Bill Text: IA SF2378 | 2021-2022 | 89th General Assembly | Enrolled

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Bill Title: A bill for an act relating to beverage containers control provisions, including handling fees, refund value, applicability to certain beverages, and acceptance of beverage containers, providing penalties, and including effective date provisions. (Formerly SF 2122.) Effective date: 11/15/2023, 01/01/2023, 06/17/2022.

Spectrum: Committee Bill

Status: (Passed) 2022-06-27 - Fiscal note. [SF2378 Detail]

Download: Iowa-2021-SF2378-Enrolled.html

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Senate File 2378 - Enrolled
Senate File 2378
AN ACT
RELATING TO BEVERAGE CONTAINERS CONTROL PROVISIONS, INCLUDING
HANDLING FEES, REFUND VALUE, APPLICABILITY TO CERTAIN
BEVERAGES, AND ACCEPTANCE OF BEVERAGE CONTAINERS, PROVIDING
PENALTIES, AND INCLUDING EFFECTIVE DATE PROVISIONS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
Section 1. Section 22.7, Code 2022, is amended by adding the
following new subsection:
NEW SUBSECTION . 75. Identifying information submitted
to the department of revenue from a distributor pursuant to
section 455C.2, subsection 2, paragraph “b” . However, this
subsection shall not be construed to prohibit the dissemination
of aggregated information that does not identify a specific
distributor.
Sec. 2. Section 455C.1, subsections 1 and 6, Code 2022, are
amended to read as follows:
1. “Beverage” means wine as defined in section 123.3,
subsection 54 , alcoholic liquor as defined in section 123.3,
subsection 5 , beer as defined in section 123.3, subsection
7 , high alcoholic content beer as defined in section 123.3,
subsection 22, canned cocktail as defined in section 123.3,
subsection 11, mineral water, soda water , and similar
carbonated soft drinks in liquid form and intended for human
consumption.
6. “Dealer agent” means a person who solicits or picks up
empty beverage containers from a dealer for the purpose of

Senate File 2378, p. 2
returning the empty beverage containers to a distributor or
manufacturer.
Sec. 3. Section 455C.1, Code 2022, is amended by adding the
following new subsections:
NEW SUBSECTION . 11A. “Mobile redemption system” means a
redemption center location at which a consumer may return empty
beverage containers on which a refund value has been paid that
uses innovative technology to process empty beverage containers
and return the amount of the refund value to consumers.
NEW SUBSECTION . 12A. “Participating dealer” means a dealer
who accepts the return of empty beverage containers from a
consumer.
Sec. 4. Section 455C.2, Code 2022, is amended to read as
follows:
455C.2 Refund values.
1. A refund value of not less than five cents shall be paid
by the consumer on each beverage container sold in this state
by a dealer for consumption off the premises. Upon return of
the empty beverage container upon which a refund value has
been paid to the a participating dealer or person operating
a redemption center and acceptance of the empty beverage
container by the participating dealer or person operating a
redemption center, the participating dealer or person operating
a redemption center shall return the amount of the refund value
to the consumer within a reasonable time not to exceed ten
days .
2. a. In addition to the refund value provided in
subsection 1 of this section , a dealer, or person operating a
redemption center who redeems empty beverage containers or a
dealer agent shall be reimbursed by the distributor required
to accept the empty beverage containers under section 455C.3
shall provide reimbursement in an amount which that is one
cent per container for containers accepted from a dealer agent
and three cents per container for containers accepted from a
participating dealer or redemption center . A dealer, dealer
agent, or person operating a redemption center may compact
empty metal beverage containers with the approval of the
distributor required to accept the containers.
b. A distributor who pays a handling fee for beverage

