H.F. 2460 Section 1. Section 123.3, Code 2018, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 8A. “Brewpub” means a commercial 3 establishment authorized to sell beer at retail for consumption 4 on or off the premises that is operated by a person who holds a 5 class “C” liquor control license or a class “B” beer permit and 6 who also holds a special class “A” beer permit that authorizes 7 the holder to manufacture and sell beer pursuant to this 8 chapter. 9 Sec. 2. Section 123.3, subsection 5, Code 2018, is amended 10 to read as follows: 11 5. “Alcoholic liquor” or “intoxicating liquor” means the 12 varieties of liquor defined in subsections 3 and 43 which 13 contain more than five percent of alcohol by weight, beverages 14 made as described in subsection 7 which beverages contain more 15 than five percent of alcohol by weight or six and twenty-five 16 hundredths percent of alcohol by volume but which are not 17 wine as defined in subsection 47 or high alcoholic content 18 beer as defined in subsection 19 , and every other liquid or 19 solid, patented or not, containing spirits and every beverage 20 obtained by the process described in subsection 47 containing 21 more than seventeen percent alcohol by weight or twenty-one 22 and twenty-five hundredths percent of alcohol by volume, and 23 susceptible of being consumed by a human being, for beverage 24 purposes. Alcohol manufactured in this state for use as fuel 25 pursuant to an experimental distilled spirits plant permit or 26 its equivalent issued by the federal bureau of alcohol, tobacco 27 and firearms is not an “alcoholic liquor” . 28 Sec. 3. Section 123.3, subsection 9, Code 2018, is amended 29 to read as follows: 30 9. “Broker” means a person who represents or promotes 31 alcoholic liquor within the state on behalf of the holder of a 32 distiller’s certificate of compliance through an agreement with 33 the distiller, and whose name is disclosed on a distiller’s 34 current certificate of compliance as its representative in 35 -1- LSB 5286HV (2) 87 ec/rn 1/ 42

H.F. 2460 the state , a manufacturer’s license, or a class “A” native 1 distilled spirits license . An employee of the holder of 2 a distiller’s certificate of compliance , a manufacturer’s 3 license, or a class “A” native distilled spirits license is not 4 a broker. 5 Sec. 4. Section 123.4, Code 2018, is amended to read as 6 follows: 7 123.4 Alcoholic beverages division created. 8 An alcoholic beverages division is created within the 9 department of commerce to administer and enforce the laws of 10 this state concerning beer, wine, and alcoholic liquor beverage 11 control . 12 Sec. 5. Section 123.9, subsections 5, 6, and 7, Code 2018, 13 are amended to read as follows: 14 5. To grant and issue beer permits, wine permits, special 15 permits, liquor control licenses, and other licenses; and to 16 suspend or revoke all such permits and licenses for cause under 17 this chapter . 18 6. To license, inspect, and control the manufacture of 19 beer, wine, and alcoholic liquors beverages and regulate the 20 entire beer, wine, and liquor alcoholic beverage industry in 21 the state. 22 7. To accept intoxicating alcoholic liquors ordered 23 delivered to the alcoholic beverages division pursuant to 24 chapter 809A , and offer for sale and deliver the intoxicating 25 alcoholic liquors to class “E” liquor control licensees, 26 unless the administrator determines that the intoxicating 27 alcoholic liquors may be adulterated or contaminated. If 28 the administrator determines that the intoxicating alcoholic 29 liquors may be adulterated or contaminated, the administrator 30 shall order their destruction. 31 Sec. 6. Section 123.10, subsection 6, Code 2018, is amended 32 to read as follows: 33 6. Providing for the issuance and electronic distribution 34 of price lists which show the price to be paid by class “E” 35 -2- LSB 5286HV (2) 87 ec/rn 2/ 42

H.F. 2460 liquor control licensees for each brand, class, or variety of 1 liquor kept for sale by the division, providing for the filing 2 or posting of prices charged in sales between class “A” beer 3 and class “A” wine permit holders and retailers, as provided 4 in this chapter , and establishing or controlling the prices 5 based on minimum standards of fill, quantity, or alcoholic 6 content for each individual sale of intoxicating liquor or 7 beer alcoholic beverages as deemed necessary for retail or 8 consumer protection. However, the division shall not regulate 9 markups, prices, discounts, allowances, or other terms of sale 10 at which alcoholic liquor may be purchased by the retail public 11 or liquor control licensees from class “E” liquor control 12 licensees or at which wine may be purchased and sold by class 13 “A” and retail wine permittees, or change, nullify, or vary the 14 terms of an agreement between a holder of a vintner certificate 15 of compliance and a class “A” wine permittee. 16 Sec. 7. Section 123.14, subsection 1, Code 2018, is amended 17 to read as follows: 18 1. The department of public safety is the primary beer, 19 wine, and liquor alcoholic beverage control law enforcement 20 authority for this state. 21 Sec. 8. Section 123.22, subsection 2, Code 2018, is amended 22 to read as follows: 23 2. No person, acting individually or through another 24 acting for the person shall directly or indirectly, or upon 25 any pretense, or by any device, manufacture, sell, exchange, 26 barter, dispense, give in consideration of the purchase of any 27 property or of any services or in evasion of this chapter , 28 or keep for sale, or have possession of any intoxicating 29 alcoholic liquor, except as provided in this chapter ; or 30 own, keep, or be in any way concerned, engaged, or employed 31 in owning or keeping, any intoxicating alcoholic liquor with 32 intent to violate any provision of this chapter , or authorize 33 or permit the same to be done; or manufacture, own, sell, or 34 have possession of any manufactured or compounded article, 35 -3- LSB 5286HV (2) 87 ec/rn 3/ 42

H.F. 2460 mixture or substance, not in a liquid form, and containing 1 alcohol which may be converted into a beverage by a process 2 of pressing or straining the alcohol therefrom, or any 3 instrument intended for use and capable of being used in the 4 manufacture of intoxicating alcoholic liquor; or own or have 5 possession of any material used exclusively in the manufacture 6 of intoxicating alcoholic liquor; or use or have possession 7 of any material with intent to use it in the manufacture 8 of intoxicating alcoholic liquors; however, alcohol may be 9 manufactured for industrial and nonbeverage purposes by persons 10 who have qualified for that purpose as provided by the laws of 11 the United States and the laws of this state. Such alcohol, so 12 manufactured, may be denatured, transported, used, possessed, 13 sold, and bartered and dispensed, subject to the limitations, 14 prohibitions and restrictions imposed by the laws of the United 15 States and this state. Any person may manufacture, sell, or 16 transport ingredients and devices other than alcohol for the 17 making of homemade wine or beer. 18 Sec. 9. Section 123.23, subsections 1 and 5, Code 2018, are 19 amended to read as follows: 20 1. Any manufacturer, distiller, or importer of alcoholic 21 beverages liquors shipping, selling, or having alcoholic 22 beverages liquors brought into this state for resale by the 23 state shall, as a condition precedent to the privilege of 24 so trafficking in alcoholic liquors in this state, annually 25 make application for and hold a distiller’s certificate 26 of compliance which shall be issued by the administrator 27 for that purpose. No brand of alcoholic liquor shall be 28 sold by the division in this state unless the manufacturer, 29 distiller, importer, and all other persons participating in 30 the distribution of that brand in this state have obtained a 31 certificate. The certificate of compliance shall expire at the 32 end of one year from the date of issuance and shall be renewed 33 for a like period upon application to the administrator unless 34 otherwise suspended or revoked for cause. Each application 35 -4- LSB 5286HV (2) 87 ec/rn 4/ 42

H.F. 2460 for a certificate of compliance or renewal shall be submitted 1 electronically, or in a manner prescribed by the administrator, 2 and shall be accompanied by a fee of fifty dollars payable to 3 the division. However, this subsection need not apply to a 4 manufacturer, distiller, or importer who ships or sells in this 5 state no more than eleven gallons or its case equivalent during 6 any fiscal year as a result of “special orders” which might 7 be placed, as defined and allowed by divisional rules adopted 8 under this chapter . 9 5. This section shall not require the listing of those 10 persons who are employed on premises where alcoholic beverages 11 liquors are manufactured, processed, bottled or packaged in 12 Iowa or persons who are thereafter engaged in the transporting 13 of such alcoholic beverages liquors to the division. 14 Sec. 10. Section 123.25, Code 2018, is amended to read as 15 follows: 16 123.25 Consumption on premises. 17 An officer, clerk, agent, or employee of the division 18 employed in a state-owned warehouse shall not allow any 19 alcoholic liquor beverage to be consumed on the premises, nor 20 shall a person consume any alcoholic liquor on the premises 21 except for testing or sampling purposes only. 22 Sec. 11. Section 123.28, subsections 2 and 5, Code 2018, are 23 amended to read as follows: 24 2. The division shall deliver alcoholic liquor purchased 25 by class “E” liquor control licensees. Class “E” liquor 26 control licensees may deliver alcoholic liquor purchased by 27 class “A”, “B”, or “C” , “C” native distilled spirits, or “D” 28 liquor control licensees, and class “A”, “B”, or “C” , “C” 29 native distilled spirits, or “D” liquor control licensees may 30 transport alcoholic liquor purchased from class “E” liquor 31 control licensees. 32 5. This section does not affect the right of a special 33 permit or liquor control license holder to purchase, possess, 34 or transport alcoholic liquors subject to this chapter . 35 -5- LSB 5286HV (2) 87 ec/rn 5/ 42

