S.F. 2122 DIVISION I 1 FUTURE CHANGES TO CURRENT BEVERAGE CONTAINER 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 13 up empty beverage containers from a participating dealer for 14 the purpose of returning the empty beverage containers to a 15 distributor or manufacturer. 16 Sec. 2. Section 455C.1, Code 2022, is amended by adding the 17 following new subsection: 18 NEW SUBSECTION . 12A. “Participating dealer” means a dealer 19 who accepts the return of empty beverage containers from a 20 consumer. 21 Sec. 3. Section 455C.2, Code 2022, is amended to read as 22 follows: 23 455C.2 Refund values. 24 1. A refund value of not less than five cents shall be paid 25 by the consumer on each beverage container sold in this state 26 by a dealer for consumption off the premises. Upon return of 27 the empty beverage container upon which a refund value has 28 been paid to the a participating dealer or person operating 29 a redemption center and acceptance of the empty beverage 30 container by the participating dealer or person operating a 31 redemption center, the participating dealer or person operating 32 a redemption center shall return the amount of the refund value 33 to the consumer. 34 2. In addition to the refund value provided in subsection 1 35 -1- LSB 5962XS (1) 89 js/ns 1/ 17

S.F. 2122 of this section , a participating dealer , or person operating a 1 redemption center who redeems empty beverage containers or a 2 dealer agent shall be reimbursed by the distributor required 3 to accept the empty beverage containers an amount which that 4 is one cent per container. A dealer, dealer agent, or person 5 operating a redemption center may compact empty metal beverage 6 containers with the approval of the distributor required to 7 accept the containers. A redemption center shall be reimbursed 8 an amount that is two cents per container. 9 Sec. 4. Section 455C.3, subsections 1, 2, and 4, Code 2022, 10 are amended to read as follows: 11 1. A participating dealer shall not refuse to accept from 12 a consumer any empty beverage container of the kind, size and 13 brand sold by the participating dealer, or refuse to pay to the 14 consumer the refund value of a beverage container as provided 15 under section 455C.2 . 16 2. A distributor shall accept and pick up from a 17 participating dealer served by the distributor or a redemption 18 center for a dealer served by the distributor at least weekly, 19 or when the distributor delivers the beverage product if 20 deliveries are less frequent than weekly, any empty beverage 21 container of the kind, size , and brand sold by the distributor, 22 and shall pay to the participating dealer or person operating 23 a redemption center the refund value of a beverage container 24 and the reimbursement as provided under section 455C.2 within 25 one week following pickup of the containers or when the 26 participating dealer or redemption center normally pays the 27 distributor for the deposit on beverage products purchased from 28 the distributor if less frequent than weekly. A distributor 29 or employee or agent of a distributor is not in violation 30 of this subsection if a redemption center is closed when the 31 distributor attempts to make a regular delivery or a regular 32 pickup of empty beverage containers. This subsection does 33 not apply to a distributor selling alcoholic liquor to the 34 alcoholic beverages division of the department of commerce. 35 -2- LSB 5962XS (1) 89 js/ns 2/ 17

S.F. 2122 4. A distributor shall accept from a dealer agent any empty 1 beverage container of the kind, size, and brand sold by the 2 distributor and which that was picked up by the dealer agent 3 from a participating dealer within the geographic territory 4 served by the distributor and the distributor shall pay the 5 dealer agent the refund value of the empty beverage container 6 and the reimbursement as provided in section 455C.2 . 7 Sec. 5. Section 455C.4, Code 2022, is amended to read as 8 follows: 9 455C.4 Refusal to accept containers. 10 1. Except as provided in section 455C.5, subsection 3 , 11 a participating dealer , a person operating a or redemption 12 center , a distributor or a manufacturer may refuse to accept 13 any empty beverage container which that does not have stated on 14 it a refund value as provided under section 455C.2 . 15 2. A dealer may refuse to accept and to pay the refund value 16 of any empty beverage container if the place of business of the 17 dealer and the kind and brand of empty beverage containers are 18 included in an order of the department approving a redemption 19 center under section 455C.6 if a redemption center is located 20 within a twenty-mile radius of the dealer . 21 3. A dealer or a distributor may refuse to accept and to pay 22 the refund value of an empty wine or alcoholic liquor container 23 which is marked to indicate that it was sold by a state liquor 24 store. The alcoholic beverages division shall not reimburse 25 a dealer or a distributor the refund value on an empty wine or 26 alcoholic liquor container which is marked to indicate that the 27 container was sold by a state liquor store. 28 4. 3. A class “E” liquor control licensee may refuse to 29 accept and to pay the refund value on an empty alcoholic liquor 30 container from a participating dealer or a redemption center 31 or from a person acting on behalf of or who has received empty 32 alcoholic liquor containers from a participating dealer or a 33 redemption center. 34 5. 4. A manufacturer or distributor may refuse to accept 35 -3- LSB 5962XS (1) 89 js/ns 3/ 17

