Senate File 242 S-3115 Amend Senate File 242 as follows: 1 1. By striking everything after the enacting clause 2 and inserting: 3 < Section 1. Section 123.3, Code 2011, is amended by 4 adding the following new subsections: 5 NEW SUBSECTION . 014A. “Grocery store” means any 6 retail establishment, the business of which consists 7 of the sale of food, food products, or beverages for 8 consumption off the premises. 9 NEW SUBSECTION . 022A. “Micro-distilled spirits” 10 means distilled spirits fermented, distilled, or, for 11 a period of two years, barrel matured on the licensed 12 premises of the micro-distillery where fermented, 13 distilled, or matured. “Micro-distilled spirits” also 14 includes blended or mixed spirits comprised solely of 15 spirits fermented, distilled, or, for a period of two 16 years, barrel matured at a micro-distillery. 17 NEW SUBSECTION . 022B. “Micro-distillery” means a 18 business with an operational still which, combining all 19 production facilities of the business, produces and 20 manufactures less than fifty thousand proof gallons of 21 distilled spirits on an annual basis. 22 NEW SUBSECTION . 26A. “Pharmacy” means a drug store 23 in which drugs and medicines are exposed for sale and 24 sold at retail, or in which prescriptions of licensed 25 physicians and surgeons, dentists, or veterinarians are 26 compounded and sold by a registered pharmacist. 27 NEW SUBSECTION . 32A. “School” means a public or 28 private school or that portion of a public or private 29 school which provides facilities for teaching any grade 30 from kindergarten through grade twelve. 31 Sec. 2. Section 123.3, subsection 14A, Code 2011, 32 is amended to read as follows: 33 14A. “High alcoholic content beer” means beer 34 which contains more than five percent of alcohol by 35 weight, but not more than twelve percent of alcohol 36 by weight, that is made by the fermentation of an 37 infusion in potable water of barley, malt, and hops, 38 with or without unmalted grains or decorticated and 39 degerminated grains. Not more than one and five-tenths 40 percent of the volume of a “high alcoholic content beer” 41 may consist of alcohol derived from added flavors and 42 other nonbeverage ingredients containing alcohol. The 43 added flavors and other nonbeverage ingredients may 44 not include added caffeine or other added stimulants 45 including but not limited to guarana, ginseng, and 46 taurine. 47 Sec. 3. Section 123.3, subsection 22A, Code 2011, 48 is amended to read as follows: 49 22A. “Native wine” means wine manufactured in this 50 -1- SF242.1620 (2) 84 rn/nh 1/ 5 #1.

state pursuant to section 123.56 by a manufacturer of 1 native wine . 2 Sec. 4. Section 123.6, Code 2011, is amended to 3 read as follows: 4 123.6 Appointment —— term —— expenses —— 5 compensation. 6 Appointments shall be for five-year staggered 7 terms beginning and ending as provided by section 8 69.19 and shall be made by the governor, subject to 9 confirmation by the senate. Members of the commission 10 shall be chosen on the basis of managerial ability and 11 experience as business executives. One member Not 12 more than two members of the commission may be the 13 holder of or have an interest in a permit or license 14 to manufacture alcoholic liquor, wine, or beer or to 15 sell alcoholic liquor, wine, or beer at wholesale or 16 retail. A member may be reappointed for one additional 17 term. Each member appointed is entitled to receive 18 reimbursement of actual expenses incurred while 19 attending meetings. Each member of the commission may 20 also be eligible to receive compensation as provided 21 in section 7E.6 . 22 Sec. 5. Section 123.9, Code 2011, is amended to 23 read as follows: 24 123.9 Commission meetings. 25 The commission shall meet on or before July 1 of 26 each year for the purpose of selecting one of its 27 members as chairperson , which member shall serve in 28 such capacity for the succeeding year. The commission 29 shall otherwise meet quarterly or at the call of 30 the chairperson or administrator or , when any three 31 members file with the chairperson a written request 32 for a meeting. Written notice of the time and place 33 of each meeting shall be given to each member of the 34 commission. All commission meetings shall be held 35 within the state. A majority of the commission members 36 shall constitute a quorum. 37 Sec. 6. Section 123.30, subsection 3, paragraph 38 e, subparagraph (1), Code 2011, is amended to read as 39 follows: 40 (1) A class “E” liquor control license may be 41 issued and shall authorize the holder to purchase 42 alcoholic liquor from the division only and high 43 alcoholic content beer from a class “AA” beer permittee 44 only and to sell the alcoholic liquor and high 45 alcoholic content beer to patrons for consumption 46 off the licensed premises and to other liquor control 47 licensees. A class “E” license shall not be issued 48 to premises at which gasoline is sold. A holder of 49 a class “E” liquor control license may hold other 50 -2- SF242.1620 (2) 84 rn/nh 2/ 5

