing penalties, making 3 appropriations, and including effective date and transition 4 provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 5218YH (6) 89 js/ns

H.F. 2440 DIVISION I 1 CHANGES TO CURRENT BEVERAGE CONTAINERS CONTROL LAW 2 Section 1. Section 455C.1, subsections 1 and 6, Code 2022, 3 are amended to read as follows: 4 1. “Beverage” means wine as defined in section 123.3, 5 subsection 54 , alcoholic liquor as defined in section 123.3, 6 subsection 5 , beer as defined in section 123.3, subsection 7 7 , high alcoholic content beer as defined in section 123.3, 8 subsection 22, canned cocktail as defined in section 123.3, 9 subsection 11, mineral water, soda water , and similar 10 carbonated soft drinks in liquid form and intended for human 11 consumption. 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. 2. Section 455C.1, Code 2022, is amended by adding the 17 following new subsections: 18 NEW SUBSECTION . 12A. “Participating dealer” means a dealer 19 who accepts the return of empty beverage containers from a 20 consumer. 21 NEW SUBSECTION . 14. “Redemption service provider” means a 22 dealer agent or a registered redemption center. 23 Sec. 3. Section 455C.2, Code 2022, is amended to read as 24 follows: 25 455C.2 Refund values. 26 1. A refund value of not less than five cents shall be paid 27 by the consumer on each beverage container sold in this state 28 by a dealer for consumption off the premises. Upon return of 29 the empty beverage container upon which a refund value has 30 been paid to the a participating dealer or person operating 31 a redemption center and acceptance of the empty beverage 32 container by the participating dealer or person operating a 33 redemption center, the participating dealer or person operating 34 a redemption center shall return the amount of the refund value 35 -1- LSB 5218YH (6) 89 js/ns 1/ 26

H.F. 2440 to the consumer. 1 2. a. In addition to the refund value provided in 2 subsection 1 of this section , a participating dealer , or person 3 operating a redemption center who redeems empty beverage 4 containers or a dealer agent shall be reimbursed by the 5 distributor required to accept the empty beverage containers an 6 amount which that is one cent per container. A dealer, dealer 7 agent, or person operating a redemption center may compact 8 empty metal beverage containers with the approval of the 9 distributor required to accept the containers. A redemption 10 center shall be reimbursed an amount that is two cents per 11 container. 12 b. When a distributor delivers beverage containers to 13 a dealer, the dealer shall pay to the distributor as a 14 contribution to the reimbursement required under paragraph “a” 15 one-half of one cent per beverage container for each beverage 16 container delivered. 17 Sec. 4. Section 455C.3, subsections 1, 2, and 4, Code 2022, 18 are amended to read as follows: 19 1. A participating dealer shall not refuse to accept from a 20 consumer any empty beverage container of the kind, size , and 21 brand sold by the participating dealer, or refuse to pay to the 22 consumer the refund value of a beverage container as provided 23 under section 455C.2 . 24 2. A distributor shall accept and pick up from a 25 participating dealer served by the distributor or a redemption 26 center for a dealer served by the distributor at least weekly, 27 or when the distributor delivers the beverage product if 28 deliveries are less frequent than weekly, any empty beverage 29 container of the kind, size , and brand sold by the distributor, 30 and shall pay to the participating dealer or person operating 31 a redemption center the refund value of a beverage container 32 and the reimbursement as provided under section 455C.2 within 33 one week following pickup of the containers or when the 34 participating dealer or redemption center normally pays the 35 -2- LSB 5218YH (6) 89 js/ns 2/ 26

