House File 2531 - Introduced HOUSE FILE 2531 BY COMMITTEE ON APPROPRIATIONS (SUCCESSOR TO HF 2301) (SUCCESSOR TO HSB 602) A BILL FOR An Act relating to alcoholic beverage control and matters 1 under the purview of the alcoholic beverages division of 2 the department of commerce and including effective date 3 provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 5292HZ (2) 89 ec/rn

H.F. 2531 DIVISION I 1 ALCOHOLIC BEVERAGE CONTROL 2 Section 1. Section 123.46A, subsection 3, paragraph f, Code 3 2022, is amended to read as follows: 4 f. Deliveries shall occur between 6:00 a.m. and 10:00 p.m. 5 Monday through Sunday on the same day the order for alcoholic 6 liquor, wine, beer, or mixed drinks or cocktails is removed 7 from the licensed premises . 8 Sec. 2. Section 123.50, subsection 1, Code 2022, is amended 9 to read as follows: 10 1. Any person who violates any of the provisions of section 11 123.49 , except section 123.49, subsection 2 , paragraph “h” , 12 or who fails to affix upon sale, defaces, or fails to record 13 a keg identification sticker label or produce a record of keg 14 identification stickers labels pursuant to section 123.138 , 15 shall be guilty of a simple misdemeanor. A person who violates 16 section 123.49, subsection 2 , paragraph “h” , commits a simple 17 misdemeanor punishable as a scheduled violation under section 18 805.8C, subsection 2 . 19 Sec. 3. Section 123.138, subsection 2, paragraphs a and b, 20 Code 2022, are amended to read as follows: 21 a. Each class “B”, “C”, or special class “C” liquor control 22 licensee and class “B” or “C” beer permittee who sells beer 23 for off-premises consumption shall affix to each keg of beer 24 an identification sticker label provided by the administrator. 25 The sticker label provided shall allow for its full removal 26 when common external keg cleaning procedures are performed. 27 For the purposes of this subsection , “keg” means all durable and 28 disposable containers with a liquid capacity of five gallons or 29 more. Each class “B”, “C”, or special class “C” liquor control 30 licensee and class “B” or “C” beer permittee shall also keep 31 a record of the identification sticker label number of each 32 keg of beer sold by the licensee or permittee with the name 33 and address of the purchaser and the number of the purchaser’s 34 driver’s license, nonoperator’s identification card, or 35 -1- LSB 5292HZ (2) 89 ec/rn 1/ 23

H.F. 2531 military identification card, if the military identification 1 card contains a picture and signature. This information shall 2 be retained by the licensee or permittee for a minimum of 3 ninety days. The records kept pursuant to this subsection 4 shall be available for inspection by any law enforcement 5 officer during normal business hours. 6 b. (1) The division shall provide the keg identification 7 stickers labels described in paragraph “a” and shall, prior to 8 utilizing a sticker label , notify licensed brewers and licensed 9 beer importers of the type of sticker label to be utilized. 10 Each sticker label shall contain a number and the following 11 statement: 12 It is unlawful to sell, give, or otherwise supply any 13 alcoholic beverage, wine, or beer to any person under legal 14 age. Any person who defaces this sticker label shall be guilty 15 of criminal mischief punishable pursuant to section 716.6 and 16 shall cause the forfeiture of any deposit, if applicable . 17 (2) The identification sticker label shall be placed on 18 the keg at the time of retail sale. The licensee or permittee 19 shall purchase obtain the stickers labels referred to in this 20 subsection from the division and shall remit to the division 21 deposits forfeited pursuant to this lettered paragraph due to 22 defacement . The cost of the stickers labels to licensees and 23 permittees shall not exceed the division’s cost of producing 24 and distributing the stickers labels . The moneys collected by 25 the division relating to the sale of stickers and forfeited 26 deposits labels shall be credited to the beer and liquor 27 control fund. 28 Sec. 4. Section 123.138, subsection 2, paragraph d, Code 29 2022, is amended by striking the paragraph. 30 Sec. 5. Section 123.187, subsection 2, paragraph d, Code 31 2022, is amended by striking the paragraph. 32 DIVISION II 33 AUTOMATIC RENEWALS 34 Sec. 6. Section 123.34, subsection 1, Code 2022, is amended 35 -2- LSB 5292HZ (2) 89 ec/rn 2/ 23

