S.F. 2378 Section 1. Section 123.136, subsection 1, Code 2022, is 1 amended to read as follows: 2 1. In addition to the annual permit fee to be paid by 3 all class “A” beer permittees under this chapter there shall 4 be levied and collected from the permittees on all beer 5 manufactured for sale or sold in this state at wholesale and 6 on all beer imported into this state for sale at wholesale and 7 sold in this state at wholesale, and from special class “A” 8 beer permittees on all beer manufactured for consumption on the 9 premises and on all beer sold at retail at the manufacturing 10 premises for consumption off the premises pursuant to section 11 123.130, subsection 4 , a tax of five and eighty-nine four and 12 three hundredths dollars for every barrel containing thirty-one 13 gallons, and at a like rate for any other quantity or for the 14 fractional part of a barrel. However, no tax shall be levied 15 or collected on beer shipped outside this state by a class “A” 16 beer permittee or special class “A” beer permittee or on beer 17 sold to a class “A” beer permittee by a special class “A” beer 18 permittee or another class “A” beer permittee. 19 Sec. 2. Section 455C.1, subsections 1 and 6, Code 2022, are 20 amended to read as follows: 21 1. “Beverage” means wine as defined in section 123.3, 22 subsection 54 , alcoholic liquor as defined in section 123.3, 23 subsection 5 , beer as defined in section 123.3, subsection 24 7 , high alcoholic content beer as defined in section 123.3, 25 subsection 22, canned cocktail as defined in section 123.3, 26 subsection 11, mineral water, soda water , and similar 27 carbonated soft drinks in liquid form and intended for human 28 consumption. 29 6. “Dealer agent” means a person who solicits or picks 30 up empty beverage containers from a participating dealer for 31 the purpose of returning the empty beverage containers to a 32 distributor or manufacturer. 33 Sec. 3. Section 455C.1, Code 2022, is amended by adding the 34 following new subsection: 35 -1- LSB 5962SV (2) 89 js/ns 1/ 9

S.F. 2378 NEW SUBSECTION . 12A. “Participating dealer” means a dealer 1 who accepts the return of empty beverage containers from a 2 consumer. 3 Sec. 4. Section 455C.2, Code 2022, is amended to read as 4 follows: 5 455C.2 Refund values. 6 1. A refund value of not less than five cents shall be paid 7 by the consumer on each beverage container sold in this state 8 by a dealer for consumption off the premises. Upon return of 9 the empty beverage container upon which a refund value has 10 been paid to the a participating dealer or person operating 11 a redemption center and acceptance of the empty beverage 12 container by the participating dealer or person operating a 13 redemption center, the participating dealer or person operating 14 a redemption center shall return the amount of the refund value 15 to the consumer within a reasonable time . 16 2. In addition to the refund value provided in subsection 17 1 of this section , a dealer, or person operating a redemption 18 center who redeems empty beverage containers or a dealer agent 19 shall be reimbursed by the distributor required to accept 20 the empty beverage containers under section 455C.3 shall 21 provide reimbursement in an amount which that is one cent per 22 container , except that the reimbursement amount shall be three 23 cents per container for empty beverage containers accepted by a 24 redemption center . A dealer, dealer agent, or person operating 25 a redemption center may compact empty metal beverage containers 26 with the approval of the distributor required to accept the 27 containers. 28 Sec. 5. Section 455C.3, subsections 1, 2, and 4, Code 2022, 29 are amended to read as follows: 30 1. A participating dealer shall not refuse to accept from a 31 consumer any empty beverage container of the kind, size , and 32 brand sold by the participating dealer, or refuse to pay to the 33 consumer the refund value of a beverage container as provided 34 under section 455C.2 . 35 -2- LSB 5962SV (2) 89 js/ns 2/ 9

S.F. 2378 2. A distributor shall accept and pick up from a 1 participating dealer served by the distributor or a redemption 2 center for a dealer served by the distributor at least weekly, 3 or when the distributor delivers the beverage product if 4 deliveries are less frequent than weekly, any empty beverage 5 container of the kind, size , and brand sold by the distributor, 6 and shall pay to the participating dealer or person operating 7 a redemption center the refund value of a beverage container 8 and the reimbursement as provided under section 455C.2 within 9 one week following pickup of the containers or when the 10 participating dealer or redemption center normally pays the 11 distributor for the deposit on beverage products purchased from 12 the distributor if less frequent than weekly. A distributor 13 or employee or agent of a distributor is not in violation 14 of this subsection if a redemption center is closed when the 15 distributor attempts to make a regular delivery or a regular 16 pickup of empty beverage containers. This subsection does 17 not apply to a distributor selling alcoholic liquor to the 18 alcoholic beverages division of the department of commerce. 19 4. A distributor shall accept from a dealer agent any empty 20 beverage container of the kind, size, and brand sold by the 21 distributor and which that was picked up by the dealer agent 22 from a participating dealer within the geographic territory 23 served by the distributor and the distributor shall pay the 24 dealer agent the refund value of the empty beverage container 25 and the reimbursement as provided in section 455C.2 . 26 Sec. 6. Section 455C.4, Code 2022, is amended to read as 27 follows: 28 455C.4 Refusal to accept containers. 29 1. Except as provided in section 455C.5, subsection 3 , 30 a participating dealer , a person operating a or redemption 31 center , a distributor or a manufacturer may refuse to accept 32 any empty beverage container which that does not have stated on 33 it a refund value as provided under section 455C.2 . 34 2. A On and after July 1, 2023, a dealer may refuse to 35 -3- LSB 5962SV (2) 89 js/ns 3/ 9