S.F. 2122 and to pay the refund value and reimbursement as provided in 1 section 455C.2 on any empty beverage container that was picked 2 up by a dealer agent from a participating dealer outside the 3 geographic territory served by the manufacturer or distributor. 4 Sec. 6. Section 455C.5, subsection 1, Code 2022, is amended 5 to read as follows: 6 1. Each beverage container sold or offered for sale in 7 this state by a dealer shall clearly indicate the refund value 8 of the container by embossing or by a stamp, label , or other 9 method securely affixed to the container , the refund value of 10 the container . The department shall specify, by rule, the 11 minimum size of the refund value indication on the beverage 12 containers. 13 Sec. 7. Section 455C.12, subsection 2, Code 2022, is amended 14 to read as follows: 15 2. A distributor who collects or attempts to collect 16 a refund value on an empty beverage container when the 17 distributor has paid the refund value on the container to a 18 participating dealer, redemption center, or consumer is guilty 19 of a fraudulent practice. 20 Sec. 8. Section 455C.12, subsection 3, paragraphs a and b, 21 Code 2022, are amended to read as follows: 22 a. Collects or attempts to collect the refund value on the 23 container a second time, with the knowledge that the refund 24 value has once been paid by the distributor to a participating 25 dealer, redemption center , or consumer. 26 b. Manufactures, sells, possesses , or applies a false or 27 counterfeit label or indication which that shows or purports to 28 show a refund value for a beverage container, with intent to 29 use the false or counterfeit label or indication. 30 Sec. 9. Section 455C.13, Code 2022, is amended to read as 31 follows: 32 455C.13 Distributors’ Collection and disposal agreements 33 authorized. 34 1. A distributor , dealer, or redemption center may enter 35 -4- LSB 5962XS (1) 89 js/ns 4/ 17

S.F. 2122 into a contract or agreement with any other distributor, 1 manufacturer , or person for the purpose of collecting or paying 2 the refund value on, or disposing of , beverage containers as 3 provided in this chapter . 4 2. For purposes of this chapter, any contracts entered into 5 pursuant to this section for the collection or disposal of 6 empty beverage containers shall not be deemed to interfere with 7 the refund value pursuant to section 455C.2. 8 Sec. 10. Section 455C.14, subsection 1, Code 2022, is 9 amended to read as follows: 10 1. If the refund value indication required under section 11 455C.5 on an empty nonrefillable metal beverage container 12 is readable but the redemption of the container is lawfully 13 refused by a participating dealer or person operating a 14 redemption center under other sections of this chapter or 15 rules adopted pursuant to these sections, the container 16 shall be accepted and the refund value paid to a consumer 17 as provided in this section . Each beer distributor selling 18 nonrefillable metal beverage containers in this state shall 19 provide individually or collectively by contract or agreement 20 with a dealer, person operating a redemption center , or another 21 person, at least one facility in the county seat of each county 22 where refused empty nonrefillable metal beverage containers 23 having a readable refund value indication as required by 24 this chapter are accepted and redeemed. In cities having a 25 population of twenty-five thousand or more, the number of the 26 facilities provided shall be one for each twenty-five thousand 27 population or a fractional part of that population. 28 Sec. 11. Section 455C.16, Code 2022, is amended to read as 29 follows: 30 455C.16 Beverage containers —— disposal at sanitary landfill 31 prohibited. 32 Beginning July 1, 1990, the The final disposal of beverage 33 containers by a dealer, distributor, or manufacturer, or 34 person operating a redemption center, in a sanitary landfill, 35 -5- LSB 5962XS (1) 89 js/ns 5/ 17

