House
File
2330
-
Introduced
HOUSE
FILE
2330
BY
COMMITTEE
ON
STATE
GOVERNMENT
(SUCCESSOR
TO
HSB
553)
(COMPANION
TO
SF
2151
BY
COMMITTEE
ON
STATE
GOVERNMENT)
A
BILL
FOR
An
Act
relating
to
alcoholic
beverage
control
and
matters
under
1
the
purview
of
the
alcoholic
beverages
division
of
the
2
department
of
commerce.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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2330
Section
1.
Section
123.9,
subsection
5,
Code
2016,
is
1
amended
to
read
as
follows:
2
5.
To
grant
and
issue
beer
permits,
wine
permits,
special
3
permits,
liquor
control
licenses,
and
other
licenses;
and
to
4
suspend
or
revoke
all
such
permits
and
licenses
for
cause
under
5
this
chapter
.
6
Sec.
2.
Section
123.10,
subsections
4
and
6,
Code
2016,
are
7
amended
to
read
as
follows:
8
4.
Prescribing
forms
or
information
blanks
to
be
used
for
9
the
purposes
of
this
chapter
.
The
division
shall
prepare,
10
print,
and
furnish
all
forms
and
information
blanks
required
11
under
this
chapter
.
12
6.
Providing
for
the
issuance
and
electronic
distribution
13
of
price
lists
which
show
the
price
to
be
paid
by
class
“E”
14
liquor
control
licensees
for
each
brand,
class,
or
variety
15
of
liquor
kept
for
sale
by
the
division,
providing
for
the
16
filing
or
posting
of
prices
charged
in
sales
between
class
17
“A”
beer
and
class
“A”
wine
permit
holders
and
retailers,
as
18
provided
in
this
chapter
,
and
establishing
or
controlling
19
the
prices
based
on
minimum
standards
of
fill,
quantity,
or
20
alcoholic
content
for
each
individual
sale
of
intoxicating
21
liquor
or
beer
as
deemed
necessary
for
retail
or
consumer
22
protection.
However,
the
division
shall
not
regulate
markups,
23
prices,
discounts,
allowances,
or
other
terms
of
sale
at
24
which
alcoholic
liquor
may
be
purchased
by
the
retail
public
25
or
liquor
control
licensees
from
class
“E”
liquor
control
26
licensees
or
at
which
wine
may
be
purchased
and
sold
by
class
27
“A”
and
retail
wine
permittees,
or
change,
nullify,
or
vary
the
28
terms
of
an
agreement
between
a
holder
of
a
vintner
certificate
29
of
compliance
and
a
class
“A”
wine
permittee.
30
Sec.
3.
Section
123.30,
subsection
4,
Code
2016,
is
amended
31
to
read
as
follows:
32
4.
Notwithstanding
any
provision
of
this
chapter
to
the
33
contrary,
a
person
holding
a
liquor
control
license
to
sell
34
alcoholic
liquors
beverages
for
consumption
on
the
licensed
35
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2330
premises
may
permit
a
customer
to
remove
one
unsealed
bottle
1
of
wine
for
consumption
off
the
premises
if
the
customer
has
2
purchased
and
consumed
a
portion
of
the
bottle
of
wine
on
the
3
licensed
premises.
The
licensee
or
the
licensee’s
agent
shall
4
securely
reseal
such
bottle
in
a
bag
designed
so
that
it
is
5
visibly
apparent
that
the
resealed
bottle
of
wine
has
not
been
6
tampered
with
and
provide
a
dated
receipt
for
the
resealed
7
bottle
of
wine
to
the
customer.
A
wine
bottle
resealed
8
pursuant
to
the
requirements
of
this
subsection
is
subject
to
9
the
requirements
of
sections
321.284
and
321.284A
.
10
Sec.
4.
Section
123.32,
subsection
3,
Code
2016,
is
amended
11
to
read
as
follows:
12
3.
Licensed
premises
for
local
events.
A
local
authority
13
may
define,
by
motion
of
the
local
authority,
licensed
premises
14
which
shall
be
used
by
holders
of
liquor
control
licenses,
beer
15
permits,
and
wine
permits
at
festivals,
fairs,
or
celebrations
16
which
are
sponsored
or
authorized
by
the
local
authority.
The
17
licensed
premises
defined
by
motion
of
the
local
authority
18
shall
be
used
by
the
holders
of
five-day
or
fourteen-day
class
19
“B”,
class
“C”,
special
class
“C”,
or
class
“D”
liquor
control
20
licenses,
or
five-day
or
fourteen-day
class
“C”
native
wine
or
21
class
“B”
beer
permits
only.