H.F. 2531 by striking the subsection. 1 Sec. 7. NEW SECTION . 123.35 Expiration of licenses, 2 permits, and certificates of compliance —— automatic renewals. 3 1. Except as otherwise provided by this chapter, all 4 licenses, permits, and certificates of compliance, unless 5 sooner suspended or revoked, expire one year from date of 6 issuance. 7 2. Notwithstanding section 123.31 and any other provision 8 of this chapter to the contrary, a class “E” liquor control 9 license shall automatically renew without the endorsement 10 of a local authority or approval by the administrator upon 11 collection of the annual fee by the division, provided all of 12 the following conditions are met since the preceding license 13 was issued: 14 a. The licensee has given written consent to the division 15 to have the license automatically renewed as provided in this 16 section. 17 b. The license has not been suspended or revoked. 18 c. A civil penalty has not been imposed against the 19 licensee. 20 d. An administrative proceeding is not pending against the 21 licensee to suspend or revoke the license or to impose a civil 22 penalty under this chapter. 23 e. The licensee has not submitted payment for alcoholic 24 liquor to the division that was subsequently dishonored. 25 f. The licensee and all persons associated with the licensee 26 as described in section 123.3, subsection 40, paragraph “e” , 27 have not been convicted of a violation of this chapter. 28 g. The licensed premises constitutes a safe and proper place 29 or building and conforms with all applicable federal, state, 30 and local laws, orders, ordinances, rules, resolutions, and 31 health and fire regulations. 32 3. Notwithstanding sections 123.23, 123.135, 123.180, 33 and any other provision of this chapter to the contrary, a 34 distiller’s, brewer’s, or vintner’s certificate of compliance 35 -3- LSB 5292HZ (2) 89 ec/rn 3/ 23

H.F. 2531 shall automatically renew without approval by the administrator 1 upon collection of the annual fee by the division, provided 2 all of the following conditions are met since the preceding 3 certificate was issued: 4 a. The certificate holder has given written consent to 5 the division to have the certificate automatically renewed as 6 provided in this section. 7 b. The certificate has not been suspended or revoked. 8 c. A civil penalty has not been imposed against the 9 certificate holder. 10 d. An administrative proceeding is not pending against the 11 certificate holder to suspend or revoke the certificate or to 12 impose a civil penalty under this chapter. 13 e. The certificate holder and all persons associated 14 with the certificate holder as described in section 123.3, 15 subsection 40, paragraph “e” , have not been convicted of a 16 violation of this chapter. 17 4. Notwithstanding section 123.187 and any other provision 18 of this chapter to the contrary, a wine direct shipper’s permit 19 shall automatically renew without approval by the administrator 20 upon collection of the annual fee by the division, provided all 21 of the following conditions are met since the preceding permit 22 was issued: 23 a. The permittee has given written consent to the division 24 to have the permit automatically renewed as provided in this 25 section. 26 b. The permit has not been suspended or revoked. 27 c. A civil penalty has not been imposed against the 28 permittee. 29 d. An administrative proceeding is not pending against the 30 permittee to suspend or revoke the permit or to impose a civil 31 penalty under this chapter. 32 e. The permittee has filed all required reports and remitted 33 all wine gallonage tax owed pursuant to section 123.183. 34 f. The permittee and all persons associated with the 35 -4- LSB 5292HZ (2) 89 ec/rn 4/ 23

H.F. 2531 permittee as described in section 123.3, subsection 40, 1 paragraph “e” , have not been convicted of a violation of this 2 chapter. 3 Sec. 8. EFFECTIVE DATE. This division of this Act takes 4 effect January 1, 2023. 5 DIVISION III 6 ALCOHOLIC BEVERAGE CONTROL REVENUES 7 Sec. 9. Section 123.17, subsection 5, Code 2022, is amended 8 to read as follows: 9 5. a. After any transfer provided for in subsection 3 is 10 made, the department of commerce shall transfer into a special 11 revenue account in the general fund of the state, a sum of 12 money at least equal to seven percent of the gross amount of 13 sales made by the division from the beer and liquor control 14 fund on a monthly basis but not less than nine million dollars 15 annually. 16 b. Of the amounts transferred, two million dollars, plus an 17 additional amount determined by the general assembly, shall be 18 appropriated to the Iowa department of public health for use 19 by the staff who administer the comprehensive substance abuse 20 program under chapter 125 for substance abuse treatment and 21 prevention programs. 22 c. In addition, of the amounts transferred, one million 23 dollars, plus an additional amount determined by the general 24 assembly, shall be appropriated to the Iowa department of 25 public health for distribution pursuant to section 125.59. 26 d. Any amounts received in excess of the amounts 27 appropriated to the Iowa department of public health for use 28 by the staff who administer the comprehensive substance abuse 29 program under chapter 125 pursuant to this subsection shall be 30 considered part of the general fund balance. 31 Sec. 10. Section 123.143, subsection 1, Code 2022, is 32 amended by striking the subsection. 33 Sec. 11. Section 123.143, subsection 2, Code 2022, is 34 amended to read as follows: 35 -5- LSB 5292HZ (2) 89 ec/rn 5/ 23