S.F. 2122 is prohibited. Beginning September 1, 1992 , including the 1 final disposal of beverage containers that used to contain 2 alcoholic liquor as defined in section 123.3, subsection 5 , 3 by a participating dealer, distributor, or manufacturer, or 4 person operating a redemption center in a sanitary landfill , 5 is prohibited. 6 Sec. 12. EFFECTIVE DATE. This division of this Act takes 7 effect July 1, 2023. 8 DIVISION II 9 REPEAL OF CURRENT BEVERAGE CONTAINER CONTROL LAW 10 Sec. 13. Section 123.24, subsection 2, paragraph d, Code 11 2022, is amended by striking the paragraph. 12 Sec. 14. Section 123.26, Code 2022, is amended to read as 13 follows: 14 123.26 Restrictions on sales —— seals —— labeling. 15 Alcoholic liquor shall not be sold by a class “E” liquor 16 control licensee except in a sealed container with identifying 17 markers as prescribed by the administrator and affixed in the 18 manner prescribed by the administrator, and no such container 19 shall be opened upon the premises of a state warehouse. The 20 division shall cooperate with the department of natural 21 resources so that only one identifying marker or mark is needed 22 to satisfy the requirements of this section and section 455C.5, 23 subsection 1 . Possession of alcoholic liquors which that do 24 not carry the prescribed identifying markers is a violation of 25 this chapter except as provided in section 123.22 . 26 Sec. 15. Section 123.187, subsection 3, paragraph e, Code 27 2022, is amended by striking the paragraph. 28 Sec. 16. Section 423.6, subsection 3, paragraph a, Code 29 2022, is amended to read as follows: 30 a. Any tangible personal property including containers 31 for which it is intended shall, by means of fabrication, 32 compounding, manufacturing, or germination, become an integral 33 part of other tangible personal property intended to be sold 34 ultimately at retail , and containers used in the collection, 35 -6- LSB 5962XS (1) 89 js/ns 6/ 17

S.F. 2122 recovery, or return of empty beverage containers subject to 1 chapter 455C . 2 Sec. 17. Section 455A.4, subsection 1, paragraph b, Code 3 2022, is amended to read as follows: 4 b. Provide overall supervision, direction, and coordination 5 of functions to be administered by the administrators under 6 chapters 321G , 321I , 455B , 455C , 456A , 456B , 457A , 458A , 459 , 7 459A , 459B , 461A , 462A , 462B , 464A , 465C , 473 , 481A , 481B , 8 483A , 484A , and 484B . 9 Sec. 18. Section 455A.6, subsection 6, paragraphs a, b, and 10 d, Code 2022, are amended to read as follows: 11 a. Establish policy for the department and adopt rules, 12 pursuant to chapter 17A , necessary to provide for the effective 13 administration of chapter 455B , 455C , or 459 . 14 b. Hear appeals in contested cases pursuant to chapter 17A 15 on matters relating to actions taken by the director under 16 chapter 455C, 458A , 464B , or 473 . 17 d. Approve the budget request prepared by the director 18 for the programs authorized by chapters 455B , 455C , 455E , 19 455F , 455H , and 459, subchapters II and III . The commission 20 shall approve the budget request prepared by the director for 21 programs subject to the rulemaking authority of the commission. 22 The commission may increase, decrease, or strike any item 23 within the department budget request for the specified programs 24 before granting approval. 25 Sec. 19. Section 455B.313, subsection 1, Code 2022, is 26 amended to read as follows: 27 1. A distributor as defined in section 455C.1, subsection 28 9 , shall not sell or offer to sell any beverage container 29 if the beverage container is connected to another beverage 30 container by a device constructed of a material which that is 31 not biodegradable or photodegradable. 32 Sec. 20. Section 455B.313, Code 2022, is amended by adding 33 the following new subsection: 34 NEW SUBSECTION . 3. For purposes of this section, 35 -7- LSB 5962XS (1) 89 js/ns 7/ 17

