Senate Study Bill 3116 - Introduced SENATE/HOUSE FILE _____ BY (PROPOSED DEPARTMENT OF COMMERCE/ALCOHOLIC BEVERAGES DIVISION BILL) 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 5243XD (6) 86 ec/nh
S.F. _____ H.F. _____ 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 5243XD (6) 86 ec/nh 1/ 4
S.F. _____ H.F. _____ 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 PROVISION. Notwithstanding any 31 provision of section 123.151, as enacted by this Act, to the 32 contrary, a liquor control licensee, beer permittee, or wine 33 permittee granted a waiver to dispense wine or beer through 34 an automated dispensing device as of the effective date of 35 -2- LSB 5243XD (6) 86 ec/nh 2/ 4
S.F. _____ H.F. _____ this Act shall be permitted to continue to dispense wine or 1 beer through an automated dispensing device subject to the 2 conditions provided in the waiver until September 30, 2016. 3 EXPLANATION 4 The inclusion of this explanation does not constitute agreement with 5 the explanation’s substance by the members of the general assembly. 6 This bill authorizes certain liquor control licensees, 7 beer permittees, and wine permittees to allow patrons to 8 serve themselves wine, beer, or spirits through an automated 9 dispensing device. 10 Code section 123.3 (definitions) is amended to define an 11 “automated dispensing device” as any mechanized device capable 12 of dispensing beer, wine, or spirits directly or by remote 13 activation to a patron by the licensee or permittee. 14 New Code section 123.151 authorizes the administrator 15 of the alcoholic beverages division of the department of 16 commerce to grant the privilege of dispensing wine, beer, 17 or spirits through an automated dispensing device to liquor 18 control licensees, beer permittees, and wine permittees under 19 certain conditions. The privilege, which shall be noted on 20 the applicable liquor control license or permit, shall only 21 be granted to holders of a license or permit authorized to 22 sell beer, wine, or spirits for consumption on the licensed 23 premises. The bill directs the alcoholic beverages division to 24 adopt rules requiring the applicable liquor control licensee, 25 beer permittee, or wine permittee to activate the device and 26 any component designed to grant access to the device before 27 a patron independently dispenses beer, wine, or spirits, to 28 deactivate the device at the end of each business day, to 29 limit the amount of wine, beer, or spirits dispensed in a 30 single transaction, and to exercise care and employ sufficient 31 persons to ensure that only persons of legal age may obtain 32 beer, wine, or spirits from the device and that a patron served 33 beer, wine, or spirits through an automated dispensing device 34 is not intoxicated. The bill grants the alcoholic beverages 35 -3- LSB 5243XD (6) 86 ec/nh 3/ 4
S.F. _____ H.F. _____ division the authority to rescind the automated dispensing 1 device privilege for failure to comply with the requirements of 2 this new section. 3 The bill includes a transition provision allowing a liquor 4 control licensee, beer permittee, or wine permittee granted a 5 waiver to dispense wine or beer through an automated dispensing 6 device as of the effective date of the bill to continue 7 to dispense wine or beer through an automated dispensing 8 device subject to the conditions provided in the waiver until 9 September 30, 2016. 10 -4- LSB 5243XD (6) 86 ec/nh 4/ 4