S.F. 368 DIVISION I 1 FUTURE CHANGES TO CURRENT BEVERAGE CONTAINER CONTROL LAW 2 Section 1. Section 455C.1, subsections 1 and 6, Code 2021, 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 2021, 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 2021, 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 1982XS (8) 89 js/ns 1/ 16

S.F. 368 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 pursuant to section 4 455C.11 an amount which that is one cent per container. A 5 dealer, dealer agent, or person operating a redemption center 6 may compact empty metal beverage containers with the approval 7 of the distributor required to accept the containers. 8 Sec. 4. Section 455C.3, subsections 1, 2, and 4, Code 2021, 9 are amended to read as follows: 10 1. A participating dealer shall not refuse to accept from 11 a consumer any empty beverage container of the kind, size and 12 brand sold by the participating dealer, or refuse to pay to the 13 consumer the refund value of a beverage container as provided 14 under section 455C.2 . 15 2. A distributor shall accept and pick up from a 16 participating dealer served by the distributor or a redemption 17 center for a dealer served by the distributor at least weekly, 18 or when the distributor delivers the beverage product if 19 deliveries are less frequent than weekly, any empty beverage 20 container of the kind, size , and brand sold by the distributor, 21 and shall pay to the participating dealer or person operating 22 a redemption center the refund value of a beverage container 23 and the reimbursement as provided under section 455C.2 within 24 one week following pickup of the containers or when the 25 participating dealer or redemption center normally pays the 26 distributor for the deposit on beverage products purchased from 27 the distributor if less frequent than weekly. A distributor 28 or employee or agent of a distributor is not in violation 29 of this subsection if a redemption center is closed when the 30 distributor attempts to make a regular delivery or a regular 31 pickup of empty beverage containers. This subsection does 32 not apply to a distributor selling alcoholic liquor to the 33 alcoholic beverages division of the department of commerce. 34 4. A distributor shall accept from a dealer agent any empty 35 -2- LSB 1982XS (8) 89 js/ns 2/ 16

S.F. 368 beverage container of the kind, size, and brand sold by the 1 distributor and which that was picked up by the dealer agent 2 from a participating dealer within the geographic territory 3 served by the distributor and the distributor shall pay the 4 dealer agent the refund value of the empty beverage container 5 and the reimbursement as provided in section 455C.2 . 6 Sec. 5. Section 455C.4, Code 2021, is amended to read as 7 follows: 8 455C.4 Refusal to accept containers. 9 1. Except as provided in section 455C.5, subsection 3 , 10 a participating dealer , a person operating a or redemption 11 center , a distributor or a manufacturer may refuse to accept 12 any empty beverage container which that does not have stated on 13 it a refund value as provided under section 455C.2 . 14 2. A dealer may refuse to accept and to pay the refund value 15 of any empty beverage container if the place of business of the 16 dealer and the kind and brand of empty beverage containers are 17 included in an order of the department approving a redemption 18 center under section 455C.6 if a redemption center is located 19 within a twenty-mile radius of the dealer . 20 3. A dealer or a distributor may refuse to accept and to pay 21 the refund value of an empty wine or alcoholic liquor container 22 which is marked to indicate that it was sold by a state liquor 23 store. The alcoholic beverages division shall not reimburse 24 a dealer or a distributor the refund value on an empty wine or 25 alcoholic liquor container which is marked to indicate that the 26 container was sold by a state liquor store. 27 4. 3. A class “E” liquor control licensee may refuse to 28 accept and to pay the refund value on an empty alcoholic liquor 29 container from a participating dealer or a redemption center 30 or from a person acting on behalf of or who has received empty 31 alcoholic liquor containers from a participating dealer or a 32 redemption center. 33 5. 4. A manufacturer or distributor may refuse to accept 34 and to pay the refund value and reimbursement as provided in 35 -3- LSB 1982XS (8) 89 js/ns 3/ 16