22
Sec.
5.
Section
123.34,
Code
2016,
is
amended
to
read
as
23
follows:
24
123.34
Expiration
——
seasonal,
five-day,
or
fourteen-day
25
license
or
permit.
26
1.
Liquor
control
licenses,
wine
permits,
and
beer
permits,
27
unless
sooner
suspended
or
revoked,
expire
one
year
from
28
date
of
issuance.
The
administrator
shall
give
sixty
days’
29
written
notice
of
the
expiration
to
each
licensee
or
permittee.
30
However,
the
administrator
may
issue
six-month
or
eight-month
31
seasonal
licenses,
class
“B”
wine
permits,
or
class
“B”
beer
32
permits
for
a
proportionate
part
of
the
license
or
permit
fee
33
or
may
issue
fourteen-day
liquor
control
licenses
,
native
wine
34
permits,
or
beer
permits
as
provided
in
subsection
2
.
No
35
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2330
refund
shall
be
made
for
seasonal
licenses
or
permits
or
for
1
fourteen-day
liquor
control
licenses
,
native
wine
permits,
or
2
beer
permits.
No
seasonal
license
or
permit
shall
be
renewed
3
except
after
a
period
of
two
months.
4
2.
The
administrator
may
issue
fourteen-day
class
“A”,
5
class
“B”,
class
“C”,
special
class
“C”,
and
class
“D”
liquor
6
control
licenses
and
fourteen-day
class
“B”
beer
and
class
“C”
7
native
wine
permits.
A
fourteen-day
license
or
permit,
if
8
granted,
is
valid
for
fourteen
consecutive
days,
but
the
holder
9
shall
not
sell
on
the
two
Sundays
in
the
fourteen-day
period
10
unless
the
holder
qualifies
for
and
obtains
the
privilege
to
11
sell
on
Sundays
contained
in
section
123.36,
subsection
5
,
and
12
section
123.134,
subsection
5
.
13
3.
The
fee
for
a
fourteen-day
liquor
control
license
or
14
beer
permit
is
one
quarter
of
the
annual
fee
for
that
class
15
of
liquor
control
license
or
beer
permit.
The
fee
for
the
16
privilege
to
sell
on
the
two
Sundays
in
the
fourteen-day
period
17
is
twenty
percent
of
the
price
of
the
fourteen-day
liquor
18
control
license
or
beer
permit.
The
fee
for
a
fourteen-day
19
class
“C”
native
wine
permit
is
the
permit
fee
provided
in
20
section
123.179,
subsection
4.
21
4.
The
administrator
may
issue
five-day
class
“A”,
class
22
“B”,
class
“C”,
special
class
“C”,
and
class
“D”
liquor
control
23
licenses
and
five-day
class
“B”
beer
and
class
“C”
native
24
wine
permits.
A
five-day
license
or
permit
is
valid
for
five
25
consecutive
days,
but
the
holder
shall
not
sell
alcoholic
26
beverages
on
Sunday
in
the
five-day
period
unless
the
holder
27
qualifies
for
and
obtains
the
privilege
to
sell
on
Sunday
28
pursuant
to
sections
123.36
and
123.134
.
29
5.
The
fee
for
the
five-day
liquor
control
license
or
30
beer
permit
is
one-eighth
of
the
annual
fee
for
that
class
of
31
license
or
permit.
The
fee
for
the
privilege
to
sell
on
a
32
Sunday
in
the
five-day
period
is
ten
percent
of
the
price
of
33
the
five-day
liquor
control
license
or
beer
permit.
The
fee
34
for
a
five-day
class
“C”
native
wine
permit
is
the
permit
fee
35
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provided
in
section
123.179,
subsection
4.
1
Sec.
6.
Section
123.38,
subsections
1
and
2,
Code
2016,
are
2
amended
to
read
as
follows:
3
1.
A
special
liquor
permit,
liquor
control
license,
wine
4
permit,
or
beer
permit
is
a
personal
privilege
and
is
revocable
5
for
cause.
It
is
not
property
nor
is
it
subject
to
attachment
6
and
execution
nor
alienable
nor
assignable,
and
it
shall
7
cease
upon
the
death
of
the
permittee
or
licensee.
However,
8
the
administrator
of
the
division
may
in
the
administrator’s
9
discretion
allow
the
executor
or
administrator
of
a
permittee
10
or
licensee
to
operate
the
business
of
the
decedent
for
a
11
reasonable
time
not
to
exceed
the
expiration
date
of
the
permit
12
or
license.