Senate File 2378, p. 3
containers that used to contain beer, including high alcoholic
content beer, may claim a refund of the barrel tax established
in section 123.136 paid by the distributor in the amount of one
cent for each such beverage container accepted. The department
of revenue shall prescribe forms for a distributor to use to
claim a refund under this paragraph. Identifying information
collected by the department of revenue pursuant to this
paragraph that can be used to identify a specific distributor
shall be considered confidential information pursuant to
section 22.7, subsection 75.
Sec. 5. Section 455C.3, subsections 1, 2, and 4, Code 2022,
are amended to read as follows:
1. A participating dealer shall not refuse to accept from a
consumer any empty beverage container of the kind, size , and
brand sold by the participating dealer, or refuse to pay to the
consumer the refund value of a beverage container as provided
under section 455C.2 .
2. A distributor shall accept and pick up from a
participating dealer served by the distributor or a redemption
center for a dealer served by the distributor at least weekly,
or when the distributor delivers the beverage product if
deliveries are less frequent than weekly, any empty beverage
container of the kind, size ,
and brand sold by the distributor,
and shall pay to the participating dealer or person operating
a redemption center the refund value of a beverage container
and the reimbursement as provided under section 455C.2 within
one week following pickup of the containers or when the
participating dealer or redemption center normally pays the
distributor for the deposit on beverage products purchased from
the distributor if less frequent than weekly. A distributor
or employee or agent of a distributor is not in violation
of this subsection if a redemption center is closed when the
distributor attempts to make a regular delivery or a regular
pickup of empty beverage containers. This subsection does
not apply to a distributor selling alcoholic liquor to the
alcoholic beverages division of the department of commerce.
4. A distributor shall accept from a dealer agent any
empty beverage container of the kind, size, and brand sold by
the distributor and which that was picked up by the dealer

Senate File 2378, p. 4
agent from a dealer within the geographic territory served
by the distributor and the distributor shall pay the dealer
agent the refund value of the empty beverage container and the
reimbursement as provided in section 455C.2 .
Sec. 6. Section 455C.4, Code 2022, is amended to read as
follows:
455C.4 Refusal to accept containers.
1. Except as provided in section 455C.5, subsection 3 , a
dealer, a person operating a redemption center, a distributor ,
or a manufacturer may refuse to accept any empty beverage
container which that does not have stated on it a refund value
as provided under section 455C.2 .
2. a. A dealer may refuse to accept and to pay the
refund value of any empty beverage container if the place of
business of the dealer and the kind and brand of empty beverage
containers are included in an order of the department approving
a redemption center under section 455C.6 any of the following
apply:
(1) The dealer holds a food establishment license under
chapter 137F to prepare or serve food, has a certified food
protection manager as required by the 2017 United States food
and drug administration food code and supplement, and sells
time/temperature control for safety food as defined in section
137F.2.
(2) The dealer has entered an agreement with an approved
redemption center for the operation of a mobile redemption
system and all of the following apply:
(a) The dealer provides adequate space, utilities, and
internet connection to operate the mobile redemption system.
(b) The agreement does not require additional payment to the
dealer or the mobile redemption system.
(3) The dealer’s place of business is in a county with a
population of more than thirty thousand and within ten miles
of an approved redemption center or if the dealer’s place of
business is in a county with a population of thirty thousand
or fewer and within fifteen miles of an approved redemption
center.
b. A dealer who refuses to accept and to pay the refund
value on any empty beverage container pursuant to this

Senate File 2378, p. 5
subsection shall conspicuously display on the front door of
the dealer’s place of business a notice that the dealer does
not accept empty beverage containers. The notice shall also
provide the location of the nearest approved redemption center
to the dealer’s place of business. After the department has
made available an electronic method for locating approved
redemption centers pursuant to paragraph “c” , a dealer may
direct consumers to such electronic method instead of providing
the location of the nearest approved redemption center on the
notice.
c. The department shall make available to the public an
electronic method of locating approved redemption centers.
d. A dealer who provides space for a mobile redemption
system pursuant to paragraph “a” , subparagraph (2), shall not be
considered to be in violation of any county or city ordinance
that would otherwise limit the ability of the dealer to provide
such space as long as the mobile redemption system operates
in a location that is not zoned primarily for residential
purposes.
3. A dealer or a distributor may refuse to accept and to pay
the refund value of an empty wine or alcoholic liquor container
which is marked to indicate that it was sold by a state liquor
store. The alcoholic beverages division shall not reimburse
a dealer or a distributor the refund value on an empty wine or
alcoholic liquor container which is marked to indicate that the
container was sold by a state liquor store.
4. 3. A class “E” liquor control licensee may refuse to
accept and to pay the refund value on an empty alcoholic liquor
container from a participating dealer or a redemption center
or from a person acting on behalf of or who has received empty
alcoholic liquor containers from a participating dealer or a
redemption center.
5. 4. A manufacturer or distributor may refuse to accept
and to pay the refund value and reimbursement as provided in
section 455C.2 on any empty beverage container that was picked
up by a dealer agent from a dealer outside the geographic
territory served by the manufacturer or distributor.
Sec. 7. Section 455C.5, subsection 1, Code 2022, is amended
to read as follows:

Senate File 2378, p. 6
1. a. Each beverage container sold or offered for sale in
this state by a dealer shall clearly indicate the refund value
of the container by embossing or by a stamp, label , or other
method securely affixed to the container , the refund value of
the container . The department shall specify, by rule, the
minimum size of the refund value indication on the beverage
containers.
b. The department of revenue shall require the registration
of the universal product code for each beverage container
using a method of registration determined by the department of
revenue.
Sec. 8. Section 455C.6, subsection 1, Code 2022, is amended
to read as follows:
1. To facilitate the return of empty beverage containers
and to serve dealers of beverages, any person may establish a
redemption center, subject to the approval of the department,
at which consumers may return empty beverage containers
and receive payment of the refund value of such beverage
containers. A participating dealer may act as a redemption
center for purposes of this chapter.
Sec. 9. Section 455C.12, subsections 2 and 3, Code 2022, are
amended to read as follows:
2. A distributor who collects or attempts to collect
a refund value on an empty beverage container when the
distributor has paid the refund value on the container to a
participating dealer, redemption center, or consumer is guilty
of a fraudulent practice.
3. Any person who does any of the following acts is guilty
of a fraudulent practice:
a. Collects or attempts to collect the refund value on the
container a second time, with the knowledge that the refund
value has once been paid by the distributor to a participating
dealer, redemption center , or consumer.
b. Manufactures, sells, possesses , or applies a false or
counterfeit label or indication which that shows or purports to
show a refund value for a beverage container, with intent to
use the false or counterfeit label or indication.
c. Collects or attempts to collect a refund value on
a container with the use of a false or counterfeit label

Senate File 2378, p. 7
or indication showing a refund value, knowing the label or
indication to be false or counterfeit.
Sec. 10. Section 455C.12, Code 2022, is amended by adding
the following new subsections:
NEW SUBSECTION . 6. A person who knowingly attempts to
redeem a beverage container that is not properly marked as
required by section 455C.5, subsection 1, shall be subject to a
civil penalty not to exceed ten dollars per improperly marked
beverage container, but not to exceed five thousand dollars
total per attempted transaction.
NEW SUBSECTION . 7. Except as provided in subsection 6,
a person who violates any provision of this chapter shall
be subject to a civil penalty of two thousand dollars per
violation, which shall be assessed and collected in the same
manner as provided in section 455B.109. Any civil penalty
collected under this chapter shall be deposited in the bottle
bill fund established in section 455C.12D.
Sec. 11. NEW SECTION . 455C.12A Administrative enforcement
—— compliance orders.
The director may issue any order necessary to secure
compliance with or prevent a violation of the provisions of
this chapter or any rule adopted or permit or order issued
pursuant to this chapter. The person to whom such compliance
order is issued may cause to be commenced a contested case
within the meaning of chapter 17A by filing within thirty
days a notice of appeal to the commission. On appeal, the
commission may affirm, modify, or vacate the order of the
director.
Sec. 12. NEW SECTION . 455C.12B Judicial review.
Judicial review of any order or other action of the
commission or director may be sought in accordance with the
terms of chapter 17A. Notwithstanding the terms of chapter
17A, petitions for judicial review may be filed in the district
court of the county in which the alleged offense was committed.
Sec. 13. NEW SECTION . 455C.12C Civil actions for compliance
—— penalties.
1. The attorney general, on request of the department, shall
institute any legal proceedings necessary to obtain compliance
with an order of the commission or the director, including