S.F. 368 section 455C.2 on any empty beverage container that was picked 1 up by a dealer agent from a participating dealer outside the 2 geographic territory served by the manufacturer or distributor. 3 Sec. 6. Section 455C.5, subsection 1, Code 2021, is amended 4 to read as follows: 5 1. Each beverage container sold or offered for sale in 6 this state by a dealer shall clearly indicate the refund value 7 of the container by embossing or by a stamp, label , or other 8 method securely affixed to the container , the refund value of 9 the container . The department shall specify, by rule, the 10 minimum size of the refund value indication on the beverage 11 containers. 12 Sec. 7. Section 455C.12, subsection 2, Code 2021, is amended 13 to read as follows: 14 2. A distributor who collects or attempts to collect 15 a refund value on an empty beverage container when the 16 distributor has paid the refund value on the container to a 17 participating dealer, redemption center, or consumer is guilty 18 of a fraudulent practice. 19 Sec. 8. Section 455C.12, subsection 3, paragraphs a and b, 20 Code 2021, are amended to read as follows: 21 a. Collects or attempts to collect the refund value on the 22 container a second time, with the knowledge that the refund 23 value has once been paid by the distributor to a participating 24 dealer, redemption center , or consumer. 25 b. Manufactures, sells, possesses , or applies a false or 26 counterfeit label or indication which that shows or purports to 27 show a refund value for a beverage container, with intent to 28 use the false or counterfeit label or indication. 29 Sec. 9. Section 455C.13, Code 2021, is amended to read as 30 follows: 31 455C.13 Distributors’ Collection and disposal agreements 32 authorized. 33 1. A distributor , dealer, or redemption center may enter 34 into a contract or agreement with any other distributor, 35 -4- LSB 1982XS (8) 89 js/ns 4/ 16

S.F. 368 manufacturer , or person for the purpose of collecting or paying 1 the refund value on, or disposing of , beverage containers as 2 provided in this chapter . 3 2. For purposes of this chapter, any contracts entered into 4 pursuant to this section for the collection or disposal of 5 empty beverage containers shall not be deemed to interfere with 6 the refund value pursuant to section 455C.2. 7 Sec. 10. Section 455C.14, subsection 1, Code 2021, is 8 amended to read as follows: 9 1. If the refund value indication required under section 10 455C.5 on an empty nonrefillable metal beverage container 11 is readable but the redemption of the container is lawfully 12 refused by a participating dealer or person operating a 13 redemption center under other sections of this chapter or 14 rules adopted pursuant to these sections, the container 15 shall be accepted and the refund value paid to a consumer 16 as provided in this section . Each beer distributor selling 17 nonrefillable metal beverage containers in this state shall 18 provide individually or collectively by contract or agreement 19 with a dealer, person operating a redemption center , or another 20 person, at least one facility in the county seat of each county 21 where refused empty nonrefillable metal beverage containers 22 having a readable refund value indication as required by 23 this chapter are accepted and redeemed. In cities having a 24 population of twenty-five thousand or more, the number of the 25 facilities provided shall be one for each twenty-five thousand 26 population or a fractional part of that population. 27 Sec. 11. Section 455C.16, Code 2021, is amended to read as 28 follows: 29 455C.16 Beverage containers —— disposal at sanitary landfill 30 prohibited. 31 Beginning July 1, 1990, the The final disposal of beverage 32 containers by a dealer, distributor, or manufacturer, or 33 person operating a redemption center, in a sanitary landfill, 34 is prohibited. Beginning September 1, 1992 , including the 35 -5- LSB 1982XS (8) 89 js/ns 5/ 16