H.F. 2460 Sec. 12. Section 123.30, subsection 3, Code 2018, is amended 1 to read as follows: 2 3. Liquor control licenses issued under this chapter shall 3 be of the following classes: 4 a. Class “A”. A class “A” liquor control license may be 5 issued to a club and shall authorize the holder to purchase 6 alcoholic liquors from class “E” liquor control licensees 7 only, wine from class “A” wine permittees or class “B” wine 8 permittees who also hold class “E” liquor control licenses only 9 as provided in section 123.173 and section 123.177 , and native 10 wines from native wine manufacturers, and to sell liquors, 11 wine, and beer alcoholic beverages to bona fide members and 12 their guests by the individual drink for consumption on the 13 premises only. 14 b. Class “B”. A class “B” liquor control license may be 15 issued to a hotel or motel and shall authorize the holder 16 to purchase alcoholic liquors from class “E” liquor control 17 licensees only, wine from class “A” wine permittees or class 18 “B” wine permittees who also hold class “E” liquor control 19 licenses only as provided in section 123.173 and section 20 123.177 , and native wines from native wine manufacturers, 21 and to sell liquors, wine, and beer alcoholic beverages to 22 patrons by the individual drink for consumption on the premises 23 only. However, beer may also be sold for consumption off the 24 premises. Each license shall be effective throughout the 25 premises described in the application. 26 c. Class “C”. 27 (1) A class “C” liquor control license may be issued to 28 a commercial establishment but must be issued in the name 29 of the individuals who actually own the entire business and 30 shall authorize the holder to purchase alcoholic liquors from 31 class “E” liquor control licensees only, wine from class “A” 32 wine permittees or class “B” wine permittees who also hold 33 class “E” liquor control licenses only as provided in section 34 123.173 and section 123.177 , and native wines from native wine 35 -6- LSB 5286HV (2) 87 ec/rn 6/ 42

H.F. 2460 manufacturers, and to sell liquors, wine, and beer alcoholic 1 beverages to patrons by the individual drink for consumption 2 on the premises only. However, beer may also be sold for 3 consumption off the premises. The holder of a class “C” liquor 4 control license may also hold a special class “A” beer permit 5 for the premises licensed under a class “C” liquor control 6 license for the purpose of operating a brewpub pursuant to this 7 chapter. 8 (2) A special class “C” liquor control license may be issued 9 to a commercial establishment and shall authorize the holder 10 to purchase wine from class “A” wine permittees or class “B” 11 wine permittees who also hold class “E” liquor control licenses 12 only as provided in section 123.173 and section 123.177 , and 13 to sell wine and beer to patrons by the individual drink for 14 consumption on the premises only. However, beer may also be 15 sold for consumption off the premises. The license issued to 16 holders of a special class “C” liquor control license shall 17 clearly state on its face that the license is limited. 18 (3) A class “C” native distilled spirits liquor control 19 license may be issued to a native distillery but shall be 20 issued in the name of the individuals who actually own the 21 business and shall only be issued to a native distillery 22 which, combining all production facilities of the business, 23 produces and manufactures not more than one hundred thousand 24 proof gallons of distilled spirits on an annual basis. The 25 license shall authorize the holder to sell native distilled 26 spirits manufactured on the premises of the native distillery 27 to patrons by the individual drink for consumption on the 28 premises. All native distilled spirits sold by a native 29 distillery for on-premises consumption shall be purchased from 30 a class “E” liquor control licensee. 31 d. Class “D”. 32 (1) A class “D” liquor control license may be issued 33 to a railway corporation, to an air common carrier, and to 34 passenger-carrying boats or ships for hire with a capacity of 35 -7- LSB 5286HV (2) 87 ec/rn 7/ 42

H.F. 2460 twenty-five persons or more operating in inland or boundary 1 waters, and shall authorize the holder to sell or furnish 2 alcoholic beverages , wine, and beer to passengers for 3 consumption only on trains, watercraft as described in this 4 section , or aircraft, respectively. Each license is valid 5 throughout the state. Only one license is required for all 6 trains, watercraft, or aircraft operated in the state by the 7 licensee. However, if a watercraft is an excursion gambling 8 boat licensed under chapter 99F , the owner shall obtain a 9 separate class “D” liquor control license for each excursion 10 gambling boat operating in the waters of this state. 11 (2) A class “D” liquor control licensee who operates a train 12 or a watercraft intrastate only, or an excursion gambling boat 13 licensed under chapter 99F , shall purchase alcoholic liquor 14 from a class “E” liquor control licensee only, wine from a 15 class “A” wine permittee or a class “B” wine permittee who also 16 holds a class “E” liquor control license only as provided in 17 section 123.173 and section 123.177 , and beer from a class “A” 18 beer permittee only. 19 e. Class “E”. 20 (1) A class “E” liquor control license may be issued 21 and shall authorize the holder to purchase alcoholic liquor 22 from the division only and high alcoholic content beer from 23 a class “A” beer permittee only and to sell the alcoholic 24 liquor and high alcoholic content beer at retail to patrons 25 for consumption off the licensed premises and at wholesale to 26 other liquor control licensees , provided the holder has filed 27 with the division a basic permit issued by the alcohol and 28 tobacco tax and trade bureau of the United States department of 29 the treasury . A holder of a class “E” liquor control license 30 may hold other retail liquor control licenses or retail wine 31 or beer permits, but the premises licensed under a class “E” 32 liquor control license shall be separate from other licensed 33 premises, though the separate premises may have a common 34 entrance. However, the holder of a class “E” liquor control 35 -8- LSB 5286HV (2) 87 ec/rn 8/ 42

H.F. 2460 license may also hold a class “B” wine or class “C” beer permit 1 or both for the premises licensed under a class “E” liquor 2 control license. 3 (2) The division may issue a class “E” liquor control 4 license for premises covered by a liquor control license 5 or wine or beer permit for on-premises consumption, if the 6 premises are in a county having a population under nine 7 thousand five hundred in which no other class “E” liquor 8 control license has been issued by the division, and no other 9 application for a class “E” liquor control license has been 10 made within the previous twelve consecutive months. 11 Sec. 13. Section 123.32, subsection 1, Code 2018, is amended 12 to read as follows: 13 1. Filing of application. An application for a class “A”, 14 class “B”, class “C”, or class “E” liquor control license, for 15 a class “A” native distilled spirits license, for a retail 16 beer permit as provided in sections 123.128 and 123.129 , or 17 for a class “B”, class “B” native, or class “C” native retail 18 wine permit as provided in section 123.178 , 123.178A , or 19 123.178B 123.175 , accompanied by the necessary fee and bond, 20 if required, shall be filed with the appropriate city council 21 if the premises for which the license or permit is sought are 22 located within the corporate limits of a city, or with the 23 board of supervisors if the premises for which the license or 24 permit is sought are located outside the corporate limits of a 25 city. An application for a class “D” liquor control license 26 and for a class “A” beer or class “A” wine permit, accompanied 27 by the necessary fee and bond, if required, shall be submitted 28 to the division electronically, or in a manner prescribed by 29 the administrator, which shall proceed in the same manner as in 30 the case of an application approved by local authorities. 31 Sec. 14. Section 123.33, Code 2018, is amended to read as 32 follows: 33 123.33 Records. 34 Every holder of a license or permit under this chapter shall 35 -9- LSB 5286HV (2) 87 ec/rn 9/ 42

H.F. 2460 maintain records, in printed and or electronic format, which 1 include income statements, balance sheets, purchase and sales 2 invoices, purchase and sales ledgers, and any other records as 3 the administrator may require. The records required and the 4 premises of the licensee or permittee shall be accessible and 5 open to inspection pursuant to section 123.30, subsection 1 , 6 during normal business hours of the licensee or permittee. 7 Sec. 15. Section 123.34, subsection 1, Code 2018, is amended 8 to read as follows: 9 1. Liquor control licenses, wine permits, and beer permits, 10 unless sooner suspended or revoked, expire one year from date 11 of issuance. The administrator shall give notify a license or 12 permit holder electronically, or in a manner prescribed by the 13 administrator, sixty days’ written notice of days prior to the 14 expiration to of each licensee license or permittee permit . 15 However, the administrator may issue six-month or eight-month 16 seasonal licenses, class “B” wine permits, or class “B” beer 17 permits for a proportionate part of the license or permit fee 18 or may issue fourteen-day liquor control licenses, native wine 19 permits, or beer permits as provided in subsection 2 . No 20 refund shall be made for seasonal licenses or permits or for 21 fourteen-day liquor control licenses, native wine permits, or 22 beer permits. No seasonal license or permit shall be renewed. 23 However, after a period of two months the applicant may apply 24 for a new seasonal license or permit for the same location. 25 Sec. 16. Section 123.36, subsections 1 and 6, Code 2018, are 26 amended to read as follows: 27 1. Class “A” liquor control licenses, the sum of six hundred 28 dollars, except that for class “A” licenses in cities of less 29 than two thousand population, and for clubs of less than two 30 hundred fifty members, the license fee shall be four hundred 31 dollars; however, the fee shall be two hundred dollars for 32 any club which is a post, branch, or chapter of a veterans 33 organization chartered by the Congress of the United States, if 34 the club does not sell or permit the consumption of alcoholic 35 -10- LSB 5286HV (2) 87 ec/rn 10/ 42

H.F. 2460 beverages , wine, or beer on the premises more than one day in 1 any week or more than a total of fifty-two days in a year, and 2 if the application for a license states that the club does 3 not and will not sell or permit the consumption of alcoholic 4 beverages , wine, or beer on the premises more than one day in 5 any week or more than a total of fifty-two days in a year. 6 6. Any club, hotel, motel, native distillery, or commercial 7 establishment holding a liquor control license, subject to 8 section 123.49, subsection 2 , paragraph “b” , may apply for 9 and receive permission to sell and dispense alcoholic liquor 10 and wine beverages as authorized by section 123.30 to patrons 11 on Sunday for consumption on the premises only, and beer for 12 consumption on or off the premises between the hours of 8:00 13 a.m. on Sunday and 2:00 a.m. on the following Monday. A 14 class “D” liquor control licensee may apply for and receive 15 permission to sell and dispense alcoholic beverages to patrons 16 for consumption on the premises only between the hours of 8:00 17 a.m. on Sunday and 2:00 a.m. on the following Monday. For 18 the privilege of selling beer, wine, and alcoholic liquor on 19 the premises on Sunday the liquor control license fee of the 20 applicant shall be increased by twenty percent of the regular 21 fee prescribed for the license pursuant to this section , and 22 the privilege shall be noted on the liquor control license. 23 Sec. 17. Section 123.37, subsection 1, Code 2018, is amended 24 to read as follows: 25 1. The power to establish licenses and permits and levy 26 taxes as imposed in this chapter is vested exclusively with 27 the state. Unless specifically provided, a local authority 28 shall not require the obtaining of a special license or permit 29 for the sale of alcoholic beverages , wine, or beer at any 30 establishment, or require the obtaining of a license by any 31 person as a condition precedent to the person’s employment in 32 the sale, serving, or handling of alcoholic beverages , wine, 33 or beer, within an establishment operating under a license or 34 permit. 35 -11- LSB 5286HV (2) 87 ec/rn 11/ 42

