House File 470 H-1469 Amend House File 470 as follows: 1 1. By striking everything after the enacting clause 2 and inserting: 3 < Section 1. Section 22.7, subsection 24, Code 2011, 4 is amended by striking the subsection. 5 Sec. 2. Section 123.3, Code 2011, is amended by 6 adding the following new subsection: 7 NEW SUBSECTION . 014A. “Grape brandy” means brandy 8 produced by the distillation of fermented grapes or 9 grape juice. 10 Sec. 3. Section 123.41, Code 2011, is amended to 11 read as follows: 12 123.41 Manufacturer’s license. 13 1. Upon application in the prescribed form and 14 accompanied by a fee of three hundred fifty dollars, 15 the administrator may in accordance with this chapter 16 grant and issue a license, valid for a one-year 17 period after date of issuance, to a manufacturer which 18 shall allow the manufacture, storage, and wholesale 19 disposition and sale of alcoholic liquors to the 20 division and to customers outside of the state. 21 2. As a condition precedent to the approval and 22 granting of a manufacturer’s license, an applicant 23 shall file a statement under oath with the division 24 that the applicant is a bona fide manufacturer 25 of alcoholic liquors, and that the applicant will 26 faithfully observe and comply with all laws, rules, 27 and regulations governing the manufacture and sale of 28 alcoholic liquor. 29 2. 3. A person who holds an experimental distilled 30 spirits plant permit or its equivalent issued by the 31 federal bureau of alcohol, tobacco and firearms alcohol 32 and tobacco tax and trade bureau of the United States 33 department of the treasury may produce alcohol for use 34 as fuel without obtaining a manufacturer’s license from 35 the division. 36 4. A violation of the requirements of this section 37 shall subject the licensee to the general penalties 38 provided in this chapter and shall constitute grounds 39 for imposition of a civil penalty or suspension or 40 revocation of the license after notice and opportunity 41 for a hearing pursuant to section 123.39 and chapter 42 17A. 43 Sec. 4. Section 123.43A, subsection 8, Code 2011, 44 is amended to read as follows: 45 8. Micro-distilled spirits purchased at a 46 micro-distillery shall not be consumed within three 47 hundred feet of a micro-distillery or on any property 48 owned, operated, or controlled by a micro-distillery. 49 Sec. 5. NEW SECTION . 123.46A Delivery of alcoholic 50 -1- HF470.2026 (2) 84 rn/nh 1/ 5 #1.

beverages by retailers. 1 1. Licensees and permittees authorized to sell 2 alcoholic liquor, wine, or beer in original unopened 3 containers for consumption off the licensed premises 4 may deliver alcoholic liquor, wine, or beer to a home 5 or other designated location in this state. Deliveries 6 shall be limited to alcoholic beverages authorized by 7 the licensee’s or permittee’s license or permit. 8 2. All deliveries of alcoholic liquor, wine, or 9 beer shall be subject to the following requirements and 10 restrictions: 11 a. Payment for the alcoholic liquor, wine, or beer 12 shall be received on the licensed premises at the time 13 of order. 14 b. Alcoholic liquor, wine, or beer delivered to a 15 person shall be for personal use and not for resale. 16 c. Deliveries shall only be made to persons in this 17 state who are twenty-one years of age or older. 18 d. Deliveries shall not be made to a person who is 19 intoxicated or is simulating intoxication. 20 e. Deliveries shall occur between 6:00 a.m. and 21 10:00 p.m. Monday through Saturday, and between 8:00 22 a.m. and 10:00 p.m. Sunday. 23 f. Delivery of alcoholic liquor, wine, or beer 24 shall be made by the licensee or permittee, or the 25 licensee’s or permittee’s employee, and not by a third 26 party. 27 g. Delivery personnel shall be twenty-one years of 28 age or older. 29 h. Deliveries shall be made in a vehicle owned, 30 leased, or under the control of the licensee or 31 permittee. 32 i. Valid proof of the recipient’s identity and age 33 shall be obtained at the time of delivery, and the 34 signature of a person twenty-one years of age or older 35 shall be obtained as a condition of delivery. 36 j. Licensees and permittees shall maintain records 37 of deliveries which include the quantity delivered, the 38 recipient’s name and address, and the signature of the 39 recipient of the alcoholic liquor, wine, or beer. The 40 records shall be maintained on the licensed premises 41 for a period of three years. 42 3. A violation of this section or any other 43 provision of this chapter shall subject the licensee or 44 permittee to the penalty provisions of section 123.39. 45 4. Nothing in this section shall impact the direct 46 shipment of wine as regulated by section 123.187. 47 Sec. 6. Section 123.50, Code 2011, is amended by 48 adding the following new subsection: 49 NEW SUBSECTION . 5. If an employee of a licensee 50 -2- HF470.2026 (2) 84 rn/nh 2/ 5