S.F. 368 final disposal of beverage containers that used to contain 1 alcoholic liquor as defined in section 123.3, subsection 5 , 2 by a participating dealer, distributor, or manufacturer, or 3 person operating a redemption center in a sanitary landfill , 4 is prohibited. 5 Sec. 12. EFFECTIVE DATE. This division of this Act takes 6 effect July 1, 2022. 7 DIVISION II 8 REPEAL OF CURRENT BEVERAGE CONTAINER CONTROL LAW 9 Sec. 13. Section 123.24, subsection 2, paragraph d, Code 10 2021, 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. 14. Section 123.26, Code 2021, is amended to read as 21 follows: 22 123.26 Restrictions on sales —— seals —— labeling. 23 Alcoholic liquor shall not be sold by a class “E” liquor 24 control licensee except in a sealed container with identifying 25 markers as prescribed by the administrator and affixed in the 26 manner prescribed by the administrator, and no such container 27 shall be opened upon the premises of a state warehouse. The 28 division shall cooperate with the department of natural 29 resources so that only one identifying marker or mark is needed 30 to satisfy the requirements of this section and section 455C.5, 31 subsection 1 . Possession of alcoholic liquors which that do 32 not carry the prescribed identifying markers is a violation of 33 this chapter except as provided in section 123.22 . 34 Sec. 15. Section 123.187, subsection 3, paragraph e, Code 35 -6- LSB 1982XS (8) 89 js/ns 6/ 16

S.F. 368 2021, is amended by striking the paragraph. 1 Sec. 16. Section 423.6, subsection 3, paragraph a, Code 2 2021, is amended to read as follows: 3 a. Any tangible personal property including containers 4 for which it is intended shall, by means of fabrication, 5 compounding, manufacturing, or germination, become an integral 6 part of other tangible personal property intended to be sold 7 ultimately at retail , and containers used in the collection, 8 recovery, or return of empty beverage containers subject to 9 chapter 455C . 10 Sec. 17. Section 455A.4, subsection 1, paragraph b, Code 11 2021, is amended to read as follows: 12 b. Provide overall supervision, direction, and coordination 13 of functions to be administered by the administrators under 14 chapters 321G , 321I , 455B , 455C , 456A , 456B , 457A , 458A , 459 , 15 459A , 459B , 461A , 462A , 462B , 464A , 465C , 473 , 481A , 481B , 16 483A , 484A , and 484B . 17 Sec. 18. Section 455A.6, subsection 6, paragraphs a, b, and 18 d, Code 2021, are amended to read as follows: 19 a. Establish policy for the department and adopt rules, 20 pursuant to chapter 17A , necessary to provide for the effective 21 administration of chapter 455B , 455C , or 459 . 22 b. Hear appeals in contested cases pursuant to chapter 17A 23 on matters relating to actions taken by the director under 24 chapter 455C, 458A , 464B , or 473 . 25 d. Approve the budget request prepared by the director 26 for the programs authorized by chapters 455B , 455C , 455E , 27 455F , 455H , and 459, subchapters II and III . The commission 28 shall approve the budget request prepared by the director for 29 programs subject to the rulemaking authority of the commission. 30 The commission may increase, decrease, or strike any item 31 within the department budget request for the specified programs 32 before granting approval. 33 Sec. 19. Section 455B.313, subsection 1, Code 2021, is 34 amended to read as follows: 35 -7- LSB 1982XS (8) 89 js/ns 7/ 16

S.F. 368 1. A distributor as defined in section 455C.1, subsection 1 9 , shall not sell or offer to sell any beverage container 2 if the beverage container is connected to another beverage 3 container by a device constructed of a material which that is 4 not biodegradable or photodegradable. 5 Sec. 20. Section 455B.313, Code 2021, is amended by adding 6 the following new subsection: 7 NEW SUBSECTION . 3. For purposes of this section, 8 “distributor” means any person who engages in the sale of 9 beverages in beverage containers to a dealer in this state, 10 as those terms are defined in section 123B.1, including any 11 manufacturer who engages in such sales. 12 Sec. 21. REPEAL. Chapter 455C, Code 2021, is repealed. 13 Sec. 22. EFFECTIVE DATE. This division of this Act takes 14 effect January 1, 2023. 15 DIVISION III 16 NEW BEVERAGE CONTAINER CONTROL LAW 17 Sec. 23. NEW SECTION . 123B.1 Definitions. 18 As used in this chapter, unless the context otherwise 19 requires: 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, and mineral water, soda water, and similar 26 carbonated soft drinks in liquid form and intended for human 27 consumption. 28 2. “Beverage container” means any sealed glass, plastic, or 29 metal bottle, can, jar, or carton containing a beverage. 30 3. “Commission” means the alcoholic beverages commission 31 established in chapter 123. 32 4. “Consumer” means any person who purchases a beverage in a 33 beverage container for use or consumption. 34 5. “Dealer” means any person who engages in the sale of 35 -8- LSB 1982XS (8) 89 js/ns 8/ 16

