Senate File 2283 - Introduced SENATE FILE 2283 BY COMMITTEE ON JUDICIARY (SUCCESSOR TO SSB 3141) (COMPANION TO LSB 5539HV BY COMMITTEE ON JUDICIARY) A BILL FOR An Act relating to statutory corrections which may adjust 1 language to reflect current practices, insert earlier 2 omissions, delete redundancies and inaccuracies, delete 3 temporary language, resolve inconsistencies and conflicts, 4 update ongoing provisions, or remove ambiguities, and 5 including effective date provisions. 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 7 TLSB 5539SV (1) 86 lh/rj

S.F. 2283 DIVISION I 1 MISCELLANEOUS CHANGES 2 Section 1. Section 8D.14, Code 2016, is amended to read as 3 follows: 4 8D.14 Iowa communications network fund. 5 1. There is created in the office of the treasurer of 6 state a fund to be known as the Iowa communications network 7 fund under the control of the Iowa telecommunications and 8 technology commission. There shall be deposited into the 9 Iowa communications network fund proceeds from bonds issued 10 for purposes of projects authorized pursuant to section 11 8D.13 , funds received from leases pursuant to section 12 8D.11 , and other moneys by law credited to or designated 13 by a person for deposit into the fund. Amounts deposited 14 into the fund are appropriated to and for the use of the 15 commission. Notwithstanding section 12C.7 , interest earned 16 on amounts deposited in the fund shall be credited to the 17 fund. Notwithstanding section 8.33 , moneys deposited into 18 and appropriated from the fund that remain unencumbered or 19 unobligated at the close of the fiscal year shall not revert 20 but shall remain available for expenditure for the purposes 21 designated until the close of the succeeding fiscal year. 22 2. The commission shall be required to repay one million 23 dollars of start-up funding from the Iowa communications 24 network fund to the general fund of the state. For the fiscal 25 year beginning July 1, 2007, and ending June 30, 2008, the 26 commission shall repay two hundred fifty thousand dollars 27 of start-up funding at the end of that fiscal year, and for 28 the fiscal year beginning July 1, 2008, and ending June 30, 29 2009, the commission shall repay two hundred fifty thousand 30 dollars of start-up funding at the end of that fiscal year. 31 The remaining five hundred thousand dollars shall be repaid 32 in a reasonable period of time thereafter as provided in this 33 subsection . The commission shall conduct a review of the 34 operation of the fund and the extent to which a continued 35 -1- LSB 5539SV (1) 86 lh/rj 1/ 106

S.F. 2283 need for funding for cash flow support exists, and shall 1 provide a report summarizing the results of the review to 2 the general assembly by January 1, 2010. The report shall 3 also include a plan regarding repayment of the remaining five 4 hundred thousand dollars in start-up funding in a manner which 5 will not adversely affect network operations, and any other 6 recommendations relating to the fund and the operation of the 7 network deemed appropriate by the commission. 8 Sec. 2. Section 12.77, Code 2016, is amended to read as 9 follows: 10 12.77 Construction. 11 Sections 12.71 through 12.76 , being necessary for the 12 welfare of this state and its inhabitants, shall be liberally 13 construed to effect its the purposes of the sections . 14 Sec. 3. Section 12.86, Code 2016, is amended to read as 15 follows: 16 12.86 Construction. 17 Sections 12.81 through 12.85 , being necessary for the 18 welfare of this state and its inhabitants, shall be liberally 19 construed to effect its the purposes of the sections . 20 Sec. 4. Section 12.90, subsection 2, Code 2016, is amended 21 to read as follows: 22 2. Sections 12.87 through 12.89 , and this section , being 23 necessary for the welfare of this state and its inhabitants, 24 shall be liberally construed to effect its the purposes of the 25 sections . 26 Sec. 5. Section 13.7, subsection 1, Code 2016, is amended 27 to read as follows: 28 1. Compensation shall not be allowed to any person for 29 services as an attorney or counselor to an executive department 30 of the state government, or the head of an executive department 31 of state government, or to a state board or commission. 32 However, the executive council may authorize employment of 33 legal assistance, at a reasonable compensation, in a pending 34 action or proceeding to protect the interests of the state, 35 -2- LSB 5539SV (1) 86 lh/rj 2/ 106