H.F. 2531 2. All permit fees collected by the division under this 1 subchapter shall accrue to the beer and liquor control fund, 2 except as otherwise provided. All permit fees and taxes 3 collected by the division under this subchapter shall accrue to 4 the state general fund, except as otherwise provided. 5 Sec. 12. Section 123.143, Code 2022, is amended by adding 6 the following new subsection: 7 NEW SUBSECTION . 2A. All retail beer permit fees collected 8 by the division shall be credited to the beer and liquor 9 control fund. The division shall remit to the appropriate 10 local authority a sum of money equal to the total amount of the 11 fees collected for each retail beer permit covering premises 12 located within the local authority’s jurisdiction. 13 Sec. 13. Section 125.59, unnumbered paragraph 1, Code 2022, 14 is amended to read as follows: 15 The treasurer of state, on each July 1 for that fiscal 16 year, shall transfer the estimated amounts to be received 17 from section 123.36, subsection 8 and section 123.143, 18 subsection 1 section 123.17, subsection 5, paragraph “c” , to the 19 department. 20 Sec. 14. REPEAL. Section 123.97, Code 2022, is repealed. 21 Sec. 15. EFFECTIVE DATE. This division of this Act takes 22 effect January 1, 2023. 23 DIVISION IV 24 CLASS “E” LIQUOR CONTROL LICENSES AND WINE PERMITS 25 Sec. 16. Section 123.30, subsection 3, paragraphs a and b, 26 Code 2022, are amended to read as follows: 27 a. Class “A”. A class “A” liquor control license may be 28 issued to a club and shall authorize the holder to purchase 29 alcoholic liquors in original unopened containers from class 30 “E” liquor control licensees only, wine from class “A” wine 31 permittees or class “B” wine permittees who also hold class 32 “E” liquor control licenses licensees only as provided in 33 sections 123.173 this subsection and section 123.177 , and to 34 sell alcoholic beverages to bona fide members and their guests 35 -6- LSB 5292HZ (2) 89 ec/rn 6/ 23

H.F. 2531 by the individual drink for consumption on the premises only. 1 b. Class “B”. A class “B” liquor control license may be 2 issued to a hotel or motel and shall authorize the holder to 3 purchase alcoholic liquors in original unopened containers from 4 class “E” liquor control licensees only, wine from class “A” 5 wine permittees or class “B” wine permittees who also hold 6 class “E” liquor control licenses licensees only as provided in 7 sections 123.173 this subsection and section 123.177 , and to 8 sell alcoholic beverages to patrons by the individual drink for 9 consumption on the premises only. However, beer may also be 10 sold for consumption off the premises. Each license shall be 11 effective throughout the premises described in the application. 12 Sec. 17. Section 123.30, subsection 3, paragraph c, 13 subparagraphs (1) and (2), Code 2022, are amended to read as 14 follows: 15 (1) A class “C” liquor control license may be issued to 16 a commercial establishment but must be issued in the name of 17 the individuals who actually own the entire business and shall 18 authorize the holder to purchase alcoholic liquors in original 19 unopened containers from class “E” liquor control licensees 20 only, wine from class “A” wine permittees or class “B” wine 21 permittees who also hold class “E” liquor control licenses 22 licensees only as provided in sections 123.173 this subsection 23 and section 123.177 , and to sell alcoholic beverages to patrons 24 by the individual drink for consumption on the premises only. 25 However, alcoholic liquor, wine, and beer in original unopened 26 containers may also be sold for consumption off the premises. 27 In addition, mixed drinks or cocktails may also be sold for 28 consumption off the premises subject to the requirements of 29 section 123.49, subsection 2 , paragraph “d” . The holder of a 30 class “C” liquor control license may also hold a special class 31 “A” beer permit for the premises licensed under a class “C” 32 liquor control license for the purpose of operating a brewpub 33 pursuant to this chapter . 34 (2) A special class “C” liquor control license may be 35 -7- LSB 5292HZ (2) 89 ec/rn 7/ 23