Every
permit
or
license
shall
be
issued
in
the
13
name
of
the
applicant
and
no
person
holding
a
permit
or
license
14
shall
allow
any
other
person
to
use
it.
15
2.
Any
licensee
or
permittee,
or
the
licensee’s
or
16
permittee’s
executor
or
administrator,
or
any
person
duly
17
appointed
by
the
court
to
take
charge
of
and
administer
the
18
property
or
assets
of
the
licensee
or
permittee
for
the
benefit
19
of
the
licensee’s
or
permittee’s
creditors,
may
voluntarily
20
surrender
a
license
or
permit
to
the
division.
When
a
license
21
or
permit
is
surrendered
the
division
shall
notify
the
local
22
authority,
and
the
division
or
the
local
authority
shall
23
refund
to
the
person
surrendering
the
license
or
permit,
a
24
proportionate
amount
of
the
fee
received
by
the
division
or
25
the
local
authority
for
the
license
or
permit
as
follows:
if
26
a
license
or
permit
is
surrendered
during
the
first
three
27
months
of
the
period
for
which
it
was
issued,
the
refund
shall
28
be
three-fourths
of
the
amount
of
the
fee;
if
surrendered
29
more
than
three
months
but
not
more
than
six
months
after
30
issuance,
the
refund
shall
be
one-half
of
the
amount
of
the
31
fee;
if
surrendered
more
than
six
months
but
not
more
than
32
nine
months
after
issuance,
the
refund
shall
be
one-fourth
of
33
the
amount
of
the
fee.
No
refund
shall
be
made,
however,
for
34
any
special
liquor
permit,
nor
for
a
liquor
control
license,
35
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wine
permit,
or
beer
permit
surrendered
more
than
nine
months
1
after
issuance.
For
purposes
of
this
subsection,
any
portion
2
of
license
or
permit
fees
used
for
the
purposes
authorized
in
3
section
331.424,
subsection
1
,
paragraph
“a”
,
subparagraphs
4
(1)
and
(2),
and
in
section
331.424A
,
shall
not
be
deemed
5
received
either
by
the
division
or
by
a
local
authority.
No
6
refund
shall
be
made
to
any
licensee
or
permittee
,
upon
the
7
surrender
of
the
license
or
permit
,
if
there
is
at
the
time
8
of
surrender
,
a
complaint
filed
with
the
division
or
local
9
authority
,
charging
the
licensee
or
permittee
with
a
violation
10
of
this
chapter
.
If
upon
a
hearing
on
a
complaint
the
license
11
or
permit
is
not
revoked
or
suspended,
then
the
licensee
or
12
permittee
is
eligible,
upon
surrender
of
the
license
or
permit,
13
to
receive
a
refund
as
provided
in
this
section
;
but
.
However,
14
if
the
license
or
permit
is
revoked
or
suspended
upon
hearing
,
15
the
licensee
or
permittee
is
not
eligible
for
the
refund
of
any
16
portion
of
the
license
or
permit
fee.
17
Sec.
7.
Section
123.43A,
subsection
3,
Code
2016,
is
amended
18
to
read
as
follows:
19
3.
A
micro-distillery
shall
not
sell
micro-distilled
20
spirits
other
than
as
permitted
in
this
chapter
and
shall
21
not
allow
micro-distilled
spirits
sold
to
be
consumed
upon
22
the
premises
of
the
micro-distillery.
However,
as
a
part
of
23
a
micro-distillery
tour,
micro-distilled
spirits
of
no
more
24
than
two
ounces
per
person
per
day
may
be
tasted
pursuant
to
25
the
rules
of
the
division
on
the
premises
where
fermented,
26
distilled,
or
matured,
when
no
charge
is
made
for
the
tasting.
27
Sec.
8.
Section
123.56,
subsections
2
and
6,
Code
2016,
are
28
amended
to
read
as
follows:
29
2.
Native
wine
may
be
sold
at
retail
for
off-premises
30
consumption
when
sold
on
the
premises
of
the
manufacturer,
31
or
in
a
retail
establishment
operated
by
the
manufacturer.
32
Sales
may
also
be
made
to
class
“A”
or
retail
wine
permittees
33
or
liquor
control
licensees
as
authorized
by
the
class
34
“A”
wine
permit.