S.F. 2283 but only upon a sufficient showing, in writing, made by the 1 attorney general, that the department of justice cannot for 2 reasons stated by the attorney general perform the service. 3 The reasons and action of the executive council shall be 4 entered upon its records. If the attorney general determines 5 that the department of justice cannot perform legal service 6 in an action or proceeding, the executive council shall 7 request the department involved in the action or proceeding 8 to recommend legal counsel to represent the department. If 9 the attorney general concurs with the department that the 10 person recommended is qualified and suitable to represent the 11 department, the person recommended shall be employed. If the 12 attorney general does not concur in the recommendation, the 13 department shall submit a new recommendation. This subsection 14 does not affect the general counsel for the utilities board of 15 the department of commerce, the legal counsel of the department 16 of workforce development, or the general counsel for the 17 property assessment appeal board. 18 Sec. 6. Section 13C.2, subsection 1, paragraph c, Code 2016, 19 is amended to read as follows: 20 c. In lieu of filing the financial disclosure information 21 at the time of registration, the professional commercial 22 fund-raiser may file a statement with its permit application 23 where it agrees to provide, without cost, the financial 24 disclosure information required to be disclosed pursuant to 25 this subsection to a person or government governmental entity 26 requesting the information within one day of the request. The 27 statement shall include the telephone number, mailing address, 28 and names of persons to be contacted to obtain the financial 29 disclosure information of the fund-raiser. Failure to provide 30 this information upon request shall be a violation of this 31 chapter . 32 Sec. 7. Section 13C.2, subsection 3, paragraph b, Code 2016, 33 is amended to read as follows: 34 b. The attorney general may seek an injunction pursuant 35 -3- LSB 5539SV (1) 86 lh/rj 3/ 106

S.F. 2283 to section 714.16 prohibiting the professional commercial 1 fund-raiser or charitable organization from soliciting 2 contributions until the required financial information has 3 been disclosed to the attorney general, person, or government 4 governmental entity making the request. 5 Sec. 8. Section 15.338, subsection 5, Code 2016, is amended 6 to read as follows: 7 5. In providing financial assistance under this section, 8 the authority shall coordinate with a city to develop a plan 9 for the use of funds that is consistent with the community 10 development, housing, and economic development goals of the 11 city. The terms of the agreement entered into pursuant to 12 subsection 3 4 and the use of financial assistance provided 13 under this section shall reflect the plan developed based on a 14 city’s goals. 15 Sec. 9. Section 15.353, subsection 2, paragraph d, 16 subparagraph (2), subparagraph division (c), Code 2016, is 17 amended to read as follows: 18 (c) The demand for projects applying under this paragraph 19 “d” compared to the demand for projects applying under 20 paragraphs “a” through “c” . 21 Sec. 10. Section 15H.5, subsection 5, paragraphs b and d, 22 Code 2016, are amended to read as follows: 23 b. The commission shall manage the Iowa summer youth corps 24 program in a manner to maximize the leveraging of federal, 25 local, and private funding opportunities that increase or 26 amplify program impact and service-learning opportunities. 27 The commission shall also encourage collaboration with, and 28 utilization of, other national, local, and nonprofit programs 29 engaged in community service or addressing the needs of youth 30 from families with low income. 31 d. The commission shall include progress information 32 concerning implementation of the Iowa summer youth corps 33 program in the quarterly reports made to the governor and the 34 general assembly in accordance with section 15H.2 . 35 -4- LSB 5539SV (1) 86 lh/rj 4/ 106