H.F. 2531 issued to a commercial establishment and shall authorize the 1 holder to purchase wine from class “A” wine permittees or class 2 “B” wine permittees who also hold class “E” liquor control 3 licenses licensees only as provided in sections 123.173 this 4 subsection and section 123.177 , and to sell wine and beer to 5 patrons by the individual drink for consumption on the premises 6 only. However, beer may also be sold for consumption off the 7 premises. The license issued to holders of a special class “C” 8 liquor control license shall clearly state on its face that the 9 license is limited. 10 Sec. 18. Section 123.30, subsection 3, paragraph d, 11 subparagraph (2), Code 2022, is amended to read as follows: 12 (2) A class “D” liquor control licensee who operates a train 13 or a watercraft intrastate only, or an excursion gambling boat 14 licensed under chapter 99F , shall purchase alcoholic liquor in 15 original unopened containers from a class “E” liquor control 16 licensee only, wine from a class “A” wine permittee or a class 17 “B” wine permittee who also holds a class “E” liquor control 18 license licensee only as provided in sections 123.173 this 19 subsection and section 123.177 , and beer from a class “A” beer 20 permittee only. 21 Sec. 19. Section 123.30, subsection 3, paragraph e, 22 subparagraph (1), Code 2022, is amended to read as follows: 23 (1) A class “E” liquor control license may be issued and 24 shall authorize the holder to purchase alcoholic liquor in 25 original unopened containers from the division only , wine 26 from a class “A” wine permittee only, and high alcoholic 27 content beer from a class “A” beer permittee only ; and to sell 28 the alcoholic liquor , wine, and beer in original unopened 29 containers and high alcoholic content beer at retail to 30 patrons for consumption off the licensed premises ; and to 31 sell alcoholic liquor and high alcoholic content beer at 32 wholesale to other liquor control licensees, provided the 33 holder has filed with the division a basic permit issued by the 34 alcohol and tobacco tax and trade bureau of the United States 35 -8- LSB 5292HZ (2) 89 ec/rn 8/ 23

H.F. 2531 department of the treasury. A holder of a class “E” liquor 1 control license may hold other retail liquor control licenses 2 or retail wine or beer permits, but the premises licensed under 3 a class “E” liquor control license shall be separate from other 4 licensed premises, though the separate premises may have a 5 common entrance. However, the holder of a class “E” liquor 6 control license may also hold a class “B” wine or class “C” 7 beer permit or both for the premises licensed under a class “E” 8 liquor control license. A class “E” liquor control licensee 9 may sell wine to class “A”, class “B”, class “C”, special 10 class “C”, and class “D” liquor control licensees for resale 11 for consumption on the premises. Such wine sales shall be in 12 quantities of less than one case of any wine brand but not more 13 than one such sale shall be made to the same liquor control 14 licensee in a twenty-four-hour period. 15 Sec. 20. Section 123.36, subsection 9, Code 2022, is amended 16 by striking the subsection and inserting in lieu thereof the 17 following: 18 9. Class “E” liquor control license fees shall be determined 19 as follows: 20 a. For premises located within the corporate limits of a 21 city with a population of one thousand five hundred or less, a 22 sum determined as follows: 23 (1) For a premises with a square footage of one thousand 24 five hundred or less, seven hundred fifty dollars. 25 (2) For a premises with a square footage of more than one 26 thousand five hundred but not more than two thousand, one 27 thousand five hundred dollars. 28 (3) For a premises with a square footage of more than two 29 thousand but not more than five thousand, two thousand five 30 hundred dollars. 31 (4) For a premises with a square footage over five thousand, 32 three thousand five hundred dollars. 33 b. For premises located within the corporate limits of a 34 city with a population of more than one thousand five hundred 35 -9- LSB 5292HZ (2) 89 ec/rn 9/ 23