S.F. 2378 accept and to pay the refund value of any empty beverage 1 container if the place of business of the dealer and the kind 2 and brand of empty beverage containers are included in an order 3 of the department approving a redemption center under section 4 455C.6 dealer has provided notice to the department . 5 3. A dealer or a distributor may refuse to accept and to pay 6 the refund value of an empty wine or alcoholic liquor container 7 which is marked to indicate that it was sold by a state liquor 8 store. The alcoholic beverages division shall not reimburse 9 a dealer or a distributor the refund value on an empty wine or 10 alcoholic liquor container which is marked to indicate that the 11 container was sold by a state liquor store. 12 4. 3. A class “E” liquor control licensee may refuse to 13 accept and to pay the refund value on an empty alcoholic liquor 14 container from a participating dealer or a redemption center 15 or from a person acting on behalf of or who has received empty 16 alcoholic liquor containers from a participating dealer or a 17 redemption center. 18 5. 4. A manufacturer or distributor may refuse to accept 19 and to pay the refund value and reimbursement as provided in 20 section 455C.2 on any empty beverage container that was picked 21 up by a dealer agent from a dealer outside the geographic 22 territory served by the manufacturer or distributor. 23 Sec. 7. Section 455C.5, subsection 1, Code 2022, is amended 24 to read as follows: 25 1. Each beverage container sold or offered for sale in 26 this state by a dealer shall clearly indicate the refund value 27 of the container by embossing or by a stamp, label , or other 28 method securely affixed to the container , the refund value of 29 the container . The department shall specify, by rule, the 30 minimum size of the refund value indication on the beverage 31 containers and require registration of the universal product 32 code for each beverage container in a format determined by the 33 department . 34 Sec. 8. Section 455C.6, subsections 1, 2, and 5, Code 2022, 35 -4- LSB 5962SV (2) 89 js/ns 4/ 9

S.F. 2378 are amended to read as follows: 1 1. To facilitate the return of empty beverage containers 2 and to serve dealers of beverages, any person may establish a 3 redemption center , subject to the approval of the department, 4 at which consumers may return empty beverage containers 5 and receive payment of the refund value of such beverage 6 containers. 7 2. An application for approval of a A person operating a 8 redemption center shall file written notice of the operation 9 of the redemption center shall be filed with the department. 10 The application notice shall state the name and address of the 11 person responsible for the establishment and operation of the 12 redemption center , the kind and brand names of the beverage 13 containers which will be accepted at the redemption center, 14 and the names and addresses of the dealers to be served by the 15 redemption center. The application notice shall contain such 16 other information as the director may reasonably require. 17 5. All approved redemption centers shall meet applicable 18 health standards. 19 Sec. 9. Section 455C.6, subsections 3 and 4, Code 2022, are 20 amended by striking the subsections. 21 Sec. 10. Section 455C.12, subsections 2 and 3, Code 2022, 22 are amended to read as follows: 23 2. A distributor who collects or attempts to collect 24 a refund value on an empty beverage container when the 25 distributor has paid the refund value on the container to a 26 participating dealer, redemption center, or consumer is guilty 27 of a fraudulent practice. 28 3. Any person who does any of the following acts is guilty 29 of a fraudulent practice: 30 a. Collects or attempts to collect the refund value on the 31 container a second time, with the knowledge that the refund 32 value has once been paid by the distributor to a participating 33 dealer, redemption center , or consumer. 34 b. Manufactures, sells, possesses , or applies a false or 35 -5- LSB 5962SV (2) 89 js/ns 5/ 9

