H.F. 892 Section 1. Section 455C.1, subsections 1, 6, and 13, Code 1 2021, 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 13. “Redemption center” means a facility at which consumers 15 may return empty beverage containers and receive payment for 16 the refund value of the empty beverage containers. “Redemption 17 center” includes a participating dealer registered pursuant to 18 section 455C.6A. 19 Sec. 2. Section 455C.1, Code 2021, is amended by adding the 20 following new subsection: 21 NEW SUBSECTION . 12A. “Participating dealer” means a dealer, 22 whether registered or unregistered, who accepts the return of 23 empty beverage containers from a consumer. 24 Sec. 3. Section 455C.2, Code 2021, is amended to read as 25 follows: 26 455C.2 Refund values. 27 1. A refund value of not less than five cents shall be paid 28 by the consumer on each beverage container sold in this state 29 by a dealer for consumption off the premises. Upon return of 30 the empty beverage container upon which a refund value has 31 been paid to the a participating dealer or person operating 32 a redemption center and acceptance of the empty beverage 33 container by the participating dealer or person operating a 34 redemption center, the participating dealer or person operating 35 -1- LSB 2758HW (2) 89 js/ns 1/ 11

H.F. 892 a redemption center shall immediately return the amount of 1 the refund value to the consumer. Upon return of the empty 2 beverage container on which a refund value has been paid to a 3 dealer agent, the dealer agent shall return the amount of the 4 refund value to the consumer within a reasonable time not to 5 exceed fourteen days. 6 2. a. In addition to the refund value provided in 7 subsection 1 of this section , a participating dealer, or person 8 operating a redemption center , who redeems empty beverage 9 containers or a dealer agent shall be reimbursed by the 10 distributor required to accept the empty beverage containers an 11 amount which that is one cent two cents per beverage container 12 for beverage containers accepted between the effective date 13 of this Act and December 31, 2026, and one cent per beverage 14 container for beverage containers accepted on or after January 15 1, 2027 . A participating dealer, dealer agent, or person 16 operating a redemption center may compact empty metal beverage 17 containers with the approval of the distributor required to 18 accept the containers. 19 b. When a distributor delivers beverage containers to 20 a dealer, the dealer shall pay to the distributor as a 21 contribution to the reimbursement required under paragraph “a” 22 one-half of one cent per beverage container for sixty percent 23 of the beverage containers delivered. This paragraph is 24 repealed January 1, 2027. 25 Sec. 4. Section 455C.3, subsections 1, 2, and 4, Code 2021, 26 are amended to read as follows: 27 1. A participating dealer shall not refuse to accept from a 28 consumer any empty beverage container of the kind, size , and 29 brand sold by the participating dealer, or refuse to pay to the 30 consumer the refund value of a beverage container as provided 31 under section 455C.2 . 32 2. A distributor shall accept and pick up from a 33 participating dealer served by the distributor or a redemption 34 center for a dealer served by the distributor at least weekly, 35 -2- LSB 2758HW (2) 89 js/ns 2/ 11

H.F. 892 or when the distributor delivers the beverage product if 1 deliveries are less frequent than weekly, any empty beverage 2 container of the kind, size , and brand sold by the distributor, 3 and shall pay to the participating dealer or person operating 4 a redemption center the refund value of a beverage container 5 and the reimbursement as provided under section 455C.2 within 6 one week following pickup of the containers or when the 7 participating dealer or redemption center normally pays the 8 distributor for the deposit on beverage products purchased from 9 the distributor if less frequent than weekly. A distributor 10 or employee or agent of a distributor is not in violation 11 of this subsection if a redemption center is closed when the 12 distributor attempts to make a regular delivery or a regular 13 pickup of empty beverage containers. This subsection does 14 not apply to a distributor selling alcoholic liquor to the 15 alcoholic beverages division of the department of commerce. 16 4. A distributor shall accept from a dealer agent any 17 empty beverage container of the kind, size, and brand sold by 18 the distributor and which that was picked up by the dealer 19 agent from a dealer within the geographic territory served 20 by the distributor and the distributor shall pay the dealer 21 agent the refund value of the empty beverage container and the 22 reimbursement as provided in section 455C.2 . 23 Sec. 5. Section 455C.4, Code 2021, is amended to read as 24 follows: 25 455C.4 Refusal to accept containers. 26 1. Except as provided in section 455C.5, subsection 3 , 27 a participating dealer, a person operating dealer agent, a 28 redemption center, a distributor , or a manufacturer may refuse 29 to accept any empty beverage container which that does not have 30 stated on it a refund value as provided under section 455C.2 . 31 2. a. A dealer may refuse to accept and to pay the 32 refund value of any empty beverage container if the place of 33 business of the dealer and the kind and brand of empty beverage 34 containers are included in an order of the department approving 35 -3- LSB 2758HW (2) 89 js/ns 3/ 11

