H.F. 470 Section 1. Section 22.7, subsection 24, Code 2011, is 1 amended by striking the subsection. 2 Sec. 2. Section 123.3, Code 2011, is amended by adding the 3 following new subsection: 4 NEW SUBSECTION . 014A. “Grape brandy” means brandy produced 5 by the distillation of fermented grapes or grape juice. 6 Sec. 3. Section 123.41, Code 2011, is amended to read as 7 follows: 8 123.41 Manufacturer’s license. 9 1. Upon application in the prescribed form and accompanied 10 by a fee of three hundred fifty dollars, the administrator may 11 in accordance with this chapter grant and issue a license, 12 valid for a one-year period after date of issuance, to a 13 manufacturer which shall allow the manufacture, storage, and 14 wholesale disposition and sale of alcoholic liquors to the 15 division and to customers outside of the state. 16 2. As a condition precedent to the approval and granting of 17 a manufacturer’s license, an applicant shall file a statement 18 under oath with the division that the applicant is a bona fide 19 manufacturer of alcoholic liquors, and that the applicant 20 will faithfully observe and comply with all laws, rules, and 21 regulations governing the manufacture and sale of alcoholic 22 liquor. 23 2. 3. A person who holds an experimental distilled spirits 24 plant permit or its equivalent issued by the federal bureau 25 of alcohol, tobacco and firearms alcohol and tobacco tax and 26 trade bureau of the United States department of the treasury 27 may produce alcohol for use as fuel without obtaining a 28 manufacturer’s license from the division. 29 4. A violation of the requirements of this section shall 30 subject the licensee to the general penalties provided in this 31 chapter and shall constitute grounds for imposition of a civil 32 penalty or suspension or revocation of the license after notice 33 and opportunity for a hearing pursuant to section 123.39 and 34 chapter 17A. 35 -1- LSB 1243HV (2) 84 rn/nh 1/ 6

H.F. 470 Sec. 4. Section 123.43A, subsection 8, Code 2011, is amended 1 to read as follows: 2 8. Micro-distilled spirits purchased at a micro-distillery 3 shall not be consumed within three hundred feet of a 4 micro-distillery or on any property owned, operated, or 5 controlled by a micro-distillery. 6 Sec. 5. NEW SECTION . 123.46A Delivery of alcoholic 7 beverages by retailers. 8 1. Licensees and permittees authorized to sell alcoholic 9 liquor, wine, or beer in original unopened containers for 10 consumption off the licensed premises may deliver alcoholic 11 liquor, wine, or beer to a home or other designated location in 12 this state. Deliveries shall be limited to alcoholic beverages 13 authorized by the licensee’s or permittee’s license or permit. 14 2. All deliveries of alcoholic liquor, wine, or beer shall 15 be subject to the following requirements and restrictions: 16 a. Payment for the alcoholic liquor, wine, or beer shall be 17 received on the licensed premises at the time of order. 18 b. Alcoholic liquor, wine, or beer delivered to a person 19 shall be for personal use and not for resale. 20 c. Deliveries shall only be made to persons in this state 21 who are twenty-one years of age or older. 22 d. Deliveries shall not be made to a person who is 23 intoxicated or is simulating intoxication. 24 e. Deliveries shall occur between 6:00 a.m. and 10:00 p.m. 25 Monday through Saturday, and between 8:00 a.m. and 10:00 p.m. 26 Sunday. 27 f. Delivery of alcoholic liquor, wine, or beer shall be made 28 by the licensee or permittee, or the licensee’s or permittee’s 29 employee, and not by a third party. 30 g. Delivery personnel shall be eighteen years of age or 31 older. 32 h. Deliveries shall be made in a vehicle owned, leased, or 33 under the control of the licensee or permittee. 34 i. Valid proof of the recipient’s identity and age shall 35 -2- LSB 1243HV (2) 84 rn/nh 2/ 6

H.F. 470 be obtained at the time of delivery, and the signature of a 1 person twenty-one years of age or older shall be obtained as a 2 condition of delivery. 3 j. Licensees and permittees shall maintain records 4 of deliveries which include the quantity delivered, the 5 recipient’s name and address, and the signature of the 6 recipient of the alcoholic liquor, wine, or beer. The records 7 shall be maintained on the licensed premises for a period of 8 three years. 9 3. A violation of this section or any other provision of 10 this chapter shall subject the licensee or permittee to the 11 penalty provisions of section 123.39. 12 4. Nothing in this section shall impact the direct shipment 13 of wine as regulated by section 123.187. 14 Sec. 6. Section 123.56, subsections 1, 2, and 3, Code 2011, 15 are amended to read as follows: 16 1. Subject to rules of the division, manufacturers of 17 native wines from grapes, cherries, other fruits or other fruit 18 juices, vegetables, vegetable juices, dandelions, clover, 19 honey, or any combination of these ingredients, holding a 20 class “A” wine permit as required by this chapter , may sell, 21 keep, or offer for sale and deliver the wine. Sales may be 22 made at retail for off-premises consumption when sold on the 23 premises of the manufacturer, or in a retail establishment 24 operated by the manufacturer. Sales may also be made to class 25 “A” or retail wine permittees or liquor control licensees as 26 authorized by the class “A” wine permit. Notwithstanding any 27 other provision of this chapter, manufacturers of native wine 28 may purchase and possess grape brandy from the division for the 29 sole purpose of manufacturing wine. 30 2. Native wine may be sold at retail for off-premises 31 consumption when sold on the premises of the manufacturer, 32 or in a retail establishment operated by the manufacturer. 33 Sales may also be made to class “A” or retail wine permittees 34 or liquor control licensees as authorized by the class “A” 35 -3- LSB 1243HV (2) 84 rn/nh 3/ 6