H.F. 2460 Sec. 18. Section 123.38, subsections 1 and 2, Code 2018, are 1 amended to read as follows: 2 1. A special permit, liquor control license, wine permit, 3 or beer permit is a personal privilege and is revocable for 4 cause. It is not property nor is it subject to attachment 5 and execution nor alienable nor assignable, and it shall 6 cease upon the death of the permittee or licensee. However, 7 the administrator of the division may in the administrator’s 8 discretion allow the executor or administrator of a permittee 9 or licensee to operate the business of the decedent for a 10 reasonable time not to exceed the expiration date of the permit 11 or license. Every permit or license shall be issued in the 12 name of the applicant and no person holding a permit or license 13 shall allow any other person to use it. 14 2. Any licensee or permittee, or the licensee’s or 15 permittee’s executor or administrator, or any person duly 16 appointed by the court to take charge of and administer the 17 property or assets of the licensee or permittee for the benefit 18 of the licensee’s or permittee’s creditors, may voluntarily 19 surrender a license or permit to the division. When a license 20 or permit is surrendered the division shall notify the local 21 authority, and the division or the local authority shall 22 refund to the person surrendering the license or permit, a 23 proportionate amount of the fee received by the division or 24 the local authority for the license or permit as follows: if 25 a license or permit is surrendered during the first three 26 months of the period for which it was issued, the refund shall 27 be three-fourths of the amount of the fee; if surrendered 28 more than three months but not more than six months after 29 issuance, the refund shall be one-half of the amount of the 30 fee; if surrendered more than six months but not more than nine 31 months after issuance, the refund shall be one-fourth of the 32 amount of the fee. No refund shall be made, however, for any 33 special permit, liquor control license, wine permit, or beer 34 permit surrendered more than nine months after issuance. For 35 -12- LSB 5286HV (2) 87 ec/rn 12/ 42

H.F. 2460 purposes of this subsection , any portion of license or permit 1 fees used for the purposes authorized in section 331.424, 2 subsection 1 , paragraph “a” , subparagraphs (1) and (2), and in 3 section 331.424A , shall not be deemed received either by the 4 division or by a local authority. No refund shall be made to 5 any licensee or permittee upon the surrender of the license or 6 permit if there is at the time of surrender a complaint filed 7 with the division or local authority charging the licensee 8 or permittee with a violation of this chapter . If upon a 9 hearing on a complaint the license or permit is not revoked or 10 suspended, then the licensee or permittee is eligible, upon 11 surrender of the license or permit, to receive a refund as 12 provided in this section . However, if the license or permit is 13 revoked or suspended upon hearing, the licensee or permittee 14 is not eligible for the refund of any portion of the license or 15 permit fee. 16 Sec. 19. Section 123.39, subsection 1, paragraph b, 17 subparagraph (3), Code 2018, is amended to read as follows: 18 (3) Any change in the ownership or interest in the business 19 operated under a class “A”, class “B”, or class “C” liquor 20 control license, or any wine or beer permit, which change 21 was not previously reported to in a manner prescribed by the 22 administrator within thirty days of the change and subsequently 23 approved by the local authority and the division. 24 Sec. 20. Section 123.39, subsection 1, paragraph c, Code 25 2018, is amended to read as follows: 26 c. A criminal conviction is not a prerequisite to 27 suspension, revocation, or imposition of a civil penalty 28 pursuant to this section . A local authority which acts 29 pursuant to this section , or section 123.32 , or section 123.50 30 shall notify the division in writing of the action taken, 31 and shall notify the licensee or permit holder of the right 32 to appeal a suspension, revocation, or imposition of a civil 33 penalty to the division. Civil penalties imposed and collected 34 by the local authority under this section shall be retained by 35 -13- LSB 5286HV (2) 87 ec/rn 13/ 42

H.F. 2460 the local authority. Civil penalties imposed and collected 1 by the division under this section shall be retained by the 2 division. 3 Sec. 21. Section 123.39, subsections 2 and 3, Code 2018, are 4 amended to read as follows: 5 2. Local authorities may suspend any retail wine or beer 6 permit or liquor control license or retail wine or beer permit 7 for a violation of any ordinance or regulation adopted by 8 the local authority. Local authorities may adopt ordinances 9 or regulations for the location of the premises of retail 10 wine or beer and liquor control licensed and retail wine or 11 beer permitted establishments and local authorities may adopt 12 ordinances, not in conflict with this chapter and that do 13 not diminish the hours during which beer, wine, or alcoholic 14 beverages may be sold or consumed at retail, governing any 15 other activities or matters which may affect the retail sale 16 and consumption of beer, wine, and alcoholic liquor beverages 17 and the health, welfare and morals of the community involved. 18 3. When a liquor control license or retail wine or beer 19 permit is suspended after a hearing as a result of violations 20 of this chapter by the licensee, permittee or the licensee’s 21 or permittee’s agents or employees, the premises which were 22 licensed by the license or permit shall not be relicensed for 23 a new applicant until the suspension has terminated or time 24 of suspension has elapsed, or ninety days have elapsed since 25 the commencement of the suspension, whichever occurs first. 26 However, this section does not prohibit the premises from 27 being relicensed to a new applicant before the suspension has 28 terminated or before the time of suspension has elapsed or 29 before ninety days have elapsed from the commencement of the 30 suspension, if the premises prior to the time of the suspension 31 had been purchased under contract, and the vendor under that 32 contract had exercised the person’s rights under chapter 656 33 and sold the property to a different person who is not related 34 to the previous licensee or permittee by marriage or within the 35 -14- LSB 5286HV (2) 87 ec/rn 14/ 42

H.F. 2460 third degree of consanguinity or affinity and if the previous 1 licensee or permittee does not have a financial interest in the 2 business of the new applicant. 3 Sec. 22. Section 123.41, subsection 2, Code 2018, is amended 4 to read as follows: 5 2. As a condition precedent to the approval and granting 6 of a manufacturer’s license, an applicant shall file with the 7 division a basic permit issued by the alcohol and tobacco 8 tax and trade bureau of the United States department of the 9 treasury, and a statement under oath with the division that the 10 applicant is a bona fide manufacturer of alcoholic liquors, and 11 that the applicant will faithfully observe and comply with all 12 laws, rules, and regulations governing the manufacture and sale 13 of alcoholic liquor. 14 Sec. 23. Section 123.42, subsection 1, Code 2018, is amended 15 to read as follows: 16 1. Prior to representing or promoting a distiller’s 17 alcoholic liquor products in the state, the broker shall submit 18 an application to the division electronically, or in a manner 19 prescribed by the administrator, for a broker’s permit. The 20 administrator may in accordance with this chapter issue a 21 broker’s permit which shall be valid for one year from the 22 date of issuance unless it is sooner suspended or revoked 23 for a violation of this chapter . A broker’s permit is valid 24 throughout the state, and a broker who represents more than one 25 distiller is required to obtain only one broker’s permit. 26 Sec. 24. Section 123.42, Code 2018, is amended by adding the 27 following new subsections: 28 NEW SUBSECTION . 1A. At the time of applying for a broker’s 29 permit, each applicant shall submit to the division a list 30 of names and addresses of all manufacturers, distillers, and 31 importers whom the applicant has been appointed to represent 32 in the state of Iowa for any purpose. The listing shall be 33 amended by the broker as necessary to keep the listing current 34 with the division. 35 -15- LSB 5286HV (2) 87 ec/rn 15/ 42

H.F. 2460 NEW SUBSECTION . 1B. A broker’s permit is valid throughout 1 the state, and a broker who represents more than one 2 certificate or license holder is required to obtain only one 3 broker’s permit. 4 Sec. 25. Section 123.42, subsection 4, Code 2018, is amended 5 to read as follows: 6 4. The holder of a distiller’s certificate of compliance , a 7 manufacturer’s license, or a class “A” native distilled spirits 8 license is not required to appoint a broker to represent its 9 alcoholic liquor products in the state. If the holder of a 10 distiller’s certificate of compliance appoints a broker to 11 represent its alcoholic liquor products in the state, the 12 name and address of the broker shall be disclosed on the 13 distiller’s application for a certificate of compliance, and 14 the requirements in this section shall apply to the appointed 15 broker. 16 Sec. 26. Section 123.43, subsection 2, paragraph d, Code 17 2018, is amended to read as follows: 18 d. That the applicant is a bona fide manufacturer of 19 alcoholic liquors has filed with the division a basic permit 20 issued by the alcohol and tobacco tax and trade bureau of 21 the United States department of the treasury , and that the 22 applicant will faithfully observe and comply with all laws, 23 rules, and regulations governing the manufacture and sale of 24 alcoholic liquor. 25 Sec. 27. Section 123.44, Code 2018, is amended to read as 26 follows: 27 123.44 Gift of liquors Gifts prohibited. 28 A manufacturer or broker shall not give away alcoholic 29 liquor at any time in connection with the manufacturer’s or 30 broker’s business except for testing or sampling purposes 31 only. A manufacturer, distiller, vintner, brewer, broker, 32 wholesaler, or importer, organized as a corporation pursuant 33 to the laws of this state or any other state, who deals in 34 alcoholic liquor, wine, or beer beverages subject to regulation 35 -16- LSB 5286HV (2) 87 ec/rn 16/ 42