Senate File 2378, p. 8
proceedings for a temporary injunction, or prosecuting any
person for a violation of an order of the commission or the
director, the provisions of this chapter, or any rules adopted
or permit or order issued pursuant to this chapter.
2. Any person who violates any order issued pursuant to
section 455C.12A shall be subject to a civil penalty not to
exceed two thousand dollars for each day of such violation.
Sec. 14. NEW SECTION . 455C.12D Bottle bill fund.
A bottle bill fund is established in the state treasury
under the control of the department. The fund shall consist
of moneys deposited in the fund pursuant to section 455C.12,
subsection 7, and any other moneys appropriated to or deposited
in the fund. Moneys in the fund are appropriated to the
department for purposes of administering and enforcing this
chapter, including reimbursing the attorney general for costs
incurred by the attorney general in enforcing this chapter.
Notwithstanding section 8.33, moneys in the fund that remain
unencumbered or unobligated at the close of a fiscal year shall
not revert but shall remain available for expenditure for the
purposes designated. Notwithstanding section 12C.7, subsection
2, interest or earnings on moneys in the fund shall be credited
to the fund.
Sec. 15. Section 455C.13, Code 2022, is amended to read as
follows:
455C.13 Distributors’ Collection and disposal agreements
authorized.
1. A distributor , dealer, or redemption center may enter
into a contract or agreement with any other distributor,
manufacturer , or person for the purpose of collecting or paying
the refund value on, or disposing of , beverage containers as
provided in this chapter .
2. For purposes of this chapter, any contracts entered into
pursuant to this section for the collection or disposal of
empty beverage containers shall not be deemed to interfere with
the refund value pursuant to section 455C.2.
Sec. 16. Section 455C.16, Code 2022, is amended to read as
follows:
455C.16 Beverage containers —— disposal at sanitary landfill
prohibited.

Senate File 2378, p. 9
Beginning July 1, 1990, the The final disposal of beverage
containers by a dealer, distributor, or manufacturer, or
person operating a redemption center, in a sanitary landfill,
is prohibited. Beginning September 1, 1992 , including the
final disposal of beverage containers that used to contain
alcoholic liquor as defined in section 123.3, subsection 5 ,
by a participating dealer, distributor, or manufacturer, or
person operating a redemption center in a sanitary landfill ,
is prohibited.
Sec. 17. NEW SECTION . 455C.18 Unclaimed refund value and
handling fees.
Any amount of refund value or handling fees possessed by a
distributor after the distributor has made payments required
pursuant to this chapter shall be considered the property of
the distributor.
Sec. 18. LEGISLATIVE FISCAL COMMITTEE REVIEW.
1. The legislative fiscal committee established in section
2.45 shall hold a meeting during the legislative interim
immediately preceding the 2026 regular legislative session.
During the meeting, the committee shall review the enforcement
of chapter 455C by the department of natural resources,
including the collection of civil penalties, the report
submitted by the attorney general pursuant to subsection 2,
whether and how many redemption centers have been approved
by the department, the adequacy of the reimbursement amount
under section 455C.2, and any other information the committee
deems important. The committee shall submit a report of its
findings and recommendations to the general assembly no later
than January 31, 2026.
2. The attorney general shall submit a report to the
general assembly prior to the legislative fiscal committee’s
meeting under subsection 1. The report shall detail any legal
proceedings arising under chapter 455C since January 1, 2023.
Sec. 19. REFUSAL TO ACCEPT BEVERAGE CONTAINERS.
1. A dealer may refuse to accept beverage containers before
January 1, 2023, if any of the following apply:
a. The dealer has entered an agreement with an approved
redemption center for the operation of a mobile redemption
system and all of the following apply:

Senate File 2378, p. 10
(1) The dealer provides adequate space, utilities, and
internet connection to operate the mobile redemption system.
(2) The agreement does not require additional payment to the
dealer or the mobile redemption system.
b. The dealer’s place of business is in a county with a
population of more than thirty thousand and within ten miles
of an approved redemption center or if the dealer’s place of
business is in a county with a population of thirty thousand
or fewer and within fifteen miles of an approved redemption
center.
2. A dealer who refuses to accept beverage containers
pursuant to this section shall conspicuously display on the
front door of the dealer’s place of business a notice that
the dealer does not accept empty beverage containers. The
notice shall also provide the location of the nearest approved
redemption center to the dealer’s place of business.
Sec. 20. EFFECTIVE DATE.
1. Except as provided in subsections 2 or 3, this Act takes
effect January 1, 2023.
2. The section of this Act amending section 455C.5,
subsection 1, takes effect November 15, 2023.
3. The section of this Act allowing a dealer to refuse to
accept beverage containers before January 1, 2023, being deemed
of immediate importance, takes effect upon enactment.
______________________________ ______________________________
JAKE CHAPMAN PAT GRASSLEY
President of the Senate Speaker of the House
I hereby certify that this bill originated in the Senate and
is known as Senate File 2378, Eighty-ninth General Assembly.
______________________________
W. CHARLES SMITHSON
Secretary of the Senate
Approved _______________, 2022 ______________________________
KIM REYNOLDS
Governor