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
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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
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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-
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5218YH
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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
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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
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(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
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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
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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
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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
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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
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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
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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
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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
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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
H.F.
2440
compliance
orders.
1
1.
The
administrator
of
the
division
may
issue
any
order
2
necessary
to
secure
compliance
with
or
prevent
a
violation
of
3
the
provisions
of
this
chapter
or
any
rule
adopted
or
permit
4
or
order
issued
pursuant
to
this
chapter.
The
person
to
whom
5
the
compliance
order
is
issued
may
cause
to
be
commenced
a
6
contested
case
within
the
meaning
of
chapter
17A
by
filing
7
within
thirty
days
a
notice
of
appeal
to
the
commission.
On
8
appeal,
the
commission
may
affirm,
modify,
or
vacate
the
order
9
of
the
administrator
of
the
division.
10
2.
If
a
person
continues
an
alleged
violation
during
the
11
appeals
process
and
the
commission
affirms
that
the
person
has
12
committed
a
violation,
the
division
may
assess
penalties
for
13
each
day
the
violation
continued
through
the
appeals
process.
14
Sec.
37.
NEW
SECTION
.
123B.9
Judicial
review.
15
Judicial
review
of
any
order
or
other
action
of
the
16
commission
or
administrator
of
the
division
may
be
sought
in
17
accordance
with
the
terms
of
chapter
17A.
Notwithstanding
the
18
terms
of
chapter
17A,
petitions
for
judicial
review
may
be
19
filed
in
the
district
court
of
the
county
in
which
the
alleged
20
offense
was
committed.
21
Sec.
38.
NEW
SECTION
.
123B.10
Civil
actions
for
compliance
22
——
penalties.
23
1.
The
attorney
general,
on
request
of
the
division,
shall
24
institute
any
legal
proceedings
necessary
to
obtain
compliance
25
with
an
order
of
the
commission
or
the
administrator
of
the
26
division,
including
proceedings
for
a
temporary
injunction,
27
or
prosecuting
any
person
for
a
violation
of
an
order
of
28
the
commission
or
the
administrator
of
the
division
or
the
29
provisions
of
this
chapter
or
any
rules
adopted
or
permit
or
30
order
issued
pursuant
to
this
chapter.
31
2.
Any
person
who
violates
an
order
issued
pursuant
to
32
section
123B.8
shall
be
subject
to
a
civil
penalty,
not
to
33
exceed
two
thousand
five
hundred
dollars
for
each
day
of
such
34
violation.
35
-19-
LSB
5218YH
(6)
89
js/ns
19/
26
H.F.
2440
Sec.
39.
NEW
SECTION
.
123B.11
Refund
value
payment
program
1
——
fund
created.
2
1.
The
division
shall
establish
and
administer
a
refund
3
value
payment
program.
The
purpose
of
the
program
shall
be
4
to
administer
payments
of
refund
value
and
handling
fees
to
5
redemption
centers
after
the
redemption
centers
accept
empty
6
beverage
containers
from
consumers.
The
program
shall
be
7
administered
in
accordance
with
rules
adopted
by
the
commission
8
pursuant
to
chapter
17A.
9
2.
A
bottle
bill
deposit
fund
is
established
in
the
state
10
treasury
under
the
control
of
the
division.
The
fund
shall
11
consist
of
moneys
deposited
in
the
fund
pursuant
to
section
12
123B.2
and
any
other
moneys
appropriated
to
or
deposited
in
13
the
fund.
Moneys
in
the
fund
are
appropriated
to
the
division
14
for
purposes
designated
in
subsection
4.
Notwithstanding
15
section
8.33,
moneys
in
the
fund
that
remain
unencumbered
or
16
unobligated
at
the
close
of
a
fiscal
year
shall
not
revert
17
but
shall
remain
available
for
expenditure
for
the
purposes
18
designated.
Notwithstanding
section
12C.7,
subsection
2,
19
interest
or
earnings
on
moneys
in
the
fund
shall
be
credited
20
to
the
fund.
21
3.
A
bottle
bill
cash
reserve
account
is
established
22
within
the
bottle
bill
deposit
fund.
Moneys
in
the
bottle
23
bill
deposit
fund
on
July
1,
2025,
shall
be
deposited
in
the
24
account.
The
division
shall
use
moneys
in
the
account
in
the
25
event
that
the
other
moneys
in
the
bottle
bill
deposit
fund
26
are
insufficient
to
issue
reimbursement
and
handling
fees
27
to
redemption
centers.
At
the
end
of
each
fiscal
year,
the
28
account
shall
be
replenished
to
the
original
amount
deposited
29
on
July
1,
2025,
from
the
other
moneys
in
the
bottle
bill
30
deposit
fund
if
such
other
moneys
are
available.