H.F. 2460 under this chapter shall not offer or give anything of value 1 to a commission member, official or employee of the division, 2 or directly or indirectly contribute in any manner any money 3 or thing of value to a person seeking a public or appointive 4 office or a recognized political party or a group of persons 5 seeking to become a recognized political party. 6 Sec. 28. Section 123.47, subsection 1, Code 2018, is amended 7 to read as follows: 8 1. A person shall not sell, give, or otherwise supply any 9 alcoholic liquor, wine, or beer beverage to any person knowing 10 or having reasonable cause to believe that person to be under 11 legal age. 12 Sec. 29. Section 123.47, subsection 2, paragraph a, Code 13 2018, is amended to read as follows: 14 a. Except for the purposes described in subsection 3 , a 15 person who is the owner or lessee of, or who otherwise has 16 control over, property that is not a licensed premises, shall 17 not knowingly permit any person, knowing or having reasonable 18 cause to believe the person to be under the age of eighteen, to 19 consume or possess on such property any alcoholic liquor, wine, 20 or beer beverage . 21 Sec. 30. Section 123.47, subsection 2, paragraph c, 22 subparagraph (2), Code 2018, is amended to read as follows: 23 (2) A person under legal age who consumes or possesses any 24 alcoholic liquor, wine, or beer beverage in connection with a 25 religious observance, ceremony, or rite. 26 Sec. 31. Section 123.47, subsection 3, Code 2018, is amended 27 to read as follows: 28 3. A person or persons under legal age shall not purchase or 29 attempt to purchase, consume, or individually or jointly have 30 alcoholic liquor, wine, or beer beverages in their possession 31 or control; except in the case of liquor, wine, or beer any 32 alcoholic beverage given or dispensed to a person under legal 33 age within a private home and with the knowledge, presence, and 34 consent of the parent or guardian, for beverage or medicinal 35 -17- LSB 5286HV (2) 87 ec/rn 17/ 42

H.F. 2460 purposes or as administered to the person by either a physician 1 or dentist for medicinal purposes and except to the extent that 2 a person under legal age may handle alcoholic beverages , wine, 3 and beer during the regular course of the person’s employment 4 by a liquor control licensee, or wine or beer permittee under 5 this chapter . 6 Sec. 32. Section 123.47, subsection 4, paragraph a, 7 unnumbered paragraph 1, Code 2018, is amended to read as 8 follows: 9 A person who is eighteen, nineteen, or twenty years of age, 10 other than a licensee or permittee, who violates this section 11 regarding the purchase of, attempt to purchase, or consumption 12 of any alcoholic liquor, wine, or beer beverage , or possessing 13 or having control of any alcoholic liquor, wine, or beer 14 beverage , commits the following: 15 Sec. 33. Section 123.47, subsections 5, 6, and 7, Code 2018, 16 are amended to read as follows: 17 5. Except as otherwise provided in subsections 6 and 7 , a 18 person who is of legal age, other than a licensee or permittee, 19 who sells, gives, or otherwise supplies any alcoholic liquor, 20 wine, or beer beverage to a person who is under legal age 21 in violation of this section commits a serious misdemeanor 22 punishable by a minimum fine of five hundred dollars. 23 6. A person who is of legal age, other than a licensee 24 or permittee, who sells, gives, or otherwise supplies any 25 alcoholic liquor, wine, or beer beverage to a person who is 26 under legal age in violation of this section which results in 27 serious injury to any person commits an aggravated misdemeanor. 28 7. A person who is of legal age, other than a licensee 29 or permittee, who sells, gives, or otherwise supplies any 30 alcoholic liquor, wine, or beer beverage to a person who is 31 under legal age in violation of this section which results in 32 the death of any person commits a class “D” felony. 33 Sec. 34. Section 123.49, subsection 1, Code 2018, is amended 34 to read as follows: 35 -18- LSB 5286HV (2) 87 ec/rn 18/ 42

H.F. 2460 1. A person shall not sell, dispense, or give to an 1 intoxicated person, or one simulating intoxication, any 2 alcoholic liquor, wine, or beer beverage . 3 a. A person other than a person required to hold a 4 license or permit under this chapter who dispenses or gives 5 an alcoholic beverage , wine, or beer in violation of this 6 subsection is not civilly liable to an injured person or the 7 estate of a person for injuries inflicted on that person as 8 a result of intoxication by the consumer of the alcoholic 9 beverage , wine, or beer . 10 b. The general assembly declares that this subsection shall 11 be interpreted so that the holding of Clark v. Mincks , 364 12 N.W.2d 226 (Iowa 1985) is abrogated in favor of prior judicial 13 interpretation finding the consumption of alcoholic beverages , 14 wine, or beer rather than the serving of alcoholic beverages , 15 wine, or beer as the proximate cause of injury inflicted upon 16 another by an intoxicated person. 17 Sec. 35. Section 123.49, subsection 2, paragraphs c, f, h, 18 i, and j, Code 2018, are amended to read as follows: 19 c. Sell alcoholic beverages , wine, or beer to any person on 20 credit, except with a bona fide credit card. This provision 21 does not apply to sales by a club to its members, to sales by a 22 hotel or motel to bona fide registered guests, nor to retail 23 sales by the managing entity of a convention center, civic 24 center, or events center. 25 f. Employ a person under eighteen years of age in the sale 26 or serving of alcoholic liquor, wine, or beer beverages for 27 consumption on the premises where sold. 28 h. Sell, give, or otherwise supply any alcoholic beverage , 29 wine, or beer to any person, knowing or failing to exercise 30 reasonable care to ascertain whether the person is under legal 31 age, or permit any person, knowing or failing to exercise 32 reasonable care to ascertain whether the person is under legal 33 age, to consume any alcoholic beverage , wine, or beer . 34 i. In the case of a retail beer wine or wine beer permittee, 35 -19- LSB 5286HV (2) 87 ec/rn 19/ 42

H.F. 2460 knowingly allow the mixing or adding of alcohol or any 1 alcoholic beverage to wine, beer, wine, or any other beverage 2 in or about the permittee’s place of business. 3 j. Knowingly permit or engage in any criminal activity 4 on the premises covered by the license or permit. However, 5 the absence of security personnel on the licensed premises 6 is insufficient, without additional evidence, to prove that 7 criminal activity occurring on the licensed premises was 8 knowingly permitted in violation of this paragraph “j” . For 9 purposes of this paragraph “j” , “premises” includes parking 10 lots and areas adjacent to the premises of a liquor control 11 licensee or wine or beer permittee authorized to sell alcoholic 12 beverages for consumption on the licensed premises and used 13 by patrons of the liquor control licensee or wine or beer 14 permittee. 15 Sec. 36. Section 123.49, subsections 3 and 4, Code 2018, are 16 amended to read as follows: 17 3. A person under legal age shall not misrepresent the 18 person’s age for the purpose of purchasing or attempting 19 to purchase any alcoholic beverage , wine, or beer from any 20 liquor control licensee or wine or beer permittee. If any 21 person under legal age misrepresents the person’s age, and 22 the licensee or permittee establishes that the licensee or 23 permittee made reasonable inquiry to determine whether the 24 prospective purchaser was over legal age, the licensee or 25 permittee is not guilty of selling alcoholic liquor, wine, or 26 beer beverages to a person under legal age. 27 4. No privilege of selling alcoholic liquor, wine, or beer 28 beverages on Sunday as provided in section 123.36, subsection 29 6 , and section 123.134, subsection 4 , shall be granted to 30 a club or other organization which places restrictions on 31 admission or membership in the club or organization on the 32 basis of sex, race, religion, or national origin. However, the 33 privilege may be granted to a club or organization which places 34 restrictions on membership on the basis of sex, if the club or 35 -20- LSB 5286HV (2) 87 ec/rn 20/ 42

H.F. 2460 organization has an auxiliary organization open to persons of 1 the other sex. 2 Sec. 37. Section 123.50, subsection 2, Code 2018, is amended 3 to read as follows: 4 2. The conviction of any liquor control licensee , or wine 5 permittee, or beer permittee for a violation of any of the 6 provisions of section 123.49 , subject to subsection 3 of this 7 section , is grounds for the suspension or revocation of the 8 license or permit by the division or the local authority. 9 However, if any liquor control licensee is convicted of any 10 violation of section 123.49, subsection 2 , paragraph “a” , 11 “d” , or “e” , or any wine or beer permittee is convicted of a 12 violation of section 123.49, subsection 2 , paragraph “a” or 13 “e” , the liquor control license , or wine permit, or beer permit 14 shall be revoked and shall immediately be surrendered by the 15 holder, and the bond, if any, of the license or permit holder 16 shall be forfeited to the division. 17 Sec. 38. Section 123.50, subsection 3, unnumbered paragraph 18 1, Code 2018, is amended to read as follows: 19 If any liquor control licensee, wine permittee, or beer 20 permittee, or employee of a licensee or permittee is convicted 21 or found in violation of section 123.49, subsection 2 , 22 paragraph “h” , the administrator or local authority shall, in 23 addition to criminal penalties fixed for violations by this 24 section , assess a civil penalty as follows: 25 Sec. 39. Section 123.50, subsection 5, Code 2018, is amended 26 to read as follows: 27 5. If an employee of a liquor control licensee or wine or 28 beer permittee violates section 123.49, subsection 2 , paragraph 29 “h” , the licensee or permittee shall not be assessed a penalty 30 under subsection 3 , and the violation shall be deemed not to 31 be a violation of section 123.49, subsection 2 , paragraph 32 “h” , for the purpose of determining the number of violations 33 for which a penalty may be assessed pursuant to subsection 34 3 , if the employee holds a valid certificate of completion 35 -21- LSB 5286HV (2) 87 ec/rn 21/ 42