S.F. 2283 Sec. 11. Section 15H.5, subsection 6, paragraph b, Code 1 2016, is amended to read as follows: 2 b. If a stipend is provided to a youth participating in 3 the Iowa summer youth corps program, the youth shall be age 4 fourteen through eighteen. 5 Sec. 12. Section 16.2D, subsection 6, paragraph b, Code 6 2016, is amended to read as follows: 7 b. The council shall elect a chairperson and vice 8 chairperson from the membership of the council. The 9 chairperson and vice chairperson shall each serve two-year 10 terms. The positions of chairperson and vice chairperson shall 11 not both be held by members who are both either general public 12 members or agency directors director members . The position 13 positions of chairperson and vice chairperson shall rotate 14 between agency director members and general public members. 15 Sec. 13. Section 17A.17, subsection 1, paragraph a, Code 16 2016, is amended to read as follows: 17 a. Unless required for the disposition of ex parte matters 18 specifically authorized by statute, a presiding officer in a 19 contested case , shall not communicate , directly or indirectly , 20 with any person or party in connection with any issue of fact 21 or law in that contested case, with any person or party, except 22 upon notice and opportunity for all parties to participate as 23 shall be provided for by agency rules. 24 Sec. 14. Section 21.5, subsection 1, paragraph g, Code 2016, 25 is amended to read as follows: 26 g. To avoid disclosure of specific law enforcement matters, 27 such as current or proposed investigations , or inspection or 28 auditing techniques or schedules, which if disclosed would 29 enable law violators to avoid detection. 30 Sec. 15. Section 28F.12, subsection 2, Code 2016, is amended 31 to read as follows: 32 2. If the entity is comprised solely of cities, counties, 33 and sanitary districts established under chapter 358 , or any 34 combination thereof, it is a governmental entity with respect 35 -5- LSB 5539SV (1) 86 lh/rj 5/ 106

S.F. 2283 to projects undertaken pursuant to chapter 418 and may exercise 1 all of the powers of a governmental entity under that chapter 2 in connection with the a flood mitigation project. Unless 3 otherwise provided in chapter 418 , if the entity is undertaking 4 a flood mitigation project as a governmental entity under 5 chapter 418 , the provisions of chapter 418 shall prevail over 6 any conflicting provision in this chapter . 7 Sec. 16. Section 48A.26, subsections 4 and 5, Code 2016, are 8 amended to read as follows: 9 4. If the registrant applied by mail to register to vote and 10 did not answer either “yes” or “no” to the first question in 11 section 48A.11, subsection 3 , paragraph “a” , the application 12 shall be processed. If the application is complete and proper 13 in all other respects and information on the application is 14 verified, as required by section 48A.25A , the applicant shall 15 be registered to vote and sent an acknowledgment. 16 5. If the registrant applied by mail to register to vote 17 and answered “no” to the first question in section 48A.11, 18 subsection 3 , paragraph “a” , the application shall not be 19 processed. The acknowledgment shall advise the applicant 20 that the registration has been rejected because the applicant 21 indicated on the registration form that the applicant is not a 22 citizen of the United States. 23 Sec. 17. Section 91E.2, subsection 1, paragraph b, Code 24 2016, is amended to read as follows: 25 b. If a Spanish-speaking interpreter is needed, the employer 26 shall select an interpreter from a list of interpreters 27 developed by the department of workforce development , drawn 28 from the commission of Latino affairs’ statewide list of 29 interpreters qualified to serve Iowa courts and administrative 30 agencies . 31 Sec. 18. Section 96.7, subsection 8, paragraph a, 32 subparagraph (4), Code 2016, is amended to read as follows: 33 (4) The department, in accordance with rules adopted by the 34 department pursuant to chapter 17A , shall notify each nonprofit 35 -6- LSB 5539SV (1) 86 lh/rj 6/ 106

S.F. 2283 organization of any determination made by the department of the 1 status of the nonprofit organization as an employer and of the 2 effective date of any election or termination of election. A 3 determination is subject to appeal and review in accordance 4 with subsections 4 and 5 . 5 Sec. 19. Section 96.13, subsection 2, Code 2016, is amended 6 to read as follows: 7 2. Replenishment of lost funds. If any moneys received 8 after June 30, 1941, from the social security administration 9 under Tit. III of the Social Security Act, or any unencumbered 10 balances in the unemployment compensation administration fund 11 as of that date, or any moneys granted after that date to this 12 state pursuant to the provisions of the Wagner-Peyser Act, 13 or any moneys made available by this state or its political 14 subdivisions and matched by such moneys granted to this state 15 pursuant to the provisions of the Wagner-Peyser Act, are 16 found by the social security administration, because of any 17 action or contingency, to have been lost or been expended for 18 purposes other than or in amounts in excess of, those found 19 necessary by the social security administration for the proper 20 administration of this chapter , it is the policy of this state 21 that such moneys shall be replaced by moneys appropriated 22 for such purpose from the general funds of this state to the 23 unemployment compensation administration fund for expenditure 24 as provided in subsection 1 of this section . Upon receipt of 25 notice of such a finding by the social security administration, 26 the department shall promptly report the amount required for 27 such replacement to the governor and the governor shall at 28 the earliest opportunity, submit to the legislature a request 29 for the appropriation of such amount. This subsection shall 30 not be construed to relieve this state of its obligation with 31 respect to funds received prior to July 1, 1941, pursuant to 32 the provisions of Tit. III of the Social Security Act . 33 Sec. 20. Section 96.19, subsection 41, unnumbered paragraph 34 1, Code 2016, is amended to read as follows: 35 -7- LSB 5539SV (1) 86 lh/rj 7/ 106