31
4.
Moneys
in
the
fund
shall
be
used
by
the
division
for
all
32
of
the
following
purposes:
33
a.
Issuing
reimbursement
of
refund
value
to
a
redemption
34
center
after
the
redemption
center
accepts
empty
beverage
35
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containers
from
and
pays
the
refund
value
to
a
consumer.
1
b.
Issuing
the
handling
fee
to
a
redemption
center
for
each
2
beverage
container
that
a
redemption
center
accepts
from
a
3
consumer.
4
c.
Covering
administrative
costs
to
administer
the
refund
5
value
payment
program
in
an
amount
determined
by
the
commission
6
by
rule.
7
d.
Providing
grants
to
expand
redemption
capacity
in
8
underserved
areas.
9
e.
Providing
grants
to
nonprofit
organizations
to
engage
in
10
litter
collection
in
public
areas.
11
f.
Providing
reimbursement
for
actual
and
necessary
expenses
12
incurred
by
members
of
the
committee
established
in
section
13
123B.12
in
the
performance
of
their
duties.
14
g.
Replenishing
the
bottle
bill
cash
reserve
account
when
15
necessary.
16
Sec.
40.
NEW
SECTION
.
123B.12
Bottle
bill
advisory
17
committee.
18
1.
The
division
shall
establish
a
bottle
bill
advisory
19
committee.
The
division
shall
determine
by
rule
how
many
20
members
shall
serve
on
the
committee
and
the
length
of
terms
21
for
the
members.
The
committee
shall
include
at
least
one
22
member
involved
in
the
manufacturing
of
beverages,
one
member
23
involved
in
the
distribution
of
beverage
containers,
one
24
member
involved
in
the
sale
of
beverage
containers,
one
member
25
involved
in
the
redemption
of
beverage
containers,
one
member
26
involved
in
the
recycling
of
beverage
containers,
and
one
27
member
representing
consumer
interests.
28
2.
The
members
of
the
committee
shall
be
reimbursed
for
29
actual
and
necessary
expenses
incurred
in
the
performance
of
30
their
duties.
Expenses
shall
be
paid
by
the
division
from
the
31
bottle
bill
deposit
fund
created
in
section
123B.11.
32
3.
The
committee
shall
meet
at
least
once
each
year
to
33
review
the
status
of
the
beverage
containers
control
law
34
as
provided
in
this
chapter.
The
committee
shall
submit
35
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any
recommended
changes
to
the
division
and
to
the
general
1
assembly.
2
Sec.
41.
NEW
SECTION
.
123B.13
Auditing.
3
The
auditor
of
state
may
establish
rules
to
allow
for
4
periodic
auditing
of
entities
receiving
moneys
under
section
5
123B.11,
subsection
4.
6
Sec.
42.
NEW
SECTION
.
455D.9B
Disposal
of
beverage
7
containers
at
sanitary
landfill
prohibited.
8
The
final
disposal
of
beverage
containers,
as
defined
in
9
section
123B.1,
including
the
final
disposal
of
beverage
10
containers
that
used
to
contain
alcoholic
liquor
as
defined
in
11
section
123.3,
subsection
5,
by
a
redemption
center,
as
defined
12
in
section
123B.1,
in
a
sanitary
landfill
is
prohibited.
13
Sec.
43.
EFFECTIVE
DATE.
This
division
of
this
Act
takes
14
effect
January
1,
2024.
15
EXPLANATION
16
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
17
the
explanation’s
substance
by
the
members
of
the
general
assembly.
18
Under
current
law,
a
consumer
may
return
an
empty
beverage
19
container
upon
which
a
refund
value
has
been
paid
to
a
dealer
20
or
a
redemption
center.
When
a
distributor
collects
empty
21
beverage
containers
from
a
dealer,
dealer
agent,
or
redemption
22
center,
the
distributor
reimburses
the
dealer,
dealer
agent,
or
23
redemption
center
the
refund
value
plus
a
1-cent
handling
fee
24
for
each
empty
beverage
container.
Current
law
also
allows
any
25
person
to
establish
a
redemption
center
that
serves
a
dealer
if
26
it
is
approved
by
the
department
of
natural
resources
(DNR).
27
Any
person
can
also
establish
an
unapproved
redemption
center.
28
DIVISION
I.
This
bill
increases
the
handling
fee
for
29
redemption
centers
to
2
cents
per
beverage
container
from
the
30
effective
date
of
this
division
of
the
bill
through
December
31
31,
2023.
During
that
time,
the
bill
requires
a
dealer
to
pay
32
one-half
of
1
cent
per
beverage
container
to
the
distributor
33
for
each
beverage
container
delivered
to
the
dealer
as
a
34
contribution
to
the
handling
fee.
