H.F. _____ DIVISION I 1 BEVERAGE CONTAINER DEPOSIT REPEAL 2 Section 1. Section 123.26, Code 2022, is amended to read as 3 follows: 4 123.26 Restrictions on sales —— seals —— labeling. 5 Alcoholic liquor shall not be sold by a class “E” liquor 6 control licensee except in a sealed container with identifying 7 markers as prescribed by the administrator and affixed in the 8 manner prescribed by the administrator, and no such container 9 shall be opened upon the premises of a state warehouse. The 10 division shall cooperate with the department of natural 11 resources so that only one identifying marker or mark is needed 12 to satisfy the requirements of this section and section 455C.5, 13 subsection 1 . Possession of alcoholic liquors which that do 14 not carry the prescribed identifying markers is a violation of 15 this chapter except as provided in section 123.22 . 16 Sec. 2. Section 123.187, subsection 3, paragraph e, Code 17 2022, is amended by striking the paragraph. 18 Sec. 3. Section 455C.1, subsection 1, Code 2022, is amended 19 to read as follows: 20 1. “Beverage” means wine as defined in section 123.3, 21 subsection 54 , alcoholic liquor as defined in section 123.3, 22 subsection 5 , beer as defined in section 123.3, subsection 23 7 , high alcoholic content beer as defined in section 123.3, 24 subsection 22, canned cocktail as defined in section 123.3, 25 subsection 11, mineral water, soda water , and similar 26 carbonated soft drinks in liquid form and intended for human 27 consumption. 28 Sec. 4. Section 455C.2, subsection 1, Code 2022, is amended 29 to read as follows: 30 1. A refund value of not less than five cents shall be paid 31 by the consumer on each beverage container sold in this state 32 by a dealer for consumption off the premises. Upon return 33 of the an empty beverage container upon which a refund value 34 has been paid to the a dealer or person operating a redemption 35 -1- LSB 5366YC (1) 89 js/ns 1/ 5

H.F. _____ center and acceptance of the empty beverage container by the 1 dealer or person operating a redemption center, the dealer or 2 person operating a redemption center shall return the amount of 3 the refund value to the consumer. 4 Sec. 5. Section 455C.4, subsection 1, Code 2022, is amended 5 to read as follows: 6 1. Except as provided in section 455C.5, subsection 3 , a A 7 dealer, a person operating a redemption center, a distributor , 8 or a manufacturer may refuse to accept any empty beverage 9 container which that does not have stated on it a refund value 10 as provided under section 455C.2 . 11 Sec. 6. Section 455C.4, subsections 2 and 3, Code 2022, are 12 amended by striking the subsections. 13 Sec. 7. Section 455C.12, subsection 1, Code 2022, is amended 14 to read as follows: 15 1. Any person violating the provisions of section 455C.2 , or 16 455C.3 , or 455C.5 , or a rule adopted under this chapter , shall 17 be guilty of a simple misdemeanor. 18 Sec. 8. Section 455C.14, subsection 1, Code 2022, is amended 19 to read as follows: 20 1. If the a refund value indication required under section 21 455C.5 on an empty nonrefillable metal beverage container 22 is readable but the redemption of the container is lawfully 23 refused by a dealer or person operating a redemption center 24 under other sections of this chapter or rules adopted pursuant 25 to these sections, the container shall be accepted and the 26 refund value paid to a consumer as provided in this section . 27 Each beer distributor selling nonrefillable metal beverage 28 containers in this state shall provide individually or 29 collectively by contract or agreement with a dealer, person 30 operating a redemption center , or another person, at least 31 one facility in the county seat of each county where refused 32 empty nonrefillable metal beverage containers having a 33 readable refund value indication as required by this chapter 34 are accepted and redeemed. In cities having a population of 35 -2- LSB 5366YC (1) 89 js/ns 2/ 5

