House File 2322 - Introduced HOUSE FILE 2322 BY COMMITTEE ON STATE GOVERNMENT (SUCCESSOR TO HSB 594) A BILL FOR An Act providing an automated dispensing device privilege 1 for certain liquor control licensees and beer and wine 2 permittees. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5243HV (2) 86 ec/nh

H.F. 2322 Section 1. Section 123.3, Code 2016, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 6A. “Automated dispensing device” means any 3 mechanized device capable of dispensing beer, wine, or spirits 4 directly or by remote activation to a patron by an authorized 5 liquor control licensee, beer permittee, or wine permittee. 6 Sec. 2. NEW SECTION . 123.151 Automated dispensing device 7 privilege. 8 1. A liquor control licensee, beer permittee, or wine 9 permittee shall not allow a patron to serve themselves wine, 10 beer, or alcoholic liquor through an automated dispensing 11 device except as otherwise authorized pursuant to this section. 12 2. A liquor control licensee, beer permittee, or wine 13 permittee may apply for and receive authorization from the 14 administrator for the privilege to allow patrons to serve 15 themselves beer, wine, or spirits, as authorized by the 16 license or permit, through an automated dispensing device for 17 consumption on the licensed or permitted premises, subject to 18 the requirements of this chapter. The privilege of allowing 19 patrons to serve themselves beer, wine, or spirits through 20 an automated dispensing device shall be noted on the liquor 21 control license or permit. 22 3. The administrator shall only grant the privilege of 23 allowing patrons to serve themselves beer, wine, or spirits 24 through an automated dispensing device to the holder of a 25 liquor control license, beer permit, or wine permit that 26 authorizes the sale of beer, wine, or spirits for consumption 27 on the licensed or permitted premises. 28 4. The division shall establish by rule the terms and 29 conditions under which an automated dispensing device may 30 be operated by an authorized liquor control licensee, beer 31 permittee, or wine permittee. The rules shall include but not 32 be limited to the following: 33 a. A requirement that the authorized liquor control 34 licensee, beer permittee, or wine permittee activate the 35 -1- LSB 5243HV (2) 86 ec/nh 1/ 5

H.F. 2322 automated dispensing device and any associated component 1 designed to grant access to the device before a patron 2 independently dispenses beer, wine, or spirits. 3 b. A requirement that the authorized liquor control 4 licensee, beer permittee, or wine permittee deactivate the 5 automated dispensing device and any associated component 6 designed to grant access to the device at the end of each 7 business day. 8 c. A requirement that the authorized liquor control 9 licensee, beer permittee, or wine permittee control and limit 10 the amount of beer, wine, or spirits dispensed by the automated 11 dispensing device in a single transaction. 12 d. A requirement that the authorized liquor control 13 licensee, beer permittee, or wine permittee exercise all 14 necessary care and employ an adequate number of employees to 15 ensure that each purchase through the automated dispensing 16 device is made by a person of legal age and that all beer, wine, 17 or spirits dispensed through an automated dispensing device is 18 only consumed by persons of legal age. 19 e. A requirement that the authorized liquor control 20 licensee, beer permittee, or wine permittee exercise all 21 necessary care and employ an adequate number of employees to 22 ensure that a patron served beer, wine, or spirits through an 23 automated dispensing device is not intoxicated. 24 5. In addition to the penalty provisions of section 123.39, 25 the division may rescind the privilege granted a liquor control 26 licensee, beer permittee, or wine permittee to allow patrons to 27 serve themselves beer, wine, or spirits through an automated 28 dispensing device for failure to comply with the requirements 29 of this section. 30 Sec. 3. TRANSITION AND WAIVER PROVISION. 31 1. Notwithstanding any provision of section 123.151, 32 as enacted by this Act, to the contrary, a liquor control 33 licensee, beer permittee, or wine permittee granted a waiver 34 to dispense wine or beer through an automated dispensing 35 -2- LSB 5243HV (2) 86 ec/nh 2/ 5