H.F. 2440 distributor for the deposit on beverage products purchased from 1 the distributor if less frequent than weekly. A distributor 2 or employee or agent of a distributor is not in violation 3 of this subsection if a redemption center is closed when the 4 distributor attempts to make a regular delivery or a regular 5 pickup of empty beverage containers. This subsection does 6 not apply to a distributor selling alcoholic liquor to the 7 alcoholic beverages division of the department of commerce. 8 4. A distributor shall accept from a dealer agent any 9 empty beverage container of the kind, size, and brand sold by 10 the distributor and which that was picked up by the dealer 11 agent from a dealer within the geographic territory served 12 by the distributor and the distributor shall pay the dealer 13 agent the refund value of the empty beverage container and the 14 reimbursement as provided in section 455C.2 . 15 Sec. 5. Section 455C.4, Code 2022, is amended to read as 16 follows: 17 455C.4 Refusal to accept containers. 18 1. Except as provided in section 455C.5, subsection 3 , 19 a participating dealer , a person operating a or redemption 20 center , a distributor or a manufacturer may refuse to accept 21 any empty beverage container which that does not have stated on 22 it a refund value as provided under section 455C.2 . 23 2. a. A dealer may refuse to accept and to pay the 24 refund value of any empty beverage container if the place of 25 business of the dealer and the kind and brand of empty beverage 26 containers are included in an order of the department approving 27 a redemption center under section 455C.6 dealer enters a 28 contract with a redemption service provider who will accept 29 beverage containers on the dealer’s behalf . A dealer may only 30 enter a contract with a registered redemption center under this 31 subsection if the dealer’s place of business is in a county 32 with a population of more than thirty thousand and within five 33 miles of the redemption center or if the dealer’s place of 34 business is in a county with a population of thirty thousand or 35 -3- LSB 5218YH (6) 89 js/ns 3/ 26

H.F. 2440 fewer and within ten miles of the redemption center. 1 b. A dealer who refuses to accept empty beverage containers 2 and enters a contract with a registered redemption center under 3 paragraph “a” shall prominently post on the premises of the 4 dealer’s place of business a sign that includes the location 5 and hours of a registered redemption center with which the 6 dealer has contracted under paragraph “a” . 7 c. A redemption service provider may require as a term of 8 a contract entered into under paragraph “a” that the dealer 9 shall make space available on the dealer’s property for the 10 redemption service provider to collect beverage containers at 11 no cost to the redemption service provider. 12 d. Entering a contract with a dealer agent does not satisfy 13 the contract requirement in paragraph “a” unless the contract 14 requires the dealer agent to return refund value to consumers 15 in the form of cash at the time of return. 16 3. A dealer or a distributor may refuse to accept and to pay 17 the refund value of an empty wine or alcoholic liquor container 18 which is marked to indicate that it was sold by a state liquor 19 store. The alcoholic beverages division shall not reimburse 20 a dealer or a distributor the refund value on an empty wine or 21 alcoholic liquor container which is marked to indicate that the 22 container was sold by a state liquor store. 23 4. 3. A class “E” liquor control licensee may refuse to 24 accept and to pay the refund value on an empty alcoholic liquor 25 container from a participating dealer or a redemption center 26 or from a person acting on behalf of or who has received empty 27 alcoholic liquor containers from a participating dealer or a 28 redemption center. 29 5. 4. A manufacturer or distributor may refuse to accept 30 and to pay the refund value and reimbursement as provided in 31 section 455C.2 on any empty beverage container that was picked 32 up by a dealer agent from a dealer outside the geographic 33 territory served by the manufacturer or distributor. 34 Sec. 6. Section 455C.5, subsection 1, Code 2022, is amended 35 -4- LSB 5218YH (6) 89 js/ns 4/ 26