H.F. 2460 of the alcohol compliance employee training program pursuant 1 to section 123.50A at the time of the violation, and if the 2 violation involves selling, giving, or otherwise supplying 3 any alcoholic beverage , wine, or beer to a person between 4 the ages of eighteen and twenty years of age. A violation 5 involving a person under the age of eighteen years of age 6 shall not qualify for the bar against assessment of a penalty 7 pursuant to subsection 3 , for a violation of section 123.49, 8 subsection 2 , paragraph “h” . A licensee or permittee may assert 9 only once in a four-year period the bar under this subsection 10 against assessment of a penalty pursuant to subsection 3 , for a 11 violation of section 123.49, subsection 2 , paragraph “h” , that 12 takes place at the same place of business location. 13 Sec. 40. Section 123.50A, subsection 1, Code 2018, is 14 amended to read as follows: 15 1. If sufficient funding is appropriated, the division 16 shall develop an alcohol compliance employee training program, 17 not to exceed two hours in length for employees and prospective 18 employees of licensees and permittees, to inform the employees 19 about state and federal liquor laws and regulations regarding 20 the sale of alcoholic liquor, wine, or beer beverages to 21 persons under legal age, and compliance with and the importance 22 of laws regarding the sale of alcoholic liquor, wine, or beer 23 beverages to persons under legal age. In developing the 24 alcohol compliance employee training program, the division may 25 consult with stakeholders who have expertise in the laws and 26 regulations regarding the sale of alcoholic liquor, wine, or 27 beer beverages to persons under legal age. 28 Sec. 41. Section 123.56, subsections 2 and 3, Code 2018, are 29 amended to read as follows: 30 2. Native wine may be sold at retail for off-premises 31 consumption when sold on the premises of the manufacturer, or 32 in a retail establishment operated by the manufacturer. Sales 33 may also be made to class “A” or retail wine permittees or 34 liquor control licensees as authorized by the class “A” wine 35 -22- LSB 5286HV (2) 87 ec/rn 22/ 42

H.F. 2460 permit section 123.173 and section 123.177 . A manufacturer of 1 native wines shall not sell the wines other than as permitted 2 in this chapter and shall not allow wine sold to be consumed 3 upon the premises of the manufacturer. However, prior to 4 sale, native wines may be tasted pursuant to the rules of the 5 division on the premises where made, when no charge is made for 6 the tasting. 7 3. A manufacturer of native wines may ship wine in closed 8 containers to individual purchasers inside this state by 9 obtaining a wine direct shipper license permit pursuant to 10 section 123.187 . 11 Sec. 42. Section 123.81, Code 2018, is amended to read as 12 follows: 13 123.81 Forfeiture of bond. 14 If the owner of a property who has filed an abatement bond as 15 provided in this chapter fails to abate the alcoholic liquor, 16 wine, or beer nuisance on the premises covered by the bond, or 17 fails to prevent the maintenance of any alcoholic liquor, wine, 18 or beer nuisance on the premises at any time within a period of 19 one year after entry of the abatement order, the court shall, 20 after a hearing in which such fact is established, direct an 21 entry of the violation of the terms of the owner’s bond to be 22 made on the record and the undertaking of the owner’s bond 23 shall be forfeited. 24 Sec. 43. Section 123.84, Code 2018, is amended to read as 25 follows: 26 123.84 Judgment. 27 If the court after a hearing in an action filed pursuant 28 to section 123.82 finds a an alcoholic liquor, wine, or beer 29 nuisance has been maintained on the premises covered by the 30 abatement bond and that alcoholic liquor, wine, or beer has 31 been sold or kept for sale on the premises contrary to law 32 within one year from the date of the giving of the bond, then 33 the court shall order the forfeiture of the bond and enter 34 judgment for the full amount of the bond against the principal 35 -23- LSB 5286HV (2) 87 ec/rn 23/ 42

H.F. 2460 and sureties on the bond. The lien on the real estate created 1 pursuant to section 123.79 shall be decreed foreclosed and the 2 court shall provide for a special and general execution for the 3 enforcement of the decree and judgment. 4 Sec. 44. Section 123.91, unnumbered paragraph 1, Code 2018, 5 is amended to read as follows: 6 Any person who has been convicted, in a criminal action, 7 in any court of record, of a violation of a provision of this 8 chapter , a provision of the prior laws of this state relating 9 to intoxicating alcoholic liquors, wine, or beer which was in 10 force prior to the enactment of this chapter , or a provision 11 of the laws of the United States or of any other state relating 12 to intoxicating alcoholic liquors, wine, or beer, and who is 13 thereafter convicted of a subsequent criminal offense against 14 any provision of this chapter is guilty of the following 15 offenses: 16 Sec. 45. Section 123.92, subsection 1, paragraph a, Code 17 2018, is amended to read as follows: 18 a. Any person who is injured in person or property or means 19 of support by an intoxicated person or resulting from the 20 intoxication of a person, has a right of action for all damages 21 actually sustained, severally or jointly, against any licensee 22 or permittee, whether or not the license or permit was issued 23 by the division or by the licensing authority of any other 24 state, who sold and served any beer, wine, or intoxicating 25 liquor alcoholic beverage to the intoxicated person when the 26 licensee or permittee knew or should have known the person was 27 intoxicated, or who sold to and served the person to a point 28 where the licensee or permittee knew or should have known the 29 person would become intoxicated. 30 Sec. 46. Section 123.92, subsection 2, paragraph c, Code 31 2018, is amended to read as follows: 32 c. The purpose of dramshop liability insurance is to provide 33 protection for members of the public who experience damages 34 as a result of licensees or permittees serving patrons beer, 35 -24- LSB 5286HV (2) 87 ec/rn 24/ 42

H.F. 2460 wine, or intoxicating liquor any alcoholic beverage to a point 1 that reaches or exceeds the standard set forth in law for 2 liability. Minimum coverage requirements for such insurance 3 are not for the purpose of making the insurance affordable for 4 all licensees or permittees regardless of claims experience. 5 A dramshop liability insurance policy obtained by a licensee 6 or permittee shall meet the minimum insurance coverage 7 requirements as determined by the division and is a mandatory 8 condition for holding a license or permit. 9 Sec. 47. Section 123.92, subsection 3, Code 2018, is amended 10 to read as follows: 11 3. a. Notwithstanding section 123.49, subsection 1 , any 12 person who is injured in person or property or means of support 13 by an intoxicated person who is under legal age or resulting 14 from the intoxication of a person who is under legal age, has a 15 right of action for all damages actually sustained, severally 16 or jointly, against a person who is not a licensee or permittee 17 and who dispensed or gave any beer, wine, or intoxicating 18 liquor alcoholic beverage to the intoxicated underage person 19 when the nonlicensee or nonpermittee who dispensed or gave 20 the beer, wine, or intoxicating liquor alcoholic beverage to 21 the underage person knew or should have known the underage 22 person was intoxicated, or who dispensed or gave beer, wine, or 23 intoxicating liquor alcoholic beverage to the underage person 24 to a point where the nonlicensee or nonpermittee knew or should 25 have known that the underage person would become intoxicated. 26 b. If the injury was caused by an intoxicated person who is 27 under legal age, a person who is not a licensee or permittee 28 and who dispensed or gave beer, wine, or intoxicating liquor 29 the alcoholic beverage to the underage person may establish as 30 an affirmative defense that the intoxication did not contribute 31 to the injurious action of the underage person. 32 c. For purposes of this subsection , “dispensed” or “gave” 33 means the act of physically presenting a receptacle containing 34 beer, wine, or intoxicating liquor any alcoholic beverage to 35 -25- LSB 5286HV (2) 87 ec/rn 25/ 42

H.F. 2460 the underage person whose actions or intoxication results in 1 the sustaining of damages by another person. However, a person 2 who dispenses or gives beer, wine, or intoxicating liquor any 3 alcoholic beverage to an underage person shall only be liable 4 for any damages if the person knew or should have known that 5 the underage person was under legal age. 6 Sec. 48. Section 123.98, Code 2018, is amended to read as 7 follows: 8 123.98 Labeling shipments. 9 1. It shall be unlawful for any common carrier or for 10 any person to transport or convey by any means, whether for 11 compensation or not, within this state, any intoxicating 12 liquors alcoholic liquor, wine, or beer , unless the vessel or 13 other package containing such liquors alcoholic liquor, wine, 14 or beer shall be plainly and correctly identified, showing 15 the quantity and kind of liquors alcoholic liquor, wine, or 16 beer contained therein, the name of the party to whom they are 17 to be delivered, and the name of the shipper, or unless such 18 information is shown on a bill of lading or other document 19 accompanying the shipment. No person shall be authorized 20 to receive or keep such liquors alcoholic liquor, wine, or 21 beer unless the same be marked or labeled as required by this 22 section . The violation of any provision of this section by any 23 common carrier, or any agent or employee of any carrier, or 24 by any person, shall be punished under the provisions of this 25 chapter . 26 2. Liquors Any alcoholic liquor, wine, or beer conveyed, 27 carried, transported, or delivered in violation of this 28 section , whether in the hands of the carrier or someone to whom 29 they shall have been delivered, shall be subject to seizure and 30 condemnation, as liquors alcoholic liquor, wine, or beer kept 31 for illegal sale. 32 Sec. 49. Section 123.99, Code 2018, is amended to read as 33 follows: 34 123.99 False statements. 35 -26- LSB 5286HV (2) 87 ec/rn 26/ 42

