S.F. 242 Section 1. Section 123.3, Code 2011, is amended by adding 1 the following new subsections: 2 NEW SUBSECTION . 014A. “Grocery store” means any retail 3 establishment, the business of which consists of the sale of 4 food, food products, or beverages for consumption off the 5 premises. 6 NEW SUBSECTION . 022A. “Micro-distilled spirits” means 7 distilled spirits fermented, distilled, or, for a period of 8 two years, barrel matured on the licensed premises of the 9 micro-distillery where fermented, distilled, or matured. 10 “Micro-distilled spirits” also includes blended or mixed spirits 11 comprised solely of spirits fermented, distilled, or, for a 12 period of two years, barrel matured at a micro-distillery. 13 NEW SUBSECTION . 022B. “Micro-distillery” means a business 14 with an operational still which, combining all production 15 facilities of the business, produces and manufactures less than 16 fifty thousand proof gallons of distilled spirits on an annual 17 basis. 18 NEW SUBSECTION . 26A. “Pharmacy” means a drug store in 19 which drugs and medicines are exposed for sale and sold at 20 retail, or in which prescriptions of licensed physicians and 21 surgeons, dentists, or veterinarians are compounded and sold by 22 a registered pharmacist. 23 NEW SUBSECTION . 32A. “School” means a public or private 24 school or that portion of a public or private school which 25 provides facilities for teaching any grade from kindergarten 26 through grade twelve. 27 Sec. 2. Section 123.3, subsection 14A, Code 2011, is amended 28 to read as follows: 29 14A. “High alcoholic content beer” means beer which contains 30 more than five percent of alcohol by weight, but not more 31 than twelve percent of alcohol by weight, that is made by the 32 fermentation of an infusion in potable water of barley, malt, 33 and hops, with or without unmalted grains or decorticated and 34 degerminated grains. Not more than one and five-tenths percent 35 -1- LSB 1244SV (2) 84 rn/nh 1/ 5

S.F. 242 of the volume of a “high alcoholic content beer” may consist 1 of alcohol derived from added flavors and other nonbeverage 2 ingredients containing alcohol. The added flavors and other 3 nonbeverage ingredients may not include added caffeine or other 4 added stimulants including but not limited to guarana, ginseng, 5 and taurine. 6 Sec. 3. Section 123.3, subsection 22A, Code 2011, is amended 7 to read as follows: 8 22A. “Native wine” means wine manufactured in this state 9 pursuant to section 123.56 by a manufacturer of native wine . 10 Sec. 4. Section 123.9, Code 2011, is amended to read as 11 follows: 12 123.9 Commission meetings. 13 The commission shall meet on or before July 1 of each year 14 for the purpose of selecting one of its members as chairperson , 15 which member shall serve in such capacity for the succeeding 16 year. The commission shall otherwise meet quarterly or at 17 the call of the chairperson or administrator or , when any 18 three members file with the chairperson a written request 19 for a meeting. Written notice of the time and place of each 20 meeting shall be given to each member of the commission. All 21 commission meetings shall be held within the state. A majority 22 of the commission members shall constitute a quorum. 23 Sec. 5. Section 123.31, unnumbered paragraph 1, Code 2011, 24 is amended to read as follows: 25 Except as otherwise provided in section 123.35 , verified 26 Verified applications for the original issuance or the renewal 27 of liquor control licenses shall be filed at the time and in 28 the number of copies as the administrator shall prescribe, on 29 forms prescribed by the administrator, and shall set forth 30 under oath the following information: 31 Sec. 6. Section 123.43A, subsection 1, Code 2011, is amended 32 by striking the subsection. 33 Sec. 7. Section 123.46, subsection 1, paragraph d, Code 34 2011, is amended by striking the paragraph. 35 -2- LSB 1244SV (2) 84 rn/nh 2/ 5