S.F. 2283 “Wages” means all remuneration for personal services, 1 including commissions and bonuses and the cash value of all 2 remuneration in any medium other than cash. The reasonable 3 cash value of remuneration in any medium other than cash, shall 4 be estimated and determined in accordance with rules prescribed 5 by the department. Wages payable to an individual for insured 6 work performed prior to January 1, 1941, shall, for the 7 purposes of sections 96.3 , 96.4 , and this section , be deemed to 8 be wages paid within the calendar quarter with respect to which 9 such wages were payable. 10 Sec. 21. Section 96.20, subsection 2, paragraph b, Code 11 2016, is amended to read as follows: 12 b. Reimbursements so payable shall be deemed to be benefits 13 for the purposes of section 96.3, subsection 5 , paragraph “a” , 14 and section 96.9 , but no reimbursement so payable shall be 15 charged against any employer’s account for the purposes of 16 section 96.7 , unless wages so transferred are sufficient to 17 establish a valid claim in Iowa, and that such charges shall 18 not exceed the amount that would have been charged on the 19 basis of a valid claim. The department is hereby authorized 20 to make to other state or federal agencies and receive from 21 such other state or federal agencies, reimbursements from 22 or to the fund, in accordance with arrangements pursuant 23 to this section . The department shall participate in any 24 arrangements for the payment of compensation on the basis of 25 combining an individual’s wages and employment covered under 26 this chapter with the individual’s wages and employment covered 27 under the unemployment compensation laws of other states 28 which are approved by the United States secretary of labor in 29 consultation with the state unemployment compensation agencies 30 as reasonably calculated to assure the prompt and full payment 31 of compensation in such situations and which include provisions 32 for applying the base period of a single state law to a claim 33 involving the combining of an individual’s wages and employment 34 covered under two or more state unemployment compensation laws, 35 -8- LSB 5539SV (1) 86 lh/rj 8/ 106

S.F. 2283 and avoiding the duplication in the use of wages and employment 1 by reason of such combining. 2 Sec. 22. Section 97B.49C, subsection 1, paragraph e, Code 3 2016, is amended to read as follows: 4 e. “Sheriff” means a county sheriff as defined described in 5 section 39.17 331.651 . 6 Sec. 23. Section 97B.49G, subsection 7, paragraph a, 7 subparagraph (3), subparagraph division (a), Code 2016, is 8 amended to read as follows: 9 (a) As a county sheriff as defined described in section 10 39.17 331.651 . 11 Sec. 24. Section 99.28, Code 2016, is amended to read as 12 follows: 13 99.28 Certification and payment of mulct tax. 14 The clerk of said court shall make and certify a return of 15 the imposition of said the mulct tax forthwith to the county 16 auditor, who shall enter the same as a tax upon the property, 17 and against the persons upon which or whom the lien was 18 imposed, as and when the other taxes are entered, and the same 19 shall be and remain a lien on the land upon which such lien 20 was imposed until fully paid. Any such lien imposed while the 21 tax books are in the hands of the auditor shall be immediately 22 entered therein in the tax books . The payment of said the 23 mulct tax shall not relieve the persons or property from any 24 other penalties provided by law. 25 Sec. 25. Section 99.29, Code 2016, is amended to read as 26 follows: 27 99.29 Collection of mulct tax. 28 The provisions of the law relating to the collection of taxes 29 in this state, the delinquency thereof, and sale of property 30 for taxes shall govern in the collection of the mulct tax 31 herein prescribed in this chapter insofar as the same those 32 provisions are applicable. 33 Sec. 26. Section 99.30, Code 2016, is amended to read as 34 follows: 35 -9- LSB 5539SV (1) 86 lh/rj 9/ 106

