H.F. 2540 Section 1. Section 123.32, subsection 1, paragraph b, Code 1 2020, is amended by adding the following new subparagraph: 2 NEW SUBPARAGRAPH . (7A) A charity beer, spirits, and wine 3 event permit as provided in section 123.173B. 4 Sec. 2. NEW SECTION . 123.173B Charity beer, spirits, and 5 wine event permit. 6 1. For purposes of this section, “authorized nonprofit 7 entity” includes a nonprofit entity which has a principal office 8 in the state, a nonprofit corporation organized under chapter 9 504, or a foreign corporation as defined in section 504.141, 10 whose income is exempt from federal taxation under section 11 501(c) of the Internal Revenue Code. 12 2. An authorized nonprofit entity may, upon application 13 to the division and receipt of a charity beer, spirits, and 14 wine event permit from the division, conduct a charity event 15 which allows for the consumption of beer, spirits, and wine on 16 the premises of the event and allows the authorized nonprofit 17 entity to include the cost of the beer, spirits, and wine at 18 the event as part of the admission fee to the event. The 19 completed application shall specify the date and time when the 20 charity beer, spirits, and wine event is to be conducted and 21 the premises in this state where the charity beer, spirits, 22 and wine event is to be physically conducted. The completed 23 application shall also specify that the premises where the 24 charity beer, spirits, and wine event is to be conducted has a 25 valid license or permit authorizing the consumption of beer, 26 spirits, or wine on the premises and that the authorized 27 nonprofit entity has entered into an agreement with the 28 licensee or permittee of the licensed premises allowing the 29 charity beer, spirits, and wine event to be conducted on the 30 premises and providing that the authorized nonprofit entity 31 shall reimburse the licensee or permittee for the beer, 32 spirits, and wine consumed at the event. The applicant shall 33 certify that the objective of the charity beer, spirits, and 34 wine event is to raise funds solely to be used for educational, 35 -1- LSB 6325HV (1) 88 ec/rn 1/ 3

H.F. 2540 religious, or charitable purposes and that the entire proceeds 1 from the charity beer, spirits, and wine event are to be 2 expended for any of the purposes described in section 423.3, 3 subsection 78. 4 3. An authorized nonprofit entity shall be eligible to 5 receive only two charity beer, spirits, and wine event permits 6 during a calendar year and each charity beer, spirits, and 7 wine event permit shall be valid for a period not to exceed 8 thirty-six consecutive hours. 9 4. The authorized nonprofit entity conducting the charity 10 beer, spirits, and wine event shall obtain the beer, spirits, 11 and wine to be consumed on the premises of the charity beer, 12 spirits, and wine event from the applicable licensee or 13 permittee for the premises. 14 5. Any violation of the requirements of this chapter or the 15 rules adopted pursuant to this chapter shall subject the permit 16 holder to the general penalties provided in this chapter and 17 shall constitute grounds for imposition of a civil penalty, 18 suspension of the permit, or revocation of the permit after 19 notice and opportunity for a hearing pursuant to section 123.39 20 and chapter 17A. 21 EXPLANATION 22 The inclusion of this explanation does not constitute agreement with 23 the explanation’s substance by the members of the general assembly. 24 This bill authorizes a nonprofit entity to conduct a charity 25 beer, spirits, and wine event. 26 New Code section 123.173B provides for the issuance of a 27 charity beer, spirits, and wine event permit to an authorized 28 nonprofit entity that allows the consumption of beer, spirits, 29 and wine at a charity beer, spirits, and wine event and allows 30 for including the cost of the beer, spirits, and wine as part 31 of an admission fee to the event. The bill requires the 32 nonprofit entity to specify the date and time and the premises 33 where the charity beer, spirits, and wine event is to be 34 conducted. The bill provides that the completed application 35 -2- LSB 6325HV (1) 88 ec/rn 2/ 3

H.F. 2540 shall also specify that the premises has a valid license or 1 permit authorizing the consumption of beer, spirits, or wine 2 on the premises and that the authorized nonprofit entity has 3 entered into an agreement with the licensee or permittee of 4 the licensed premises allowing the charity beer, spirits, and 5 wine event to be conducted on the premises and providing for 6 reimbursing the licensee or permittee for the beer, spirits, 7 and wine consumed at the event. The bill requires proceeds 8 from the event to be expended for charitable purposes and 9 allows only two charity beer, spirits, and wine event permits 10 during a calendar year with each charity beer, spirits, 11 and wine event permit valid for a period not to exceed 36 12 consecutive hours. The bill requires the authorized nonprofit 13 entity to obtain the beer, spirits, and wine to be sold for 14 consumption on the premises of the charity beer, spirits, and 15 wine event from the applicable licensee or permittee for the 16 premises. The bill also provides that any violation of the 17 requirements of Code chapter 123 or the rules adopted pursuant 18 shall subject the permit holder to the general penalties 19 provided in Code chapter 123 and shall constitute grounds for 20 imposition of a civil penalty, suspension of the permit, or 21 revocation of the permit. 22 -3- LSB 6325HV (1) 88 ec/rn 3/ 3