S.F. _____ Section 1. Section 455C.1, subsections 1 and 6, Code 2021, 1 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 11 up empty beverage containers from a participating dealer for 12 the purpose of returning the empty beverage containers to a 13 distributor or manufacturer. 14 Sec. 2. Section 455C.1, Code 2021, is amended by adding the 15 following new subsection: 16 NEW SUBSECTION . 12A. “Participating dealer” means a dealer 17 who accepts the return of empty beverage containers from a 18 consumer. 19 Sec. 3. Section 455C.2, Code 2021, is amended to read as 20 follows: 21 455C.2 Refund values. 22 1. A refund value of not less than five cents shall be paid 23 by the consumer on each beverage container sold in this state 24 by a dealer for consumption off the premises. Upon return of 25 the empty beverage container upon which a refund value has 26 been paid to the a participating dealer or person operating 27 a redemption center and acceptance of the empty beverage 28 container by the participating dealer or person operating a 29 redemption center, the participating dealer or person operating 30 a redemption center shall return the amount of the refund value 31 to the consumer. 32 2. In addition to the refund value provided in subsection 1 33 of this section , a participating dealer, or person operating a 34 redemption center who redeems empty beverage containers , or a 35 -1- LSB 2221XC (2) 89 js/ns 1/ 9

S.F. _____ dealer agent shall be reimbursed by the distributor required 1 to accept the empty beverage containers an amount which that 2 is one cent two cents per container. A participating dealer, 3 dealer agent, or person operating a redemption center may 4 compact empty metal beverage containers with the approval of 5 the distributor required to accept the containers. 6 Sec. 4. Section 455C.3, subsections 1, 2, and 4, Code 2021, 7 are amended to read as follows: 8 1. A participating dealer shall not refuse to accept from a 9 consumer any empty beverage container of the kind, size , and 10 brand sold by the participating dealer, or refuse to pay to the 11 consumer the refund value of a beverage container as provided 12 under section 455C.2 . 13 2. A distributor shall accept and pick up from a 14 participating dealer served by the distributor or a redemption 15 center for a dealer served by the distributor at least weekly, 16 or when the distributor delivers the beverage product if 17 deliveries are less frequent than weekly, any empty beverage 18 container of the kind, size , and brand sold by the distributor, 19 and shall pay to the participating dealer or person operating 20 a redemption center the refund value of a beverage container 21 and the reimbursement as provided under section 455C.2 within 22 one week following pickup of the containers or when the 23 participating dealer or redemption center normally pays the 24 distributor for the deposit on beverage products purchased from 25 the distributor if less frequent than weekly. A distributor 26 or employee or agent of a distributor is not in violation 27 of this subsection if a redemption center is closed when the 28 distributor attempts to make a regular delivery or a regular 29 pickup of empty beverage containers. This subsection does 30 not apply to a distributor selling alcoholic liquor to the 31 alcoholic beverages division of the department of commerce. 32 4. A distributor shall accept from a dealer agent any empty 33 beverage container of the kind, size, and brand sold by the 34 distributor and which that was picked up by the dealer agent 35 -2- LSB 2221XC (2) 89 js/ns 2/ 9

S.F. _____ from a participating dealer within the geographic territory 1 served by the distributor and the distributor shall pay the 2 dealer agent the refund value of the empty beverage container 3 and the reimbursement as provided in section 455C.2 . 4 Sec. 5. Section 455C.4, Code 2021, is amended to read as 5 follows: 6 455C.4 Refusal to accept containers. 7 1. Except as provided in section 455C.5, subsection 3 , a 8 participating dealer, a person operating a redemption center, a 9 distributor , or a manufacturer may refuse to accept any empty 10 beverage container which that does not have stated on it a 11 refund value as provided under section 455C.2 . 12 2. A dealer may refuse to accept and to pay the refund value 13 of any empty beverage container if the place of business of the 14 dealer and the kind and brand of empty beverage containers are 15 included in an order of the department approving a redemption 16 center under section 455C.6 by providing notice to the 17 department . 18 3. A dealer or a distributor may refuse to accept and to pay 19 the refund value of an empty wine or alcoholic liquor container 20 which is marked to indicate that it was sold by a state liquor 21 store. The alcoholic beverages division shall not reimburse 22 a dealer or a distributor the refund value on an empty wine or 23 alcoholic liquor container which is marked to indicate that the 24 container was sold by a state liquor store. 25 4. 3. A class “E” liquor control licensee may refuse to 26 accept and to pay the refund value on an empty alcoholic liquor 27 container from a participating dealer or a redemption center 28 or from a person acting on behalf of or who has received empty 29 alcoholic liquor containers from a participating dealer or a 30 redemption center. 31 5. 4. A manufacturer or distributor may refuse to accept 32 and to pay the refund value and reimbursement as provided in 33 section 455C.2 on any empty beverage container that was picked 34 up by a dealer agent from a participating dealer outside the 35 -3- LSB 2221XC (2) 89 js/ns 3/ 9