35
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The
bill
expands
the
definition
of
“beverage”
to
include
1
high
alcoholic
content
beer
and
canned
cocktails.
The
bill
2
amends
the
definition
of
“dealer
agent”
so
that
a
dealer
3
agent
is
not
limited
to
soliciting
or
picking
up
empty
4
beverage
containers
from
a
dealer.
The
bill
defines
the
term
5
“redemption
service
provider”,
which
includes
a
registered
6
redemption
center
or
a
dealer
agent.
Under
the
bill,
a
dealer
7
may
choose
to
not
accept
beverage
containers
if
the
dealer
8
enters
a
contract
with
a
redemption
service
provider
who
will
9
accept
beverage
containers
on
the
dealer’s
behalf.
A
dealer
10
may
only
enter
such
a
contract
with
a
registered
redemption
11
center
for
this
purpose
if
the
dealer’s
place
of
business
is
12
in
a
county
with
a
population
of
more
than
30,000
and
within
13
5
miles
of
the
redemption
center
or
if
the
dealer’s
place
of
14
business
is
in
a
county
with
a
population
of
30,000
or
fewer
15
and
within
10
miles
of
the
redemption
center.
The
dealer
is
16
required
to
prominently
post
on
the
premises
of
the
dealer’s
17
place
of
business
a
sign
that
includes
the
location
and
hours
18
of
a
registered
redemption
center
with
which
the
dealer
has
19
contracted.
A
redemption
service
provider
may
require
as
a
20
term
of
a
contract
with
a
dealer
that
the
dealer
shall
make
21
space
available
on
the
dealer’s
property
for
the
redemption
22
service
provider
to
collect
beverage
containers
at
no
cost
to
23
the
redemption
service
provider.
A
contract
between
a
dealer
24
and
a
dealer
agent
will
not
relieve
a
dealer
of
its
duty
to
25
accept
beverage
containers
from
consumers
unless
the
contract
26
requires
the
dealer
agent
to
return
refund
value
to
consumers
27
in
the
form
of
cash
at
the
time
of
return.
28
The
bill
allows
a
person
to
register
to
establish
a
29
redemption
center
by
filing
proper
notice
with
DNR.
The
bill
30
provides
requirements
that
a
person
must
satisfy
to
properly
31
file
notice
of
operation
of
a
redemption
center.
32
The
bill
creates
civil
enforcement
procedures
and
penalties
33
for
a
violation
of
the
provisions
of
Code
chapter
455C,
34
including
a
civil
penalty
of
up
to
$2,500
for
each
day
of
the
35
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violation.
1
The
bill
establishes
a
bottle
bill
enforcement
fund
in
the
2
state
treasury
under
the
control
of
DNR.
The
fund
consists
of
3
moneys
deposited
in
the
fund
from
civil
penalties
collected
4
under
the
bill
and
such
moneys
are
appropriated
to
DNR
for
5
purposes
of
administering
and
enforcing
the
beverage
containers
6
control
program.
7
The
bill
makes
numerous
changes
throughout
Code
chapter
455C
8
to
change
instances
of
“dealer”
to
“participating
dealer”,
9
remove
obsolete
language,
and
stylistically
and
grammatically
10
update
the
Code
chapter.
11
DIVISION
II.
The
bill
repeals
the
current
beverage
12
containers
control
law
(Code
chapter
455C)
on
January
1,
13
2024,
and
makes
corresponding
changes.
Upon
repeal
of
Code
14
chapter
455C,
all
moneys
in
the
bottle
bill
enforcement
fund
15
are
transferred
to
the
alcoholic
beverages
division
(ABD)
16
within
the
department
of
commerce
for
deposit
in
the
bottle
17
bill
deposit
fund
created
in
Division
III
of
the
bill.
Any
18
moneys
credited
to
the
bottle
bill
enforcement
fund
on
and
19
after
January
1,
2024,
are
transferred
to
ABD
for
deposit
in
20
the
bottle
bill
deposit
fund.
21
DIVISION
III.
The
bill
creates
a
new
Code
chapter
123B
22
to
place
beverage
containers
control
provisions
under
the
23
authority
of
ABD.
The
bill
further
expands
the
definition
of
24
“beverage”
to
include
certain
waters,
tea
or
coffee
drinks,
25
juices,
and
sports
drinks,
but
excludes
certain
substances
from
26
the
definition.
The
bill
excludes
foil
pouches
and
drink
boxes
27
from
the
definition
of
“beverage
container”.
28
Under
the
new
beverage
containers
control
provisions,
when
a
29
manufacturer
transfers
beverage
containers
to
a
distributor,
30
the
manufacturer
shall
pay
to
the
distributor
one-half
of
31
1
cent
per
beverage
container
for
each
beverage
container
32
transferred.
