S.F. _____ H.F. _____ 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 22A, Code 2011, is amended 28 to read as follows: 29 22A. “Native wine” means wine manufactured in this state 30 pursuant to section 123.56 by a manufacturer of native wine . 31 Sec. 3. Section 123.9, Code 2011, is amended to read as 32 follows: 33 123.9 Commission meetings. 34 The commission shall meet on or before July 1 of each year 35 -1- LSB 1244XD (9) 84 rn/nh 1/ 4

S.F. _____ H.F. _____ for the purpose of selecting one of its members as chairperson , 1 which member shall serve in such capacity for the succeeding 2 year. The commission shall otherwise meet quarterly or at 3 the call of the chairperson or administrator or , when any 4 three members file with the chairperson a written request 5 for a meeting. Written notice of the time and place of each 6 meeting shall be given to each member of the commission. All 7 commission meetings shall be held within the state. A majority 8 of the commission members shall constitute a quorum. 9 Sec. 4. Section 123.31, unnumbered paragraph 1, Code 2011, 10 is amended to read as follows: 11 Except as otherwise provided in section 123.35 , verified 12 Verified applications for the original issuance or the renewal 13 of liquor control licenses shall be filed at the time and in 14 the number of copies as the administrator shall prescribe, on 15 forms prescribed by the administrator, and shall set forth 16 under oath the following information: 17 Sec. 5. Section 123.43A, subsection 1, Code 2011, is amended 18 by striking the subsection. 19 Sec. 6. Section 123.46, subsection 1, paragraph d, Code 20 2011, is amended by striking the paragraph. 21 Sec. 7. Section 123.129, subsection 1, Code 2011, is amended 22 by striking the subsection. 23 Sec. 8. Section 123.134, subsection 5, Code 2011, is amended 24 by striking the subsection. 25 Sec. 9. Section 123.141, Code 2011, is amended to read as 26 follows: 27 123.141 Keeping liquor where beer is sold. 28 No alcoholic liquor for beverage purposes shall be used, 29 or kept for any purpose in the place of business of class “B” 30 permittees, or on the premises of such class “B” permittees, at 31 any time. A violation of any provision of this section shall 32 be grounds for suspension or revocation of the permit pursuant 33 to section 123.50, subsection 3 . This section shall not apply 34 in any manner or in any way , to any railway car of any dining 35 -2- LSB 1244XD (9) 84 rn/nh 2/ 4

S.F. _____ H.F. _____ car company, sleeping car company, railroad company or railway 1 company, having a special class “B” permit; to the premises 2 of any hotel or motel for which a class “B” permit has been 3 issued, other than that part of such premises regularly used by 4 the hotel or motel for the principal purpose of selling beer 5 or food to the general public; or to drug stores regularly and 6 continuously employing a registered pharmacist, from having 7 alcohol in stock for medicinal and compounding purposes. 8 Sec. 10. Section 123.142, unnumbered paragraph 1, Code 9 2011, is amended to read as follows: 10 It is unlawful for the holder of a class “B” or class “C” 11 permit issued under this chapter to sell beer, except beer 12 brewed on the premises covered by a special class “A” permit or 13 beer purchased from a person holding a class “A” permit issued 14 in accordance with this chapter , and on which the tax provided 15 in section 123.136 has been paid. However, this section does 16 not apply to the holders of special class “B” permits issued 17 under section 123.133 for sales in cars engaged in interstate 18 commerce nor to class “D” liquor control licensees as provided 19 in this chapter . 20 Sec. 11. REPEAL. Sections 123.35, 123.133, 123.153, 21 123.154, 123.155, 123.156, 123.157, 123.158, 123.159, 123.160, 22 123.161, and 123.162, Code 2011, are repealed. 23 EXPLANATION 24 This bill makes several changes regarding matters under the 25 purview of the alcoholic beverages division of the department 26 of commerce. 27 The bill deletes definitions of grocery store, 28 micro-distillery, micro-distilled spirits, pharmacy, and school 29 contained in respective provisions within Code chapter 123, and 30 inserts the definitions into the general definitions section 31 for the chapter in Code section 123.3. The bill modifies the 32 definition of native wine contained within Code section 123.3 33 to remove reference to wine manufactured “in this state”, 34 instead providing that “native wine” means wine manufactured 35 -3- LSB 1244XD (9) 84 rn/nh 3/ 4

S.F. _____ H.F. _____ pursuant to Code section 123.56 by a manufacturer of native 1 wine. 2 The bill amends provisions governing meetings of the 3 alcoholic beverages commission, providing that the commission 4 shall meet to elect a chairperson on or before July 1 annually, 5 rather than on July 1 under current law. The bill provides 6 that the commission shall otherwise meet quarterly, or at any 7 time called by the administrator of the division in addition 8 to the chairperson. The bill deletes a current provision 9 prohibiting commission meetings from being held outside of the 10 state. 11 The bill repeals Code section 123.35, which had prescribed 12 simplified application forms for the renewal of liquor control 13 licenses, wine permits, and beer permits when qualifications 14 had not changed since the license or permit was originally 15 issued. The bill also repeals Code section 123.133 providing 16 for the issuance of a special class “B” permit for the sale 17 of beer on trains, and deletes a provision which currently 18 states that Code section 123.141, regarding keeping liquor at 19 a location where beer is sold, shall not be applicable to any 20 railway car of any dining car company, sleeping car company, 21 railroad company, or railway company in possession of a special 22 class “B” beer permit. The bill makes conforming changes 23 consistent with the repeal of these Code sections. 24 The bill additionally repeals Code sections 123.153 through 25 123.162, comprising division IV of Code chapter 123, entitled 26 “Warehouse Project”. The provisions allowed the alcoholic 27 beverages commission to issue revenue bonds for a one-time 28 warehouse project. 29 -4- LSB 1244XD (9) 84 rn/nh 4/ 4