H.F. 892 a redemption center under section 455C.6. dealer’s place of 1 business is in a county with a population of more than thirty 2 thousand and within ten miles of a registered redemption center 3 or if the dealer’s place of business is in a county with a 4 population of thirty thousand or fewer and within fifteen miles 5 of a registered redemption center. 6 b. A dealer who refuses to accept empty beverage containers 7 under paragraph “a” shall prominently post on the premises 8 of the dealer’s place of business a sign that includes the 9 location and hours of a registered redemption center that 10 qualifies for purposes of paragraph “a” . 11 3. A dealer or a distributor may refuse to accept and to pay 12 the refund value of an empty wine or alcoholic liquor container 13 which is marked to indicate that it was sold by a state liquor 14 store. The alcoholic beverages division shall not reimburse 15 a dealer or a distributor the refund value on an empty wine or 16 alcoholic liquor container which is marked to indicate that the 17 container was sold by a state liquor store. 18 4. 3. A class “E” liquor control licensee may refuse to 19 accept and to pay the refund value on an empty alcoholic liquor 20 container from a participating dealer or a redemption center 21 or from a person acting on behalf of or who has received empty 22 alcoholic liquor containers from a dealer or a redemption 23 center. 24 5. 4. A manufacturer or distributor may refuse to accept 25 and to pay the refund value and reimbursement as provided in 26 section 455C.2 on any empty beverage container that was picked 27 up by a dealer agent from a dealer outside the geographic 28 territory served by the manufacturer or distributor. 29 Sec. 6. Section 455C.5, subsection 1, Code 2021, is amended 30 to read as follows: 31 1. Each beverage container sold or offered for sale in 32 this state by a dealer shall clearly indicate the refund value 33 of the container by embossing or by a stamp, label , or other 34 method securely affixed to the container , the refund value of 35 -4- LSB 2758HW (2) 89 js/ns 4/ 11

H.F. 892 the container . The department shall specify, by rule, the 1 minimum size of the refund value indication on the beverage 2 containers. 3 Sec. 7. Section 455C.6, subsections 1, 2, and 5, Code 2021, 4 are amended to read as follows: 5 1. To facilitate the return of empty beverage containers 6 and to serve dealers of beverages, any person may establish a 7 redemption center , subject to the approval of the department, 8 at which consumers may return empty beverage containers 9 and receive payment of the refund value of such beverage 10 containers. 11 2. a. An application for approval of Written notice of 12 the operation of a redemption center shall be filed with the 13 department. The application notice shall state the name and 14 address of the person responsible for the establishment and 15 operation of the redemption center, the kind and brand names 16 of the beverage containers which will be accepted at the 17 redemption center, and the names and addresses of the dealers 18 to be served by the redemption center. The application shall 19 contain such other information as the director may reasonably 20 require include the information listed in paragraph “b” . 21 Upon filing a proper notice, the redemption center shall be 22 considered registered for purposes of this chapter. 23 b. A redemption center’s notice filed under paragraph “a” 24 shall be considered proper if it includes all of the following: 25 (1) The name, address, and telephone number of the 26 redemption center. 27 (2) The name, address, and telephone number of the person or 28 persons responsible for the establishment and operation of the 29 redemption center. 30 (3) An indication that the redemption center will accept 31 all kinds, sizes, and brands of beverage containers sold by the 32 dealers served by the redemption center. 33 (4) The names and addresses of the distributors whose 34 beverage containers will be redeemed. 35 -5- LSB 2758HW (2) 89 js/ns 5/ 11

H.F. 892 (5) The hours during which the redemption center will be 1 open. 2 (6) An indication that the redemption center will be in 3 operation and open to the public for the redemption of beverage 4 containers at least twenty hours per week, four hours of which 5 shall be between the hours of 6:00 p.m. and 10:00 p.m. or on 6 Saturday or Sunday, or a combination thereof. 7 (7) A statement of whether metal, glass, or plastic beverage 8 containers will be crushed or broken and, if so, the written 9 consent of the distributor or manufacturer authorizing the 10 crushing or breaking. 11 5. All approved redemption centers shall meet applicable 12 health standards. 13 Sec. 8. Section 455C.6, subsections 3 and 4, Code 2021, are 14 amended by striking the subsections. 15 Sec. 9. NEW SECTION . 455C.6A Participating dealer acting as 16 registered redemption center. 17 A participating dealer may register with the department to 18 act as a registered redemption center for purposes of this 19 chapter. 20 Sec. 10. Section 455C.12, subsections 2 and 3, Code 2021, 21 are amended to read as follows: 22 2. A distributor who collects or attempts to collect 23 a refund value on an empty beverage container when the 24 distributor has paid the refund value on the container to a 25 participating dealer, dealer agent, redemption center, or 26 consumer is guilty of a fraudulent practice. 27 3. Any person who does any of the following acts is guilty 28 of a fraudulent practice: 29 a. Collects or attempts to collect the refund value on the 30 container a second time, with the knowledge that the refund 31 value has once been paid by the distributor to a participating 32 dealer, dealer agent, redemption center , or consumer. 33 b. Manufactures, sells, possesses , or applies a false or 34 counterfeit label or indication which that shows or purports to 35 -6- LSB 2758HW (2) 89 js/ns 6/ 11

