H.F. 2524 Section 1. Section 455C.1, subsections 1 and 6, Code 2022, 1 are amended to read as follows: 2 1. “Beverage” means wine as defined in section 123.3, 3 subsection 54 , alcoholic liquor as defined in section 123.3, 4 subsection 5 , beer as defined in section 123.3, subsection 5 7 , high alcoholic content beer as defined in section 123.3, 6 subsection 22, canned cocktail as defined in section 123.3, 7 subsection 11, mineral water, soda water , and similar 8 carbonated soft drinks in liquid form and intended for human 9 consumption. 10 6. “Dealer agent” means a person who solicits or picks up 11 empty beverage containers from a dealer for the purpose of 12 returning the empty beverage containers to a distributor or 13 manufacturer. 14 Sec. 2. Section 455C.1, Code 2022, is amended by adding the 15 following new subsection: 16 NEW SUBSECTION . 12A. “Participating dealer” means a dealer 17 who accepts the return of empty beverage containers from a 18 consumer. 19 Sec. 3. Section 455C.2, Code 2022, is amended to read as 20 follows: 21 455C.2 Refund values. 22 1. A refund value of not less than five cents shall be paid 23 by the consumer on each beverage container sold in this state 24 by a dealer for consumption off the premises. Upon return of 25 the empty beverage container upon which a refund value has 26 been paid to the participating dealer or person operating 27 a redemption center and acceptance of the empty beverage 28 container by the participating dealer or person operating a 29 redemption center, the participating dealer or person operating 30 a redemption center shall immediately return the amount of 31 the refund value to the consumer. Upon return of the empty 32 beverage container on which a refund value has been paid to a 33 dealer agent, the dealer agent shall return the amount of the 34 refund value to the consumer within a reasonable time. 35 -1- LSB 5260HV (1) 89 js/ns 1/ 9

H.F. 2524 2. In addition to the refund value provided in subsection 1 1 of this section , a participating dealer, dealer agent, or 2 person operating a redemption center who redeems empty beverage 3 containers or a dealer agent shall be reimbursed by the 4 distributor required to accept the empty beverage containers 5 an amount which a handling fee that, before January 1, 2032, 6 is one cent two cents per container. On and after January 1, 7 2032, the handling fee shall be one and one-half cents per 8 container. A participating dealer, dealer agent, or person 9 operating a redemption center may compact empty metal beverage 10 containers with the approval of the distributor required to 11 accept the containers. 12 3. Upon delivery of beverages from a distributor to a 13 dealer, the dealer shall pay a handling fee of one-half cent 14 per container to the distributor. This subsection is repealed 15 January 1, 2032. 16 Sec. 4. Section 455C.3, subsections 1, 2, and 4, Code 2022, 17 are amended to read as follows: 18 1. A participating dealer shall not refuse to accept from a 19 consumer any empty beverage container of the kind, size , and 20 brand sold by the participating dealer, or refuse to pay to the 21 consumer the refund value of a beverage container as provided 22 under section 455C.2 . 23 2. A distributor shall accept and pick up from a 24 participating dealer served by the distributor or a redemption 25 center for a dealer served by the distributor at least weekly, 26 or when the distributor delivers the beverage product if 27 deliveries are less frequent than weekly, any empty beverage 28 container of the kind, size , and brand sold by the distributor, 29 and shall pay to the participating dealer or person operating 30 a redemption center the refund value of a beverage container 31 and the reimbursement as provided under section 455C.2 within 32 one week following pickup of the containers or when the 33 participating dealer or redemption center normally pays the 34 distributor for the deposit on beverage products purchased from 35 -2- LSB 5260HV (1) 89 js/ns 2/ 9