H.F. 2531 but less than ten thousand, a sum determined as follows: 1 (1) For a premises with a square footage of one thousand 2 five hundred or less, one thousand five hundred dollars. 3 (2) For a premises with a square footage of more than one 4 thousand five hundred but not more than two thousand, two 5 thousand five hundred dollars. 6 (3) For a premises with a square footage of more than two 7 thousand but not more than five thousand, three thousand five 8 hundred dollars. 9 (4) For a premises with a square footage over five thousand, 10 five thousand dollars. 11 c. For premises located within the corporate limits 12 of a city with a population of ten thousand or more, a sum 13 determined as follows: 14 (1) For a premises with a square footage of one thousand 15 five hundred or less, two thousand five hundred dollars. 16 (2) For a premises with a square footage of more than one 17 thousand five hundred but not more than two thousand, three 18 thousand five hundred dollars. 19 (3) For a premises with a square footage of more than 20 two thousand but not more than five thousand, five thousand 21 dollars. 22 (4) For a premises with a square footage over five thousand, 23 seven thousand five hundred dollars. 24 d. For premises located outside the corporate limits of 25 any city, a sum equal to that charged to a premises with the 26 same square footage in the incorporated city located nearest 27 the premises to be licensed. If there is doubt as to which 28 of two or more differing corporate limits is the nearest, the 29 license fee which is the largest shall prevail. However, if 30 the premises is located in an unincorporated town, for purposes 31 of this paragraph, the unincorporated town shall be treated as 32 if it is a city. 33 Sec. 21. Section 123.173, subsections 2 and 3, Code 2022, 34 are amended to read as follows: 35 -10- LSB 5292HZ (2) 89 ec/rn 10/ 23

H.F. 2531 2. A class “A” wine permit allows the holder to manufacture 1 and sell, or sell at wholesale, in this state, wine. The 2 holder of a class “A” wine permit may manufacture in this state 3 wine having an alcoholic content greater than seventeen percent 4 by weight or twenty-one and twenty-five hundredths percent of 5 alcohol by volume for shipment outside this state. All class 6 “A” premises shall be located within the state. A class “B” or 7 class “B” native wine permit allows the holder to sell wine at 8 retail for consumption off the premises. A class “B” or class 9 “B” native wine permittee who also holds a class “E” liquor 10 control license may sell wine to class “A”, class “B”, class 11 “C”, special class “C”, and class “D” liquor control licensees 12 for resale for consumption on the premises. Such wine sales 13 shall be in quantities of less than one case of any wine brand 14 but not more than one such sale shall be made to the same liquor 15 control licensee in a twenty-four-hour period. A class “B” or 16 class “B” native wine permittee shall not sell wine to other 17 class “B” or class “B” native wine permittees. A class “C” 18 native wine permit allows the holder to sell native wine for 19 consumption on or off the premises. 20 3. A class “A” wine permittee shall be required to deliver 21 wine to a retail wine permittee, and a retail wine permittee 22 shall be required to accept delivery of wine from a class 23 “A” wine permittee, only at the licensed premises of the 24 retail wine permittee. Except as specifically permitted by 25 the division upon good cause shown, delivery or transfer 26 of wine from an unlicensed premises to a licensed retail 27 wine permittee’s premises, or from one licensed retail 28 wine permittee’s premises to another licensed retail wine 29 permittee’s premises, even if there is common ownership of all 30 of the premises by one retail permittee, is prohibited. A 31 class “B” or class “B” native wine permittee who also holds 32 a class “E” liquor control license shall keep and maintain 33 records for each sale of wine to liquor control licensees 34 showing the name of the establishment to which wine was sold, 35 -11- LSB 5292HZ (2) 89 ec/rn 11/ 23

