S.F. _____ H.F. _____ Section 1. Section 123.32, Code Supplement 2011, is amended 1 by adding the following new subsections: 2 NEW SUBSECTION . 1A. Misrepresentation of material fact on 3 application. A person who makes a false statement of material 4 fact on an application for a liquor license, micro-distilled 5 spirits permit, wine permit, or beer permit, or who has been a 6 party to the preparation or submission of any false application 7 for such a license or permit, may be denied the license or 8 permit on the grounds of the false statement or submission. 9 NEW SUBSECTION . 1B. Criminal history record checks. 10 a. The division may request and obtain criminal history 11 data from the department of public safety for an applicant for 12 a liquor license, micro-distilled spirits permit, wine permit, 13 or beer permit under this chapter and any other person required 14 to be listed on the application pursuant to section 123.31, 15 subsection 3 for the purpose of evaluating an applicant’s 16 fitness to hold such license or permit. 17 b. The division may also require that a full set of 18 fingerprints be provided by an applicant for a liquor license, 19 micro-distilled spirits permit, wine permit, or beer permit 20 issued pursuant to this chapter and by any other person 21 required to be listed on the application pursuant to section 22 123.31, subsection 3 for purposes of conducting a national 23 criminal history check. The division shall provide the 24 fingerprints to the department of public safety for submission 25 through the state criminal history repository to the federal 26 bureau of investigation for the national criminal history 27 check. 28 c. Persons subject to a criminal history check conducted 29 pursuant to this subsection shall authorize release of 30 the results of the criminal history check to the division. 31 Failure of the applicant or any other person subject to the 32 requirements of this subsection to fully cooperate in the 33 conduct of a criminal history check shall be grounds to deny 34 the license or permit application. 35 -1- LSB 5186XD (9) 84 ec/nh 1/ 4

S.F. _____ H.F. _____ d. Criminal history data obtained by the division pursuant 1 to this subsection is confidential and shall not be considered 2 a public record under chapter 22. The division may, however, 3 use such information in a license or permit denial proceeding 4 or other regulatory proceeding brought under this chapter. 5 Sec. 2. Section 123.32, subsections 2, 7, and 9, Code 6 Supplement 2011, are amended to read as follows: 7 2. Action by local authorities. The local authority shall 8 either approve or disapprove the issuance of a liquor control 9 license, micro-distilled spirits permit, retail wine permit, or 10 retail beer permit, shall endorse its approval or disapproval 11 on the application and shall forward the application with 12 the necessary fee and bond, if required, to the division. 13 There is no limit upon the number of liquor control licenses, 14 micro-distilled spirits permits, retail wine permits, or retail 15 beer permits which may be approved for issuance by local 16 authorities. 17 7. Appeal to administrator. An applicant for a liquor 18 control license, micro-distilled spirits permit, wine 19 permit, or beer permit may appeal from the local authority’s 20 disapproval of an application for a license or permit to the 21 administrator. In the appeal the applicant shall be allowed 22 the opportunity to demonstrate in an evidentiary hearing 23 conducted pursuant to chapter 17A that the applicant complies 24 with all of the requirements for holding the license or permit. 25 The administrator may appoint a member of the division or may 26 request an administrative law judge from the department of 27 inspections and appeals to conduct the evidentiary hearing 28 and to render a proposed decision to approve or disapprove 29 the issuance of the license or permit. The administrator may 30 affirm, reverse, or modify the proposed decision. If the 31 administrator determines that the applicant complies with 32 all of the requirements for holding a license or permit, the 33 administrator shall order the issuance of the license or 34 permit. If the administrator determines that the applicant 35 -2- LSB 5186XD (9) 84 ec/nh 2/ 4

S.F. _____ H.F. _____ does not comply with the requirements for holding a license or 1 permit, the administrator shall disapprove the issuance of the 2 license or permit. 3 9. Suspension by local authority. A liquor control licensee 4 or a micro-distilled spirits, wine , or beer permittee whose 5 license or permit has been suspended or revoked or a civil 6 penalty imposed by a local authority for a violation of this 7 chapter or suspended by a local authority for violation of a 8 local ordinance may appeal the suspension, revocation, or civil 9 penalty to the administrator. The administrator may appoint 10 a member of the division or may request an administrative law 11 judge from the department of inspections and appeals to hear 12 the appeal which shall be conducted in accordance with chapter 13 17A and to issue a proposed decision. The administrator may 14 review the proposed decision upon the motion of a party to the 15 appeal or upon the administrator’s own motion in accordance 16 with chapter 17A . Upon review of the proposed decision, the 17 administrator may affirm, reverse, or modify the proposed 18 decision. A liquor control licensee, a micro-distilled 19 spirits, wine , or beer permittee, or a local authority 20 aggrieved by a decision of the administrator may seek judicial 21 review of the decision pursuant to chapter 17A . 22 EXPLANATION 23 This bill concerns applications for liquor control licenses, 24 and micro-distilled spirits, wine, and beer permits under Code 25 section 123.32. 26 New Code section 123.32(1A) provides that a person who makes 27 a false statement of material fact on an application for a 28 license or permit may be denied the license or permit on the 29 grounds of the false statement. 30 New Code section 123.32(1B) provides authority for the 31 alcoholic beverages division to conduct criminal history 32 background checks of applicants for licenses and permits and 33 any other person required to be listed on the application for 34 that license or permit. The bill authorizes the division 35 -3- LSB 5186XD (9) 84 ec/nh 3/ 4

S.F. _____ H.F. _____ to obtain criminal history data from the department of 1 public safety and to require applicants to provide a set of 2 fingerprints for purposes of conducting a national criminal 3 history check. The bill provides that criminal history data 4 obtained pursuant to this new provision is confidential but 5 may be used in a license or permit denial or other regulatory 6 proceeding brought by the division. 7 Code section 123.32 is also amended to provide that the 8 requirements and procedures for applications for liquor 9 control licenses and wine and beer permits also apply to 10 micro-distilled spirits permits. 11 -4- LSB 5186XD (9) 84 ec/nh 4/ 4