H.F. 2524 the distributor if less frequent than weekly. A distributor 1 or employee or agent of a distributor is not in violation 2 of this subsection if a redemption center is closed when the 3 distributor attempts to make a regular delivery or a regular 4 pickup of empty beverage containers. This subsection does 5 not apply to a distributor selling alcoholic liquor to the 6 alcoholic beverages division of the department of commerce. 7 4. A distributor shall accept from a dealer agent any 8 empty beverage container of the kind, size, and brand sold by 9 the distributor and which that was picked up by the dealer 10 agent from a dealer within the geographic territory served 11 by the distributor and the distributor shall pay the dealer 12 agent the refund value of the empty beverage container and the 13 reimbursement as provided in section 455C.2 . 14 Sec. 5. Section 455C.4, Code 2022, is amended to read as 15 follows: 16 455C.4 Refusal to accept containers. 17 1. Except as provided in section 455C.5, subsection 3 , a 18 participating dealer, a person operating a redemption center, a 19 distributor , or a manufacturer may refuse to accept any empty 20 beverage container which that does not have stated on it a 21 refund value as provided under section 455C.2 . 22 2. A dealer may refuse to accept and to pay the refund value 23 of any empty beverage container if the place of business of the 24 dealer and the kind and brand of empty beverage containers are 25 included in an order of the department approving a redemption 26 center under section 455C.6 if the dealer has provided notice 27 to the department and if the place of business of the dealer is 28 located within a fifteen-mile radius of a redemption center or 29 dealer agent . 30 3. A dealer or a distributor may refuse to accept and to pay 31 the refund value of an empty wine or alcoholic liquor container 32 which is marked to indicate that it was sold by a state liquor 33 store. The alcoholic beverages division shall not reimburse 34 a dealer or a distributor the refund value on an empty wine or 35 -3- LSB 5260HV (1) 89 js/ns 3/ 9

H.F. 2524 alcoholic liquor container which is marked to indicate that the 1 container was sold by a state liquor store. 2 4. 3. A class “E” liquor control licensee may refuse to 3 accept and to pay the refund value on an empty alcoholic liquor 4 container from a participating dealer or a redemption center 5 or from a person acting on behalf of or who has received empty 6 alcoholic liquor containers from a participating dealer or a 7 redemption center. 8 5. 4. A manufacturer or distributor may refuse to accept 9 and to pay the refund value and reimbursement as provided in 10 section 455C.2 on any empty beverage container that was picked 11 up by a dealer agent from a dealer outside the geographic 12 territory served by the manufacturer or distributor. 13 Sec. 6. Section 455C.5, subsection 1, Code 2022, is amended 14 to read as follows: 15 1. Each beverage container sold or offered for sale in 16 this state by a dealer shall clearly indicate the refund value 17 of the container by embossing or by a stamp, label , or other 18 method securely affixed to the container , the refund value of 19 the container . The department shall specify, by rule, the 20 minimum size of the refund value indication on the beverage 21 containers and require registration of the universal product 22 code for each beverage container in a format determined by the 23 department . 24 Sec. 7. Section 455C.6, subsections 1, 2, and 5, Code 2022, 25 are amended to read as follows: 26 1. To facilitate the return of empty beverage containers 27 and to serve dealers of beverages, any person may establish a 28 redemption center , subject to the approval of the department, 29 at which consumers may return empty beverage containers 30 and receive payment of the refund value of such beverage 31 containers. 32 2. An application for approval of a A person operating a 33 redemption center shall file written notice of the operation 34 of the redemption center shall be filed with the department. 35 -4- LSB 5260HV (1) 89 js/ns 4/ 9