S.F. 368 beverages in beverage containers to a consumer. 1 6. “Division” means the alcoholic beverages division of the 2 department of commerce established in chapter 123. 3 7. “Redemption center” means a facility at which consumers 4 may return empty beverage containers and receive payment for 5 the refund value of the empty beverage containers. 6 Sec. 24. NEW SECTION . 123B.2 Refund values —— recycling 7 —— reimbursement. 8 1. a. A refund value of five cents shall be paid by a 9 consumer to a dealer on each beverage container sold in this 10 state by the dealer for consumption off the premises. 11 b. On a monthly basis, a dealer shall submit to the 12 department of revenue, in a form and manner determined by 13 the department, receipts indicating the number of beverage 14 containers sold by the dealer and the five-cent refund value 15 collected for each beverage container sold by the dealer 16 pursuant to paragraph “a” . The department of revenue shall 17 credit monthly to the treasurer of state for deposit in the 18 refund value fund established in section 123B.8 the refund 19 value collected from dealers under this paragraph. 20 2. A consumer may redeem the refund value by returning 21 a beverage container to a redemption center. Upon return of 22 the empty beverage container, upon which a refund value has 23 been paid, to a redemption center and acceptance of the empty 24 beverage container by the redemption center, the redemption 25 center shall pay the amount of the refund value to the 26 consumer. 27 3. A redemption center shall dispose of beverage containers 28 by transporting or causing the transport of the beverage 29 containers to a recycling site. 30 4. On a monthly basis, a redemption center shall be 31 reimbursed by the division from the refund value fund 32 established in section 123B.8 the amount of refund value that 33 the redemption center has paid to consumers and the handling 34 fee. The division shall establish the handling fee by rule 35 -9- LSB 1982XS (8) 89 js/ns 9/ 16

S.F. 368 in an amount that is one cent per beverage container, but 1 the division may establish accuracy standards to account for 2 discrepancies in the weight of recycled material and the number 3 of beverage containers the redemption center claims to have 4 been recycled. 5 Sec. 25. NEW SECTION . 123B.3 Refusal to accept containers. 6 A redemption center may refuse to accept any empty beverage 7 container that does not have stated on it a refund value as 8 provided under section 123B.4. 9 Sec. 26. NEW SECTION . 123B.4 Refund value stated on 10 container —— exceptions. 11 1. Each beverage container sold or offered for sale in 12 this state by a dealer shall clearly indicate the refund 13 value of the container by embossing or by a stamp, label, or 14 other method securely affixed to the container. The division 15 shall specify, by rule, the minimum size of the refund value 16 indication on the beverage containers and require registration 17 of the universal product code for each beverage container in a 18 format required by the division. 19 2. A person, except a distributor, shall not import 20 into this state a beverage container that does not have 21 securely affixed to the container the refund value indication. 22 This subsection does not apply under any of the following 23 circumstances: 24 a. For beverage containers containing alcoholic liquor as 25 defined in section 123.3, subsection 5, the total capacity of 26 the containers is not more than one quart or, in the case of 27 alcoholic liquor personally obtained outside the United States, 28 one gallon. 29 b. For beverage containers containing beer as defined 30 in section 123.3, subsection 7, the total capacity of the 31 containers is not more than two hundred eighty-eight fluid 32 ounces. 33 c. For all other beverage containers, the total capacity of 34 the containers is not more than five hundred seventy-six fluid 35 -10- LSB 1982XS (8) 89 js/ns 10/ 16