H.F. 892 show a refund value for a beverage container, with intent to 1 use the false or counterfeit label or indication. 2 c. Collects or attempts to collect a refund value on 3 a container with the use of a false or counterfeit label 4 or indication showing a refund value, knowing the label or 5 indication to be false or counterfeit. 6 Sec. 11. Section 455C.12, Code 2021, is amended by adding 7 the following new subsection: 8 NEW SUBSECTION . 6. A person who violates any provision of 9 this chapter, or any rule, permit, or order adopted or issued 10 under this chapter, shall be subject to a civil penalty not 11 to exceed two thousand five hundred dollars for each day of 12 the violation. The department shall adopt rules establishing 13 a schedule of civil penalties based on the severity of the 14 violation. Any civil penalty collected under this chapter 15 shall be deposited in the bottle bill fund established in 16 section 455C.12D. 17 Sec. 12. NEW SECTION . 455C.12A Administrative enforcement 18 —— compliance orders. 19 1. The director may issue any order necessary to secure 20 compliance with or prevent a violation of the provisions of 21 this chapter or any rule adopted or permit or order issued 22 pursuant to this chapter. Any order issued pursuant to this 23 section may impose a civil penalty authorized pursuant to 24 section 455C.12, subsection 6, for a violation of the order, 25 to be collected administratively by the department. The 26 person to whom the compliance order is issued may cause to be 27 commenced a contested case within the meaning of chapter 17A by 28 filing within thirty days a notice of appeal to the director. 29 Following a contested case hearing and a proposed decision 30 issued by the department, the commission may affirm, modify, or 31 vacate the proposed decision. 32 2. If a person continues an alleged violation during the 33 appeals process and the commission affirms that the person has 34 committed a violation, the department may assess penalties for 35 -7- LSB 2758HW (2) 89 js/ns 7/ 11

H.F. 892 each day the violation continued through the appeals process. 1 Sec. 13. NEW SECTION . 455C.12B Judicial review. 2 Judicial review of any final order or other final action of 3 the commission or director may be sought in accordance with the 4 terms of chapter 17A. Notwithstanding the terms of chapter 5 17A, petitions for judicial review may be filed in the district 6 court of the county in which the alleged offense was committed. 7 Sec. 14. NEW SECTION . 455C.12C Civil actions for compliance 8 —— penalties. 9 The attorney general, on request of the department, shall 10 institute any legal proceedings necessary to obtain compliance 11 with an order of the commission or the director, including 12 proceedings for a temporary injunction, or prosecuting any 13 person for a violation of the provisions of this chapter or 14 any rules adopted or permit or order issued pursuant to this 15 chapter. 16 Sec. 15. NEW SECTION . 455C.12D Bottle bill fund. 17 A bottle bill fund is established in the state treasury 18 under the control of the department. The fund shall consist 19 of moneys deposited in the fund pursuant to section 455C.12, 20 subsection 6, and any other moneys appropriated to or deposited 21 in the fund. Moneys in the fund are appropriated to the 22 department for purposes of administering and enforcing this 23 chapter. Notwithstanding section 8.33, moneys in the fund 24 that remain unencumbered or unobligated at the close of a 25 fiscal year shall not revert but shall remain available for 26 expenditure for the purposes designated. Notwithstanding 27 section 12C.7, subsection 2, interest or earnings on moneys in 28 the fund shall be credited to the fund. 29 Sec. 16. Section 455C.13, Code 2021, is amended to read as 30 follows: 31 455C.13 Distributors’ agreements authorized. 32 1. A distributor , dealer, or redemption center may enter 33 into a contract or agreement with any other distributor, 34 manufacturer , or person for the purpose of collecting or paying 35 -8- LSB 2758HW (2) 89 js/ns 8/ 11