H.F. 2440 to read as follows: 1 1. Each beverage container sold or offered for sale in 2 this state by a dealer shall clearly indicate the refund value 3 of the container by embossing or by a stamp, label , or other 4 method securely affixed to the container , the refund value of 5 the container . The department shall specify, by rule, the 6 minimum size of the refund value indication on the beverage 7 containers. 8 Sec. 7. Section 455C.6, subsections 1, 2, and 5, Code 2022, 9 are amended to read as follows: 10 1. To facilitate the return of empty beverage containers and 11 to serve dealers of beverages, any person may register with the 12 department pursuant to subsection 2 to establish a redemption 13 center , subject to the approval of the department, at which 14 consumers may return empty beverage containers and receive 15 payment of the refund value of such beverage containers. 16 2. a. An application for approval of Written notice of 17 the operation of a redemption center shall be filed with the 18 department. The application notice shall state the name and 19 address of the person responsible for the establishment and 20 operation of the redemption center, the kind and brand names 21 of the beverage containers which will be accepted at the 22 redemption center, and the names and addresses of the dealers 23 to be served by the redemption center. The application shall 24 contain such other information as the director may reasonably 25 require include the information listed in paragraph “b” . 26 Upon filing a proper notice, the redemption center shall be 27 considered registered for purposes of this chapter. 28 b. A redemption center’s notice filed under paragraph “a” 29 shall be considered proper if it includes all of the following: 30 (1) The name, address, and telephone number of the 31 redemption center. 32 (2) The name, address, and telephone number of the person or 33 persons responsible for the establishment and operation of the 34 redemption center. 35 -5- LSB 5218YH (6) 89 js/ns 5/ 26

H.F. 2440 (3) An indication that the redemption center will accept 1 all kinds, sizes, and brands of beverage containers sold by the 2 dealers served by the redemption center. 3 (4) The names and addresses of the distributors whose 4 beverage containers will be redeemed. 5 (5) The hours during which the redemption center will be 6 open. 7 (6) An indication that the redemption center will be in 8 operation and open to the public for the redemption of beverage 9 containers at least twenty hours per week, four hours of which 10 shall be between the hours of 6:00 p.m. and 10:00 p.m. or on 11 Saturday or Sunday, or a combination thereof. 12 5. All approved redemption centers shall meet applicable 13 health standards. 14 Sec. 8. Section 455C.12, subsection 2, Code 2022, is amended 15 to read as follows: 16 2. A distributor who collects or attempts to collect 17 a refund value on an empty beverage container when the 18 distributor has paid the refund value on the container to a 19 participating dealer, redemption center, or consumer is guilty 20 of a fraudulent practice. 21 Sec. 9. Section 455C.12, subsection 3, paragraphs a and b, 22 Code 2022, are amended to read as follows: 23 a. Collects or attempts to collect the refund value on the 24 container a second time, with the knowledge that the refund 25 value has once been paid by the distributor to a participating 26 dealer, redemption center , or consumer. 27 b. Manufactures, sells, possesses , or applies a false or 28 counterfeit label or indication which that shows or purports to 29 show a refund value for a beverage container, with intent to 30 use the false or counterfeit label or indication. 31 Sec. 10. Section 455C.12, Code 2022, is amended by adding 32 the following new subsection: 33 NEW SUBSECTION . 6. A person who violates any provision of 34 this chapter, or any rule, permit, or order adopted or issued 35 -6- LSB 5218YH (6) 89 js/ns 6/ 26

H.F. 2440 under this chapter, shall be subject to a civil penalty not 1 to exceed two thousand five hundred dollars for each day of 2 the violation. The department shall adopt rules establishing 3 a schedule of civil penalties based on the severity of the 4 violation. Any civil penalty collected under this chapter 5 shall be deposited in the bottle bill enforcement fund 6 established in section 455C.12D. 7 Sec. 11. NEW SECTION . 455C.12A Administrative enforcement 8 —— compliance orders. 9 1. The director may issue any order necessary to secure 10 compliance with or prevent a violation of the provisions of 11 this chapter or any rule adopted or permit or order issued 12 pursuant to this chapter. Any order issued pursuant to this 13 section may impose a civil penalty authorized pursuant to 14 section 455C.12, subsection 6, for a violation of the order, 15 to be collected administratively by the department. The 16 person to whom the compliance order is issued may cause to be 17 commenced a contested case within the meaning of chapter 17A by 18 filing within thirty days a notice of appeal to the director. 19 Following a contested case hearing and a proposed decision 20 issued by the department, the commission may affirm, modify, or 21 vacate the proposed decision. 22 2. If a person continues an alleged violation during the 23 appeals process and the commission affirms that the person has 24 committed a violation, the department may assess penalties for 25 each day the violation continued through the appeals process. 26 Sec. 12. NEW SECTION . 455C.12B Judicial review. 27 Judicial review of any final order or other final action of 28 the commission or director may be sought in accordance with the 29 terms of chapter 17A. Notwithstanding the terms of chapter 30 17A, petitions for judicial review may be filed in the district 31 court of the county in which the alleged offense was committed. 32 Sec. 13. NEW SECTION . 455C.12C Civil actions for compliance 33 —— penalties. 34 The attorney general, on request of the department, shall 35 -7- LSB 5218YH (6) 89 js/ns 7/ 26