S.F. 2122 “distributor” means any person who engages in the sale of 1 beverages in beverage containers to a dealer in this state, 2 as those terms are defined in section 123B.1, including any 3 manufacturer who engages in such sales. 4 Sec. 21. REPEAL. Chapter 455C, Code 2022, is repealed. 5 Sec. 22. EFFECTIVE DATE. This division of this Act takes 6 effect January 1, 2024. 7 DIVISION III 8 NEW BEVERAGE CONTAINER CONTROL LAW 9 Sec. 23. NEW SECTION . 123B.1 Definitions. 10 As used in this chapter, unless the context otherwise 11 requires: 12 1. “Beverage” means wine as defined in section 123.3, 13 subsection 54, alcoholic liquor as defined in section 123.3, 14 subsection 5, beer as defined in section 123.3, subsection 15 7, high alcoholic content beer as defined in section 123.3, 16 subsection 22, canned cocktail as defined in section 123.3, 17 subsection 11, and mineral water, soda water, and similar 18 carbonated soft drinks in liquid form and intended for human 19 consumption. 20 2. “Beverage container” means any sealed glass, plastic, or 21 metal bottle, can, jar, or carton containing a beverage. 22 3. “Commission” means the alcoholic beverages commission 23 established in chapter 123. 24 4. “Consumer” means any person who purchases a beverage in a 25 beverage container for use or consumption. 26 5. “Dealer” means any person who engages in the sale of 27 beverages in beverage containers to a consumer. 28 6. “Division” means the alcoholic beverages division of the 29 department of commerce established in chapter 123. 30 7. “Redemption center” means a facility at which consumers 31 may return empty beverage containers and receive payment for 32 the refund value of the empty beverage containers. 33 Sec. 24. NEW SECTION . 123B.2 Refund values —— recycling 34 —— reimbursement. 35 -8- LSB 5962XS (1) 89 js/ns 8/ 17

S.F. 2122 1. a. A refund value of five cents shall be paid by a 1 consumer to a dealer on each beverage container sold in this 2 state by the dealer for consumption off the premises. 3 b. On a monthly basis, a dealer shall submit to the 4 department of revenue, in a form and manner determined by 5 the department, receipts indicating the number of beverage 6 containers sold by the dealer and the five-cent refund value 7 collected for each beverage container sold by the dealer 8 pursuant to paragraph “a” . The department of revenue shall 9 credit monthly to the treasurer of state for deposit in the 10 bottle bill deposit fund established in section 123B.11 the 11 refund value collected from dealers under this paragraph. 12 2. A consumer may redeem the refund value by returning 13 a beverage container to a redemption center. Upon return of 14 the empty beverage container, upon which a refund value has 15 been paid, to a redemption center and acceptance of the empty 16 beverage container by the redemption center, the redemption 17 center shall pay the amount of the refund value to the consumer 18 within a reasonable time. 19 3. A redemption center shall dispose of beverage containers 20 by transporting or causing the transport of the beverage 21 containers to a recycling site. 22 4. On a monthly basis, a redemption center shall be 23 reimbursed by the division from the bottle bill deposit fund 24 established in section 123B.11 the amount of refund value that 25 the redemption center has paid to consumers and the handling 26 fee. The division shall establish the handling fee by rule 27 in an amount that is one and one-half cents per beverage 28 container, but the division may establish accuracy standards to 29 account for discrepancies in the weight of recycled material 30 and the number of beverage containers the redemption center 31 claims to have been recycled. 32 Sec. 25. NEW SECTION . 123B.3 Refusal to accept containers. 33 A redemption center may refuse to accept any empty beverage 34 container that does not have stated on it a refund value as 35 -9- LSB 5962XS (1) 89 js/ns 9/ 17