H.F. 892 the refund value on, or disposing of, beverage containers as 1 provided in this chapter . 2 2. For purposes of this chapter, any contracts entered into 3 pursuant to this section for the collection or disposal of 4 empty beverage containers shall not be deemed to interfere with 5 the refund value pursuant to section 455C.2. A contract shall 6 not authorize a person to offer and pay a refund value of less 7 than five cents. 8 Sec. 17. REPEAL. Sections 455C.7, 455C.10, and 455C.14, 9 Code 2021, are repealed. 10 Sec. 18. LEGISLATIVE FISCAL COMMITTEE REVIEW. 11 1. The legislative fiscal committee established in 12 section 2.45 shall hold a meeting during the legislative 13 interim immediately preceding the 2025 regular legislative 14 session. During the meeting, the committee shall review the 15 enforcement of chapter 455C by the department of natural 16 resources, including the collection of civil penalties, the 17 report submitted by the attorney general pursuant to subsection 18 2, whether and how many redemption centers and participating 19 dealers registered with the department, and the adequacy of 20 the reimbursement amount under section 455C.2, subsection 21 2. The committee shall submit a report of its findings and 22 recommendations to the general assembly no later than January 23 31, 2025. 24 2. The attorney general shall submit a report to the 25 general assembly prior to the legislative fiscal committee’s 26 meetings under subsection 1. The report shall detail any legal 27 proceedings arising under chapter 455C since the effective date 28 of this Act. 29 Sec. 19. EFFECTIVE DATE. This Act takes effect January 1, 30 2022. 31 EXPLANATION 32 The inclusion of this explanation does not constitute agreement with 33 the explanation’s substance by the members of the general assembly. 34 Under current law, a consumer may return an empty beverage 35 -9- LSB 2758HW (2) 89 js/ns 9/ 11

H.F. 892 container upon which a refund value has been paid to a dealer 1 or a redemption center. When a distributor collects empty 2 beverage containers from a dealer, dealer agent, or redemption 3 center, the distributor reimburses the dealer, dealer agent, or 4 redemption center the refund value plus a 1-cent handling fee 5 for each empty beverage container. Current law also allows any 6 person to establish a redemption center that serves a dealer 7 if it is approved by the department of natural resources. Any 8 person can also establish an unapproved redemption center. 9 This bill increases the handling fee to 2 cents per beverage 10 container from the effective date of the bill through December 11 31, 2026. During that time, the bill requires a dealer to pay 12 one-half of 1 cent per beverage container to the distributor 13 for 60 percent of the beverage containers delivered to the 14 dealer as a contribution to the handling fee. 15 Under the bill, a dealer may choose to not accept beverage 16 containers if the dealer’s place of business is in a county 17 with a population of more than 30,000 and within 10 miles of 18 a registered redemption center or if the dealer’s place of 19 business is in a county with a population of 30,000 or fewer 20 and within 15 miles of a registered redemption center. 21 The bill amends the definition of “dealer agent” so that a 22 dealer agent is not limited to soliciting or picking up empty 23 beverage containers from a dealer. 24 The bill allows a person to establish a redemption center by 25 filing proper notice with the department. The bill provides 26 requirements that a person must satisfy to properly file notice 27 of operation of a redemption center. Upon filing proper 28 notice, the redemption center shall be considered a registered 29 redemption center for purposes of the bill. Additionally, a 30 participating dealer may register with the department to act as 31 a registered redemption center for purposes of the bill. 32 The bill creates civil enforcement procedures and penalties 33 for a violation of the provisions of the bill, including a 34 civil penalty of up to $2,500 for each day of the violation. 35 -10- LSB 2758HW (2) 89 js/ns 10/ 11

H.F. 892 The bill establishes a bottle bill fund in the state treasury 1 under the control of the department. The fund shall consist 2 of moneys deposited in the fund from civil penalties collected 3 under the bill and such moneys are appropriated to the 4 department for purposes of administering and enforcing the 5 beverage containers control program. 6 The bill requires the legislative fiscal committee to hold a 7 meeting during the legislative interim immediately preceding 8 the 2025 regular legislative session. Prior to the meeting, 9 the attorney general shall submit to the general assembly 10 for the committee’s review a report that details any legal 11 proceedings arising under the beverage containers control 12 program since the effective date of the bill. The committee 13 shall review the enforcement of the beverage containers 14 control program, the attorney general’s report, whether and how 15 many redemption centers and participating dealers registered 16 with the department, and the adequacy of the handling fee. 17 The committee shall submit a report of its findings and 18 recommendations to the general assembly no later than January 19 31, 2025. 20 The bill makes numerous changes throughout Code chapter 455C 21 to change instances of “dealer” to “participating dealer”, 22 remove obsolete language, and stylistically and grammatically 23 update the Code chapter. 24 The bill takes effect January 1, 2022. 25 -11- LSB 2758HW (2) 89 js/ns 11/ 11