Senate Study Bill 1166 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON COMMERCE BILL BY CHAIRPERSON DANDEKAR) A BILL FOR An Act relating to charity beer and wine auctions, by 1 authorizing spirits to be included in an auction. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 2473SC (2) 84 rn/rj

S.F. _____ Section 1. Section 123.173A, Code 2011, is amended to read 1 as follows: 2 123.173A Charity beer , and wine , and spirits 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 10 to the division and receipt of a charity beer , and wine , and 11 spirits auction permit from the division, conduct a charity 12 auction which includes beer , and wine , and spirits . The 13 application shall specify the date and time when the charity 14 beer , and wine , and spirits auction is to be conducted and the 15 premises in this state where the charity beer , and wine , and 16 spirits auction is to be physically conducted. The applicant 17 shall certify that the objective of the charity beer , and wine , 18 and spirits auction is to raise funds solely to be used for 19 educational, religious, or charitable purposes and that the 20 entire proceeds from the charity beer , and wine , and spirits 21 auction are to be expended for any of the purposes described in 22 section 423.3, subsection 78 . 23 3. An authorized nonprofit entity shall be eligible to 24 receive only two charity beer , and wine , and spirits auction 25 permits during a calendar year and each charity beer , and wine , 26 and spirits auction permit shall be valid for a period not to 27 exceed thirty-six consecutive hours. 28 4. The authorized nonprofit entity conducting the charity 29 beer and wine auction shall obtain the beer and wine to be 30 auctioned at the charity beer and wine auction from an Iowa 31 retail beer permittee or an Iowa retail wine permittee, or 32 may receive donations of beer or wine to be auctioned at 33 the charity beer and wine auction from persons who purchased 34 the donated beer or wine from an Iowa retail beer permittee 35 -1- LSB 2473SC (2) 84 rn/rj 1/ 3

S.F. _____ or an Iowa retail wine permittee and who present a receipt 1 documenting the purchase at the time the beer or wine is 2 donated. The authorized nonprofit entity conducting the 3 charity beer and wine auction shall retain a copy of the 4 receipt for a period of one year from the date of the charity 5 beer and wine auction. 6 5. 4. Persons shall be physically present at the charity 7 beer , and wine , and spirits auction to be eligible to bid on 8 beer , and wine , and spirits sold at the charity auction. 9 6. 5. The beer , and wine , and spirits sold at the charity 10 beer , and wine , and spirits auction shall be in original 11 containers for consumption off of the premises where the 12 charity beer , and wine , and spirits auction is conducted. No 13 other alcoholic beverage may be sold by the charity beer , and 14 wine , and spirits auction permittee at the charity beer , and 15 wine , and spirits auction. A purchaser of beer , or wine , or 16 spirits at a charity beer , and wine , and spirits auction shall 17 not take possession of the beer , or wine , or spirits until the 18 person is leaving the event. A purchaser of beer , or wine , or 19 spirits at a charity beer , and wine , and spirits auction shall 20 not open the container or consume or permit the consumption of 21 the beer , or wine , or spirits purchased on the premises where 22 the charity beer , and wine , and spirits auction is conducted. 23 A purchaser of beer , or wine , or spirits at a charity beer , and 24 wine , and spirits auction shall not resell the beer , or wine , 25 or spirits . 26 7. 6. A liquor control licensee, beer permittee, or wine 27 permittee , or spirits permittee shall not purchase beer , or 28 wine , or spirits at a charity beer , and wine , and spirits 29 auction. The charity beer , and wine , and spirits 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 , and wine , and spirits auction, supply 34 beer , or wine , or spirits to be auctioned at the charity beer , 35 -2- LSB 2473SC (2) 84 rn/rj 2/ 3

S.F. _____ and wine , and spirits auction, or receive any of the proceeds 1 of the charity beer , and wine , and spirits 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 , and wine , and spirits auction 5 permit is one hundred dollars. 6 EXPLANATION 7 Current provisions in Code section 123.173A permit a 8 charity beer and wine auction to be conducted by nonprofit 9 entities which apply for and are issued a charity beer and 10 wine auction permit from the alcoholic beverages division of 11 the department of commerce. This bill authorizes spirits to 12 be auctioned along with beer and wine. The bill additionally 13 deletes current provisions requiring the nonprofit entity to 14 obtain the beer and wine to be auctioned from Iowa retail beer 15 permittees and wine permittees, or to receive only donations 16 of beer or wine to be auctioned from persons who purchased the 17 donated beer or wine from Iowa retail beer permittees or wine 18 permittees. 19 -3- LSB 2473SC (2) 84 rn/rj 3/ 3