S.F. 2122 provided under section 123B.4. 1 Sec. 26. NEW SECTION . 123B.4 Refund value stated on 2 container —— exceptions. 3 1. Each beverage container sold or offered for sale in 4 this state by a dealer shall clearly indicate the refund 5 value of the container by embossing or by a stamp, label, or 6 other method securely affixed to the container. The division 7 shall specify, by rule, the minimum size of the refund value 8 indication on the beverage containers and require registration 9 of the universal product code for each beverage container in a 10 format required by the division. 11 2. A person, except a distributor, shall not import 12 into this state a beverage container that does not have 13 securely affixed to the container the refund value indication. 14 This subsection does not apply under any of the following 15 circumstances: 16 a. For beverage containers containing alcoholic liquor as 17 defined in section 123.3, subsection 5, the total capacity of 18 the containers is not more than the amount provided in section 19 123.22, subsection 1. 20 b. For beverage containers containing beer as defined 21 in section 123.3, subsection 7, the total capacity of the 22 containers is not more than the amount provided in section 23 123.122, subsection 3. 24 c. For beverage containers containing wine as defined 25 in section 123.3, subsection 54, the total capacity of the 26 containers is not more than the amount provided in section 27 123.171, subsection 3. 28 d. For all other beverage containers, the total capacity of 29 the containers is not more than five hundred seventy-six fluid 30 ounces. 31 3. Subsections 1 and 2 do not apply to a refillable glass 32 beverage container that has a brand name permanently marked 33 on it and that has a refund value of five cents, to any other 34 refillable beverage container that has a refund value of five 35 -10- LSB 5962XS (1) 89 js/ns 10/ 17

S.F. 2122 cents and that is exempted by rules adopted by the commission, 1 or to a beverage container sold aboard a commercial airliner or 2 passenger train for consumption on the premises. 3 Sec. 27. NEW SECTION . 123B.5 Redemption centers. 4 To facilitate the return of empty beverage containers, any 5 person may establish a redemption center at which consumers may 6 return empty beverage containers and receive payment of the 7 refund value of such beverage containers. 8 Sec. 28. NEW SECTION . 123B.6 Rules. 9 The commission shall adopt, upon recommendation of the 10 division, rules necessary to carry out the provisions of this 11 chapter, subject to the provisions of chapter 17A. 12 Sec. 29. NEW SECTION . 123B.7 Penalties. 13 1. Except as provided in subsection 2, any person violating 14 the provisions of section 123B.2 or 123B.4, or a rule adopted 15 under this chapter, shall be guilty of a simple misdemeanor. 16 2. Any person who does any of the following acts is guilty 17 of a fraudulent practice under chapter 714: 18 a. Collects or attempts to collect the refund value on a 19 beverage container a second time, with the knowledge that the 20 refund value has once been paid by the redemption center to a 21 consumer. 22 b. Manufactures, sells, possesses, or applies a false or 23 counterfeit label or indication that shows or purports to show 24 a refund value for a beverage container, with intent to use the 25 false or counterfeit label or indication. 26 c. Collects or attempts to collect a refund value on 27 a container with the use of a false or counterfeit label 28 or indication showing a refund value, knowing the label or 29 indication to be false or counterfeit. 30 d. Intentionally submits to the division a request for 31 reimbursement of refund value that does not accurately reflect 32 the number of beverage containers collected and recycled by a 33 redemption center for the period that the redemption center 34 seeks reimbursement. 35 -11- LSB 5962XS (1) 89 js/ns 11/ 17