S.F. 368 ounces. 1 3. Subsections 1 and 2 do not apply to a refillable glass 2 beverage container that has a brand name permanently marked on 3 it and that has a refund value of not less than five cents, 4 to any other refillable beverage container that has a refund 5 value of not less than five cents and that is exempted by 6 the director under rules adopted by the commission, or to 7 a beverage container sold aboard a commercial airliner or 8 passenger train for consumption on the premises. 9 Sec. 27. NEW SECTION . 123B.5 Redemption centers. 10 To facilitate the return of empty beverage containers, any 11 person may establish a redemption center at which consumers may 12 return empty beverage containers and receive payment of the 13 refund value of such beverage containers. 14 Sec. 28. NEW SECTION . 123B.6 Rules. 15 The commission shall adopt, upon recommendation of the 16 division, rules necessary to carry out the provisions of this 17 chapter, subject to the provisions of chapter 17A. 18 Sec. 29. NEW SECTION . 123B.7 Penalties. 19 1. Except as provided in subsection 2, any person violating 20 the provisions of section 123B.2 or 123B.4, or a rule adopted 21 under this chapter, shall be guilty of a simple misdemeanor. 22 2. Any person who does any of the following acts is guilty 23 of a fraudulent practice under chapter 714: 24 a. Collects or attempts to collect the refund value on a 25 beverage container a second time, with the knowledge that the 26 refund value has once been paid by the redemption center to a 27 consumer. 28 b. Manufactures, sells, possesses, or applies a false or 29 counterfeit label or indication that shows or purports to show 30 a refund value for a beverage container, with intent to use the 31 false or counterfeit label or indication. 32 c. Collects or attempts to collect a refund value on 33 a container with the use of a false or counterfeit label 34 or indication showing a refund value, knowing the label or 35 -11- LSB 1982XS (8) 89 js/ns 11/ 16

S.F. 368 indication to be false or counterfeit. 1 d. Intentionally submits to the division a request for 2 reimbursement of refund value that does not accurately reflect 3 the number of beverage containers collected and recycled by a 4 redemption center for the period that the redemption center 5 seeks reimbursement. 6 3. As used in this section, “a false or counterfeit label 7 or indication” means a label or indication purporting to show 8 a valid refund value that has not been initially applied as 9 authorized by a distributor. 10 4. Subsection 2, paragraph “a” , does not apply to empty 11 beverage containers that are intended to be refillable 12 and are in a standard of condition to be refillable by the 13 manufacturer, notwithstanding any standard for sanitization. 14 Sec. 30. NEW SECTION . 123B.8 Refund value payment program 15 —— fund created. 16 1. The division shall establish and administer a refund 17 value payment program. The purpose of the program shall be to 18 administer payments of refund value to redemption centers after 19 the redemption centers accept empty beverage containers from 20 consumers. The program shall be administered in accordance 21 with rules adopted by the commission pursuant to chapter 17A. 22 2. A refund value fund is established in the state 23 treasury under the control of the division. The fund shall 24 consist of moneys deposited in the fund pursuant to section 25 123B.2. Moneys in the fund are appropriated to the division 26 for purposes designated in subsection 4. Notwithstanding 27 section 8.33, moneys in the fund that remain unencumbered or 28 unobligated at the close of a fiscal year shall not revert 29 but shall remain available for expenditure for the purposes 30 designated. Notwithstanding section 12C.7, subsection 2, 31 interest or earnings on moneys in the fund shall be credited 32 to the fund. 33 3. A bottle bill cash reserve account is established within 34 the refund value fund. Moneys in the refund value fund on July 35 -12- LSB 1982XS (8) 89 js/ns 12/ 16