H.F. 2531 the date of sale, and the brands and number of bottles sold to 1 the liquor control licensee. 2 Sec. 22. Section 123.173, subsection 4, Code 2022, is 3 amended by striking the subsection. 4 Sec. 23. EFFECTIVE DATE. This division of this Act takes 5 effect January 1, 2023. 6 DIVISION V 7 SPECIAL LICENSES AND PERMITS 8 Sec. 24. Section 123.32, subsection 1, paragraph b, 9 subparagraph (7), Code 2022, is amended to read as follows: 10 (7) A charity beer, spirits, and wine auction special event 11 permit as provided in section 123.173A . 12 Sec. 25. Section 123.32, subsection 1, paragraph b, 13 subparagraph (8), Code 2022, is amended by striking the 14 subparagraph. 15 Sec. 26. Section 123.34, subsection 2, Code 2022, is amended 16 to read as follows: 17 2. a. The administrator may issue six-month or eight-month 18 seasonal class “A”, class “B”, class “C”, special class “C”, 19 and class “D” liquor control licenses, class “B” wine permits, 20 class “B” or class “C” native wine permits, or class “B” beer 21 permits. 22 b. The fee for a six-month or an eight-month seasonal 23 license or permit issued pursuant to this subsection shall be 24 for a proportionate part fifty percent of the license or permit 25 fee for that class of license or permit. However, the fee for 26 a seasonal class “B” native wine permit shall be the permit fee 27 provided in section 123.179, subsection 4 , and the fee for a 28 seasonal class “C” native wine permit shall be the permit fee 29 provided in section 123.179, subsection 5 . 30 Sec. 27. Section 123.39, subsection 1, paragraph a, 31 subparagraph (2), Code 2022, is amended to read as follows: 32 (2) The administrator may suspend a certificate 33 of compliance, a class “D” liquor control license, a 34 manufacturer’s license, a broker’s permit, a class “A” native 35 -12- LSB 5292HZ (2) 89 ec/rn 12/ 23

H.F. 2531 distilled spirits license, a class “A” or special class “A” 1 beer permit, a charity beer, spirits, and wine auction special 2 event permit, a class “A” wine permit, a wine direct shipper’s 3 permit, or a wine carrier permit for a period not to exceed one 4 year, revoke the license, permit, or certificate, or impose a 5 civil penalty not to exceed one thousand dollars per violation. 6 Sec. 28. Section 123.173A, Code 2022, is amended by striking 7 the section and inserting in lieu thereof the following: 8 123.173A Charity beer, spirits, and wine special event 9 permit. 10 1. For purposes of this section: 11 a. “Authorized nonprofit entity” includes a nonprofit 12 entity which has a principal office in the state, a nonprofit 13 corporation organized under chapter 504, or a foreign 14 corporation as defined in section 504.141, whose income is 15 exempt from federal taxation under section 501(c) of the 16 Internal Revenue Code. 17 b. “Charity auction” means an auction conducted by an 18 authorized nonprofit entity which includes beer, spirits, and 19 wine. 20 c. “Charity event” means an event at which an authorized 21 nonprofit entity may serve the event’s attendees beer, 22 spirits, and wine for consumption on the premises of the event, 23 regardless of whether the entity charges an admission fee to 24 the event or otherwise collects the cost of the beer, spirits, 25 and wine served from the event’s attendees. 26 d. “Charity special event” means a charity auction, charity 27 event, or a combined charity auction and charity event. 28 2. Upon application to the division and receipt of a charity 29 beer, spirits, and wine special event permit, an authorized 30 nonprofit entity may conduct a charity special event subject to 31 the requirements of this section. 32 3. A charity auction conducted by a charity beer, spirits, 33 and wine special event permittee shall comply with the 34 following requirements: 35 -13- LSB 5292HZ (2) 89 ec/rn 13/ 23

H.F. 2531 a. The authorized nonprofit entity conducting the charity 1 auction shall obtain the beer, spirits, and wine to be 2 auctioned at the charity auction from an Iowa retail beer 3 permittee, an Iowa retail liquor control licensee, or an Iowa 4 retail wine permittee, or may receive donations of beer, 5 spirits, or wine to be auctioned at the charity auction from 6 persons who purchased the donated beer, spirits, or wine from 7 an Iowa retail beer permittee, an Iowa retail liquor control 8 licensee, an Iowa class “A” native distilled spirits licensee, 9 or an Iowa retail wine permittee and who present a receipt 10 documenting the purchase at the time the beer, spirits, or wine 11 is donated. The authorized nonprofit entity conducting the 12 charity auction shall retain a copy of the receipt for a period 13 of one year from the date of the charity beer, spirits, and 14 wine auction. 15 b. The beer, spirits, and wine sold at the charity auction 16 shall be in original containers for consumption off of the 17 premises where the charity auction is conducted. No other 18 alcoholic beverage may be sold by the charity beer, spirits, 19 and wine special event permittee at the charity auction. A 20 purchaser of beer, spirits, or wine at a charity auction shall 21 not take possession of the beer, spirits, or wine until the 22 person is leaving the event. A purchaser of beer, spirits, 23 or wine at a charity auction shall not open the container or 24 consume or permit the consumption of the beer, spirits, or 25 wine purchased on the premises where the charity auction is 26 conducted. A purchaser of beer, spirits, or wine at a charity 27 auction shall not resell the beer, spirits, or wine. 28 c. A liquor control licensee, beer permittee, class “A” 29 native distilled spirits licensee, or wine permittee shall not 30 purchase beer, spirits, or wine at a charity auction. The 31 charity auction may be conducted on a premises for which a 32 class “B” liquor control license or class “C” liquor control 33 license has been issued, provided that the liquor control 34 licensee does not participate in the charity auction, supply 35 -14- LSB 5292HZ (2) 89 ec/rn 14/ 23

