HSB 683 (LSB 6325YC (4) 88)

HOUSE FILE _____ 

BY  (PROPOSED COMMITTEE ON STATE GOVERNMENT BILL BY CHAIRPERSON KAUFMANN)

A BILL FOR

An Act establishing a charity beer, spirits, and wine event permit.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 123.32, subsection 1, paragraph b, Code 2020, is amended by adding the following new subparagraph:
   NEW SUBPARAGRAPH.  (7A)  A charity beer, spirits, and wine event permit as provided in section 123.173B.
    Sec. 2.  NEW SECTION.  123.173B  Charity beer, spirits, and wine event permit.
   1.  For purposes of this section, “authorized nonprofit entity” includes a nonprofit entity which has a principal office in the state, a nonprofit corporation organized under chapter 504, or a foreign corporation as defined in section 504.141, whose income is exempt from federal taxation under section 501(c) of the Internal Revenue Code.
   2.  An authorized nonprofit entity may, upon application to the division and receipt of a charity beer, spirits, and wine event permit from the division, conduct a charity event which allows for the consumption of beer, spirits, and wine on the premises of the event and allows the authorized nonprofit entity to include the cost of the beer, spirits, and wine at the event as part of the admission fee to the event. The completed application shall specify the date and time when the charity beer, spirits, and wine event is to be conducted and the premises in this state where the charity beer, spirits, and wine event is to be physically conducted. The completed application shall also specify that the premises where the charity beer, spirits, and wine event is to be conducted has a valid license or permit authorizing the consumption of beer, spirits, or wine on the premises and that the authorized nonprofit entity has entered into an agreement with the licensee or permittee of the licensed premises allowing the charity beer, spirits, and wine event to be conducted on the premises and providing that the authorized nonprofit entity shall reimburse the licensee or permittee for the beer, spirits, and wine consumed at the event. The applicant shall certify that the objective of the charity beer, spirits, and wine event is to raise funds solely to be used for educational, religious, or charitable purposes and that the entire proceeds from the charity beer, spirits, and wine event are to be expended for any of the purposes described in section 423.3, subsection 78.
   3.  An authorized nonprofit entity shall be eligible to receive only two charity beer, spirits, and wine event permits during a calendar year and each charity beer, spirits, and wine event permit shall be valid for a period not to exceed thirty-six consecutive hours.
   4.  The authorized nonprofit entity conducting the charity beer, spirits, and wine event shall obtain the beer, spirits, and wine to be consumed on the premises of the charity beer, spirits, and wine event from the applicable licensee or permittee for the premises. 
   5.  Any violation of the requirements of this chapter or the rules adopted pursuant to this chapter shall subject the permit holder to the general penalties provided in this chapter and shall constitute grounds for imposition of a civil penalty, suspension of the permit, or revocation of the permit after notice and opportunity for a hearing pursuant to section 123.39 and chapter 17A.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill authorizes a nonprofit entity to conduct a charity beer, spirits, and wine event.
   New Code section 123.173B provides for the issuance of a charity beer, spirits, and wine event permit to an authorized nonprofit entity that allows the consumption of beer, spirits, and wine at a charity beer, spirits, and wine event and allows for including the cost of the beer, spirits, and wine as part of an admission fee to the event. The bill requires the nonprofit entity to specify the date and time and the premises where the charity beer, spirits, and wine event is to be conducted. The bill provides that the completed application shall also specify that the premises has a valid license or permit authorizing the consumption of beer, spirits, or wine on the premises and that the authorized nonprofit entity has entered into an agreement with the licensee or permittee of the licensed premises allowing the charity beer, spirits, and wine event to be conducted on the premises and providing for reimbursing the licensee or permittee for the beer, spirits, and wine consumed at the event. The bill requires proceeds from the event to be expended for charitable purposes and allows only two charity beer, spirits, and wine event permits during a calendar year with each charity beer, spirits, and wine event permit valid for a period not to exceed 36 consecutive hours. The bill requires the authorized nonprofit entity to obtain the beer, spirits, and wine to be sold for consumption on the premises of the charity beer, spirits, and wine event from the applicable licensee or permittee for the premises. The bill also provides that any violation of the requirements of Code chapter 123 or the rules adopted pursuant shall subject the permit holder to the general penalties provided in Code chapter 123 and shall constitute grounds for imposition of a civil penalty, suspension of the permit, or revocation of the permit.