House File 2540 S-5113 Amend House File 2540, as amended, passed, and reprinted by 1 the House, as follows: 2 1. By striking everything after the enacting clause and 3 inserting: 4 < DIVISION I 5 CHARITY BEER, SPIRITS, AND WINE EVENT PERMIT 6 Section 1. Section 123.32, subsection 1, paragraph b, Code 7 2020, is amended by adding the following new subparagraph: 8 NEW SUBPARAGRAPH . (7A) A charity beer, spirits, and wine 9 event permit as provided in section 123.173B. 10 Sec. 2. NEW SECTION . 123.173B Charity beer, spirits, and 11 wine event permit. 12 1. For purposes of this section, “authorized nonprofit 13 entity” includes a nonprofit entity which has a principal office 14 in the state, a nonprofit corporation organized under chapter 15 504, or a foreign corporation as defined in section 504.141, 16 whose income is exempt from federal taxation under section 17 501(c) of the Internal Revenue Code. 18 2. Upon application to the division and receipt of a charity 19 beer, spirits, and wine event permit, an authorized nonprofit 20 entity may conduct an event at which the entity is authorized 21 to serve the event’s attendees beer, spirits, and wine for 22 consumption on the premises of the event, regardless of whether 23 the entity charges an admission fee to the event or otherwise 24 collects the cost of the beer, spirits, and wine served from 25 the event’s attendees and subject to the requirements of this 26 section. 27 3. An application for a charity beer, spirits, and wine 28 event permit shall include all of the following information: 29 a. The date and time when the charity beer, spirits, and 30 wine event is to be conducted and the location of the premises 31 in this state where the charity beer, spirits, and wine event 32 is to be physically conducted. 33 b. The liquor control license or wine or beer permit number 34 issued by the division for the premises where the charity beer, 35 -1- HF2540.4101 (2) 88 ec/rn 1/ 8 #1.

spirits, and wine event is to be conducted. 1 c. A certification that the objective of the charity beer, 2 spirits, and wine event is to raise funds solely to be used for 3 educational, religious, or charitable purposes and that the 4 entire proceeds from the charity beer, spirits, and wine event 5 are to be expended for any of the purposes described in section 6 423.3, subsection 78. 7 4. A charity beer, spirits, and wine event shall comply with 8 all of the following requirements: 9 a. The event is to be conducted on a premises covered by a 10 valid liquor control license or wine or beer permit issued by 11 the division. 12 b. The authorized nonprofit entity shall have a written 13 agreement with the liquor control licensee or wine or beer 14 permittee covering the premises where the event is to be 15 conducted specifying that that licensee or permittee shall act 16 as the agent of the authorized nonprofit entity for the purpose 17 of providing and serving alcoholic beverages to the attendees 18 of the event. 19 c. The liquor control licensee or wine or beer permittee 20 covering the premises where the event is to be conducted shall 21 supply all alcoholic beverages served to the attendees of the 22 event. 23 d. Only those types of alcoholic beverages as are authorized 24 to be sold by the liquor control license or wine or beer permit 25 covering the premises where the event is to be conducted are to 26 be served to the attendees of the event. 27 5. An authorized nonprofit entity shall be eligible to 28 receive no more than two charity beer, spirits, and wine event 29 permits during a calendar year and each charity beer, spirits, 30 and wine event permit shall be valid for a period not to exceed 31 thirty-six consecutive hours. 32 6. Any violation of the requirements of this chapter or 33 the rules adopted pursuant to this chapter shall subject the 34 charity beer, spirits, and wine event permit holder to the 35 -2- HF2540.4101 (2) 88 ec/rn 2/ 8

general penalties provided in this chapter and shall constitute 1 grounds for imposition of a civil penalty, suspension of 2 the permit, or revocation of the permit after notice and 3 opportunity for a hearing pursuant to section 123.39 and 4 chapter 17A. 5 Sec. 3. Section 123.179, Code 2020, is amended by adding the 6 following new subsection: 7 NEW SUBSECTION . 7. The fee for a charity beer, spirits, and 8 wine event permit is one hundred dollars. 9 DIVISION II 10 WINE SALES 11 Sec. 4. Section 123.178, subsection 1, Code 2020, is amended 12 to read as follows: 13 1. A person holding a class “B” wine permit may sell wine at 14 retail for consumption off the premises. Wine shall be sold 15 for consumption off the premises in original containers only 16 except as provided in subsection 4 . 17 Sec. 5. Section 123.178, Code 2020, is amended by adding the 18 following new subsections: 19 NEW SUBSECTION . 4. Subject to the rules of the division, 20 sales made pursuant to this section may be made in a container 21 other than the original container only if all of the following 22 requirements are met: 23 a. The wine is transferred from the original container to 24 the container to be sold on the licensed premises at the time 25 of sale or when sold by telephonic or other electronic means. 26 b. The person transferring the wine from the original 27 container to the container to be sold shall be eighteen years 28 of age or more. 29 c. The container to be sold shall be no larger than 30 seventy-two ounces. 31 d. The container to be sold shall be securely sealed by a 32 method authorized by the division that is designed so that if 33 the sealed container is reopened or the seal tampered with, it 34 is visibly apparent that the seal on the container of wine has 35 -3- HF2540.4101 (2) 88 ec/rn 3/ 8