H.F. 2440 institute any legal proceedings necessary to obtain compliance 1 with an order of the commission or the director, including 2 proceedings for a temporary injunction, or prosecuting any 3 person for a violation of the provisions of this chapter or 4 any rules adopted or permit or order issued pursuant to this 5 chapter. 6 Sec. 14. NEW SECTION . 455C.12D Bottle bill enforcement 7 fund. 8 A bottle bill enforcement fund is established in the state 9 treasury under the control of the department. The fund shall 10 consist of moneys deposited in the fund pursuant to section 11 455C.12, subsection 6, and any other moneys appropriated to or 12 deposited in the fund. Moneys in the fund are appropriated 13 to the department for purposes of administering and enforcing 14 this chapter. Notwithstanding section 8.33, moneys in the 15 fund that remain unencumbered or unobligated at the close of 16 a fiscal year shall not revert but shall remain available for 17 expenditure for the purposes designated. Notwithstanding 18 section 12C.7, subsection 2, interest or earnings on moneys in 19 the fund shall be credited to the fund. 20 Sec. 15. Section 455C.13, Code 2022, is amended to read as 21 follows: 22 455C.13 Distributors’ Collection and disposal agreements 23 authorized. 24 1. A distributor , dealer, or redemption center may enter 25 into a contract or agreement with any other distributor, 26 manufacturer , or person for the purpose of collecting or paying 27 the refund value on, or disposing of , beverage containers as 28 provided in this chapter . 29 2. For purposes of this chapter, any contracts entered into 30 pursuant to this section for the collection 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. 16. Section 455C.14, subsection 1, Code 2022, is 34 amended to read as follows: 35 -8- LSB 5218YH (6) 89 js/ns 8/ 26

H.F. 2440 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 5 rules adopted pursuant to these sections, the container 6 shall be accepted and the refund value paid to a consumer 7 as provided in this section . Each beer distributor selling 8 nonrefillable metal beverage containers in this state shall 9 provide individually or collectively by contract or agreement 10 with a dealer, person operating a redemption center , or another 11 person, at least one facility in the county seat of each county 12 where refused empty nonrefillable metal beverage containers 13 having a readable refund value indication as required by 14 this chapter are accepted and redeemed. In cities having a 15 population of twenty-five thousand or more, the number of the 16 facilities provided shall be one for each twenty-five thousand 17 population or a fractional part of that population. 18 Sec. 17. Section 455C.16, Code 2022, is amended to read as 19 follows: 20 455C.16 Beverage containers —— disposal at sanitary landfill 21 prohibited. 22 Beginning July 1, 1990, the The final disposal of beverage 23 containers by a dealer, distributor, or manufacturer, or 24 person operating a redemption center, in a sanitary landfill, 25 is prohibited. Beginning September 1, 1992 , including the 26 final disposal of beverage containers that used to contain 27 alcoholic liquor as defined in section 123.3, subsection 5 , 28 by a participating dealer, distributor, or manufacturer, or 29 person operating a redemption center in a sanitary landfill , 30 is prohibited. 31 DIVISION II 32 REPEAL OF CURRENT BEVERAGE CONTAINERS CONTROL LAW 33 Sec. 18. Section 123.24, subsection 2, paragraph d, Code 34 2022, is amended by striking the paragraph. 35 -9- LSB 5218YH (6) 89 js/ns 9/ 26

