Senate Study Bill 1067 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON STATE GOVERNMENT BILL BY CHAIRPERSON DANIELSON) A BILL FOR An Act authorizing charitable auctions for alcoholic spirits. 1 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 2 TLSB 1667XC (2) 85 ec/nh

S.F. _____ Section 1. Section 123.173A, Code 2013, is amended to read 1 as follows: 2 123.173A Charity beer , spirits, and wine 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 to 10 the division and receipt of a charity beer , spirits, and wine 11 auction permit from the division, conduct a charity auction 12 which includes beer , spirits, and wine. The application shall 13 specify the date and time when the charity beer , spirits, and 14 wine auction is to be conducted and the premises in this state 15 where the charity beer , spirits, and wine auction is to be 16 physically conducted. The applicant shall certify that the 17 objective of the charity beer , spirits, and wine auction is 18 to raise funds solely to be used for educational, religious, 19 or charitable purposes and that the entire proceeds from the 20 charity beer , spirits, and wine auction are to be expended for 21 any of the purposes described in section 423.3, subsection 78 . 22 3. An authorized nonprofit entity shall be eligible to 23 receive only two charity beer , spirits, and wine auction 24 permits during a calendar year and each charity beer , spirits, 25 and wine auction permit shall be valid for a period not to 26 exceed thirty-six consecutive hours. 27 4. The authorized nonprofit entity conducting the charity 28 beer , spirits, and wine auction shall obtain the beer , spirits, 29 and wine to be auctioned at the charity beer , spirits, and 30 wine auction from an Iowa retail beer permittee , an Iowa 31 retail alcoholic liquor permittee, an Iowa micro-distilled 32 spirits permittee, or an Iowa retail wine permittee, or may 33 receive donations of beer , spirits, or wine to be auctioned 34 at the charity beer , spirits, and wine auction from persons 35 -1- LSB 1667XC (2) 85 ec/nh 1/ 3

S.F. _____ who purchased the donated beer , spirits, or wine from an 1 Iowa retail beer permittee , an Iowa retail alcoholic liquor 2 permittee, an Iowa micro-distilled spirits permittee, or 3 an Iowa retail wine permittee and who present a receipt 4 documenting the purchase at the time the beer , spirits, or wine 5 is donated. The authorized nonprofit entity conducting the 6 charity beer , spirits, and wine auction shall retain a copy 7 of the receipt for a period of one year from the date of the 8 charity beer , spirits, and wine auction. 9 5. Persons shall be physically present at the charity 10 beer , spirits, and wine auction to be eligible to bid on beer , 11 spirits, and wine sold at the charity auction. 12 6. The beer , spirits, and wine sold at the charity beer , 13 spirits, and wine auction shall be in original containers 14 for consumption off of the premises where the charity beer , 15 spirits, and wine auction is conducted. No other alcoholic 16 beverage may be sold by the charity beer , spirits, and wine 17 auction permittee at the charity beer , spirits, and wine 18 auction. A purchaser of beer , spirits, or wine at a charity 19 beer , spirits, and wine auction shall not take possession of 20 the beer , spirits, or wine until the person is leaving the 21 event. A purchaser of beer , spirits, or wine at a charity 22 beer , spirits, and wine auction shall not open the container 23 or consume or permit the consumption of the beer , spirits, or 24 wine purchased on the premises where the charity beer , spirits, 25 and wine auction is conducted. A purchaser of beer , spirits, 26 or wine at a charity beer , spirits, and wine auction shall not 27 resell the beer , spirits, or wine. 28 7. A liquor control licensee, beer permittee, 29 micro-distilled spirits permittee, or wine permittee shall not 30 purchase beer , spirits, or wine at a charity beer , spirits, and 31 wine auction. The charity beer , spirits, and wine auction may 32 be conducted on a premises for which a class “B” liquor control 33 license or class “C” liquor control license has been issued, 34 provided that the liquor control licensee does not participate 35 -2- LSB 1667XC (2) 85 ec/nh 2/ 3

S.F. _____ in the charity beer , spirits, and wine auction, supply beer , 1 spirits, or wine to be auctioned at the charity beer , spirits, 2 and wine auction, or receive any of the proceeds of the charity 3 beer , spirits, and wine auction. 4 Sec. 2. Section 123.179, subsection 5, Code 2013, is amended 5 to read as follows: 6 5. The fee for a charity beer , spirits, and wine auction 7 permit is one hundred dollars. 8 EXPLANATION 9 Code section 123.173A, providing for a charity beer and wine 10 auction permit, is amended to allow the auction of alcoholic 11 spirits. 12 -3- LSB 1667XC (2) 85 ec/nh 3/ 3