SF 2210 (LSB 5186SV (2) 84)

SENATE FILE 2210

BY  COMMITTEE ON COMMERCE

(SUCCESSOR TO SSB 3101)

A BILL FOR

An Act concerning applications for liquor control licenses and micro-distilled spirits, beer, and wine permits.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 123.32, Code Supplement 2011, is amended by adding the following new subsections:
   NEW SUBSECTION.  1A.  Misrepresentation of material fact on application.  A person who makes a false statement of material fact on an application for a liquor license, micro-distilled spirits permit, wine permit, or beer permit, or who has been a party to the preparation or submission of any false application for such a license or permit, may be denied the license or permit on the grounds of the false statement or submission.
   NEW SUBSECTION.  1B.  Criminal history record checks.
   a.  The division may request and obtain criminal history data from the department of public safety for an applicant for a liquor license, micro-distilled spirits permit, wine permit, or beer permit under this chapter and any other person required to be listed on the application pursuant to section 123.31, subsection 3 for the purpose of evaluating an applicant’s fitness to hold such license or permit.
   b.  The division may also require that a full set of fingerprints be provided by an applicant for a liquor license, micro-distilled spirits permit, wine permit, or beer permit issued pursuant to this chapter and by any other person required to be listed on the application pursuant to section 123.31, subsection 3 for purposes of conducting a national criminal history check. The division shall provide the fingerprints to the department of public safety for submission through the state criminal history repository to the federal bureau of investigation for the national criminal history check.
   c.  Persons subject to a criminal history check conducted pursuant to this subsection shall authorize release of the results of the criminal history check to the division. Failure of the applicant or any other person subject to the requirements of this subsection to fully cooperate in the conduct of a criminal history check shall be grounds to deny the license or permit application.

   d.  Criminal history data obtained by the division pursuant to this subsection is confidential and shall not be considered a public record under chapter 22. The division may, however, use such information in a license or permit denial proceeding or other regulatory proceeding brought under this chapter.
   e.  The division shall pay the actual cost of all fingerprinting and criminal history checks conducted pursuant to this subsection, if any.
    Sec. 2.  Section 123.32, subsections 2, 7, and 9, Code Supplement 2011, are amended to read as follows:
   2.  Action by local authorities.  The local authority shall either approve or disapprove the issuance of a liquor control license,
 
micro-distilled spirits permit, retail wine permit, or retail beer permit, shall endorse its approval or disapproval on the application and shall forward the application with the necessary fee and bond, if required, to the division. There is no limit upon the number of liquor control licenses,
 
micro-distilled spirits permits, retail wine permits, or retail beer permits which may be approved for issuance by local authorities.
   7.  Appeal to administrator.  An applicant for a liquor control license,
 
micro-distilled spirits permit, wine permit, or beer permit may appeal from the local authority’s disapproval of an application for a license or permit to the administrator. In the appeal the applicant shall be allowed the opportunity to demonstrate in an evidentiary hearing conducted pursuant to chapter 17A that the applicant complies with all of the requirements for holding the license or permit. The administrator may appoint a member of the division or may request an administrative law judge from the department of inspections and appeals to conduct the evidentiary hearing and to render a proposed decision to approve or disapprove the issuance of the license or permit. The administrator may affirm, reverse, or modify the proposed decision. If the administrator determines that the applicant complies with all of the requirements for holding a license or permit, the administrator shall order the issuance of the license or permit. If the administrator determines that the applicant does not comply with the requirements for holding a license or permit, the administrator shall disapprove the issuance of the license or permit.
   9.  Suspension by local authority.  A liquor control licensee or a
 
micro-distilled spirits, wine, or beer permittee whose license or permit has been suspended or revoked or a civil penalty imposed by a local authority for a violation of this chapter or suspended by a local authority for violation of a local ordinance may appeal the suspension, revocation, or civil penalty to the administrator. The administrator may appoint a member of the division or may request an administrative law judge from the department of inspections and appeals to hear the appeal which shall be conducted in accordance with chapter 17A and to issue a proposed decision. The administrator may review the proposed decision upon the motion of a party to the appeal or upon the administrator’s own motion in accordance with chapter 17A. Upon review of the proposed decision, the administrator may affirm, reverse, or modify the proposed decision. A liquor control licensee,
 
a micro-distilled spirits, wine, or beer permittee, or a local authority aggrieved by a decision of the administrator may seek judicial review of the decision pursuant to chapter 17A.
EXPLANATION
   This bill concerns applications for liquor control licenses, and micro-distilled spirits, wine, and beer permits under Code section 123.32.
   New Code section 123.32(1A) provides that a person who makes a false statement of material fact on an application for a license or permit may be denied the license or permit on the grounds of the false statement.
   New Code section 123.32(1B) provides authority for the alcoholic beverages division to conduct criminal history background checks of applicants for licenses and permits and any other person required to be listed on the application for that license or permit. The bill authorizes the division to obtain criminal history data from the department of public safety and to require applicants to provide a set of fingerprints for purposes of conducting a national criminal history check. The bill provides that criminal history data obtained pursuant to this new provision is confidential but may be used in a license or permit denial or other regulatory proceeding brought by the division. The bill further provides that the alcoholic beverages division shall pay the actual cost of all fingerprinting and criminal history checks conducted.
   Code section 123.32 is also amended to provide that the requirements and procedures for applications for liquor control licenses and wine and beer permits also apply to micro-distilled spirits permits.