H.F. 470 wine permit. A manufacturer of native wines shall not sell 1 the wines other than as permitted in this chapter and shall 2 not allow wine sold to be consumed upon the premises of the 3 manufacturer. However, prior to sale native wines may be 4 sampled on the premises where made, when no charge is made 5 for the sampling. A person may manufacture native wine for 6 consumption on the manufacturer’s premises, when the wine or 7 any part of it is not manufactured for sale. 8 3. A manufacturer of native wines may ship wine in closed 9 containers to individual purchasers inside and outside this 10 state by obtaining a wine direct shipper license pursuant to 11 section 123.187 . The manufacturer shall label the package 12 containing the wine with the words “deliver to adults only”. 13 Sec. 7. Section 123.57, Code 2011, is amended to read as 14 follows: 15 123.57 Examination of accounts. 16 The financial condition and transactions of all offices, 17 departments, warehouses, and depots of the division shall be 18 examined at least once each year by the state auditor and at 19 shorter periods if requested by the administrator, governor, 20 commission, or executive council the general assembly’s 21 standing committees on government oversight . 22 Sec. 8. REPEAL. Section 123.43, Code 2011, is repealed. 23 EXPLANATION 24 This bill makes changes regarding matters under the purview 25 of the alcoholic beverages division of the department of 26 commerce. 27 The bill deletes an exception to the open records law in 28 Code chapter 22 which currently provides that records of 29 purchases of alcoholic liquor from the division which would 30 reveal purchases made by an individual class “E” liquor control 31 licensee shall be kept confidential, unless required to be 32 revealed for law enforcement purposes or for the collection of 33 payments due the division pursuant to Code section 123.24. 34 The bill provides that prior to the approval and granting 35 -4- LSB 1243HV (2) 84 rn/nh 4/ 6

H.F. 470 of a manufacturer’s license, which allows the manufacture, 1 storage, and wholesale disposition and sale of alcoholic 2 liquors to the division and to customers outside of the state, 3 an applicant must file a statement under oath with the division 4 that the applicant is a bona fide manufacturer of alcoholic 5 liquors, and that the applicant will faithfully observe and 6 comply with all laws, rules, and regulations governing the 7 manufacture and sale of alcoholic liquor. The bill subjects 8 a licensee violating the requirements for issuance of a 9 manufacturer’s license, in addition to any other applicable 10 penalty contained in Code chapter 123, to the civil penalty and 11 suspension or revocation provisions contained in Code section 12 123.39. The civil penalty is in an amount not to exceed $1,000 13 per violation. The bill repeals Code section 123.43, which 14 requires the posting of a $5,000 bond by applicants for a 15 manufacturer’s license. 16 The bill deletes a current provision prohibiting 17 micro-distilled spirits purchased at a micro-distillery from 18 being consumed within 300 feet of a micro-distillery. 19 The bill provides that a licensee or permittee authorized to 20 sell liquor, wine, or beer in original unopened containers for 21 consumption off the licensed premises may deliver it to a home 22 or other designated location in Iowa. Payment for the liquor, 23 wine, or beer shall be received on the licensed premises at 24 the time of order; liquor, wine, or beer shall be for personal 25 use and not for resale; deliveries shall only be made to 26 persons in this state who are 21 or older; and deliveries shall 27 not be made to a person who is intoxicated or is simulating 28 intoxication. Additionally, deliveries shall occur between 29 6:00 a.m. and 10:00 p.m. Monday through Saturday and 8:00 a.m. 30 and 10:00 p.m. Sunday and shall be made by the licensee or 31 permittee, or the licensee’s or permittee’s employee. Delivery 32 personnel are required to be 18 or older. Further, deliveries 33 shall be made in a vehicle owned, leased, or under the control 34 of the licensee or permittee, valid proof of the recipient’s 35 -5- LSB 1243HV (2) 84 rn/nh 5/ 6

H.F. 470 identity and age shall be obtained at the time of delivery and 1 the signature of an adult shall be obtained as a condition of 2 delivery, and licensees and permittees are required to maintain 3 records of deliveries for a period of three years. The bill’s 4 provisions do not impact provisions regulating the direct 5 shipment of wine in Code section 123.187. A violation of the 6 delivery provisions, or any other provision of Code chapter 7 123, shall subject the licensee’s or permittee’s license or 8 permit to the penalty provisions of Code section 123.39, which 9 include possible suspension or revocation and a civil penalty 10 not to exceed $1,000 per violation. 11 Additionally, the bill makes specified changes relating 12 to the manufacture of native wine. The bill states that 13 manufacturers of native wine may purchase and possess grape 14 brandy, as defined in the bill, for the sole purpose of 15 manufacturing wine, provided that the grape brandy is purchased 16 from the division. The bill clarifies that a manufacturer of 17 native wine shall obtain a wine shipper’s license pursuant to 18 Code section 123.187 to ship wine inside this state and makes 19 the manufacturer subject to the provisions of the Code section. 20 -6- LSB 1243HV (2) 84 rn/nh 6/ 6