S.F. _____ geographic territory served by the manufacturer or distributor. 1 Sec. 6. Section 455C.5, subsection 1, Code 2021, is amended 2 to read as follows: 3 1. Each beverage container sold or offered for sale in 4 this state by a dealer shall clearly indicate the refund value 5 of the container by embossing or by a stamp, label , or other 6 method securely affixed to the container , the refund value of 7 the container . The department shall specify, by rule, the 8 minimum size of the refund value indication on the beverage 9 containers and require registration of the universal product 10 code for each beverage container in a format required by the 11 department . 12 Sec. 7. Section 455C.6, subsections 1, 2, and 5, Code 2021, 13 are amended to read as follows: 14 1. To facilitate the return of empty beverage containers 15 and to serve dealers of beverages, any person may establish a 16 redemption center , subject to the approval of the department, 17 at which consumers may return empty beverage containers 18 and receive payment of the refund value of such beverage 19 containers. 20 2. An application for approval of Written notice of the 21 operation of a redemption center shall be filed with the 22 department. The application notice shall state the name and 23 address of the person responsible for the establishment and 24 operation of the redemption center , the kind and brand names 25 of the beverage containers which will be accepted at the 26 redemption center, and the names and addresses of the dealers 27 to be served by the redemption center. The application notice 28 shall contain such other information as the director may 29 reasonably require. 30 5. All approved redemption centers shall meet applicable 31 health standards. 32 Sec. 8. Section 455C.6, subsections 3 and 4, Code 2021, are 33 amended by striking the subsections. 34 Sec. 9. Section 455C.12, subsections 2 and 3, Code 2021, are 35 -4- LSB 2221XC (2) 89 js/ns 4/ 9

S.F. _____ amended to read as follows: 1 2. A distributor who collects or attempts to collect 2 a refund value on an empty beverage container when the 3 distributor has paid the refund value on the container to a 4 participating dealer, redemption center, or consumer is guilty 5 of a fraudulent practice. 6 3. Any person who does any of the following acts is guilty 7 of a fraudulent practice: 8 a. Collects or attempts to collect the refund value on the 9 container a second time, with the knowledge that the refund 10 value has once been paid by the distributor to a participating 11 dealer, redemption center , or consumer. 12 b. Manufactures, sells, possesses , or applies a false or 13 counterfeit label or indication which that shows or purports to 14 show a refund value for a beverage container, with intent to 15 use the false or counterfeit label or indication. 16 c. Collects or attempts to collect a refund value on 17 a container with the use of a false or counterfeit label 18 or indication showing a refund value, knowing the label or 19 indication to be false or counterfeit. 20 Sec. 10. Section 455C.12, Code 2021, is amended by adding 21 the following new subsection: 22 NEW SUBSECTION . 6. A person who violates any provision of 23 this chapter shall be subject to a civil penalty that shall 24 be established, assessed, and collected in the same manner as 25 provided in section 455B.109. Any civil penalty collected 26 under this chapter shall be deposited in the general fund of 27 the state. 28 Sec. 11. NEW SECTION . 455C.12A Administrative enforcement 29 —— compliance orders. 30 The director may issue any order necessary to secure 31 compliance with or prevent a violation of the provisions of 32 this chapter or any rule adopted or permit or order issued 33 pursuant to this chapter. The person to whom the compliance 34 order is issued may cause to be commenced a contested case 35 -5- LSB 2221XC (2) 89 js/ns 5/ 9