S.F. 242 Sec. 8. Section 123.129, subsection 1, Code 2011, is amended 1 by striking the subsection. 2 Sec. 9. Section 123.134, subsection 5, Code 2011, is amended 3 by striking the subsection. 4 Sec. 10. Section 123.141, Code 2011, is amended to read as 5 follows: 6 123.141 Keeping liquor where beer is sold. 7 No alcoholic liquor for beverage purposes shall be used, 8 or kept for any purpose in the place of business of class “B” 9 permittees, or on the premises of such class “B” permittees, at 10 any time. A violation of any provision of this section shall 11 be grounds for suspension or revocation of the permit pursuant 12 to section 123.50, subsection 3 . This section shall not apply 13 in any manner or in any way , to any railway car of any dining 14 car company, sleeping car company, railroad company or railway 15 company, having a special class “B” permit; to the premises 16 of any hotel or motel for which a class “B” permit has been 17 issued, other than that part of such premises regularly used by 18 the hotel or motel for the principal purpose of selling beer 19 or food to the general public; or to drug stores regularly and 20 continuously employing a registered pharmacist, from having 21 alcohol in stock for medicinal and compounding purposes. 22 Sec. 11. Section 123.142, unnumbered paragraph 1, Code 23 2011, is amended to read as follows: 24 It is unlawful for the holder of a class “B” or class “C” 25 permit issued under this chapter to sell beer, except beer 26 brewed on the premises covered by a special class “A” permit or 27 beer purchased from a person holding a class “A” permit issued 28 in accordance with this chapter , and on which the tax provided 29 in section 123.136 has been paid. However, this section does 30 not apply to the holders of special class “B” permits issued 31 under section 123.133 for sales in cars engaged in interstate 32 commerce nor to class “D” liquor control licensees as provided 33 in this chapter . 34 Sec. 12. REPEAL. Sections 123.35, 123.133, 123.153, 35 -3- LSB 1244SV (2) 84 rn/nh 3/ 5

S.F. 242 123.154, 123.155, 123.156, 123.157, 123.158, 123.159, 123.160, 1 123.161, and 123.162, Code 2011, are repealed. 2 Sec. 13. EFFECTIVE UPON ENACTMENT. The section of this 3 Act amending section 123.3, subsection 14A, regarding the 4 definition of high alcoholic content beer, being deemed of 5 immediate importance, takes effect upon enactment. 6 EXPLANATION 7 This bill makes several changes regarding matters under the 8 purview of the alcoholic beverages division of the department 9 of commerce. 10 The bill deletes definitions of grocery store, 11 micro-distillery, micro-distilled spirits, pharmacy, and school 12 contained in respective provisions within Code chapter 123, and 13 inserts the definitions into the general definitions section 14 for the chapter in Code section 123.3. The bill modifies the 15 definition of native wine contained within Code section 123.3 16 to remove reference to wine manufactured “in this state”, 17 instead providing that “native wine” means wine manufactured 18 pursuant to Code section 123.56 by a manufacturer of native 19 wine. 20 The bill modifies the definition of high alcoholic content 21 beer to specify that not more than 1.5 percent of the volume of 22 such beer may consist of alcohol derived from added flavors and 23 other nonbeverage ingredients containing alcohol, and that the 24 added flavors and ingredients may not include added caffeine 25 or other specified added stimulants. The bill makes this 26 modification effective upon enactment. 27 The bill amends provisions governing meetings of the 28 alcoholic beverages commission, providing that the commission 29 shall meet to elect a chairperson on or before July 1 annually, 30 rather than on July 1 under current law. The bill provides 31 that the commission shall otherwise meet quarterly, or at any 32 time called by the administrator of the division in addition 33 to the chairperson. The bill deletes a current provision 34 prohibiting commission meetings from being held outside of the 35 -4- LSB 1244SV (2) 84 rn/nh 4/ 5

S.F. 242 state. 1 The bill repeals Code section 123.35, which had prescribed 2 simplified application forms for the renewal of liquor control 3 licenses, wine permits, and beer permits when qualifications 4 had not changed since the license or permit was originally 5 issued. The bill also repeals Code section 123.133 providing 6 for the issuance of a special class “B” permit for the sale 7 of beer on trains, and deletes a provision which currently 8 states that Code section 123.141, regarding keeping liquor at 9 a location where beer is sold, shall not be applicable to any 10 railway car of any dining car company, sleeping car company, 11 railroad company, or railway company in possession of a special 12 class “B” beer permit. The bill makes conforming changes 13 consistent with the repeal of these Code sections. 14 The bill additionally repeals Code sections 123.153 through 15 123.162, comprising division IV of Code chapter 123, entitled 16 “Warehouse Project”. The provisions allowed the alcoholic 17 beverages commission to issue revenue bonds for a one-time 18 warehouse project. 19 -5- LSB 1244SV (2) 84 rn/nh 5/ 5