When
a
distributor
delivers
beverage
containers
33
to
a
dealer,
the
dealer
shall
pay
to
the
distributor
one-half
34
of
1
cent
per
beverage
container
for
each
beverage
container
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delivered.
Within
14
days
of
providing
an
invoice
to
the
1
dealer,
a
distributor
shall
submit
to
the
department
of
revenue
2
receipts
indicating
the
number
of
beverage
containers
delivered
3
to
the
dealer
by
the
distributor
and
payment
in
an
amount
equal
4
to
1.5
cents
for
each
beverage
container
delivered
to
the
5
dealer.
Additionally,
a
dealer
shall
submit
to
the
department
6
of
revenue
on
a
monthly
basis
receipts
indicating
the
number
7
of
beverage
containers
sold
by
the
dealer
and
the
5-cent
8
refund
value
collected
for
each
beverage
container
sold
by
the
9
dealer.
The
department
of
revenue
shall
credit
monthly
to
the
10
treasurer
of
state
for
deposit
in
the
bottle
bill
deposit
fund
11
established
in
the
bill
the
payments
submitted
by
distributors
12
and
the
refund
value
collected
from
dealers.
13
A
consumer
may
only
redeem
the
refund
value
by
returning
14
an
empty
beverage
container
to
a
registered
redemption
center
15
facility.
The
redemption
center
shall
pay
refund
value
to
16
a
consumer
within
10
days
of
redemption.
After
payment
of
17
the
refund
value
by
a
redemption
center
to
a
consumer,
the
18
redemption
center
shall
dispose
of
empty
beverage
containers
19
by
transporting
the
beverage
containers
to
a
recycling
site.
20
After
a
redemption
center
provides
proof
of
recycling,
ABD
21
shall
reimburse
the
redemption
center
the
refund
value
paid
22
to
consumers
and
a
handling
fee
provided
by
rule,
which
is
23
contingent
on
how
the
redemption
center
provides
refund
value
24
to
consumers.
The
reimbursement
shall
be
paid
from
the
bottle
25
bill
deposit
fund
established
in
the
bill.
This
division
of
26
the
bill
does
not
require
a
distributor
to
pick
up
beverage
27
containers
and
reimburse
redemption
centers.
28
The
bill
provides
penalty
provisions
primarily
based
on
29
simple
misdemeanors
and
fraudulent
practices
in
current
Code
30
chapter
455C,
but
also
creates
the
fraudulent
practice
of
31
intentionally
submitting
to
ABD
a
request
for
reimbursement
32
of
refund
value
that
does
not
accurately
reflect
the
number
33
of
beverage
containers
collected
and
recycled
by
a
redemption
34
center
for
the
period
that
the
redemption
center
seeks
35
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reimbursement.
The
bill
also
provides
for
civil
enforcement
by
1
ABD,
including
the
imposition
of
civil
penalties
not
to
exceed
2
$2,000
for
a
general
violation
of
the
new
beverage
containers
3
control
provisions
or
$2,500
for
each
day
of
a
violation
of
a
4
compliance
order.
5
The
bill
requires
ABD
to
establish
and
administer
a
refund
6
value
payment
program
for
the
purpose
of
administering
payments
7
of
refund
value
and
handling
fees
to
redemption
centers.
The
8
bill
establishes
a
bottle
bill
deposit
fund
in
the
state
9
treasury
under
the
control
of
ABD.
Moneys
in
the
bottle
10
bill
deposit
fund
may
be
used
for
purposes
of
issuing
refund
11
value
and
the
handling
fee
to
a
redemption
center,
covering
12
administrative
costs
to
administer
the
program,
providing
13
grants
to
expand
redemption
capacity
in
underserved
areas,
14
providing
grants
to
nonprofit
organizations
to
engage
in
litter
15
collection
in
public
areas,
providing
reimbursement
for
actual
16
and
necessary
expenses
incurred
by
members
of
the
bottle
bill
17
advisory
committee
established
in
the
bill,
and
replenishing
18
the
bottle
bill
cash
reserve
account
established
within
the
19
fund.
20
The
bill
requires
ABD
to
establish
a
bottle
bill
advisory
21
committee
that
shall
meet
at
least
once
each
year
to
review
22
the
status
of
the
new
beverage
containers
control
law.
The
23
committee
shall
submit
any
recommended
changes
to
ABD
and
the
24
general
assembly.
25
The
bill
authorizes
the
auditor
of
state
to
establish
rules
26
to
allow
for
periodic
auditing
of
entities
receiving
moneys
27
from
the
bottle
bill
deposit
fund.
28
This
division
of
the
bill
takes
effect
January
1,
2024.
29
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