S.F. 2283 99.30 Application of mulct tax. 1 The mulct tax collected shall be applied toward the 2 deficiency in the payment of costs of the action and abatement 3 which exist after the application of the proceeds of the sale 4 of personal property. The remainder of the tax together with 5 the unexpended portion of the proceeds of the sale of personal 6 property shall be paid to the treasurer of state for deposit in 7 the general fund of the state, except that ten percent of the 8 amount of the whole tax collected and of the whole proceeds of 9 the sale of the personal property, as provided in this chapter , 10 shall be paid by the treasurer to the attorney representing the 11 state in the injunction action, at the time of final judgment. 12 Sec. 27. Section 99.31, Code 2016, is amended to read as 13 follows: 14 99.31 Tax Mulct tax assessed. 15 When such nuisance has been found to exist under any 16 proceeding in the district court or as in this chapter 17 provided, and the owner or agent of such building or ground 18 whereon the same nuisance has been found to exist was not 19 a party to such proceeding, nor appeared therein, the said 20 mulct tax of three hundred dollars shall, nevertheless, be 21 imposed against the persons served or appearing and against the 22 property as set forth in this chapter set forth . 23 Sec. 28. Section 99B.3, subsection 4, paragraph b, Code 24 2016, is amended to read as follows: 25 b. If a request for a hearing is timely received by 26 the department, the applicant or licensee shall be given 27 an opportunity for a prompt and fair hearing before the 28 department and the denial, suspension, or revocation shall be 29 deemed suspended stayed until the department makes a final 30 determination. However, the director may suspend a license 31 prior to a hearing if the director finds that the public 32 integrity of the licensed activity is compromised or there is a 33 risk to public health, safety, or welfare. In addition, at any 34 time during or prior to the hearing the department may rescind 35 -10- LSB 5539SV (1) 86 lh/rj 10/ 106

S.F. 2283 the notice of the denial, suspension, or revocation upon being 1 satisfied that the reasons for the denial, suspension, or 2 revocation have been or will be removed. On the basis of any 3 such hearing, the determination involved in the notice may be 4 affirmed, modified, or set aside by the department in a written 5 decision. 6 Sec. 29. Section 99B.55, subsection 3, paragraph b, 7 subparagraph (2), Code 2016, is amended to read as follows: 8 (2) If a request for a hearing is timely received by 9 the department, the applicant or registrant shall be given 10 an opportunity for a prompt and fair hearing before the 11 department and the denial, suspension, or revocation shall be 12 deemed suspended stayed until the department makes a final 13 determination. However, the director of the department may 14 suspend a registration prior to a hearing if the director 15 finds that the public integrity of the registered activity 16 is compromised or there is a risk to public health, safety, 17 or welfare. In addition, at any time during or prior to the 18 hearing, the department may rescind the notice of the denial, 19 suspension, or revocation upon being satisfied that the reasons 20 for the denial, suspension, or revocation have been or will 21 be removed. On the basis of any such hearing, the proposed 22 action in the notice may be affirmed, modified, or set aside by 23 the department in a written decision. The procedure governing 24 hearings authorized by this paragraph subparagraph shall be in 25 accordance with the rules promulgated adopted by the department 26 and chapter 17A . 27 Sec. 30. Section 99F.15, subsection 6, paragraph a, Code 28 2016, is amended to read as follows: 29 a. A person who places, removes, increases, or decreases a 30 bet after acquiring knowledge of the outcome of the gambling 31 game which is the subject of the bet or to aid who aids a 32 person in acquiring the knowledge for the purpose of placing, 33 removing, increasing, or decreasing a bet contingent on that 34 outcome commits the offense of unlawful betting. 35 -11- LSB 5539SV (1) 86 lh/rj 11/ 106