H.F. 2531 beer, spirits, or wine to be auctioned at the charity auction, 1 or receive any of the proceeds of the charity auction. 2 4. A charity event conducted by a charity beer, spirits, and 3 wine special event permittee shall comply with the following 4 requirements: 5 a. The charity event shall be conducted on a premises 6 covered by a valid liquor control license or retail wine or 7 beer permit issued by the division. 8 b. The authorized nonprofit entity conducting a charity 9 event shall have a written agreement with the liquor control 10 licensee or wine or beer permittee covering the premises where 11 the charity event is to be conducted specifying that that 12 licensee or permittee shall act as the agent of the authorized 13 nonprofit entity for the purpose of providing and serving 14 alcoholic beverages to the attendees of the charity event. 15 c. The liquor control licensee or wine or beer permittee 16 covering the premises where the charity event is to be 17 conducted shall supply all alcoholic beverages served to the 18 attendees of the charity event. 19 d. Only those types of alcoholic beverages as are authorized 20 to be sold by the liquor control license or wine or beer 21 permit covering the premises where the charity event is to be 22 conducted are to be served to the attendees of the charity 23 event. 24 5. An application for a charity beer, spirits, and wine 25 special event permit to conduct a charity special event shall 26 include all of the following information: 27 a. The date and time when the charity special event is to be 28 conducted and the location of the premises in this state where 29 the charity special event is to be physically conducted. 30 b. The liquor control license or wine or beer permit number 31 issued by the division for the premises where a charity event 32 is to be conducted, if applicable. 33 c. A certification that the objective of the charity special 34 event is to raise funds solely to be used for educational, 35 -15- LSB 5292HZ (2) 89 ec/rn 15/ 23

H.F. 2531 religious, or charitable purposes and that the entire proceeds 1 from the charity special event are to be expended for any of 2 the purposes described in section 423.3, subsection 78. 3 6. An authorized nonprofit entity shall be eligible to 4 receive no more than two charity beer, spirits, and wine 5 special event permits during a calendar year and each charity 6 beer, spirits, and wine special event permit shall be valid for 7 a period not to exceed thirty-six consecutive hours. 8 7. Any violation of the requirements of this chapter or 9 the rules adopted pursuant to this chapter shall subject 10 the charity beer, spirits, and wine special event permit 11 holder to the general penalties provided in this chapter and 12 shall constitute grounds for imposition of a civil penalty, 13 suspension of the permit, or revocation of the permit after 14 notice and opportunity for a hearing pursuant to section 123.39 15 and chapter 17A. 16 Sec. 29. Section 123.179, subsection 6, Code 2022, is 17 amended to read as follows: 18 6. The fee for a charity beer, spirits, and wine auction 19 special event permit is one hundred dollars. 20 Sec. 30. Section 123.179, subsection 7, Code 2022, is 21 amended by striking the subsection. 22 Sec. 31. REPEAL. Section 123.173B, Code 2022, is repealed. 23 Sec. 32. EFFECTIVE DATE. This division of this Act takes 24 effect January 1, 2023. 25 DIVISION VI 26 SUNDAY SALES 27 Sec. 33. Section 123.34, subsections 3 and 4, Code 2022, are 28 amended to read as follows: 29 3. a. The administrator may issue fourteen-day class “A”, 30 class “B”, class “C”, special class “C”, and class “D” liquor 31 control licenses, and fourteen-day class “B” beer permits, 32 class “B” native wine permits, and class “C” native wine 33 permits. 34 b. A fourteen-day license or permit, if granted, is valid 35 -16- LSB 5292HZ (2) 89 ec/rn 16/ 23