been tampered with or the sealed container has otherwise been 1 reopened. 2 NEW SUBSECTION . 5. A container of wine other than the 3 original container that is sold and sealed in compliance 4 with the requirements of subsection 4 and the rules of the 5 division shall not be deemed an open container subject to the 6 requirements of sections 321.284 and 321.284A if the sealed 7 container is unopened and the seal has not been tampered with, 8 and the contents of the container have not been partially 9 removed. 10 Sec. 6. Section 123.178A, subsection 1, Code 2020, is 11 amended to read as follows: 12 1. A person holding a class “B” native wine permit may sell 13 native wine only at retail for consumption off the premises. 14 Native wine shall be sold for consumption off the premises in 15 original containers only except as provided in subsection 4 . 16 Sec. 7. Section 123.178A, Code 2020, is amended by adding 17 the following new subsections: 18 NEW SUBSECTION . 4. Subject to the rules of the division, 19 sales made pursuant to this section may be made in a container 20 other than the original container only if all of the following 21 requirements are met: 22 a. The wine is transferred from the original container to 23 the container to be sold on the licensed premises at the time 24 of sale or when sold by telephonic or other electronic means. 25 b. The person transferring the wine from the original 26 container to the container to be sold shall be eighteen years 27 of age or more. 28 c. The container to be sold shall be no larger than 29 seventy-two ounces. 30 d. The container to be sold shall be securely sealed by a 31 method authorized by the division that is designed so that if 32 the sealed container is reopened or the seal tampered with, it 33 is visibly apparent that the seal on the container of wine has 34 been tampered with or the sealed container has otherwise been 35 -4- HF2540.4101 (2) 88 ec/rn 4/ 8

reopened. 1 NEW SUBSECTION . 5. A container of wine other than the 2 original container that is sold and sealed in compliance 3 with the requirements of subsection 4 and the rules of the 4 division shall not be deemed an open container subject to the 5 requirements of sections 321.284 and 321.284A if the sealed 6 container is unopened and the seal has not been tampered with, 7 and the contents of the container have not been partially 8 removed. 9 Sec. 8. Section 123.178B, subsection 1, Code 2020, is 10 amended to read as follows: 11 1. A person holding a class “C” native wine permit may 12 sell native wine only at retail for consumption on or off the 13 premises. Sales of wine for consumption off the premises made 14 pursuant to this section shall be made in original containers 15 except as provided in subsection 5. 16 Sec. 9. Section 123.178B, Code 2020, is amended by adding 17 the following new subsections: 18 NEW SUBSECTION . 5. Subject to the rules of the division, 19 sales made pursuant to this section may be made in a container 20 other than the original container only if all of the following 21 requirements are met: 22 a. The wine is transferred from the original container to 23 the container to be sold on the licensed premises at the time 24 of sale or when sold by telephonic or other electronic means. 25 b. The person transferring the wine from the original 26 container to the container to be sold shall be eighteen years 27 of age or more. 28 c. The container to be sold shall be no larger than 29 seventy-two ounces. 30 d. The container to be sold shall be securely sealed by a 31 method authorized by the division that is designed so that if 32 the sealed container is reopened or the seal tampered with, it 33 is visibly apparent that the seal on the container of wine has 34 been tampered with or the sealed container has otherwise been 35 -5- HF2540.4101 (2) 88 ec/rn 5/ 8