S.F. 2283 Sec. 31. Section 123.9, subsection 5, Code 2016, is amended 1 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. 32. Section 123.48, Code 2016, is amended to read as 7 follows: 8 123.48 Seizure of false or altered driver’s license or 9 nonoperator nonoperator’s identification card. 10 1. If a liquor control licensee or wine or beer permittee 11 or an employee of the licensee or permittee has a reasonable 12 belief based on factual evidence that a driver’s license as 13 defined in section 321.1, subsection 20A , or nonoperator 14 nonoperator’s identification card issued pursuant to section 15 321.190 offered by a person who wishes to purchase an alcoholic 16 beverage at the licensed premises is altered or falsified or 17 belongs to another person, the licensee, permittee, or employee 18 may retain the driver’s license or nonoperator nonoperator’s 19 identification card. Within twenty-four hours, the license or 20 card shall be delivered to the appropriate city or county law 21 enforcement agency of the jurisdiction in which the licensed 22 premises is located. When the license or card is delivered 23 to the appropriate law enforcement agency, the licensee shall 24 file a written report of the circumstances under which the 25 license or card was retained. The local law enforcement 26 agency may investigate whether a violation of section 321.216 , 27 321.216A , or 321.216B has occurred. If an investigation is not 28 initiated or a probable cause is not established by the local 29 law enforcement agency, the driver’s license or nonoperator 30 nonoperator’s identification card shall be delivered to the 31 person to whom it was issued. The local law enforcement 32 agency may forward the license or card with the report to the 33 department of transportation for investigation, in which case, 34 the department may investigate whether a violation of section 35 -12- LSB 5539SV (1) 86 lh/rj 12/ 106

S.F. 2283 321.216 , 321.216A , or 321.216B has occurred. The department of 1 transportation shall return the license or card to the person 2 to whom it was issued if an investigation is not initiated or a 3 probable cause is not established. 4 2. Upon taking possession of an a driver’s license or 5 nonoperator’s identification card as provided in subsection 1 , 6 a receipt for the license or card with the date and hour of 7 seizure noted shall be provided to the person from whom the 8 license or card was seized. 9 3. A liquor control licensee or wine or beer permittee or 10 an employee of the licensee or permittee is not subject to 11 criminal prosecution for, or to civil liability for damages 12 alleged to have resulted from, the retention and delivery of a 13 driver’s license or a nonoperator nonoperator’s identification 14 card which is taken pursuant to subsections 1 and 2 . This 15 section shall not be construed to relieve a licensee, 16 permittee, or employee of the licensee or permittee from civil 17 liability for damages resulting from the use of unreasonable 18 force in obtaining the altered or falsified driver’s license or 19 nonoperator’s identification card or the driver’s license or 20 nonoperator’s identification card believed to belong to another 21 person. 22 Sec. 33. Section 123.124, Code 2016, is amended to read as 23 follows: 24 123.124 Beer permits —— classes. 25 Permits for the manufacture and sale, or sale, of beer shall 26 be divided into six classes, known as class “A”, special class 27 “A”, class “AA”, special class “AA”, class “B”, or class “C” 28 beer permits. A class “A” beer permit allows the holder to 29 manufacture and sell beer at wholesale. A holder of a special 30 class “A” beer permit may only manufacture beer to be consumed 31 on the licensed premises for which the person also holds a 32 class “C” liquor control license or class “B” beer permit, to 33 be sold to a class “A” beer permittee for resale purposes, 34 and to be sold to distributors outside of the state that are 35 -13- LSB 5539SV (1) 86 lh/rj 13/ 106