H.F. 2440 Sec. 19. Section 123.26, Code 2022, is amended to read as 1 follows: 2 123.26 Restrictions on sales —— seals —— labeling. 3 Alcoholic liquor shall not be sold by a class “E” liquor 4 control licensee except in a sealed container with identifying 5 markers as prescribed by the administrator and affixed in the 6 manner prescribed by the administrator, and no such container 7 shall be opened upon the premises of a state warehouse. The 8 division shall cooperate with the department of natural 9 resources so ensure that only one identifying marker or mark is 10 needed to satisfy the requirements of this section and section 11 455C.5 123B.4 , subsection 1 . Possession of alcoholic liquors 12 which that do not carry the prescribed identifying markers is a 13 violation of this chapter except as provided in section 123.22 . 14 Sec. 20. Section 123.187, subsection 3, paragraph e, Code 15 2022, is amended by striking the paragraph. 16 Sec. 21. Section 423.6, subsection 3, paragraph a, Code 17 2022, is amended to read as follows: 18 a. Any tangible personal property including containers 19 for which it is intended shall, by means of fabrication, 20 compounding, manufacturing, or germination, become an integral 21 part of other tangible personal property intended to be sold 22 ultimately at retail, and containers used in the collection, 23 recovery, or return of empty beverage containers subject to 24 chapter 455C 123B . 25 Sec. 22. Section 455A.4, subsection 1, paragraph b, Code 26 2022, is amended to read as follows: 27 b. Provide overall supervision, direction, and coordination 28 of functions to be administered by the administrators under 29 chapters 321G , 321I , 455B , 455C , 456A , 456B , 457A , 458A , 459 , 30 459A , 459B , 461A , 462A , 462B , 464A , 465C , 473 , 481A , 481B , 31 483A , 484A , and 484B . 32 Sec. 23. Section 455A.6, subsection 6, paragraphs a, b, and 33 d, Code 2022, are amended to read as follows: 34 a. Establish policy for the department and adopt rules, 35 -10- LSB 5218YH (6) 89 js/ns 10/ 26

H.F. 2440 pursuant to chapter 17A , necessary to provide for the effective 1 administration of chapter 455B , 455C , or 459 . 2 b. Hear appeals in contested cases pursuant to chapter 17A 3 on matters relating to actions taken by the director under 4 chapter 455C, 458A , 464B , or 473 . 5 d. Approve the budget request prepared by the director 6 for the programs authorized by chapters 455B , 455C , 455E , 7 455F , 455H , and 459, subchapters II and III . The commission 8 shall approve the budget request prepared by the director for 9 programs subject to the rulemaking authority of the commission. 10 The commission may increase, decrease, or strike any item 11 within the department budget request for the specified programs 12 before granting approval. 13 Sec. 24. Section 455B.313, subsection 1, Code 2022, is 14 amended to read as follows: 15 1. A distributor as defined in section 455C.1, subsection 16 9 , shall not sell or offer to sell any beverage container 17 if the beverage container is connected to another beverage 18 container by a device constructed of a material which that is 19 not biodegradable or photodegradable. 20 Sec. 25. Section 455B.313, Code 2022, is amended by adding 21 the following new subsection: 22 NEW SUBSECTION . 3. For purposes of this section, 23 “distributor” means any person who engages in the sale of 24 beverages in beverage containers to a dealer in this state, 25 as those terms are defined in section 123B.1, including any 26 manufacturer who engages in such sales. 27 Sec. 26. REPEAL. Chapter 455C, Code 2022, is repealed. 28 Sec. 27. TRANSITION PROVISIONS. Upon repeal of chapter 29 455C and the creation of the bottle bill deposit fund pursuant 30 to section 123B.11, as enacted by this Act, all moneys in the 31 bottle bill enforcement fund created in section 455C.12D, as 32 enacted by this Act, are transferred to the alcoholic beverages 33 division for deposit in the bottle bill deposit fund. Any 34 moneys credited to the bottle bill enforcement fund on and 35 -11- LSB 5218YH (6) 89 js/ns 11/ 26