S.F. 2378 counterfeit label or indication which that shows or purports to 1 show a refund value for a beverage container, with intent to 2 use the false or counterfeit label or indication. 3 c. Collects or attempts to collect a refund value on 4 a container with the use of a false or counterfeit label 5 or indication showing a refund value, knowing the label or 6 indication to be false or counterfeit. 7 Sec. 11. Section 455C.12, Code 2022, is amended by adding 8 the following new subsection: 9 NEW SUBSECTION . 6. A person who violates any provision 10 of this chapter shall be subject to a civil penalty of two 11 thousand dollars per violation, which shall be assessed and 12 collected in the same manner as provided in section 455B.109. 13 Any civil penalty collected under this chapter shall be 14 deposited in the general fund of the state. 15 Sec. 12. NEW SECTION . 455C.12A Administrative enforcement 16 —— compliance orders. 17 The director may issue any order necessary to secure 18 compliance with or prevent a violation of the provisions of 19 this chapter or any rule adopted or permit or order issued 20 pursuant to this chapter. The person to whom such compliance 21 order is issued may cause to be commenced a contested case 22 within the meaning of chapter 17A by filing within thirty 23 days a notice of appeal to the commission. On appeal, the 24 commission may affirm, modify, or vacate the order of the 25 director. 26 Sec. 13. NEW SECTION . 455C.12B Judicial review. 27 Judicial review of any order or other action of the 28 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. 14. NEW SECTION . 455C.12C Civil actions for compliance 33 —— penalties. 34 1. The attorney general, on request of the department, shall 35 -6- LSB 5962SV (2) 89 js/ns 6/ 9

S.F. 2378 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 an order of the commission or the 4 director, the provisions of this chapter, or any rules adopted 5 or permit or order issued pursuant to this chapter. 6 2. Any person who violates any order issued pursuant to 7 section 455C.12A shall be subject to a civil penalty not to 8 exceed two thousand dollars for each day of such violation. 9 Sec. 15. Section 455C.13, Code 2022, is amended to read as 10 follows: 11 455C.13 Distributors’ Collection and disposal agreements 12 authorized. 13 1. A distributor , dealer, or redemption center may enter 14 into a contract or agreement with any other distributor, 15 manufacturer , or person for the purpose of collecting or paying 16 the refund value on, or disposing of , beverage containers as 17 provided in this chapter . 18 2. For purposes of this chapter, any contracts entered into 19 pursuant to this section for the collection or disposal of 20 empty beverage containers shall not be deemed to interfere with 21 the refund value pursuant to section 455C.2. 22 Sec. 16. Section 455C.16, Code 2022, is amended to read as 23 follows: 24 455C.16 Beverage containers —— disposal at sanitary landfill 25 prohibited. 26 Beginning July 1, 1990, the The final disposal of beverage 27 containers by a dealer, distributor, or manufacturer, or 28 person operating a redemption center, in a sanitary landfill, 29 is prohibited. Beginning September 1, 1992 , including the 30 final disposal of beverage containers that used to contain 31 alcoholic liquor as defined in section 123.3, subsection 5 , 32 by a participating dealer, distributor, or manufacturer, or 33 person operating a redemption center in a sanitary landfill , 34 is prohibited. 35 -7- LSB 5962SV (2) 89 js/ns 7/ 9

S.F. 2378 Sec. 17. REPEAL. Sections 455C.7, 455C.10, and 455C.14, 1 Code 2022, are repealed. 2 Sec. 18. EFFECTIVE DATE. The section of this Act amending 3 section 123.136 takes effect July 1, 2023. 4 EXPLANATION 5 The inclusion of this explanation does not constitute agreement with 6 the explanation’s substance by the members of the general assembly. 7 Under current law, a consumer may return an empty beverage 8 container upon which a 5-cent refund value has been paid to a 9 dealer or a redemption center. When a distributor collects 10 empty beverage containers from a dealer, dealer agent, or 11 redemption center, the distributor reimburses the dealer, 12 dealer agent, or redemption center the refund value plus a 13 1-cent handling fee for each empty beverage container. Current 14 law also allows any person to establish a redemption center 15 that serves a dealer if it is approved by the department of 16 natural resources. Any person may also establish an unapproved 17 redemption center. 18 Effective July 1, 2023, this bill lowers the barrel tax on 19 beer from $5.89 to $4.03 for every barrel containing 31 gallons 20 of beer. 21 The bill allows a participating dealer or redemption center 22 to return refund value to a consumer within a reasonable 23 time. The bill increases the handling fee to 3 cents when 24 paid to a redemption center. The bill provides that on and 25 after July 1, 2023, a dealer may choose to not accept beverage 26 containers if the dealer has provided notice to the department 27 of natural resources (DNR). The bill does not require a 28 person to receive approval from DNR to operate a redemption 29 center but does require a person operating a redemption center 30 to provide notice to DNR. The bill requires DNR to require 31 by rule registration of the universal product code for each 32 beverage container in a format required by DNR. The bill also 33 provides for civil enforcement by DNR and the attorney general, 34 including the imposition of civil penalties up to $2,000 per 35 -8- LSB 5962SV (2) 89 js/ns 8/ 9