H.F. 2531 for fourteen consecutive days , but the holder shall not sell on 1 the two Sundays in the fourteen-day period unless the holder 2 qualifies for and obtains the privilege to sell on Sundays 3 contained in section 123.36, subsection 6 , and section 123.134, 4 subsection 4 . 5 c. (1) The fee for a fourteen-day liquor control license 6 or beer permit is one quarter of the annual fee for that class 7 of liquor control license or beer permit. The fee for the 8 privilege to sell on the two Sundays in the fourteen-day period 9 is twenty percent of the price of the fourteen-day liquor 10 control license or beer permit. 11 (2) The fee for a fourteen-day class “B” native wine permit 12 shall be the permit fee provided in section 123.179, subsection 13 4 , and the fee for a fourteen-day class “C” native wine permit 14 is the permit fee provided in section 123.179, subsection 5 . 15 4. a. The administrator may issue five-day class “A”, class 16 “B”, class “C”, special class “C”, and class “D” liquor control 17 licenses, and five-day class “B” beer permits, class “B” native 18 wine permits, and class “C” native wine permits. 19 b. A five-day license or permit is valid for five 20 consecutive days , but the holder shall not sell alcoholic 21 beverages on Sunday in the five-day period unless the holder 22 qualifies for and obtains the privilege to sell on Sunday 23 pursuant to section 123.36, subsection 6, and section 123.134, 24 subsection 4 . 25 c. (1) The fee for the five-day liquor control license 26 or beer permit is one-eighth of the annual fee for that class 27 of license or permit. The fee for the privilege to sell on a 28 Sunday in the five-day period is ten percent of the price of 29 the five-day liquor control license or beer permit. 30 (2) The fee for a five-day class “B” native wine permit 31 shall be the permit fee provided in section 123.179, subsection 32 4 , and the fee for a five-day class “C” native wine permit is 33 the permit fee provided in section 123.179, subsection 5 . 34 Sec. 34. Section 123.36, subsection 6, Code 2022, is amended 35 -17- LSB 5292HZ (2) 89 ec/rn 17/ 23

H.F. 2531 by striking the subsection. 1 Sec. 35. Section 123.36, subsection 8, Code 2022, is amended 2 to read as follows: 3 8. The division shall credit all fees to the beer and liquor 4 control fund. The division shall remit to the appropriate 5 local authority, a sum equal to sixty-five percent of the fees 6 collected for each class “A”, class “B”, or class “C” license 7 except special class “C” licenses or class “E” licenses, 8 covering premises located within the local authority’s 9 jurisdiction. The division shall remit to the appropriate 10 local authority a sum equal to seventy-five percent of the fees 11 collected for each special class “C” license covering premises 12 located within the local authority’s jurisdiction. Those fees 13 collected for the privilege authorized under subsection 6 and 14 those fees collected for each class “E” liquor control license 15 shall be credited to the beer and liquor control fund. 16 Sec. 36. Section 123.46A, subsection 3, paragraph b, Code 17 2022, is amended to read as follows: 18 b. Orders for deliveries may be taken by the licensee or 19 permittee between the hours of 2:00 a.m. and 6:00 a.m. 20 on a day other than Sunday, and orders for deliveries may 21 be taken between the hours of 2:00 a.m. and 6:00 a.m. on a 22 Sunday provided the licensee or permittee has been granted 23 the privilege of selling alcoholic liquor, wine, beer, or 24 mixed drinks or cocktails on Sunday on any day of the week , 25 notwithstanding any provision of section 123.49, subsection 2 , 26 paragraph “b” , to the contrary. 27 Sec. 37. Section 123.49, subsection 2, paragraph b, Code 28 2022, is amended to read as follows: 29 b. Sell or dispense any alcoholic beverage on the premises 30 covered by the license or permit, or permit its consumption 31 thereon between the hours of 2:00 a.m. and 6:00 a.m. on a 32 weekday, and between the hours of 2:00 a.m. on Sunday and 6:00 33 a.m. on the following Monday, however, a holder of a liquor 34 control license or retail wine or beer permit granted the 35 -18- LSB 5292HZ (2) 89 ec/rn 18/ 23