Senate File 143 - Introduced SENATE FILE 143 BY COMMITTEE ON COMMERCE (SUCCESSOR TO SSB 1049) A BILL FOR An Act concerning applications for liquor control licenses and 1 micro-distilled spirits, beer, and wine permits. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1169SV (1) 85 ec/nh
S.F. 143 Section 1. Section 123.32, Code 2013, is amended by adding 1 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 1169SV (1) 85 ec/nh 1/ 4
S.F. 143 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 e. The division shall pay the actual cost of all 6 fingerprinting and criminal history checks conducted pursuant 7 to this subsection, if any. 8 Sec. 2. Section 123.32, subsections 2, 7, and 9, Code 2013, 9 are amended to read as follows: 10 2. Action by local authorities. The local authority shall 11 either approve or disapprove the issuance of a liquor control 12 license, micro-distilled spirits permit, retail wine permit, or 13 retail beer permit, shall endorse its approval or disapproval 14 on the application and shall forward the application with 15 the necessary fee and bond, if required, to the division. 16 There is no limit upon the number of liquor control licenses, 17 micro-distilled spirits permits, retail wine permits, or retail 18 beer permits which may be approved for issuance by local 19 authorities. 20 7. Appeal to administrator. An applicant for a liquor 21 control license, micro-distilled spirits permit, wine 22 permit, or beer permit may appeal from the local authority’s 23 disapproval of an application for a license or permit to the 24 administrator. In the appeal the applicant shall be allowed 25 the opportunity to demonstrate in an evidentiary hearing 26 conducted pursuant to chapter 17A that the applicant complies 27 with all of the requirements for holding the license or permit. 28 The administrator may appoint a member of the division or may 29 request an administrative law judge from the department of 30 inspections and appeals to conduct the evidentiary hearing 31 and to render a proposed decision to approve or disapprove 32 the issuance of the license or permit. The administrator may 33 affirm, reverse, or modify the proposed decision. If the 34 administrator determines that the applicant complies with 35 -2- LSB 1169SV (1) 85 ec/nh 2/ 4
S.F. 143 all of the requirements for holding a license or permit, the 1 administrator shall order the issuance of the license or 2 permit. If the administrator determines that the applicant 3 does not comply with the requirements for holding a license or 4 permit, the administrator shall disapprove the issuance of the 5 license or permit. 6 9. Suspension by local authority. A liquor control licensee 7 or a micro-distilled spirits, wine , or beer permittee whose 8 license or permit has been suspended or revoked or a civil 9 penalty imposed by a local authority for a violation of this 10 chapter or suspended by a local authority for violation of a 11 local ordinance may appeal the suspension, revocation, or civil 12 penalty to the administrator. The administrator may appoint 13 a member of the division or may request an administrative law 14 judge from the department of inspections and appeals to hear 15 the appeal which shall be conducted in accordance with chapter 16 17A and to issue a proposed decision. The administrator may 17 review the proposed decision upon the motion of a party to the 18 appeal or upon the administrator’s own motion in accordance 19 with chapter 17A . Upon review of the proposed decision, the 20 administrator may affirm, reverse, or modify the proposed 21 decision. A liquor control licensee, a micro-distilled 22 spirits, wine , or beer permittee, or a local authority 23 aggrieved by a decision of the administrator may seek judicial 24 review of the decision pursuant to chapter 17A . 25 EXPLANATION 26 This bill concerns applications for liquor control licenses, 27 and micro-distilled spirits, wine, and beer permits under Code 28 section 123.32. 29 New Code section 123.32(1A) provides that a person who makes 30 a false statement of material fact on an application for a 31 license or permit may be denied the license or permit on the 32 grounds of the false statement. 33 New Code section 123.32(1B) provides authority for the 34 alcoholic beverages division to conduct criminal history 35 -3- LSB 1169SV (1) 85 ec/nh 3/ 4
S.F. 143 background checks of applicants for licenses and permits and 1 any other person required to be listed on the application for 2 that license or permit. The bill authorizes the division 3 to obtain criminal history data from the department of 4 public safety and to require applicants to provide a set of 5 fingerprints for purposes of conducting a national criminal 6 history check. The bill provides that criminal history data 7 obtained pursuant to this new provision is confidential but 8 may be used in a license or permit denial or other regulatory 9 proceeding brought by the division. The bill also provides 10 that the division pay the cost of all fingerprinting and 11 criminal history checks conducted pursuant to this new 12 provision. 13 Code section 123.32 is also amended to provide that the 14 requirements and procedures for applications for liquor 15 control licenses and wine and beer permits also apply to 16 micro-distilled spirits permits. 17 -4- LSB 1169SV (1) 85 ec/nh 4/ 4