S.F. 2122 3. As used in this section, “a false or counterfeit label 1 or indication” means a label or indication purporting to show 2 a valid refund value that has not been initially applied as 3 authorized by a distributor. 4 4. Subsection 2, paragraph “a” , does not apply to empty 5 beverage containers that are intended to be refillable 6 and are in a standard of condition to be refillable by the 7 manufacturer, notwithstanding any standard for sanitization. 8 5. A person who violates any provision of this chapter 9 shall be subject to a civil penalty that shall be established, 10 assessed, and collected by the division by rule, but shall not 11 exceed two thousand dollars per violation. Any civil penalty 12 collected under this chapter shall be deposited in the general 13 fund of the state. 14 Sec. 30. NEW SECTION . 123B.8 Administrative enforcement —— 15 compliance orders. 16 The administrator of the division may issue any order 17 necessary to secure compliance with or prevent a violation of 18 the provisions of this chapter or any rule adopted or permit 19 or order issued pursuant to this chapter. The person to whom 20 the compliance order is issued may cause to be commenced a 21 contested case within the meaning of chapter 17A by filing 22 within thirty days a notice of appeal to the commission. On 23 appeal, the commission may affirm, modify, or vacate the order 24 of the administrator of the division. 25 Sec. 31. NEW SECTION . 123B.9 Judicial review. 26 Judicial review of any order or other action of the 27 commission or administrator of the division may be sought in 28 accordance with the terms of chapter 17A. Notwithstanding the 29 terms of chapter 17A, petitions for judicial review may be 30 filed in the district court of the county in which the alleged 31 offense was committed. 32 Sec. 32. NEW SECTION . 123B.10 Civil actions for compliance 33 —— penalties. 34 1. The attorney general, on request of the division, shall 35 -12- LSB 5962XS (1) 89 js/ns 12/ 17

S.F. 2122 institute any legal proceedings necessary to obtain compliance 1 with an order of the commission or the administrator of the 2 division, including proceedings for a temporary injunction, 3 or prosecuting any person for a violation of an order of 4 the commission or the administrator of the division or the 5 provisions of this chapter or any rules adopted or permit or 6 order issued pursuant to this chapter. 7 2. Any person who violates an order issued pursuant to 8 section 123B.8 shall be subject to a civil penalty not to 9 exceed two thousand dollars for each day of such violation. 10 Sec. 33. NEW SECTION . 123B.11 Refund value payment program 11 —— fund created. 12 1. The division shall establish and administer a refund 13 value payment program. The purpose of the program shall be 14 to administer payments of refund value and handling fees to 15 redemption centers after the redemption centers accept empty 16 beverage containers from consumers. The program shall be 17 administered in accordance with rules adopted by the commission 18 pursuant to chapter 17A. 19 2. A bottle bill deposit fund is established in the state 20 treasury under the control of the division. The fund shall 21 consist of moneys deposited in the fund pursuant to section 22 123B.2. Moneys in the fund are appropriated to the division 23 for purposes designated in subsection 4. Notwithstanding 24 section 8.33, moneys in the fund that remain unencumbered or 25 unobligated at the close of a fiscal year shall not revert 26 but shall remain available for expenditure for the purposes 27 designated. Notwithstanding section 12C.7, subsection 2, 28 interest or earnings on moneys in the fund shall be credited 29 to the fund. 30 3. A bottle bill cash reserve account is established 31 within the bottle bill deposit fund. Moneys in the bottle 32 bill deposit fund on July 1, 2025, shall be deposited in the 33 account. The division shall use moneys in the account in the 34 event that the other moneys in the bottle bill deposit fund 35 -13- LSB 5962XS (1) 89 js/ns 13/ 17

S.F. 2122 are insufficient to issue reimbursement and handling fees 1 to redemption centers. At the end of each fiscal year, the 2 account shall be replenished to the original amount deposited 3 on July 1, 2025, from the other moneys in the bottle bill 4 deposit fund if such other moneys are available. 5 4. Moneys in the fund shall be used by the division for all 6 of the following purposes: 7 a. Issuing reimbursement of refund value to a redemption 8 center after the redemption center accepts empty beverage 9 containers from and pays the refund value to a consumer. 10 b. Issuing the handling fee to a redemption center for each 11 beverage container that a redemption center accepts from a 12 consumer. 13 c. Covering administrative costs to administer the refund 14 value payment program in an amount determined by the commission 15 by rule. 16 d. Annually transferring an amount of moneys to the taxpayer 17 relief fund established in section 8.57E that is equal to the 18 amount of unclaimed deposits at the end of the fiscal year 19 minus the amount necessary to cover administrative costs, the 20 amount necessary to replenish the bottle bill cash reserve 21 account, and the amount in the bottle bill cash reserve 22 account. 23 e. Replenishing the bottle bill cash reserve account when 24 necessary. 25 Sec. 34. NEW SECTION . 455D.9B Disposal of beverage 26 containers at sanitary landfill prohibited. 27 The final disposal of beverage containers, as defined in 28 section 123B.1, including the final disposal of beverage 29 containers that used to contain alcoholic liquor as defined in 30 section 123.3, subsection 5, by a redemption center, as defined 31 in section 123B.1, in a sanitary landfill is prohibited. 32 Sec. 35. EFFECTIVE DATE. This division of this Act takes 33 effect January 1, 2024. 34 EXPLANATION 35 -14- LSB 5962XS (1) 89 js/ns 14/ 17