H.F. 2440 after January 1, 2024, are transferred to the division for 1 deposit in the bottle bill deposit fund. 2 Sec. 28. EFFECTIVE DATE. This division of this Act takes 3 effect January 1, 2024. 4 DIVISION III 5 NEW BEVERAGE CONTAINERS CONTROL LAW 6 Sec. 29. NEW SECTION . 123B.1 Definitions. 7 As used in this chapter, unless the context otherwise 8 requires: 9 1. a. “Beverage” means any of the following: 10 (1) Wine as defined in section 123.3, subsection 54. 11 (2) Alcoholic liquor as defined in section 123.3, 12 subsection 5. 13 (3) Beer as defined in section 123.3, subsection 7. 14 (4) High alcoholic content beer as defined in section 123.3, 15 subsection 22. 16 (5) Canned cocktail as defined in section 123.3, subsection 17 11. 18 (6) Mineral water, soda water, and similar carbonated soft 19 drinks. 20 (7) Any liquid identified through the use of letters, 21 words, or symbols on its product label as a type of water, 22 including any flavored water or nutritionally enhanced water, 23 in a container greater than or equal to four fluid ounces and 24 less than three liters. 25 (8) Tea or coffee drinks, regardless of dairy-derived 26 content, in a container greater than or equal to four fluid 27 ounces and less than three liters. 28 (9) Juice derived from one or more fruits or vegetables that 29 is intended for direct human consumption and not as a base or 30 additive to any beverage or food, in a container greater than 31 or equal to four fluid ounces and less than three liters. 32 (10) Sports drinks, which are soft drinks designed or 33 marketed for consumption in conjunction with sporting activity 34 or strenuous exercise, and which typically contain electrolytes 35 -12- LSB 5218YH (6) 89 js/ns 12/ 26

H.F. 2440 such as sodium, potassium, and chloride, and a high percentage 1 of sugar to restore energy, in a container greater than or 2 equal to four fluid ounces and less than three liters. 3 (11) Any other liquid that is intended for human consumption 4 and is in a container greater than or equal to four fluid 5 ounces and less than three liters. 6 b. For purposes of this chapter, the term “beverage” 7 excludes all of the following: 8 (1) A liquid that is a syrup, in a concentrated form, 9 or typically added as a minor flavoring ingredient in food 10 or drink, including but not limited to extracts, cooking 11 additives, sauces, or condiments. 12 (2) A liquid that is a drug, medical food, or infant formula 13 as defined by the federal Food, Drug, and Cosmetic Act, 21 14 U.S.C. §301 et seq. 15 (3) A liquid that is designed and consumed only as a 16 dietary supplement as defined in the Dietary Supplement Health 17 and Education Act of 1994, Pub. L. No. 103-417, and not as a 18 beverage. 19 (4) Instant drink powders. 20 (5) Milk, or any product marketed as a plant-based milk, and 21 all other dairy-derived products, except tea or coffee drinks 22 included in paragraph “a” , subparagraph (8). 23 2. “Beverage container” means any sealed glass, plastic, 24 or metal bottle, can, jar, or carton containing a beverage. 25 “Beverage container” does not include foil pouches or drink 26 boxes. 27 3. “Commission” means the alcoholic beverages commission 28 established in chapter 123. 29 4. “Consumer” means any person who purchases a beverage in a 30 beverage container for use or consumption. 31 5. “Dealer” means any person who engages in the sale of 32 beverages in beverage containers to a consumer. 33 6. “Division” means the alcoholic beverages division of the 34 department of commerce established in chapter 123. 35 -13- LSB 5218YH (6) 89 js/ns 13/ 26