retail liquor control licenses or retail wine or beer 1 permits, but the premises licensed under a class “E” 2 liquor control license shall be separate from other 3 licensed premises, though the separate premises may 4 have a common entrance. However, the holder of a class 5 “E” liquor control license may also hold a class “B” 6 wine or class “C” beer permit or both for the premises 7 licensed under a class “E” liquor control license. 8 Sec. 7. Section 123.31, unnumbered paragraph 1, 9 Code 2011, is amended to read as follows: 10 Except as otherwise provided in section 123.35 , 11 verified Verified applications for the original 12 issuance or the renewal of liquor control licenses 13 shall be filed at the time and in the number of 14 copies as the administrator shall prescribe, on forms 15 prescribed by the administrator, and shall set forth 16 under oath the following information: 17 Sec. 8. Section 123.36, subsection 8, Code 2011, is 18 amended to read as follows: 19 8. a. Class “E” liquor control license, a sum 20 determined as follows: 21 (1) For licensed premises at which gasoline is not 22 sold, a sum of not less than seven hundred and fifty 23 dollars, and not more than seven thousand five hundred 24 dollars as determined on a sliding scale as established 25 by the division taking into account the factors of 26 square footage of the licensed premises, the location 27 of the licensed premises, and the population of the 28 area of the location of the licensed premises. 29 (2) For licensed premises at which gasoline is 30 sold, a sum equal to the following: 31 (a) For premises located within the corporate 32 limits of a city with a population of less than one 33 thousand five hundred, three thousand five hundred 34 dollars. 35 (b) For premises located within the corporate 36 limits of a city with a population of at least one 37 thousand five hundred but less than ten thousand, five 38 thousand dollars. 39 (c) For premises located within the corporate 40 limits of a city with a population of ten thousand 41 population or more, the greater of five thousand 42 dollars or the amount that would be established 43 pursuant to subparagraph (1) if gasoline were not sold 44 at the premises. 45 (d) For premises located outside the corporate 46 limits of any city, a sum equal to that charged in the 47 incorporated city located nearest the premises to be 48 licensed. If there is doubt as to which of two or more 49 differing corporate limits is the nearest, the license 50 -3- SF242.1620 (2) 84 rn/nh 3/ 5

fee which is the largest shall prevail. However, if 1 the premises is located in an unincorporated town, for 2 purposes of this subparagraph, the unincorporated town 3 shall be treated as if it is a city. 4 b. Notwithstanding subsection 5 , the holder of a 5 class “E” liquor control license may sell alcoholic 6 liquor for consumption off the licensed premises 7 on Sunday subject to section 123.49, subsection 2 , 8 paragraph “b” . 9 Sec. 9. Section 123.43A, subsection 1, Code 2011, 10 is amended by striking the subsection. 11 Sec. 10. Section 123.46, subsection 1, paragraph d, 12 Code 2011, is amended by striking the paragraph. 13 Sec. 11. Section 123.56, Code 2011, is amended by 14 adding the following new subsection: 15 NEW SUBSECTION . 6A. A manufacturer may use the 16 space and equipment of another manufacturer for the 17 purpose of manufacturing native wine, provided that 18 such an alternating proprietorship arrangement is 19 approved by the alcohol and tobacco tax and trade 20 bureau of the United States department of the treasury. 21 A separate class “A” wine permit shall be issued to 22 each manufacturer, and each manufacturer shall be 23 subject to the provisions of this chapter and the rules 24 of the division. Notwithstanding subsection 5, not 25 more than one class “C” native wine permit shall be 26 issued to a premises with alternating proprietorships. 27 Sec. 12. Section 123.129, subsection 1, Code 2011, 28 is amended by striking the subsection. 29 Sec. 13. Section 123.134, subsection 5, Code 2011, 30 is amended by striking the subsection. 31 Sec. 14. Section 123.141, Code 2011, is amended to 32 read as follows: 33 123.141 Keeping liquor where beer is sold. 34 No alcoholic liquor for beverage purposes shall be 35 used, or kept for any purpose in the place of business 36 of class “B” permittees, or on the premises of such 37 class “B” permittees, at any time. A violation of 38 any provision of this section shall be grounds for 39 suspension or revocation of the permit pursuant to 40 section 123.50, subsection 3 . This section shall not 41 apply in any manner or in any way , to any railway 42 car of any dining car company, sleeping car company, 43 railroad company or railway company, having a special 44 class “B” permit; to the premises of any hotel or motel 45 for which a class “B” permit has been issued, other 46 than that part of such premises regularly used by the 47 hotel or motel for the principal purpose of selling 48 beer or food to the general public; or to drug stores 49 regularly and continuously employing a registered 50 -4- SF242.1620 (2) 84 rn/nh 4/ 5

pharmacist, from having alcohol in stock for medicinal 1 and compounding purposes. 2 Sec. 15. Section 123.142, unnumbered paragraph 1, 3 Code 2011, is amended to read as follows: 4 It is unlawful for the holder of a class “B” or 5 class “C” permit issued under this chapter to sell 6 beer, except beer brewed on the premises covered by 7 a special class “A” permit or beer purchased from a 8 person holding a class “A” permit issued in accordance 9 with this chapter , and on which the tax provided in 10 section 123.136 has been paid. However, this section 11 does not apply to the holders of special class “B” 12 permits issued under section 123.133 for sales in cars 13 engaged in interstate commerce nor to class “D” liquor 14 control licensees as provided in this chapter . 15 Sec. 16. REPEAL. Sections 123.35, 123.133, 16 123.153, 123.154, 123.155, 123.156, 123.157, 123.158, 17 123.159, 123.160, 123.161, and 123.162, Code 2011, are 18 repealed. 19 Sec. 17. EFFECTIVE UPON ENACTMENT. The section 20 of this Act amending section 123.3, subsection 14A, 21 regarding the definition of high alcoholic content 22 beer, being deemed of immediate importance, takes 23 effect upon enactment. > 24 2. Title page, by striking lines 2 and 3 and 25 inserting < beverages division of the department of 26 commerce, including alcoholic beverage permits and 27 licenses and administrative provisions, modifying fees, 28 and including effective date provisions. > 29 3. By renumbering as necessary. 30 ______________________________ BRIAN SCHOENJAHN -5- SF242.1620 (2) 84 rn/nh 5/ 5 #2. #3.