H.F. 2524 The application notice shall state the name and address of the 1 person responsible for the establishment and operation of the 2 redemption center , the kind and brand names of the beverage 3 containers which will be accepted at the redemption center, 4 and the names and addresses of the dealers to be served by the 5 redemption center. The application notice shall contain such 6 other information as the director may reasonably require. 7 5. All approved redemption centers shall meet applicable 8 health standards. 9 Sec. 8. Section 455C.6, subsections 3 and 4, Code 2022, are 10 amended by striking the subsections. 11 Sec. 9. Section 455C.12, subsections 2 and 3, Code 2022, are 12 amended to read as follows: 13 2. A distributor who collects or attempts to collect 14 a refund value on an empty beverage container when the 15 distributor has paid the refund value on the container to a 16 participating dealer, redemption center, or consumer is guilty 17 of a fraudulent practice. 18 3. Any person who does any of the following acts is guilty 19 of a fraudulent practice: 20 a. Collects or attempts to collect the refund value on the 21 container a second time, with the knowledge that the refund 22 value has once been paid by the distributor to a participating 23 dealer, redemption center , or consumer. 24 b. Manufactures, sells, possesses , or applies a false or 25 counterfeit label or indication which that shows or purports to 26 show a refund value for a beverage container, with intent to 27 use the false or counterfeit label or indication. 28 c. Collects or attempts to collect a refund value on 29 a container with the use of a false or counterfeit label 30 or indication showing a refund value, knowing the label or 31 indication to be false or counterfeit. 32 Sec. 10. Section 455C.12, Code 2022, is amended by adding 33 the following new subsection: 34 NEW SUBSECTION . 6. Except as provided in section 455C.12C, 35 -5- LSB 5260HV (1) 89 js/ns 5/ 9

H.F. 2524 a person who violates any provision of this chapter shall be 1 subject to a civil penalty of two thousand five hundred dollars 2 per violation, which shall be assessed and collected in the 3 same manner as provided in section 455B.109. Any civil penalty 4 collected under this subsection or section 455C.12C shall be 5 deposited in the general fund of the state. 6 Sec. 11. NEW SECTION . 455C.12A Administrative enforcement 7 —— compliance orders. 8 The director may issue any order necessary to secure 9 compliance with or prevent a violation of the provisions of 10 this chapter or any rule adopted or permit or order issued 11 pursuant to this chapter. The person to whom such compliance 12 order is issued may cause to be commenced a contested case 13 within the meaning of chapter 17A by filing within thirty 14 days a notice of appeal to the commission. On appeal, the 15 commission may affirm, modify, or vacate the order of the 16 director. 17 Sec. 12. NEW SECTION . 455C.12B Judicial review. 18 Judicial review of any order or other action of the 19 commission or director may be sought in accordance with the 20 terms of chapter 17A. Notwithstanding the terms of chapter 21 17A, petitions for judicial review may be filed in the district 22 court of the county in which the alleged offense was committed. 23 Sec. 13. NEW SECTION . 455C.12C Civil actions for compliance 24 —— penalties. 25 1. The attorney general, on request of the department, shall 26 institute any legal proceedings necessary to obtain compliance 27 with an order of the commission or the director, including 28 proceedings for a temporary injunction, or prosecuting any 29 person for a violation of an order of the commission or the 30 director, the provisions of this chapter, or any rules adopted 31 or permit or order issued pursuant to this chapter. 32 2. Any person who violates any order issued pursuant to 33 section 455C.12A shall be subject to a civil penalty not to 34 exceed ten thousand dollars for each day of such violation. 35 -6- LSB 5260HV (1) 89 js/ns 6/ 9