H.F. 2460 If any person, for the purpose of procuring the shipment, 1 transportation, or conveyance of any intoxicating alcoholic 2 liquor, wine, or beer within this state, shall make to any 3 person, company, corporation, or common carrier, or to any 4 agent thereof, any false statements as to the character 5 or contents of any box, barrel, or other vessel or package 6 containing such alcoholic liquor, wine, or beer; or shall 7 refuse to give correct and truthful information as to the 8 contents of any such box, barrel, or other vessel or package so 9 sought to be transported or conveyed; or shall falsely mark, 10 brand, or label such box, barrel, or other vessel or package in 11 order to conceal the fact that the same contains intoxicating 12 alcoholic liquor, wine, or beer; or shall by any device or 13 concealment procure or attempt to procure the conveyance or 14 transportation of such alcoholic liquor, wine, or beer as 15 herein prohibited, the person shall be guilty of a simple 16 misdemeanor. 17 Sec. 50. Section 123.100, Code 2018, is amended to read as 18 follows: 19 123.100 Packages in transit. 20 Any peace officer of the county under process or warrant to 21 the peace officer directed shall have the right to open any 22 box, barrel, or other vessel or package for examination, if 23 the peace officer has reasonable ground for believing that it 24 contains intoxicating alcoholic liquor, wine, or beer, either 25 before or while the same is being so transported or conveyed. 26 Sec. 51. Section 123.101, Code 2018, is amended to read as 27 follows: 28 123.101 Record of shipments. 29 It shall be the duty of all common carriers, or corporations, 30 or persons who shall for hire carry any intoxicating alcoholic 31 liquor, wine, or beer into the state, or from one point 32 to another within the state, for the purpose of delivery, 33 and who shall deliver such intoxicating alcoholic liquor, 34 wine, or beer to any person, company, or corporation, to 35 -27- LSB 5286HV (2) 87 ec/rn 27/ 42

H.F. 2460 maintain a proper record of the name of the consignor of 1 each shipment of intoxicating alcoholic liquor, wine, or 2 beer from where shipped, the date of arrival, the quantity 3 and kind of intoxicating alcoholic liquor, wine, or beer, 4 so far as disclosed by lettering on the package or by the 5 carrier’s records, and to whom and where consigned, and the 6 date delivered. 7 Sec. 52. Section 123.103, Code 2018, is amended to read as 8 follows: 9 123.103 Record and certification upon delivery. 10 The full name and residence or place of business of 11 the consignee of a shipment billed in whole or in part as 12 intoxicating alcoholic liquor, wine, or beer, shall be properly 13 recorded at the time of delivery and the consignee shall 14 certify that the intoxicating alcoholic liquor, wine, or beer 15 is for the consignee’s own lawful purposes. 16 Sec. 53. Section 123.104, Code 2018, is amended to read as 17 follows: 18 123.104 Unlawful delivery. 19 It is a simple misdemeanor for any corporation, common 20 carrier, person, or any agent or employee thereof: 21 1. To deliver any intoxicating alcoholic liquor, wine, or 22 beer to any person other than to the consignee. 23 2. To deliver any intoxicating alcoholic liquor, wine, or 24 beer without having the same properly recorded as provided in 25 section 123.103 . 26 3. To deliver any intoxicating alcoholic liquor, wine, or 27 beer where there is reasonable ground to believe that such 28 intoxicating alcoholic liquor, wine, or beer is intended for 29 unlawful use. 30 Sec. 54. Section 123.106, Code 2018, is amended to read as 31 follows: 32 123.106 Federal statutes. 33 The requirements of this chapter relative to the shipment 34 and delivery of intoxicating alcoholic liquor, wine, or beer 35 -28- LSB 5286HV (2) 87 ec/rn 28/ 42

H.F. 2460 and the records to be kept thereof shall be construed in 1 harmony with federal statutes relating to interstate commerce 2 in such liquor, wine, or beer. 3 Sec. 55. Section 123.107, subsection 1, paragraph a, Code 4 2018, is amended to read as follows: 5 a. To set out exactly the kind or quantity of intoxicating 6 alcoholic liquor, wine, or beer manufactured, sold, given in 7 evasion of the statute, or kept for sale. 8 Sec. 56. Section 123.111, Code 2018, is amended to read as 9 follows: 10 123.111 Purchaser as witness. 11 The person purchasing any intoxicating alcoholic liquor, 12 wine, or beer sold in violation of this chapter shall in all 13 cases be a competent witness to prove such sale. 14 Sec. 57. Section 123.115, Code 2018, is amended to read as 15 follows: 16 123.115 Defense. 17 In any prosecution under this chapter for the unlawful 18 transportation of intoxicating alcoholic liquor, wine, or beer 19 it shall be a defense that the character and contents of the 20 shipment or thing transported were not known to the accused or 21 to the accused’s agent or employee. 22 Sec. 58. Section 123.116, Code 2018, is amended to read as 23 follows: 24 123.116 Right to receive alcoholic liquor, wine, or beer. 25 The consignee of intoxicating alcoholic liquor, wine, 26 or beer shall, on demand of the carrier transporting such 27 alcoholic liquor, wine, or beer, furnish the carrier, at the 28 place of delivery, with legal proof of the consignee’s legal 29 right to receive such alcoholic liquor, wine, or beer at the 30 time of delivery, and until such proof is furnished the carrier 31 shall be under no legal obligation to make delivery nor be 32 liable for failure to deliver. 33 Sec. 59. Section 123.119, Code 2018, is amended to read as 34 follows: 35 -29- LSB 5286HV (2) 87 ec/rn 29/ 42

H.F. 2460 123.119 Evidence. 1 In all actions, civil or criminal, under the provisions 2 of this chapter , the finding of intoxicating alcoholic 3 liquors or of instruments or utensils used in the manufacture 4 of intoxicating alcoholic liquors, or materials which are 5 being used, or are intended to be used in the manufacture of 6 intoxicating alcoholic liquors, in the possession of or under 7 the control of any person, under and by authority of a search 8 warrant or other process of law, and which shall have been 9 finally adjudicated and declared forfeited by the court, shall 10 be competent evidence of maintaining a nuisance or bootlegging, 11 or of illegal transportation of intoxicating alcoholic liquors, 12 as the case may be, by such person. 13 Sec. 60. Section 123.120, Code 2018, is amended to read as 14 follows: 15 123.120 Attempt to destroy. 16 The destruction of or attempt to destroy any liquid by 17 any person while in the presence of peace officers or while 18 a property is being searched by a peace officer, shall be 19 competent evidence that such liquid is intoxicating alcoholic 20 liquor, wine, or beer and intended for unlawful purposes. 21 Sec. 61. Section 123.121, Code 2018, is amended to read as 22 follows: 23 123.121 Venue. 24 1. In any prosecution under this chapter for the unlawful 25 sale of alcoholic liquor, wine, or beer, including a sale of 26 alcoholic liquor, wine, or beer which requires a shipment or 27 delivery of the alcoholic liquor, wine, or beer, shall be 28 deemed to be made in the county in which the delivery is made 29 by the carrier to the consignee, or the consignee’s agent or 30 employee. 31 2. In any prosecution under this chapter for the unlawful 32 transportation of intoxicating alcoholic liquor, wine, or beer, 33 the offense shall be held to have been committed in any county 34 in which such alcoholic liquor, wine, or beer is received for 35 -30- LSB 5286HV (2) 87 ec/rn 30/ 42

H.F. 2460 transportation, through which it is transported, or in which it 1 is delivered. 2 Sec. 62. Section 123.127, subsection 2, Code 2018, is 3 amended by adding the following new paragraph: 4 NEW PARAGRAPH . 0d. That the applicant has filed with the 5 division a basic permit issued by the alcohol and tobacco 6 tax and trade bureau of the United States department of the 7 treasury, and that the applicant will faithfully observe and 8 comply with all laws, rules, and regulations governing the 9 manufacture and sale of beer. 10 Sec. 63. Section 123.130, subsection 3, Code 2018, is 11 amended to read as follows: 12 3. All special class “A” premises shall be located within 13 the state. A person who holds a special class “A” beer permit 14 for the same location at which the person holds a class 15 “C” liquor control license or class “B” beer permit for the 16 purpose of operating as a brewpub may manufacture and sell 17 beer to be consumed on the premises, may sell at retail at the 18 manufacturing premises for consumption off the premises beer 19 that is transferred at the time of sale to another container 20 subject to the requirements of section 123.131, subsection 21 2 , may sell beer to a class “A” beer permittee for resale 22 purposes, and may sell beer to distributors outside of the 23 state that are authorized by the laws of that jurisdiction to 24 sell beer at wholesale. The permit issued to holders of a 25 special class “A” beer permit shall clearly state on its face 26 that the permit is limited. 27 Sec. 64. Section 123.131, Code 2018, is amended by adding 28 the following new subsection: 29 NEW SUBSECTION . 5. A person holding a class “B” beer permit 30 may also hold a special class “A” beer permit for the premises 31 licensed under a class “B” beer permit for the purpose of 32 operating as a brewpub pursuant to this chapter. 33 Sec. 65. Section 123.139, Code 2018, is amended to read as 34 follows: 35 -31- LSB 5286HV (2) 87 ec/rn 31/ 42