S.F. 368 1, 2024, shall be deposited in the account. The division shall 1 use moneys in the account in the event that the other moneys in 2 the refund value fund are insufficient to issue reimbursement 3 and handling fees to redemption centers. At the end of each 4 fiscal year, the account shall be replenished to the original 5 amount deposited on July 1, 2024, from the other moneys in the 6 refund value fund if such other moneys are available. 7 4. Moneys in the fund shall be used by the division for all 8 of the following purposes: 9 a. Issuing reimbursement of refund value to a redemption 10 center after the redemption center accepts empty beverage 11 containers from and pays the refund value to a consumer. 12 b. Issuing the handling fee to a redemption center for each 13 beverage container that a redemption center accepts from a 14 consumer. 15 c. Covering administrative costs to administer the refund 16 value payment program in an amount determined by the commission 17 by rule. 18 d. Annually transferring an amount of moneys to the taxpayer 19 relief fund established in section 8.57E that is equal to the 20 amount of unclaimed deposits at the end of the fiscal year 21 minus the amount necessary to cover administrative costs, the 22 amount necessary to replenish the bottle bill cash reserve 23 account, and the amount in the bottle bill cash reserve 24 account. 25 e. Replenishing the bottle bill cash reserve account when 26 necessary. 27 Sec. 31. NEW SECTION . 455D.9B Disposal of beverage 28 containers at sanitary landfill prohibited. 29 The final disposal of beverage containers, as defined in 30 section 123B.1, including the final disposal of beverage 31 containers that used to contain alcoholic liquor as defined in 32 section 123.3, subsection 5, by a redemption center, as defined 33 in section 123B.1, in a sanitary landfill is prohibited. 34 Sec. 32. EFFECTIVE DATE. This division of this Act takes 35 -13- LSB 1982XS (8) 89 js/ns 13/ 16

S.F. 368 effect January 1, 2023. 1 EXPLANATION 2 The inclusion of this explanation does not constitute agreement with 3 the explanation’s substance by the members of the general assembly. 4 Under current law, a consumer may return an empty beverage 5 container upon which a 5-cent refund value has been paid to a 6 dealer or a redemption center. When a distributor collects 7 empty beverage containers from a dealer, dealer agent, or 8 redemption center, the distributor reimburses the dealer, 9 dealer agent, or redemption center the refund value plus a 10 1-cent handling fee for each empty beverage container. Current 11 law also allows any person to establish a redemption center 12 that serves a dealer if it is approved by the department of 13 natural resources. Any person may also establish an unapproved 14 redemption center. 15 DIVISION I. This bill provides that a dealer may choose 16 to not accept beverage containers if a redemption center is 17 located within a 20-mile radius of the dealer. The bill 18 makes numerous changes throughout Code chapter 455C to change 19 instances of “dealer” to “participating dealer”, remove 20 obsolete language, and stylistically and grammatically update 21 the Code chapter. 22 This division of the bill takes effect July 1, 2022. 23 DIVISION II. The bill repeals the current beverage 24 container control law (Code chapter 455C) on January 1, 2023, 25 and makes corresponding changes. 26 DIVISION III. The bill creates a new Code chapter 123B 27 to place beverage container control provisions under the 28 authority of the alcoholic beverages division (ABD) within 29 the department of commerce. Under the new beverage container 30 control provisions, a dealer shall submit to the department 31 of revenue on a monthly basis receipts indicating the number 32 of beverage containers sold by the dealer and the 5-cent 33 refund value collected for each beverage container sold by 34 the dealer. The department of revenue shall credit monthly 35 -14- LSB 1982XS (8) 89 js/ns 14/ 16

S.F. 368 to the treasurer of state for deposit in the refund value 1 fund established in the bill the refund value collected 2 from dealers. A consumer may redeem the refund value by 3 returning an empty beverage container to a redemption center. 4 After payment of the refund value by a redemption center to 5 a consumer, the redemption center shall dispose of empty 6 beverage containers by transporting the beverage containers to 7 a recycling site. After a redemption center provides proof 8 of recycling, ABD shall reimburse the redemption center the 9 refund value paid to consumers and a handling fee provided by 10 rule. The reimbursement shall be paid from the refund value 11 fund established in the bill. This division of the bill does 12 not require a distributor to pick up beverage containers and 13 reimburse redemption centers. 14 The bill requires ABD to establish and administer a refund 15 value payment program for the purpose of administering payments 16 of refund value to redemption centers. The bill establishes 17 a refund value fund in the state treasury under the control 18 of the division. Moneys in the refund value fund may be used 19 for purposes of issuing refund value and the handling fee to a 20 redemption center, covering administrative costs to administer 21 the program, annually transferring moneys to the taxpayer 22 relief fund, and replenishing the bottle bill cash reserve 23 account established 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 -15- LSB 1982XS (8) 89 js/ns 15/ 16