H.F. 2322 device as of the effective date of this Act shall be permitted 1 to continue to dispense wine or beer through an automated 2 dispensing device subject to the conditions provided in the 3 waiver until September 30, 2016. 4 2. A licensee or permittee who had applied for and 5 was denied a waiver to dispense wine or beer through an 6 automated dispensing device prior to January 1, 2016, may 7 apply for and be granted a privilege to dispense beer, wine, 8 or spirits through an automated dispensing device pursuant 9 to section 123.151, as enacted by this Act, notwithstanding 10 the requirement in section 123.151, subsection 4, paragraph 11 “b”, that the automated dispensing device and any associated 12 component designed to grant access to the device be deactivated 13 at the end of each business day, if the licensee or permittee 14 acquired the automated dispensing device incapable of being 15 deactivated prior to January 1, 2016, and designates, in the 16 application, that the automated dispensing device is the device 17 that will be used to dispense beer, wine, or spirits pursuant 18 to the privilege, if granted. If the licensee or permittee 19 replaces or ceases to use the automated dispensing device 20 that is incapable of being deactivated, the authority of the 21 alcoholic beverages division of the department of commerce to 22 grant the licensee or permittee the privilege pursuant to this 23 subsection 2 shall cease and the licensee or permittee shall be 24 required to comply with all the requirements of section 123.151 25 to be granted the privilege to dispense beer, wine, or spirits 26 through an automated dispensing device. 27 EXPLANATION 28 The inclusion of this explanation does not constitute agreement with 29 the explanation’s substance by the members of the general assembly. 30 This bill authorizes certain liquor control licensees, 31 beer permittees, and wine permittees to allow patrons to 32 serve themselves wine, beer, or spirits through an automated 33 dispensing device. 34 Code section 123.3 (definitions) is amended to define an 35 -3- LSB 5243HV (2) 86 ec/nh 3/ 5

H.F. 2322 “automated dispensing device” as any mechanized device capable 1 of dispensing beer, wine, or spirits directly or by remote 2 activation to a patron by the licensee or permittee. 3 New Code section 123.151 authorizes the administrator 4 of the alcoholic beverages division of the department of 5 commerce to grant the privilege of dispensing wine, beer, 6 or spirits through an automated dispensing device to liquor 7 control licensees, beer permittees, and wine permittees under 8 certain conditions. The privilege, which shall be noted on 9 the applicable liquor control license or permit, shall only 10 be granted to holders of a license or permit authorized to 11 sell beer, wine, or spirits for consumption on the licensed 12 premises. The bill directs the alcoholic beverages division to 13 adopt rules requiring the applicable liquor control licensee, 14 beer permittee, or wine permittee to activate the device and 15 any component designed to grant access to the device before 16 a patron independently dispenses beer, wine, or spirits, to 17 deactivate the device at the end of each business day, to 18 limit the amount of wine, beer, or spirits dispensed in a 19 single transaction, and to exercise care and employ sufficient 20 persons to ensure that only persons of legal age may obtain 21 beer, wine, or spirits from the device and that a patron served 22 beer, wine, or spirits through an automated dispensing device 23 is not intoxicated. The bill grants the alcoholic beverages 24 division the authority to rescind the automated dispensing 25 device privilege for failure to comply with the requirements of 26 this new section. 27 The bill includes a transition and waiver provision. The 28 transition provision allows a liquor control licensee, beer 29 permittee, or wine permittee granted a waiver to dispense 30 wine or beer through an automated dispensing device as of the 31 effective date of the bill to continue to dispense wine or 32 beer through an automated dispensing device subject to the 33 conditions provided in the waiver until September 30, 2016. 34 The waiver provision provides that a licensee or permittee that 35 -4- LSB 5243HV (2) 86 ec/nh 4/ 5

H.F. 2322 had applied for and been denied a waiver to dispense wine or 1 beer through an automated dispensing device prior to January 1, 2 2016, because the device was incapable of being deactivated at 3 the end of the business day may have this requirement waived 4 and be granted a privilege to dispense beer, wine, or spirits, 5 as provided by the bill. 6 -5- LSB 5243HV (2) 86 ec/nh 5/ 5