S.F. _____ within the meaning of chapter 17A by filing within thirty 1 days a notice of appeal to the commission. On appeal, the 2 commission may affirm, modify, or vacate the order of the 3 director. 4 Sec. 12. NEW SECTION . 455C.12B Judicial review. 5 Judicial review of any order or other action of the 6 commission or director may be sought in accordance with the 7 terms of chapter 17A. Notwithstanding the terms of chapter 8 17A, petitions for judicial review may be filed in the district 9 court of the county in which the alleged offense was committed. 10 Sec. 13. NEW SECTION . 455C.12C Civil actions for compliance 11 —— penalties. 12 1. The attorney general, on request of the department, shall 13 institute any legal proceedings necessary to obtain compliance 14 with an order of the commission or the director, including 15 proceedings for a temporary injunction, or prosecuting any 16 person for a violation of an order of the commission or the 17 director or the provisions of this chapter or any rules adopted 18 or permit or order issued pursuant to this chapter. 19 2. Any person who violates an order issued pursuant to 20 section 455C.12A shall be subject to a civil penalty, not to 21 exceed ten thousand dollars for each day of such violation. 22 Sec. 14. Section 455C.13, Code 2021, is amended to read as 23 follows: 24 455C.13 Distributors’ agreements authorized. 25 1. A distributor , dealer, or redemption center may enter 26 into a contract or agreement with any other distributor, 27 manufacturer , or person for the purpose of collecting or paying 28 the refund value on, or disposing of, beverage containers as 29 provided in this chapter . 30 2. For purposes of this chapter, any contracts entered into 31 pursuant to this section for the collection or disposal of 32 empty beverage containers shall not be deemed to interfere with 33 the refund value pursuant to section 455C.2. A contract shall 34 not authorize a person to offer and pay a refund value of less 35 -6- LSB 2221XC (2) 89 js/ns 6/ 9

S.F. _____ than five cents. 1 Sec. 15. Section 455C.14, subsection 1, Code 2021, is 2 amended to read as follows: 3 1. If the refund value indication required under section 4 455C.5 on an empty nonrefillable metal beverage container 5 is readable but the redemption of the container is lawfully 6 refused by a participating dealer or person operating a 7 redemption center under other sections of this chapter or 8 rules adopted pursuant to these sections, the container 9 shall be accepted and the refund value paid to a consumer 10 as provided in this section . Each beer distributor selling 11 nonrefillable metal beverage containers in this state shall 12 provide individually or collectively by contract or agreement 13 with a dealer, person operating a redemption center , or another 14 person, at least one facility in the county seat of each county 15 where refused empty nonrefillable metal beverage containers 16 having a readable refund value indication as required by 17 this chapter are accepted and redeemed. In cities having a 18 population of twenty-five thousand or more, the number of the 19 facilities provided shall be one for each twenty-five thousand 20 population or a fractional part of that population. 21 Sec. 16. Section 455C.16, Code 2021, is amended to read as 22 follows: 23 455C.16 Beverage containers —— disposal at sanitary landfill 24 prohibited. 25 Beginning July 1, 1990, the The final disposal of beverage 26 containers by a dealer, distributor, or manufacturer, or person 27 operating a redemption center, in a sanitary landfill, is 28 prohibited. Beginning September 1, 1992 , including the final 29 disposal of beverage containers that used to contain alcoholic 30 liquor as defined in section 123.3, subsection 5 , by a dealer, 31 distributor, or manufacturer, or person operating a redemption 32 center in a sanitary landfill , is prohibited. 33 Sec. 17. REPEAL. Sections 455C.7 and 455C.10, Code 2021, 34 are repealed. 35 -7- LSB 2221XC (2) 89 js/ns 7/ 9

S.F. _____ Sec. 18. EFFECTIVE DATE. The following take effect July 1, 1 2022: 2 The sections of this Act amending sections 455C.3 and 3 455C.4. 4 Sec. 19. EFFECTIVE DATE. The following, being deemed of 5 immediate importance, take effect upon enactment: 6 The sections of this Act amending or repealing sections 7 455C.1, 455C.2, 455C.5, 455C.6, 455C.7, 455C.10, 455C.13, 8 455C.14, and 455C.16. 9 EXPLANATION 10 The inclusion of this explanation does not constitute agreement with 11 the explanation’s substance by the members of the general assembly. 12 Under current law, a consumer may return an empty beverage 13 container upon which a refund value has been paid to a dealer 14 or a redemption center. When a distributor collects empty 15 beverage containers from a dealer, dealer agent, or redemption 16 center, the distributor reimburses the dealer, dealer agent, or 17 redemption center the refund value plus a 1-cent handling fee 18 for each empty beverage container. Current law also allows any 19 person to establish a redemption center that serves a dealer 20 if it is approved by the department of natural resources. Any 21 person can also establish an unapproved redemption center. 22 Under this bill, a dealer may choose to not accept beverage 23 containers by providing notice to the department beginning July 24 1, 2022. 25 The bill raises the handling fee paid by a distributor to 26 2 cents for each empty beverage container. The bill allows a 27 person to establish a redemption center by providing notice to 28 the department. The bill also requires each beverage container 29 to have a registered universal product code in a format 30 required by the department. 31 The bill creates civil enforcement procedures and penalties 32 for a violation of the provisions of the bill. 33 The bill makes numerous changes throughout Code chapter 455C 34 to change instances of “dealer” to “participating dealer”, 35 -8- LSB 2221XC (2) 89 js/ns 8/ 9