H.F. 2460 123.139 Separate locations —— class “A” or special class “A” 1 beer permit. 2 A class “A” or special class “A” beer permittee having more 3 than one place of business is required to have a separate beer 4 permit for each separate place of business maintained by the 5 permittee where beer is manufactured, stored, warehoused, or 6 sold. 7 Sec. 66. Section 123.173, subsections 2 and 4, Code 2018, 8 are amended to read as follows: 9 2. A class “A” wine permit allows the holder to manufacture 10 and sell, or sell at wholesale, in this state, wine. The 11 holder of a class “A” wine permit may manufacture in this state 12 wine having an alcoholic content greater than seventeen percent 13 by weight or twenty-one and twenty-five hundredths percent of 14 alcohol by volume for shipment outside this state. All class 15 “A” premises shall be located within the state. A class “B” 16 or class “B” native wine permit allows the holder to sell wine 17 at retail for consumption off the premises. A class “B” or 18 class “B” native wine permittee who also holds a class “E” 19 liquor control license may sell wine to class “A”, class “B”, 20 class “C”, and special class “C” , and class “D” liquor control 21 licensees for resale for consumption on the premises. Such 22 wine sales shall be in quantities of less than one case of any 23 wine brand but not more than one such sale shall be made to the 24 same liquor control licensee in a twenty-four-hour period. A 25 class “B” or class “B” native wine permittee shall not sell 26 wine to other class “B” or class “B” native wine permittees. A 27 class “C” native wine permit allows the holder to sell native 28 wine for consumption on or off the premises. 29 4. When a class “B” or class “B” native wine permittee who 30 also holds a class “E” liquor control license sells wine to a 31 class “A”, class “B”, or class “C” liquor control licensee, the 32 liquor control licensee shall sign a report attesting to the 33 purchase. The class “B” or class “B” native wine permittee 34 who also holds a class “E” liquor control license shall 35 -32- LSB 5286HV (2) 87 ec/rn 32/ 42

H.F. 2460 submit a report to the division electronically, or in a manner 1 prescribed by the administrator, not later than the tenth of 2 each month stating each sale of wine to class “A”, class “B”, 3 and class “C” liquor control licensees during the preceding 4 month, the date of each sale, and the brands and numbers of 5 bottles with each sale. A class “B” permittee who holds a 6 class “E” liquor control license may sell to class “A”, class 7 “B”, or class “C” liquor control licensees only if the licensed 8 premises of the liquor control licensee is located within the 9 geographic territory of the class “A” wine permittee from which 10 the wine was originally purchased by the class “B” or class “B” 11 native wine permittee. 12 Sec. 67. Section 123.175, subsection 2, Code 2018, is 13 amended by adding the following new paragraph: 14 NEW PARAGRAPH . 0d. That, in the case of a class “A” wine 15 permit, the applicant has filed with the division a basic 16 permit issued by the alcohol and tobacco tax and trade bureau 17 of the United States department of the treasury, and that the 18 applicant will faithfully observe and comply with all the laws, 19 rules, and regulations governing the manufacture and sale of 20 wine. 21 Sec. 68. Section 123.177, subsection 1, Code 2018, is 22 amended to read as follows: 23 1. A person holding a class “A” wine permit may manufacture 24 and sell, or sell at wholesale, wine for consumption off the 25 premises. Sales within the state may be made only to persons 26 holding a class “A” or “B” wine permit and to persons holding a 27 retail liquor control license. However, if the person holding 28 the class “A” permit is a manufacturer of native wine, the 29 person may sell only native wine to a person holding a retail 30 wine permit or a retail liquor control license. A class “A” 31 wine permittee having more than one place of business shall 32 obtain a separate permit for each place of business where wine 33 is to be manufactured, stored, warehoused, or sold. 34 Sec. 69. Section 123.181, subsection 2, Code 2018, is 35 -33- LSB 5286HV (2) 87 ec/rn 33/ 42

H.F. 2460 amended to read as follows: 1 2. A class “A” wine permittee shall not sell wine on credit 2 to a retail liquor licensee or wine permittee for a period 3 exceeding thirty days from date of delivery. 4 Sec. 70. Section 123.186, Code 2018, is amended by adding 5 the following new subsection: 6 NEW SUBSECTION . 3. A licensee or permittee who permits 7 or assents to or is a party in any way to a violation or 8 infringement of a rule adopted pursuant to this section is 9 guilty of a violation of this section. A violation of this 10 section shall subject the licensee or permittee to the general 11 penalties provided in this chapter and shall constitute grounds 12 for imposition of a civil penalty or suspension or revocation 13 of the license or permit pursuant to section 123.39. 14 Sec. 71. Section 123.187, Code 2018, is amended to read as 15 follows: 16 123.187 Direct shipment of wine —— licenses permits and 17 requirements. 18 1. A wine manufacturer licensed or permitted pursuant to 19 laws regulating alcoholic beverages in this state or another 20 state may apply for a wine direct shipper license permit , as 21 provided in this section . For the purposes of this section , 22 a “wine manufacturer” means a person who processes the fruit, 23 vegetables, dandelions, clover, honey, or any combination of 24 these ingredients, by fermentation into wines. 25 2. a. Only a wine manufacturer that holds a wine direct 26 shipper permit issued pursuant to this section shall sell wine 27 at retail for direct shipment to any person within this state. 28 This section shall not prohibit an authorized retail licensee 29 or permittee from delivering wine pursuant to section 123.46A. 30 a. b. The administrator shall issue A wine manufacturer 31 applying for a wine direct shipper license to a wine 32 manufacturer who submits permit shall submit an application for 33 the license permit electronically, or in a manner prescribed 34 by the administrator, accompanied by a true copy of the 35 -34- LSB 5286HV (2) 87 ec/rn 34/ 42

H.F. 2460 manufacturer’s current alcoholic beverage license or permit 1 issued by the state where the manufacturer is primarily located 2 and a copy of the manufacturer’s winery license basic permit 3 issued by the federal alcohol and tobacco tax and trade bureau 4 of the United States department of the treasury . 5 b. c. An application submitted pursuant to paragraph “a” 6 “b” shall be accompanied by a license permit fee in the amount 7 of twenty-five dollars. 8 c. d. An application submitted pursuant to paragraph “a” 9 shall also be accompanied by a bond in the amount of five 10 thousand dollars in the form prescribed and furnished by the 11 division with good and sufficient sureties to be approved by 12 the division conditioned upon compliance with this chapter . 13 However, a wine manufacturer that has submitted a bond pursuant 14 to section 123.175, subsection 2 , paragraph “f” , shall not be 15 required to provide a bond as provided in this paragraph. 16 d. e. A license permit issued pursuant to this section may 17 be renewed annually by resubmitting the information required 18 in paragraph “a” submitting a renewal application with the 19 administrator in a manner prescribed by the administrator , 20 accompanied by the twenty-five dollar license permit fee. 21 3. The direct shipment of wine pursuant to this 22 section shall be subject to the following requirements and 23 restrictions: 24 a. Wine may shall only be shipped by a wine direct shipper 25 licensee to a resident of this state who is at least twenty-one 26 years of age, for the resident’s personal use and consumption 27 and not for resale. 28 b. Wine subject to direct shipping shall be properly 29 registered with the federal alcohol and tobacco tax and trade 30 bureau, and fermented on the winery premises of the wine direct 31 shipper licensee permittee . 32 c. All containers of wine shipped directly to a resident 33 of this state shall be conspicuously labeled with the words 34 “CONTAINS ALCOHOL: SIGNATURE OF PERSON AGE 21 OR OLDER 35 -35- LSB 5286HV (2) 87 ec/rn 35/ 42

H.F. 2460 REQUIRED FOR DELIVERY” or shall be conspicuously labeled with 1 alternative wording preapproved by the administrator. 2 d. All containers of wine shipped directly to a resident of 3 this state shall be shipped by an alcohol carrier licensed a 4 holder of a wine carrier permit as provided in subsection 6 . 5 e. Shipment of wine pursuant to this subsection does not 6 require a refund value for beverage container control purposes 7 under chapter 455C. 8 4. a. In addition to the annual license fee, a A wine 9 direct shipper licensee permittee shall remit to the division 10 an amount equivalent to the wine gallonage tax on wine subject 11 to direct shipment at the rate specified in section 123.183 12 for deposit as provided in section 123.183, subsections 2 and 13 3 . The amount shall be remitted at the time and in the manner 14 provided in section 123.184, subsection 2, and the ten percent 15 penalty specified therein shall be applicable. 16 b. Shipment of wine pursuant to this subsection does not 17 require a refund value for beverage container control purposes 18 under chapter 455C . 19 5. A wine direct shipper licensee permittee shall be deemed 20 to have consented to the jurisdiction of the division or any 21 other agency or court in this state concerning enforcement 22 of this section and any related laws, rules, or regulations. 23 A licensee permit holder shall permit allow the division to 24 perform an audit of shipping records upon request. 25 6. a. Wine subject to direct shipment within this state 26 pursuant to this section shall be delivered only by a carrier 27 having obtained from the division an alcohol carrier license. 28 An alcohol carrier license shall be issued upon payment of 29 holder of a wine carrier permit as provided in this subsection. 30 b. A person applying for a wine carrier permit shall submit 31 an application for the permit electronically, or in a manner 32 prescribed by the administrator. 33 c. An application for a wine carrier permit shall be 34 accompanied by a one hundred dollar license permit fee, and 35 -36- LSB 5286HV (2) 87 ec/rn 36/ 42

H.F. 2460 shall be subject to requirements, and issued pursuant to 1 application forms, to be determined by the administrator by 2 rule. 3 b. d. An alcohol A wine carrier licensee permittee shall 4 not deliver wine to any person under twenty-one years of 5 age, or to any person who either is or appears to be in an 6 intoxicated state or condition. A licensee permittee shall 7 obtain valid proof of identity and age prior to delivery, 8 and shall obtain the signature of an adult as a condition of 9 delivery. 10 c. e. An alcohol A wine carrier licensee permittee shall 11 maintain records of wine shipped which include the license 12 permit number and name of the wine manufacturer, quantity of 13 wine shipped, recipient’s name and address, and an electronic 14 or paper form of signature from the recipient of the wine. 15 Records shall be submitted to the division on a monthly basis 16 in a form and manner to be determined by the division by rule . 17 7. A violation of this section shall subject a licensee 18 the permittee to the penalty provisions of general penalties 19 provided in this chapter and shall constitute grounds for 20 imposition of a civil penalty or suspension or revocation of 21 the permit pursuant to section 123.39 . 22 EXPLANATION 23 The inclusion of this explanation does not constitute agreement with 24 the explanation’s substance by the members of the general assembly. 25 This bill concerns alcoholic beverage control and matters 26 under the purview of the alcoholic beverages division of the 27 department of commerce. 28 Code section 123.3, providing definitions, is amended. 29 The bill adds a definition for “brewpub” which means a 30 commercial establishment authorized to sell beer at retail 31 for consumption on or off the premises that is operated by 32 a retail class “C” liquor control licensee or class “B” beer 33 permittee who also holds a special class “A” beer permit to 34 manufacture and sell beer. The bill also amends the definition 35 -37- LSB 5286HV (2) 87 ec/rn 37/ 42