reopened. 1 NEW SUBSECTION . 6. A container of wine other than the 2 original container that is sold and sealed in compliance 3 with the requirements of subsection 5 and the rules of the 4 division shall not be deemed an open container subject to the 5 requirements of sections 321.284 and 321.284A if the sealed 6 container is unopened and the seal has not been tampered with, 7 and the contents of the container have not been partially 8 removed. 9 DIVISION III 10 ALCOHOLIC BEVERAGES SALES 11 Sec. 10. Section 123.30, subsection 3, paragraph c, 12 subparagraph (1), Code 2020, is amended to read as follows: 13 (1) A class “C” liquor control license may be issued to 14 a commercial establishment but must be issued in the name 15 of the individuals who actually own the entire business and 16 shall authorize the holder to purchase alcoholic liquors in 17 original unopened containers from class “E” liquor control 18 licensees only, wine from class “A” wine permittees or class 19 “B” wine permittees who also hold class “E” liquor control 20 licenses only as provided in sections 123.173 and 123.177 , 21 and to sell alcoholic beverages to patrons by the individual 22 drink for consumption on the premises only. However, alcoholic 23 liquor, wine, and beer may also be sold for consumption off 24 the premises. In addition, mixed drinks or cocktails may 25 also be sold for consumption off the premises subject to the 26 requirements of section 123.49, subsection 2, paragraph “d” . 27 The holder of a class “C” liquor control license may also hold 28 a special class “A” beer permit for the premises licensed under 29 a class “C” liquor control license for the purpose of operating 30 a brewpub pursuant to this chapter . 31 Sec. 11. Section 123.30, subsection 3, paragraph c, 32 subparagraph (3), Code 2020, is amended to read as follows: 33 (3) A class “C” native distilled spirits liquor control 34 license may be issued to a native distillery but shall be 35 -6- HF2540.4101 (2) 88 ec/rn 6/ 8

issued in the name of the individuals who actually own the 1 business and shall only be issued to a native distillery which, 2 combining all production facilities of the business, produces 3 and manufactures not more than one hundred thousand proof 4 gallons of distilled spirits on an annual basis. The license 5 shall authorize the holder to sell native distilled spirits 6 manufactured on the premises of the native distillery to 7 patrons by the individual drink for consumption on the premises 8 and mixed drinks or cocktails for consumption off the premises 9 subject to the requirements of section 123.49, subsection 2, 10 paragraph “d” . All native distilled spirits sold by a native 11 distillery for on-premises consumption and mixed drinks or 12 cocktails sold for consumption off the premises shall be 13 purchased from a class “E” liquor control licensee in original 14 unopened containers. 15 Sec. 12. Section 123.43A, subsection 6, Code 2020, is 16 amended to read as follows: 17 6. Notwithstanding any provision of this chapter to the 18 contrary or the fact that a person is the holder of a class 19 “A” native distilled spirits license, a native distillery 20 which, combining all production facilities of the business, 21 produces and manufactures not more than one hundred thousand 22 proof gallons of native distilled spirits on an annual basis 23 may sell those native distilled spirits manufactured on the 24 premises of the native distillery for consumption on the 25 premises by applying for a class “C” native distilled spirits 26 liquor control license as provided in section 123.30 . A 27 native distillery may be granted not more than one class “C” 28 native distilled spirits liquor control license. All native 29 distilled spirits sold by a native distillery for on-premises 30 consumption and mixed drinks or cocktails sold for consumption 31 off the premises shall be purchased from a class “E” liquor 32 control licensee. A manufacturer of native distilled spirits 33 may be issued a class “C” native distilled spirits liquor 34 control license regardless of whether the manufacturer is also 35 -7- HF2540.4101 (2) 88 ec/rn 7/ 8

a manufacturer of beer pursuant to a class “A” beer permit or 1 a manufacturer of native wine pursuant to a class “A” wine 2 permit. 3 Sec. 13. Section 123.49, subsection 2, paragraph d, Code 4 2020, is amended by adding the following new subparagraph: 5 NEW SUBPARAGRAPH . (3) Mixed drinks or cocktails mixed on 6 premises covered by a class “C” liquor control license or a 7 class “C” native distilled spirits liquor control license for 8 consumption off the licensed premises may be sold if the mixed 9 drink or cocktail is immediately sealed with a lid or other 10 method of securing the product and is promptly taken from the 11 licensed premises prior to consumption of the mixed drink or 12 cocktail. A mixed drink or cocktail that is sold and sealed 13 in compliance with the requirements of this subparagraph shall 14 not be deemed an open container subject to the requirements 15 of sections 321.284 and 321.284A if the sealed container is 16 unopened and the seal has not been tampered with, and the 17 contents of the container have not been partially removed. 18 Sec. 14. Section 123.131, subsection 2, paragraph a, Code 19 2020, is amended to read as follows: 20 a. The beer is transferred from the original container to 21 the container to be sold on the licensed premises at the time 22 of sale or when sold by telephonic or other electronic means . 23 Sec. 15. EFFECTIVE DATE. This division of this Act, being 24 deemed of immediate importance, takes effect upon enactment. > 25 2. Title page, by striking lines 1 and 2 and inserting 26 < An Act concerning alcoholic beverage control, establishing 27 a charity beer, spirits, and wine event permit, providing 28 for alcoholic beverages sales, and including effective date 29 provisions. > 30 ______________________________ COMMITTEE ON STATE GOVERNMENT ROBY SMITH, CHAIRPERSON -8- HF2540.4101 (2) 88 ec/rn 8/ 8 #2.