H.F. 2440 7. “Redemption center” means a business that provides one or 1 more facilities at which consumers may return empty beverage 2 containers and receive payment for the refund value of the 3 empty beverage containers. 4 Sec. 30. NEW SECTION . 123B.2 Refund values —— recycling 5 —— reimbursement. 6 1. a. A refund value of five cents shall be paid by a 7 consumer to a dealer on each beverage container sold in this 8 state by the dealer for consumption off the premises. 9 b. On a monthly basis, a dealer shall submit to the 10 department of revenue, in a form and manner determined by 11 the department, receipts indicating the number of beverage 12 containers sold by the dealer and the five-cent refund value 13 collected for each beverage container sold by the dealer 14 pursuant to paragraph “a” . The department of revenue shall 15 credit monthly to the treasurer of state for deposit in the 16 bottle bill deposit fund established in section 123B.11 the 17 refund value collected from dealers under this paragraph. 18 2. a. When a manufacturer transfers beverage containers to 19 a distributor, the manufacturer shall pay to the distributor 20 one-half of one cent per beverage container for each beverage 21 container transferred. 22 b. When a distributor delivers beverage containers to a 23 dealer, the dealer shall pay to the distributor one-half of 24 one cent per beverage container for each beverage container 25 delivered. 26 c. Within fourteen days of providing an invoice to a dealer 27 for beverage containers delivered to the dealer, a distributor 28 shall submit to the department of revenue, in a form and 29 manner determined by the department, receipts indicating the 30 number of beverage containers delivered to the dealer by the 31 distributor and payment in an amount equal to one and one-half 32 cents for each beverage container delivered to the dealer. The 33 department of revenue shall credit monthly to the treasurer of 34 state for deposit in the bottle bill deposit fund established 35 -14- LSB 5218YH (6) 89 js/ns 14/ 26

H.F. 2440 in section 123B.11 the moneys collected from a distributor 1 under this paragraph. 2 3. A consumer may only redeem the refund value by returning 3 a beverage container to a registered redemption center 4 facility. Upon return of the empty beverage container, upon 5 which a refund value has been paid, to a registered redemption 6 center facility and acceptance of the empty beverage container 7 by the redemption center, the redemption center shall pay the 8 amount of the refund value to the consumer within ten days. 9 4. A redemption center shall dispose of beverage containers 10 by transporting or causing the transport of the beverage 11 containers to a recycling site. 12 5. On a monthly basis, a redemption center shall be 13 reimbursed by the division from the bottle bill deposit fund 14 established in section 123B.11 the amount of refund value that 15 the redemption center has paid to consumers and the handling 16 fee. The division shall establish the handling fee by rule 17 in an amount that is three cents per beverage container, 18 except that the handling fee shall be one cent per beverage 19 container for a redemption center that does not provide refund 20 value to consumers in the form of cash at the time of return. 21 The division may establish accuracy standards to account for 22 discrepancies in the weight of recycled material and the number 23 of beverage containers the redemption center claims to have 24 been recycled. 25 Sec. 31. NEW SECTION . 123B.3 Refusal to accept containers. 26 A redemption center may refuse to accept any empty beverage 27 container that does not have stated on it a refund value as 28 provided under section 123B.4. 29 Sec. 32. NEW SECTION . 123B.4 Refund value stated on 30 container —— exceptions. 31 1. Each beverage container sold or offered for sale in 32 this state by a dealer shall clearly indicate the refund 33 value of the container by embossing or by a stamp, label, or 34 other method securely affixed to the container. The division 35 -15- LSB 5218YH (6) 89 js/ns 15/ 26

H.F. 2440 shall specify, by rule, the minimum size of the refund value 1 indication on the beverage containers and require registration 2 of the universal product code for each beverage container in a 3 format required by the division. 4 2. A person, except a distributor, shall not import 5 into this state a beverage container that does not have 6 securely affixed to the container the refund value indication. 7 This subsection does not apply under any of the following 8 circumstances: 9 a. For beverage containers containing alcoholic liquor as 10 defined in section 123.3, subsection 5, the total capacity of 11 the containers is not more than one quart or, in the case of 12 alcoholic liquor personally obtained outside the United States, 13 one gallon. 14 b. For beverage containers containing beer as defined 15 in section 123.3, subsection 7, the total capacity of the 16 containers is not more than two hundred eighty-eight fluid 17 ounces. 18 c. For all other beverage containers, the total capacity of 19 the containers is not more than five hundred seventy-six fluid 20 ounces. 21 3. Subsections 1 and 2 do not apply to a refillable glass 22 beverage container that has a brand name permanently marked 23 on it and that has a refund value of five cents, to any other 24 refillable beverage container that has a refund value of five 25 cents and that is exempted by rules adopted by the commission, 26 or to a beverage container sold aboard a commercial airliner or 27 passenger train for consumption on the premises. 28 Sec. 33. NEW SECTION . 123B.5 Redemption centers. 29 1. To facilitate the return of empty beverage containers, 30 any person may register with the division to establish a 31 redemption center facility at which consumers may return empty 32 beverage containers and receive payment of the refund value of 33 such beverage containers. 34 2. a. Written notice of the operation of a redemption 35 -16- LSB 5218YH (6) 89 js/ns 16/ 26