H.F. 2460 of “broker” to provide that it also applies to a person who 1 represents or promotes alcoholic liquor on behalf of a holder 2 of a manufacturer’s license or a class “A” native distilled 3 spirits license. The bill amends the definition of “alcoholic 4 liquor” by striking the alternative term “intoxicating liquor”. 5 The bill further replaces the term “alcoholic liquor” for 6 “intoxicating liquor” wherever the term appears in Code chapter 7 123. 8 Code section 123.4 is amended by substituting the defined 9 term “alcoholic beverage” for the terms “beer, wine, and 10 alcoholic liquor”. The term “alcoholic beverage” is defined to 11 include beer, wine, and alcoholic liquor. 12 Code section 123.9 is amended by striking the term “special 13 permits” and by substituting the defined term “alcoholic 14 beverage” for the terms “beer, wine, and alcoholic liquor”. 15 Code section 123.10 is amended by substituting the defined 16 term “alcoholic beverage” for the terms “intoxicating liquor or 17 beer”. 18 Code section 123.14 is amended by substituting the phrase 19 “alcoholic beverage control” for the terms “intoxicating liquor 20 or beer”. 21 Code section 123.23, concerning a distiller’s certificate of 22 compliance, is amended by substituting “alcoholic liquors” for 23 “alcoholic beverages” as the section is limited to alcoholic 24 liquor and is not applicable to wine or beer. 25 Code section 123.25 is amended to provide that the 26 consumption of any alcoholic beverages on the premises of the 27 state-owned warehouse is prohibited, with the exception of 28 alcoholic liquor that is consumed for sampling purposes. 29 Code section 123.28, concerning the delivery of liquor 30 purchased from class “E” liquor control license holders by 31 certain liquor control licensees is amended to include class 32 “C” native distilled spirits and class “D” liquor control 33 licensees. The section is also amended by striking a reference 34 to special permits. 35 -38- LSB 5286HV (2) 87 ec/rn 38/ 42

H.F. 2460 Code section 123.30, concerning classes of liquor control 1 licenses, is amended. The bill authorizes a class “C” liquor 2 control licensee to also hold a special class “A” beer permit 3 for the purpose of operating a brewpub. The bill also amends 4 provisions relative to a class “E” liquor control license by 5 providing that class “E” liquor control license holders are 6 authorized to sell at retail to the public and to sell at 7 wholesale to other retailers, provided they have been issued a 8 basic permit by the alcohol and tobacco tax and trade bureau of 9 the United States department of the treasury. 10 Code section 123.32, concerning action by local authorities 11 and the division on applications for liquor control licenses, 12 native distilled spirits licenses, and wine, and beer permits, 13 is amended by striking three Code citations that reference the 14 authority granted by various wine permits and replacing the 15 reference with a Code reference that describes the application 16 process for obtaining the permits. 17 Code section 123.33, concerning records, is amended to 18 allow licensees and permittees to keep records in printed or 19 electronic format and not both. 20 Code section 123.34, concerning the expiration of certain 21 shorter term licenses and permits, is amended to allow the 22 administrator to provide notice of expiration to licensees and 23 permit holders electronically in lieu of written notice. 24 Code section 123.36, concerning Sunday sales, is amended to 25 provide that certain liquor control licensees are authorized 26 to sell alcoholic beverages on Sunday as authorized by Code 27 section 123.30. 28 Code section 123.37 is amended by striking the terms “wine 29 or beer” after the term “alcoholic beverages” as the term 30 “alcoholic beverages” includes wine and beer. 31 Code section 123.38 is amended by striking the term “special 32 permits”. 33 Code section 123.39, concerning revocation or suspension of 34 licenses or permits, is amended to refer to all liquor control 35 -39- LSB 5286HV (2) 87 ec/rn 39/ 42

H.F. 2460 licenses as the types of businesses that are required to report 1 ownership changes to the local authority and the alcoholic 2 beverages division and further provides that licensees 3 shall report ownership changes in a manner prescribed by the 4 administrator of the alcoholic beverages division within 30 5 days of the change. 6 Code section 123.41, concerning manufacturer’s license for 7 alcoholic liquor, is amended to provide that an applicant for 8 a license file a basic permit issued to the applicant by the 9 alcohol and tobacco tax and trade bureau of the United States 10 department of the treasury in lieu of a statement that proves 11 status as a “bona fide manufacturer of alcohol liquors”. 12 Code section 123.42, concerning a broker’s permit, is 13 amended to provide that the broker list on the application 14 for a permit shall list all manufacturers, distillers, and 15 importers the applicant will represent and is further required 16 to keep the list updated. 17 Code section 123.44, prohibiting certain gifts of liquor, is 18 amended by adding distiller and brewer to the list of persons 19 who are prohibited from providing gifts of alcoholic beverages 20 to the alcoholic beverages commission and employees of the 21 alcoholic beverages division. 22 Code sections 123.47 and 123.49 are amended by substituting 23 the defined term “alcoholic beverage” or “alcoholic beverages” 24 for the terms “beer, wine, and alcoholic liquor”. 25 Code section 123.50, concerning criminal and civil 26 penalties, is amended by striking the terms “wine or beer” 27 after the term “alcoholic beverage” as the term “alcoholic 28 beverage” includes wine and beer. 29 Code section 123.50A, concerning the alcohol compliance 30 employee training program, is amended by striking the phrase 31 “and federal liquor” in describing the subject matter of the 32 state training program and by substituting the term “alcoholic 33 beverages” for the terms “alcoholic liquor, wine, or beer”. 34 Code section 123.56, concerning native wines, is amended by 35 -40- LSB 5286HV (2) 87 ec/rn 40/ 42

H.F. 2460 striking the phrase “the class “A” wine permit” and inserting 1 a reference to Code section 123.173 that addresses how native 2 wine is sold to retailers. 3 Code sections 123.81 and 123.84 are amended by adding the 4 word “alcoholic” before the word “liquor”. 5 Code section 123.91 is amended by substituting the term 6 “alcoholic liquors” for “intoxicating liquors”. 7 Code section 123.92, concerning dramshop liability, is 8 amended by substituting “alcoholic beverage” for “beer, wine, 9 or intoxicating liquors” within the section. 10 Code section 123.98, concerning labeling shipments, is 11 amended by adding the terms “wine or beer” and by substituting 12 the term “alcoholic liquors” for “intoxicating liquors”. 13 Code sections 123.99, 123.100, 123.101, 123.103, 123.104, 14 123.106, 123.107, 123.111, 123.115, 123.116, 123.119, 123.120, 15 and 123.121 are amended by substituting the term “alcoholic 16 liquor” for “intoxicating liquor” and “liquor”. 17 Code section 123.127, concerning class “A” and special class 18 “A” beer permit application and issuance, is amended to provide 19 that an applicant file a basic permit issued to the applicant 20 by the alcohol and tobacco tax and trade bureau of the United 21 States department of the treasury. 22 Code section 123.130, concerning authority under a class “A” 23 and special class “A” beer permit, is amended to provide that 24 a holder of a special class “A” beer permit may operate as a 25 brewpub and that the authority of the permit is limited. 26 Code section 123.131, concerning authority under a class “B” 27 beer permit, is amended to specify how a class “B” beer permit 28 holder may operate as a brewpub. 29 Code section 123.139, concerning beer permits for separate 30 locations, is amended to provide that each place of business 31 where beer is manufactured requires a separate permit. 32 Code section 123.173, concerning wine permits, is amended by 33 adding class “D” liquor control licensee to the list of retail 34 licensees that may purchase wine from a class “A” wine permit 35 -41- LSB 5286HV (2) 87 ec/rn 41/ 42

H.F. 2460 holder. 1 Code section 123.175, concerning certain wine permit 2 applications and issuance, is amended to provide that an 3 applicant file a basic permit issued to the applicant by the 4 alcohol and tobacco tax and trade bureau of the United States 5 department of the treasury. 6 Code section 123.177, concerning class “A” wine permits, is 7 amended to provide that each place of business where wine is 8 manufactured requires a separate permit. 9 Code section 123.181, concerning prohibited acts, is amended 10 by providing that a class “A” wine permittee is prohibited from 11 selling wine on credit to any retail licensee or permittee. 12 Code section 123.186, concerning federal regulation adopted 13 as rules, is amended to provide that a licensee or permittee 14 who violates a rule adopted pursuant to the Code section is 15 guilty of a violation of the Code section and subject to 16 the general penalties provided in Code chapter 123 and the 17 suspension, revocation, and civil penalty provisions of Code 18 section 123.39. 19 Code section 123.187, concerning direct shipment of wine, is 20 amended. The bill changes the wine direct shipper license to 21 a permit and replaces the alcohol carrier license with a wine 22 carrier permit. The bill specifically provides that only a 23 wine manufacturer that holds a wine direct shipper permit shall 24 sell wine at retail for direct shipment to any person within 25 this state and requires that an applicant for a wine direct 26 shipper permit file the manufacturer’s basic permit issued by 27 the alcohol and tobacco, tax and trade bureau of the United 28 States department of the treasury. The bill also provides that 29 a violation of this Code section shall subject the permittee 30 to the general penalties provided in Code chapter 123 and the 31 suspension, revocation, and civil penalty provisions of Code 32 section 123.39. 33 -42- LSB 5286HV (2) 87 ec/rn 42/ 42