or permittee violates section 123.49, subsection 2, 1 paragraph “h” , the licensee or permittee shall not 2 be assessed a penalty under subsection 3, and the 3 violation shall be deemed not to be a violation of 4 section 123.49, subsection 2, paragraph “h” , for the 5 purpose of determining the number of violations for 6 which a penalty may be assessed pursuant to subsection 7 3, if the employee holds a valid certificate of 8 completion of the alcohol compliance employee training 9 program pursuant to section 123.50A at the time of 10 the violation, and if the violation involves selling, 11 giving, or otherwise supplying any alcoholic beverage, 12 wine, or beer to a person between the ages of eighteen 13 and twenty years of age. A violation involving a 14 person under the age of eighteen years of age shall not 15 qualify for the bar against assessment of a penalty 16 pursuant to subsection 3, for a violation of subsection 17 123.49, subsection 2, paragraph “h” . A licensee or 18 permittee may assert only once in a four-year period 19 the bar under this subsection against assessment of a 20 penalty pursuant to subsection 3, for a violation of 21 subsection 123.49, subsection 2, paragraph “h” , that 22 takes place at the same place of business location. 23 Sec. 7. NEW SECTION . 123.50A Alcohol compliance 24 employee training program. 25 1. If sufficient funding is appropriated, the 26 division shall develop an alcohol compliance employee 27 training program, not to exceed two hours in length 28 for employees and prospective employees of licensees 29 and permittees, to inform the employees about state 30 and federal liquor laws and regulations regarding the 31 sale of alcoholic liquor, wine, or beer to persons 32 under legal age, and compliance with and the importance 33 of laws regarding the sale of alcoholic liquor, wine, 34 or beer to persons under legal age. In developing 35 the alcohol compliance employee training program, 36 the division may consult with stakeholders who have 37 expertise in the laws and regulations regarding the 38 sale of alcoholic liquor, wine, or beer to persons 39 under legal age. 40 2. The alcohol compliance employee training program 41 shall be made available to employees and prospective 42 employees of licensees and permittees at no cost to the 43 employee, the prospective employee, or the licensee or 44 permittee, and in a manner which is as convenient and 45 accessible to the extent practicable throughout the 46 state so as to encourage attendance. Contingent upon 47 the availability of specified funds for provision of 48 the program, the division shall schedule the program 49 on at least a monthly basis and the program shall be 50 -3- HF470.2026 (2) 84 rn/nh 3/ 5

available at a location in at least a majority of 1 counties. 2 3. Upon completion of the alcohol compliance 3 employee training program, an employee or prospective 4 employee shall receive a certificate of completion, 5 which shall be valid for a period of two years, unless 6 the employee or prospective employee is convicted of a 7 violation of section 123.49, subsection 2, paragraph 8 “h” , in which case the certificate shall be void. 9 4. The division shall also offer periodic 10 continuing employee training and recertification for 11 employees who have completed initial training and 12 received an initial certificate of completion as part 13 of the alcohol compliance employee training program. 14 Sec. 8. Section 123.56, subsections 1, 2, and 3, 15 Code 2011, are amended to read as follows: 16 1. Subject to rules of the division, manufacturers 17 of native wines from grapes, cherries, other fruits 18 or other fruit juices, vegetables, vegetable juices, 19 dandelions, clover, honey, or any combination of 20 these ingredients, holding a class “A” wine permit as 21 required by this chapter , may sell, keep, or offer for 22 sale and deliver the wine. Sales may be made at retail 23 for off-premises consumption when sold on the premises 24 of the manufacturer, or in a retail establishment 25 operated by the manufacturer. Sales may also be 26 made to class “A” or retail wine permittees or liquor 27 control licensees as authorized by the class “A” wine 28 permit. Notwithstanding any other provision of this 29 chapter, manufacturers of native wine may purchase and 30 possess grape brandy from the division for the sole 31 purpose of manufacturing wine. 32 2. Native wine may be sold at retail for 33 off-premises consumption when sold on the premises of 34 the manufacturer, or in a retail establishment operated 35 by the manufacturer. Sales may also be made to 36 class “A” or retail wine permittees or liquor control 37 licensees as authorized by the class “A” wine permit. 38 A manufacturer of native wines shall not sell the wines 39 other than as permitted in this chapter and shall not 40 allow wine sold to be consumed upon the premises of the 41 manufacturer. However, prior to sale native wines may 42 be sampled on the premises where made, when no charge 43 is made for the sampling. A person may manufacture 44 native wine for consumption on the manufacturer’s 45 premises, when the wine or any part of it is not 46 manufactured for sale. 47 3. A manufacturer of native wines may ship wine in 48 closed containers to individual purchasers inside and 49 outside this state by obtaining a wine direct shipper 50 -4- HF470.2026 (2) 84 rn/nh 4/ 5

license pursuant to section 123.187 . The manufacturer 1 shall label the package containing the wine with the 2 words “deliver to adults only”. 3 Sec. 9. Section 123.57, Code 2011, is amended to 4 read as follows: 5 123.57 Examination of accounts. 6 The financial condition and transactions of all 7 offices, departments, warehouses, and depots of 8 the division shall be examined at least once each 9 year by the state auditor and at shorter periods if 10 requested by the administrator, governor, commission, 11 or executive council the general assembly’s standing 12 committees on government oversight . 13 Sec. 10. REPEAL. Section 123.43, Code 2011, is 14 repealed. > 15 ______________________________ IVERSON of Wright -5- HF470.2026 (2) 84 rn/nh 5/ 5