A
manufacturer
of
native
wines
shall
not
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sell
the
wines
other
than
as
permitted
in
this
chapter
and
1
shall
not
allow
wine
sold
to
be
consumed
upon
the
premises
2
of
the
manufacturer.
However,
prior
to
sale,
native
wines
3
may
be
tasted
pursuant
to
the
rules
of
the
division
on
the
4
premises
where
made,
when
no
charge
is
made
for
the
tasting.
5
A
person
may
manufacture
native
wine
for
consumption
on
the
6
manufacturer’s
premises,
when
the
wine
or
any
part
of
it
is
not
7
manufactured
for
sale.
8
6.
Notwithstanding
any
other
provision
of
this
chapter
,
9
a
person
employed
by
a
manufacturer
of
native
wine
holding
a
10
class
“A”
native
wine
permittee
permit
may
be
employed
by
a
11
brewery
with
a
class
“A”
native
beer
permit
provided
the
person
12
has
no
ownership
interest
in
either
licensed
premises.
13
Sec.
9.
Section
123.92,
subsection
2,
paragraph
a,
Code
14
2016,
is
amended
to
read
as
follows:
15
a.
Every
liquor
control
licensee
and
,
class
“B”
beer
16
permittee,
and
class
“C”
native
wine
permittee,
except
a
class
17
“E”
liquor
control
licensee,
shall
furnish
proof
of
financial
18
responsibility
by
the
existence
of
a
liability
insurance
19
policy
in
an
amount
determined
by
the
division.
If
an
insurer
20
provides
dramshop
liability
insurance
at
a
new
location
to
21
a
licensee
or
permittee
who
has
a
positive
loss
experience
22
at
other
locations
for
which
such
insurance
is
provided
by
23
the
insurer,
and
the
insurer
bases
premium
rates
at
the
new
24
location
on
the
negative
loss
history
of
the
previous
licensee
25
or
permittee
at
that
location,
the
insurer
shall
examine
and
26
consider
adjusting
the
premium
for
the
new
location
not
less
27
than
thirty
months
after
the
insurance
is
issued,
based
on
the
28
loss
experience
of
the
licensee
or
permittee
at
that
location
29
during
that
thirty-month
period
of
time.
30
Sec.
10.
Section
123.171,
Code
2016,
is
amended
to
read
as
31
follows:
32
123.171
Wine
certificate,
permit,
or
license
required
——
33
exception
for
personal
use
.
34
1.
A
person
shall
not
cause
the
manufacture,
importation,
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or
sale
of
wine
in
this
state
unless
a
certificate
or
permit
1
as
provided
in
this
subchapter
,
or
a
liquor
control
license
as
2
provided
in
subchapter
I
of
this
chapter
,
is
first
obtained
3
which
authorizes
that
manufacture,
importation,
or
sale.
4
2.
Any
person
of
legal
age
may
manufacture
wine
for
5
personal
use
without
a
class
“A”
wine
permit,
subject
to
the
6
requirements
of
this
subsection.
Such
wine
may
be
consumed
7
on
the
premises
or
removed
from
the
premises
where
it
was
8
manufactured
only
if
the
wine
is
not
sold,
exchanged,
bartered,
9
dispensed,
or
given
in
consideration
of
purchase
for
any
10
property
or
services
or
in
evasion
of
the
requirements
of
this
11
chapter.
12
Sec.
11.
Section
123.173,
subsection
2,
Code
2016,
is
13
amended
to
read
as
follows:
14
2.
A
class
“A”
wine
permit
allows
the
holder
to
manufacture
15
and
sell,
or
sell
at
wholesale,
in
this
state,
wine
as
defined
16
in
section
123.3,
subsection
47
.
The
holder
of
a
class
“A”
17
wine
permit
may
manufacture
in
this
state
wine
having
an
18
alcoholic
content
greater
than
seventeen
percent
by
weight
or
19
twenty-one
and
twenty-five
hundredths
percent
of
alcohol
by
20
volume
for
shipment
outside
this
state.
All
class
“A”
premises
21
shall
be
located
within
the
state.
A
class
“B”
or
class
“B”
22
native
wine
permit
allows
the
holder
to
sell
wine
at
retail
23
for
consumption
off
the
premises.
A
class
“B”
or
class
“B”
24
native
wine
permittee
who
also
holds
a
class
“E”
liquor
control
25
license
may
sell
wine
to
class
“A”,
class
“B”,
and
class
“C”
,
26
and
special
class
“C”
liquor
control
licensees
for
resale
for
27
consumption
on
the
premises.
