House Study Bill 608 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON COMMERCE BILL BY CHAIRPERSON SODERBERG) A BILL FOR An Act authorizing charitable auctions for alcoholic spirits. 1 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 2 TLSB 6023YC (1) 84 ec/nh

H.F. _____ Section 1. Section 123.173A, Code 2011, is amended to read 1 as follows: 2 123.173A Charity beer , spirits, and wine auction permit. 3 1. For purposes of this section , “authorized nonprofit 4 entity” includes a nonprofit entity which has a principal office 5 in the state, a nonprofit corporation organized under chapter 6 504 , or a foreign corporation as defined in section 504.141 , 7 whose income is exempt from federal taxation under section 8 501(c) of the Internal Revenue Code. 9 2. An authorized nonprofit entity may, upon application to 10 the division and receipt of a charity beer , spirits, and wine 11 auction permit from the division, conduct a charity auction 12 which includes beer , spirits, and wine. The application shall 13 specify the date and time when the charity beer , spirits, and 14 wine auction is to be conducted and the premises in this state 15 where the charity beer , spirits, and wine auction is to be 16 physically conducted. The applicant shall certify that the 17 objective of the charity beer , spirits, and wine auction is 18 to raise funds solely to be used for educational, religious, 19 or charitable purposes and that the entire proceeds from the 20 charity beer , spirits, and wine auction are to be expended for 21 any of the purposes described in section 423.3, subsection 78 . 22 3. An authorized nonprofit entity shall be eligible to 23 receive only two charity beer , spirits, and wine auction 24 permits during a calendar year and each charity beer , spirits, 25 and wine auction permit shall be valid for a period not to 26 exceed thirty-six consecutive hours. 27 4. The authorized nonprofit entity conducting the charity 28 beer , spirits, and wine auction shall obtain the beer , spirits, 29 and wine to be auctioned at the charity beer , spirits, and 30 wine auction from an Iowa retail beer permittee , an Iowa 31 retail alcoholic liquor permittee, an Iowa micro-distilled 32 spirits permittee, or an Iowa retail wine permittee, or may 33 receive donations of beer , spirits, or wine to be auctioned at 34 the charity beer , spirits, and wine auction from persons who 35 -1- LSB 6023YC (1) 84 ec/nh 1/ 3

H.F. _____ purchased the donated beer or wine from an Iowa retail beer 1 permittee or an Iowa retail wine permittee and who present 2 a receipt documenting the purchase at the time the beer or 3 wine is donated . The authorized nonprofit entity conducting 4 the charity beer and wine auction shall retain a copy of the 5 receipt for a period of one year from the date of the charity 6 beer and wine auction. 7 5. Persons shall be physically present at the charity 8 beer , spirits, and wine auction to be eligible to bid on beer , 9 spirits, and wine sold at the charity auction. 10 6. The beer , spirits, and wine sold at the charity beer , 11 spirits, and wine auction shall be in original containers 12 for consumption off of the premises where the charity beer , 13 spirits, and wine auction is conducted. No other alcoholic 14 beverage may be sold by the charity beer , spirits, and wine 15 auction permittee at the charity beer , spirits, and wine 16 auction. A purchaser of beer , spirits, or wine at a charity 17 beer , spirits, and wine auction shall not take possession of 18 the beer , spirits, or wine until the person is leaving the 19 event. A purchaser of beer , spirits, or wine at a charity 20 beer , spirits, and wine auction shall not open the container 21 or consume or permit the consumption of the beer , spirits, or 22 wine purchased on the premises where the charity beer , spirits, 23 and wine auction is conducted. A purchaser of beer , spirits, 24 or wine at a charity beer , spirits, and wine auction shall not 25 resell the beer , spirits, or wine. 26 7. A liquor control licensee, beer permittee, 27 micro-distilled spirits permittee, or wine permittee shall not 28 purchase beer , spirits, or wine at a charity beer , spirits, and 29 wine auction. The charity beer , spirits, and wine auction may 30 be conducted on a premises for which a class “B” liquor control 31 license or class “C” liquor control license has been issued, 32 provided that the liquor control licensee does not participate 33 in the charity beer , spirits, and wine auction, supply beer , 34 spirits, or wine to be auctioned at the charity beer , spirits, 35 -2- LSB 6023YC (1) 84 ec/nh 2/ 3

H.F. _____ and wine auction, or receive any of the proceeds of the charity 1 beer , spirits, and wine auction. 2 Sec. 2. Section 123.179, subsection 5, Code 2011, is amended 3 to read as follows: 4 5. The fee for a charity beer , spirits, and wine auction 5 permit is one hundred dollars. 6 EXPLANATION 7 Code section 123.173A, providing for a charity beer and wine 8 auction permit, is amended to allow the auction of alcoholic 9 spirits. In addition, the Code section is amended to allow 10 the auctioning of beer, spirits, and wine that is donated 11 without the requirement that the beer, spirits, or wine donated 12 be purchased from an Iowa retailer and that a copy of the 13 purchase receipt be retained by the authorized nonprofit entity 14 conducting the auction. 15 -3- LSB 6023YC (1) 84 ec/nh 3/ 3