S.F. 2283 authorized by the laws of that jurisdiction to sell beer at 1 wholesale. A class “AA” beer permit allows the holder to 2 manufacture and sell high alcoholic content beer at wholesale. 3 A holder of a special class “AA” beer permit may only 4 manufacture high alcoholic content beer to be consumed on the 5 licensed premises for which the person also holds a class “C” 6 liquor control license or class “B” beer permit, to be sold to 7 a class “AA” beer permittee for resale purposes, and to be sold 8 to distributors outside of the state that are authorized by the 9 laws of that jurisdiction to sell high alcoholic content beer 10 at wholesale. A class “B” beer permit allows the holder to 11 sell beer to consumers at retail for consumption on or off the 12 premises. A class “C” beer permit allows the holder to sell 13 beer to consumers at retail for consumption off the premises. 14 Sec. 34. Section 123.127, subsection 1, unnumbered 15 paragraph 1, Code 2016, is amended to read as follows: 16 A class “A”, class “AA”, special class “A”, or special class 17 “AA” beer permit shall be issued by the administrator to any 18 person who: 19 Sec. 35. Section 123.127, subsection 2, Code 2016, is 20 amended to read as follows: 21 2. An applicant for a special class “A” or special class 22 “AA” beer permit shall comply with the requirements for a 23 class “A” or class “AA” beer permit, as applicable, and shall 24 also state on the application that the applicant holds or has 25 applied for a class “C” liquor control license or class “B” 26 beer permit. 27 Sec. 36. Section 123.128, unnumbered paragraph 1, Code 28 2016, is amended to read as follows: 29 A class “B” beer permit shall be issued by the administrator 30 to any person who: 31 Sec. 37. Section 123.129, subsection 1, Code 2016, is 32 amended to read as follows: 33 1. A class “C” beer permit shall not be issued to any person 34 except the owner or proprietor of a grocery store or pharmacy. 35 -14- LSB 5539SV (1) 86 lh/rj 14/ 106

S.F. 2283 Sec. 38. Section 123.129, subsection 2, unnumbered 1 paragraph 1, Code 2016, is amended to read as follows: 2 A class “C” beer permit shall be issued by the administrator 3 to any person who is the owner or proprietor of a grocery store 4 or pharmacy, who: 5 Sec. 39. Section 123.130, Code 2016, is amended to read as 6 follows: 7 123.130 Authority under class “A”, class “AA”, special class 8 “A”, and special class “AA” beer permits. 9 1. Any person holding a class “A” or class “AA” beer permit 10 issued by the division shall be authorized to manufacture 11 and sell, or sell at wholesale, beer for consumption off the 12 premises, such sales within the state to be made only to 13 persons holding subsisting class “A”, “B”, or “C” beer permits, 14 or liquor control licenses issued in accordance with the 15 provisions of this chapter . A class “A”, class “AA”, special 16 class “A”, or special class “AA” beer permit does not grant 17 authority to manufacture wine as defined in section 123.3, 18 subsection 47 . 19 2. All class “A” and class “AA” premises shall be located 20 within the state. All beer received by the holder of a 21 class “A” or class “AA” beer permit from the holder of a 22 certificate of compliance before being resold must first come 23 to rest on the licensed premises of the permit holder, must be 24 inventoried, and is subject to the barrel tax when resold as 25 provided in section 123.136 . A class “A” or class “AA” beer 26 permittee shall not store beer overnight except on premises 27 licensed under a class “A” or class “AA” beer permit. 28 3. All special class “A” and special class “AA” premises 29 shall be located within the state. A person who holds a 30 special class “A” or special class “AA” beer permit for the 31 same location at which the person holds a class “C” liquor 32 control license or class “B” beer permit may manufacture and 33 sell beer to be consumed on the premises, may sell beer to a 34 class “A” or class “AA” beer permittee for resale purposes, 35 -15- LSB 5539SV (1) 86 lh/rj 15/ 106

S.F. 2283 and may sell beer to distributors outside of the state that 1 are authorized by the laws of that jurisdiction to sell beer 2 at wholesale. 3 Sec. 40. Section 123.131, Code 2016, is amended to read as 4 follows: 5 123.131 Authority under class “B” beer permit. 6 Subject to the provisions of this chapter , any person 7 holding a class “B” beer permit shall be authorized to sell 8 beer for consumption on or off the premises. However, unless 9 otherwise provided in this chapter , no sale of beer shall 10 be made for consumption on the premises unless the place 11 where such service is made is equipped with tables and seats 12 sufficient to accommodate not less than twenty-five persons at 13 one time. 14 Sec. 41. Section 123.132, Code 2016, is amended to read as 15 follows: 16 123.132 Authority under class “C” beer permit. 17 1. The holder of a class “C” beer permit shall be allowed 18 to sell beer to consumers at retail for consumption off the 19 premises. The sales made pursuant to this section shall be 20 made in original containers except as provided in subsection 2 . 21 2. Subject to the rules of the division, sales made pursuant 22 to this section may be made in a container other than the 23 original container only if all of the following requirements 24 are met: 25 a. The beer is transferred from the original container to 26 the container to be sold on the licensed premises at the time 27 of sale. 28 b. The person transferring the beer from the original 29 container to the container to be sold shall be eighteen years 30 of age or more. 31 c. The container to be sold shall be no larger than 32 seventy-two ounces. 33 d. The container to be sold shall be securely sealed by a 34 method authorized by the division that is designed so that if 35 -16- LSB 5539SV (1) 86 lh/rj 16/ 106