H.F. 2524 Sec. 14. Section 455C.13, Code 2022, is amended to read as 1 follows: 2 455C.13 Distributors’ agreements authorized. 3 1. A distributor , dealer, or person operating a redemption 4 center may enter into a contract or agreement with any other 5 distributor, manufacturer , or person for the purpose of 6 collecting or paying the refund value on, or disposing of, 7 beverage containers as provided in this chapter . 8 2. For purposes of this chapter, any contracts entered into 9 pursuant to this section for the collection or disposal of 10 empty beverage containers shall not be deemed to interfere with 11 the refund value pursuant to section 455C.2. 12 Sec. 15. NEW SECTION . 455C.18 Unclaimed refund values and 13 handling fees. 14 Any amount of refund value or handling fees possessed by a 15 distributor after the distributor has made payments required 16 pursuant to this chapter shall be considered the property of 17 the distributor. 18 Sec. 16. REPEAL. Sections 455C.7, 455C.10, and 455C.14, 19 Code 2022, are repealed. 20 EXPLANATION 21 The inclusion of this explanation does not constitute agreement with 22 the explanation’s substance by the members of the general assembly. 23 This bill relates to the beverage containers control law, 24 also known as the bottle bill. 25 Current law limits beverage containers subject to beverage 26 containers control deposit and refund provisions to any sealed 27 glass, plastic, or metal bottle, can, jar, or carton holding 28 wine, alcoholic liquor, beer, mineral water, soda water, and 29 carbonated soft drinks. When a distributor sells beverages 30 in eligible containers to a dealer, the distributor adds 31 5 cents per eligible container to the sale price. When a 32 dealer sells beverages in eligible containers to a consumer, 33 the dealer adds the 5-cent deposit to the sale price of each 34 beverage container. A consumer can take eligible beverage 35 -7- LSB 5260HV (1) 89 js/ns 7/ 9

H.F. 2524 containers to a dealer, dealer agent, or redemption center and 1 receive a 5-cent refund for every eligible beverage container 2 that the consumer returns. A distributor collects eligible 3 containers from a dealer, dealer agent, or redemption center, 4 at which time the distributor pays the dealer, dealer agent, 5 or redemption center 5 cents per eligible container plus a 6 handling fee of an additional 1 cent per eligible container. 7 The bill adds high alcoholic content beer and canned 8 cocktails to the definition of “beverage”. The bill defines 9 the term “participating dealer”. The bill requires a dealer to 10 pay a .5-cent handling fee to a distributor upon delivery of 11 beverages prior to January 1, 2032, and increases the handling 12 fee that a participating dealer, dealer agent, or redemption 13 center will collect from a distributor from 1 cent to 2 cents. 14 The handling fee will decrease to 1.5 cents on January 1, 2032. 15 The bill requires a participating dealer to accept and pay 16 the refund value of any empty beverage container, except as 17 currently provided by law. The bill requires a participating 18 dealer or a redemption center to immediately return the refund 19 value to a consumer upon the return and acceptance of an 20 empty beverage container for which the refund value has been 21 paid. However, a dealer agent must return the refund value 22 to a consumer within a reasonable time of the return of an 23 empty beverage container for which the refund value has been 24 paid, rather than immediately. A dealer can choose to not be 25 a participating dealer if the dealer provides notice to the 26 department of natural resources (DNR) and the place of business 27 of the dealer is within a 15-mile radius of a redemption center 28 or dealer agent. 29 The bill requires the registration of the universal product 30 code for each beverage container in a format determined by DNR. 31 The bill requires a redemption center to file a notice with 32 DNR but does not require DNR’s approval to operate a redemption 33 center. The bill removes provisions of Code chapter 455C 34 that relate to DNR’s authority to approve redemption centers 35 -8- LSB 5260HV (1) 89 js/ns 8/ 9

H.F. 2524 and that relate to the redemption of refused nonrefillable 1 metal beverage containers. The bill also allows a dealer or 2 person operating a redemption center to enter into contracts 3 or agreements for the collection or disposal of beverage 4 containers. 5 The bill authorizes DNR to establish a civil penalty of 6 $2,500 for a violation of any provision of Code chapter 455C, 7 except for a violation of a compliance order. The bill allows 8 DNR to issue compliance orders, subject to judicial review, 9 that may be enforced by the attorney general. A violation of a 10 compliance order is subject to a civil penalty of not more than 11 $10,000 per day per violation. 12 The bill provides that any amount of refund value or handling 13 fees possessed by a distributor after the distributor has made 14 required payments shall be considered the property of the 15 distributor. 16 -9- LSB 5260HV (1) 89 js/ns 9/ 9