S.F. 2122 The inclusion of this explanation does not constitute agreement with 1 the explanation’s substance by the members of the general assembly. 2 Under current law, a consumer may return an empty beverage 3 container upon which a 5-cent refund value has been paid to a 4 dealer or a redemption center. When a distributor collects 5 empty beverage containers from a dealer, dealer agent, or 6 redemption center, the distributor reimburses the dealer, 7 dealer agent, or redemption center the refund value plus a 8 1-cent handling fee for each empty beverage container. Current 9 law also allows any person to establish a redemption center 10 that serves a dealer if it is approved by the department of 11 natural resources. Any person may also establish an unapproved 12 redemption center. 13 DIVISION I. This bill increases the handling fee to 2 cents, 14 but only when paid to a redemption center. The bill provides 15 that a dealer may choose to not accept beverage containers 16 if a redemption center is located within a 20-mile radius of 17 the dealer. The bill makes numerous changes throughout Code 18 chapter 455C to change instances of “dealer” to “participating 19 dealer”, remove obsolete language, and stylistically and 20 grammatically update the Code chapter. 21 This division of the bill takes effect July 1, 2023. 22 DIVISION II. The bill repeals the current beverage 23 container control law (Code chapter 455C) on January 1, 2024, 24 and makes corresponding changes. 25 DIVISION III. The bill creates a new Code chapter 123B 26 to place beverage container control provisions under the 27 authority of the alcoholic beverages division (ABD) within 28 the department of commerce. Under the new beverage container 29 control provisions, a dealer shall submit to the department 30 of revenue on a monthly basis receipts indicating the number 31 of beverage containers sold by the dealer and the 5-cent 32 refund value collected for each beverage container sold by 33 the dealer. The department of revenue shall credit monthly 34 to the treasurer of state for deposit in the bottle bill 35 -15- LSB 5962XS (1) 89 js/ns 15/ 17

S.F. 2122 deposit fund established in the bill the refund value collected 1 from dealers. A consumer may redeem the refund value by 2 returning an empty beverage container to a redemption center. 3 After payment of the refund value by a redemption center to 4 a consumer, the redemption center shall dispose of empty 5 beverage containers by transporting the beverage containers to 6 a recycling site. After a redemption center provides proof of 7 recycling, ABD shall reimburse the redemption center the refund 8 value paid to consumers and a handling fee provided by rule. 9 The reimbursement shall be paid from the bottle bill deposit 10 fund established in the bill. This division of the bill does 11 not require a distributor to pick up beverage containers and 12 reimburse redemption centers. 13 The bill requires ABD to establish and administer a refund 14 value payment program for the purpose of administering 15 payments of refund value and handling fees to redemption 16 centers. The bill establishes a bottle bill deposit fund in 17 the state treasury under the control of ABD. Moneys in the 18 bottle bill deposit fund may be used for purposes of issuing 19 refund value and the handling fee to a redemption center, 20 covering administrative costs to administer the program, 21 annually transferring moneys to the taxpayer relief fund, and 22 replenishing the bottle bill cash reserve account established 23 within the fund. 24 The bill requires ABD to require by rule registration of the 25 universal product code for each beverage container in a format 26 required by ABD. The bill requires the alcoholic beverages 27 commission, at the recommendation of ABD, to adopt rules to 28 carry out this division of the bill. 29 The bill provides penalty provisions primarily based on 30 simple misdemeanors and fraudulent practices in current Code 31 chapter 455C, but also creates the fraudulent practice of 32 intentionally submitting to ABD a request for reimbursement 33 of refund value that does not accurately reflect the number 34 of beverage containers collected and recycled by a redemption 35 -16- LSB 5962XS (1) 89 js/ns 16/ 17