S.F. 2283 the sealed container is reopened or the seal tampered with, it 1 is visibly apparent that the seal on the container of beer has 2 been tampered with or the sealed container has otherwise been 3 reopened. 4 3. A container of beer other than the original container 5 that is sold and sealed in compliance with the requirements of 6 subsection 2 and the division’s rules shall not be deemed an 7 open container subject to the requirements of sections 321.284 8 and 321.284A if the sealed container is unopened and the seal 9 has not been tampered with, and the contents of the container 10 have not been partially removed. 11 4. The holder of a class “C” beer permit or the permittee’s 12 agents or employees shall not sell beer to other retail license 13 or permit holders knowing or having reasonable cause to believe 14 that the beer will be resold in another licensed establishment. 15 Sec. 42. Section 123.134, subsections 1 and 2, Code 2016, 16 are amended to read as follows: 17 1. The annual permit fee for a class “A” or special class 18 “A” beer permit is two hundred fifty dollars. 19 2. The annual permit fee for a class “AA” or special class 20 “AA” beer permit is five hundred dollars. 21 Sec. 43. Section 123.134, subsection 3, unnumbered 22 paragraph 1, Code 2016, is amended to read as follows: 23 The annual permit fee for a class “B” beer permit shall be 24 graduated according to population as follows: 25 Sec. 44. Section 123.134, subsection 4, unnumbered 26 paragraph 1, Code 2016, is amended to read as follows: 27 The annual permit fee for a class “C” beer permit shall be 28 graduated on the basis of the amount of interior floor space 29 which comprises the retail sales area of the premises covered 30 by the permit, as follows: 31 Sec. 45. Section 123.135, subsections 3, 4, and 5, Code 32 2016, are amended to read as follows: 33 3. All class “A” and class “AA” beer permit holders shall 34 sell only those brands of beer which are manufactured, brewed, 35 -17- LSB 5539SV (1) 86 lh/rj 17/ 106

S.F. 2283 bottled, shipped, or imported by a person holding a current 1 certificate of compliance. Any employee or agent working for 2 or representing the holder of a certificate of compliance 3 within this state shall submit electronically, or in a manner 4 prescribed by the administrator, the employee’s or agent’s name 5 and address with the division. 6 4. It shall be unlawful for any holder of a certificate of 7 compliance or the holder’s agent, or any class “A” or class 8 “AA” beer permit holder or the beer permit holder’s agent, to 9 grant to any retail beer permit holder, directly or indirectly, 10 any rebates, free goods, or quantity discounts on beer which 11 are not uniformly offered to all retail permittees. 12 5. Notwithstanding any other penalties provided by this 13 chapter , any holder of a certificate of compliance or any class 14 “A” or class “AA” beer permit holder who violates this chapter 15 or the rules adopted pursuant to this chapter is subject to a 16 civil penalty not to exceed one thousand dollars or suspension 17 of the holder’s certificate or permit for a period not to 18 exceed one year, or both such civil penalty and suspension. 19 Civil penalties imposed under this section shall be collected 20 and retained by the division. 21 Sec. 46. Section 123.136, subsection 1, Code 2016, is 22 amended to read as follows: 23 1. In addition to the annual permit fee to be paid by all 24 class “A” and class “AA” beer permittees under this chapter 25 there shall be levied and collected from the permittees on all 26 beer manufactured for sale or sold in this state at wholesale 27 and on all beer imported into this state for sale at wholesale 28 and sold in this state at wholesale, and from special class “A” 29 and special class “AA” beer permittees on all beer manufactured 30 for consumption on the premises, a tax of five and eighty-nine 31 hundredths dollars for every barrel containing thirty-one 32 gallons, and at a like rate for any other quantity or for the 33 fractional part of a barrel. However, no tax shall be levied 34 or collected on beer shipped outside this state by a class “A” 35 -18- LSB 5539SV (1) 86 lh/rj 18/ 106