H.F. 2440 center facility shall be filed with the division. The notice 1 shall include the information listed in paragraph “b” . Upon 2 filing a proper notice, the redemption center facility shall be 3 considered registered for purposes of this chapter. 4 b. A notice filed under paragraph “a” shall be considered 5 proper if it includes all of the following: 6 (1) The name, address, and telephone number of the 7 redemption center facility. 8 (2) The name, address, and telephone number of the person or 9 persons responsible for the establishment and operation of the 10 redemption center facility. 11 (3) An indication that the redemption center facility will 12 accept all kinds, sizes, and brands of beverage containers 13 sold by all dealers within five miles of the redemption center 14 facility if the redemption center facility is in a county 15 with a population of more than thirty thousand or sold by all 16 dealers within ten miles of the redemption center facility if 17 the redemption center facility is in a county with a population 18 of thirty thousand or fewer. 19 (4) The names and addresses of the distributors whose 20 beverage containers will be redeemed. 21 (5) The hours during which the redemption center will be 22 open. 23 (6) An indication that the redemption center facility will 24 be in operation and open to the public for the redemption of 25 beverage containers at least twenty hours per week, four hours 26 of which shall be between the hours of 6:00 p.m. and 10:00 p.m. 27 or on Saturday or Sunday, or a combination thereof. 28 Sec. 34. NEW SECTION . 123B.6 Rules. 29 The commission shall adopt, upon recommendation of the 30 division, rules necessary to carry out the provisions of this 31 chapter, subject to the provisions of chapter 17A. 32 Sec. 35. NEW SECTION . 123B.7 Penalties. 33 1. Except as provided in subsection 2, any person violating 34 the provisions of section 123B.2 or 123B.4, or a rule adopted 35 -17- LSB 5218YH (6) 89 js/ns 17/ 26

H.F. 2440 under this chapter, shall be guilty of a simple misdemeanor. 1 2. Any person who does any of the following acts is guilty 2 of a fraudulent practice under chapter 714: 3 a. Collects or attempts to collect the refund value on a 4 beverage container a second time, with the knowledge that the 5 refund value has once been paid by the redemption center to a 6 consumer. 7 b. Manufactures, sells, possesses, or applies a false or 8 counterfeit label or indication that shows or purports to show 9 a refund value for a beverage container, with intent to use the 10 false or counterfeit label or indication. 11 c. Collects or attempts to collect a refund value on 12 a container with the use of a false or counterfeit label 13 or indication showing a refund value, knowing the label or 14 indication to be false or counterfeit. 15 d. Intentionally submits to the division a request for 16 reimbursement of refund value that does not accurately reflect 17 the number of beverage containers collected and recycled by a 18 redemption center for the period that the redemption center 19 seeks reimbursement. 20 3. As used in this section, “a false or counterfeit label 21 or indication” means a label or indication purporting to show 22 a valid refund value that has not been initially applied as 23 authorized by a distributor. 24 4. Subsection 2, paragraph “a” , does not apply to empty 25 beverage containers that are intended to be refillable 26 and are in a standard of condition to be refillable by the 27 manufacturer, notwithstanding any standard for sanitization. 28 5. A person who violates any provision of this chapter 29 shall be subject to a civil penalty that shall be established, 30 assessed, and collected by the division by rule, but shall not 31 exceed two thousand dollars per violation, except as provided 32 in section 123B.10. Any civil penalty collected under this 33 chapter shall be deposited in the general fund of the state. 34 Sec. 36. NEW SECTION . 123B.8 Administrative enforcement —— 35 -18- LSB 5218YH (6) 89 js/ns 18/ 26