H.F. _____ twenty-five thousand or more, the number of the facilities 1 provided shall be one for each twenty-five thousand population 2 or a fractional part of that population. 3 Sec. 9. REPEAL. Sections 455C.5, 455C.6, 455C.7, and 4 455C.10, Code 2022, are repealed. 5 Sec. 10. EFFECTIVE DATE. This division of this Act, being 6 deemed of immediate importance, takes effect upon enactment. 7 DIVISION II 8 BEVERAGE CONTAINER REDEMPTION REPEAL 9 Sec. 11. Section 123.24, subsection 2, paragraph d, Code 10 2022, is amended to read as follows: 11 d. A bottle surcharge in an amount sufficient , when 12 added to the amount not refunded to class “E” liquor control 13 licensees pursuant to section 455C.2 , to pay the costs incurred 14 by the division for collecting and properly disposing of the 15 liquor containers. The amount collected pursuant to this 16 paragraph , in addition to any amounts not refunded to class “E” 17 liquor control licensees pursuant to section 455C.2 , shall be 18 deposited in the beer and liquor control fund established under 19 section 123.17 . 20 Sec. 12. Section 423.6, subsection 3, paragraph a, Code 21 2022, is amended to read as follows: 22 a. Any tangible personal property including containers 23 for which it is intended shall, by means of fabrication, 24 compounding, manufacturing, or germination, become an integral 25 part of other tangible personal property intended to be sold 26 ultimately at retail , and containers used in the collection, 27 recovery, or return of empty beverage containers subject to 28 chapter 455C . 29 Sec. 13. Section 455A.6, subsection 6, paragraph d, Code 30 2022, is amended to read as follows: 31 d. Approve the budget request prepared by the director 32 for the programs authorized by chapters 455B , 455C , 455E , 33 455F , 455H , and 459, subchapters II and III . The commission 34 shall approve the budget request prepared by the director for 35 -3- LSB 5366YC (1) 89 js/ns 3/ 5

H.F. _____ programs subject to the rulemaking authority of the commission. 1 The commission may increase, decrease, or strike any item 2 within the department budget request for the specified programs 3 before granting approval. 4 Sec. 14. Section 455C.1, subsection 13, Code 2022, is 5 amended to read as follows: 6 13. “Redemption center” means a facility at which consumers 7 may return empty beverage containers and receive payment for 8 the refund value of the empty beverage containers . 9 Sec. 15. Section 455C.1, subsections 3, 6, 7, 8, 10, and 12, 10 Code 2022, are amended by striking the subsections. 11 Sec. 16. REPEAL. Sections 455C.2, 455C.3, 455C.4, 455C.9, 12 455C.12, 455C.13, and 455C.14, Code 2022, are repealed. 13 Sec. 17. EFFECTIVE DATE. This division of this Act takes 14 effect six months after enactment. 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 This bill provides for the repeal of the beverage containers 19 control program, commonly referred to as the “bottle bill”. 20 Under current law, when a distributor sells beverages 21 in eligible containers to a dealer, the distributor adds 22 5 cents per eligible container to the sale price. When a 23 dealer sells beverages in eligible containers to a consumer, 24 the dealer adds the 5-cent deposit to the sale price of each 25 beverage container. A consumer can take eligible beverage 26 containers to a dealer, dealer agent, or redemption center and 27 receive a 5-cent refund for every eligible beverage container 28 that the consumer returns. A distributor collects eligible 29 containers from a dealer, dealer agent, or redemption center, 30 at which time the distributor pays the dealer, dealer agent, 31 or redemption center 5 cents per eligible container plus a 32 handling fee of an additional 1 cent per eligible container. 33 Upon enactment, the bill strikes the provision of the 34 beverage containers control program that requires a dealer 35 -4- LSB 5366YC (1) 89 js/ns 4/ 5

H.F. _____ to charge a consumer the refund value for each beverage 1 container, repeals the requirement that the refund value be 2 stated on containers, and repeals provisions relating to 3 redemption center approval. Six months thereafter, the bill 4 repeals the remaining provisions of the program, including 5 provisions allowing a consumer to return beverage containers in 6 exchange for the refund value, allowing a dealer or a person 7 operating a redemption center to return beverage containers to 8 a distributor in exchange for the refund value and handling 9 fee, allowing refusal of beverage containers, and providing 10 for associated penalties. However, the bill does not repeal 11 Code section 455C.16, which prohibits disposal of beverage 12 containers in a sanitary landfill by a dealer, distributor, 13 manufacturer, or person operating a redemption center, or 14 strike the associated definitions in Code section 455C.1. 15 The bill amends various Code provisions to conform with 16 changes to the beverage containers control program as changes 17 to the program become effective. 18 -5- LSB 5366YC (1) 89 js/ns 5/ 5