Such
wine
sales
shall
be
in
28
quantities
of
less
than
one
case
of
any
wine
brand
but
not
more
29
than
one
such
sale
shall
be
made
to
the
same
liquor
control
30
licensee
in
a
twenty-four-hour
period.
A
class
“B”
or
class
31
“B”
native
wine
permittee
shall
not
sell
wine
to
other
class
32
“B”
or
class
“B”
native
wine
permittees.
A
class
“C”
native
33
wine
permit
allows
the
holder
to
sell
wine
for
consumption
on
34
or
off
the
premises.
35
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EXPLANATION
1
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
2
the
explanation’s
substance
by
the
members
of
the
general
assembly.
3
This
bill
makes
several
changes
relative
to
matters
4
under
the
purview
of
the
alcoholic
beverages
division
of
the
5
department
of
commerce.
6
Code
section
123.9
is
amended
to
add
wine
permits
to
the
list
7
of
licenses
and
permits
that
are
issued
by
the
administrator
of
8
the
alcoholic
beverages
division.
9
Code
section
123.10
is
amended
by
striking
the
requirement
10
that
the
alcoholic
beverages
division
prepare,
print,
11
and
furnish
paper
forms
and
by
allowing
the
alcoholic
12
beverages
division
to
distribute
monthly
pricing
to
licensees
13
electronically.
14
Code
section
123.30(4),
concerning
the
ability
of
a
15
licensee
to
reseal
bottles
of
wine
that
have
been
purchased
and
16
partially
consumed
on
the
premises
by
their
patrons,
is
amended
17
to
grant
this
authority
to
all
liquor
control
licensees
that
18
sell
alcoholic
beverages,
and
not
just
to
those
licensees
that
19
sell
alcoholic
liquor.
20
Code
section
123.32
is
amended
to
specifically
list
the
21
types
of
liquor
control
licenses
and
wine
or
beer
permits
that
22
may
be
issued
on
a
temporary
basis
for
local
events.
23
Code
section
123.34,
concerning
temporary
licenses,
is
24
amended
to
provide
that
a
special
class
“C”
liquor
control
25
license
and
a
class
“C”
native
wine
permit
may
be
issued
on
a
26
temporary
basis
and
to
provide
that
the
fee
to
obtain
a
5-day
27
or
14-day
class
“C”
native
wine
permit
is
the
same
as
the
fee
to
28
obtain
the
annual
permit.
29
Code
section
123.38,
concerning
the
nature
of
a
permit
30
or
license,
is
amended
to
eliminate
the
term
“liquor”
when
31
referring
to
a
special
permit.
32
Code
section
123.43A,
concerning
micro-distilled
spirits,
is
33
amended
to
eliminate
the
amount
limit
for
a
tasting
as
part
of
34
a
tour
of
the
manufacturing
facility.
The
bill
provides
that
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micro-distilled
spirits
may
be
tasted
pursuant
to
rules
of
the
1
alcoholic
beverages
division.
2
Code
section
123.56,
concerning
native
wines,
is
amended
3
to
provide
that
tastings
of
native
wine
on
the
premises
4
where
made
shall
be
allowed
pursuant
to
rules
adopted
by
the
5
alcoholic
beverages
division.
The
section
is
also
amended
to
6
strike
reference
to
a
class
“A”
native
beer
permit
and
instead
7
references
a
class
“A”
beer
permit
in
language
relating
to
8
employment
of
persons
who
are
also
employed
by
a
native
wine
9
manufacturer.
The
bill
also
strikes
language
that
pertains
10
to
wine
that
is
made
for
personal
use
when
it
is
made
on
the
11
premises
of
a
manufacturer.
12
Code
section
123.92,
concerning
dramshop
liability,
is
13
amended
to
require
class
“C”
native
wine
permit
holders
to
14
furnish
proof
of
financial
responsibility
by
obtaining
dramshop
15
insurance
as
a
condition
of
obtaining
a
new
or
renewal
permit.
16
Code
section
123.171
is
amended
to
allow
any
person
of
legal
17
age
to
manufacture
wine
for
personal
use
without
a
class
“A”
18
wine
permit
if
the
wine
is
not
sold
or
otherwise
given
in
19
consideration
of
purchase
for
any
property
or
services
or
in
20
evasion
of
the
requirements
of
Code
chapter
123.
21
Code
section
123.173(2)
is
amended
to
authorize
class
“E”
22
liquor
control
license
holders
to
sell
limited
quantities
of
23
wine
at
wholesale
to
special
class
“C”
liquor
control
license
24
holders.
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