HSB 602 (LSB 5292XD (6) 89)

SENATE/HOUSE FILE _____

BY  (PROPOSED DEPARTMENT OF COMMERCE/ALCOHOLIC BEVERAGES DIVISION BILL)

A BILL FOR

An Act relating to alcoholic beverage control and matters under the purview of the alcoholic beverages division of the department of commerce and including effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

DIVISION I
ALCOHOLIC BEVERAGE CONTROL

    Section 1.  Section 123.46A, subsection 3, paragraph f, Code 2022, is amended to read as follows:
   f.  Deliveries shall occur between 6:00 a.m. and 10:00 p.m. Monday through Sunday on the same day the order for alcoholic liquor, wine, beer, or mixed drinks or cocktails is removed from the licensed premises.
    Sec. 2.  Section 123.50, subsection 1, Code 2022, is amended to read as follows:
   1.  Any person who violates any of the provisions of section 123.49, except section 123.49, subsection 2, paragraph “h”, or who fails to affix upon sale, defaces, or fails to record a keg identification sticker label or produce a record of keg identification stickers labels pursuant to section 123.138, shall be guilty of a simple misdemeanor. A person who violates section 123.49, subsection 2, paragraph “h”, commits a simple misdemeanor punishable as a scheduled violation under section 805.8C, subsection 2.
    Sec. 3.  Section 123.138, subsection 2, paragraphs a and b, Code 2022, are amended to read as follows:
   a.  Each class “B”, “C”, or special class “C” liquor control licensee and class “B” or “C” beer permittee who sells beer for off-premises consumption shall affix to each keg of beer an identification sticker label provided by the administrator. The sticker label provided shall allow for its full removal when common external keg cleaning procedures are performed. For the purposes of this subsection, “keg” means all durable and disposable containers with a liquid capacity of five gallons or more. Each class “B”, “C”, or special class “C” liquor control licensee and class “B” or “C” beer permittee shall also keep a record of the identification sticker label number of each keg of beer sold by the licensee or permittee with the name and address of the purchaser and the number of the purchaser’s driver’s license, nonoperator’s identification card, or military identification card, if the military identification card contains a picture and signature. This information shall be retained by the licensee or permittee for a minimum of ninety days. The records kept pursuant to this subsection shall be available for inspection by any law enforcement officer during normal business hours.
   b.  (1)  The division shall provide the keg identification stickers labels described in paragraph “a” and shall, prior to utilizing a sticker label, notify licensed brewers and licensed beer importers of the type of sticker label to be utilized. Each sticker label shall contain a number and the following statement:
  It is unlawful to sell, give, or otherwise supply any alcoholic beverage, wine, or beer to any person under legal age. Any person who defaces this sticker label shall be guilty of criminal mischief punishable pursuant to section 716.6 and shall cause the forfeiture of any deposit, if applicable.

   (2)  The identification sticker label shall be placed on the keg at the time of retail sale. The licensee or permittee shall purchase obtain the stickers labels referred to in this subsection from the division and shall remit to the division deposits forfeited pursuant to this lettered paragraph due to defacement. The cost of the stickers labels to licensees and permittees shall not exceed the division’s cost of producing and distributing the stickers labels. The moneys collected by the division relating to the sale of stickers and forfeited deposits labels shall be credited to the beer and liquor control fund.
    Sec. 4.  Section 123.138, subsection 2, paragraph d, Code 2022, is amended by striking the paragraph.
    Sec. 5.  Section 123.187, subsection 2, paragraph d, Code 2022, is amended by striking the paragraph.
DIVISION II
AUTOMATIC RENEWALS

    Sec. 6.  Section 123.34, subsection 1, Code 2022, is amended by striking the subsection.
    Sec. 7.  NEW SECTION.  123.35  Expiration of licenses, permits, and certificates of compliance —— automatic renewals.
   1.  Except as otherwise provided by this chapter, all licenses, permits, and certificates of compliance, unless sooner suspended or revoked, expire one year from date of issuance.
   2.  Notwithstanding section 123.31 and any other provision of this chapter to the contrary, a class “E” liquor control license shall automatically renew without the endorsement of a local authority or approval by the administrator upon collection of the annual fee by the division, provided all of the following conditions are met since the preceding license was issued:
   a.  The permittee has given written consent to the division to have the permit automatically renewed as provided in this section.
   b.  The license has not been suspended or revoked.
   c.  A civil penalty has not been imposed against the licensee.
   d.  An administrative proceeding is not pending against the licensee to suspend or revoke the license or to impose a civil penalty under this chapter.
   e.  The licensee has not submitted payment for alcoholic liquor to the division that was subsequently dishonored.
   f.  The licensee and all persons associated with the licensee as described in section 123.3, subsection 40, paragraph “e”, have not been convicted of a violation of this chapter.
   g.  The licensed premises constitutes a safe and proper place or building and conforms with all applicable federal, state, and local laws, orders, ordinances, rules, resolutions, and health and fire regulations.
   3.  Notwithstanding sections 123.23, 123.135, 123.180, and any other provision of this chapter to the contrary, a distiller’s, brewer’s, or vintner’s certificate of compliance shall automatically renew without approval by the administrator upon collection of the annual fee by the division, provided all of the following conditions are met since the preceding certificate was issued:
   a.  The certificate holder has given written consent to the division to have the certificate automatically renewed as provided in this section.
   b.  The certificate has not been suspended or revoked.
   c.  A civil penalty has not been imposed against the certificate holder.
   d.  An administrative proceeding is not pending against the certificate holder to suspend or revoke the certificate or to impose a civil penalty under this chapter.
   e.  The certificate holder and all persons associated with the certificate holder as described in section 123.3, subsection 40, paragraph “e”, have not been convicted of a violation of this chapter.
   4.  Notwithstanding section 123.187 and any other provision of this chapter to the contrary, a wine direct shipper’s permit shall automatically renew without approval by the administrator upon collection of the annual fee by the division, provided all of the following conditions are met since the preceding permit was issued:
   a.  The permittee has given written consent to the division to have the permit automatically renewed as provided in this section.
   b.  The permit has not been suspended or revoked.
   c.  A civil penalty has not been imposed against the permittee.
   d.  An administrative proceeding is not pending against the permittee to suspend or revoke the permit or to impose a civil penalty under this chapter.
   e.  The permittee has filed all required reports and remitted all wine gallonage tax owed pursuant to section 123.183.
   f.  The permittee and all persons associated with the permittee as described in section 123.3, subsection 40, paragraph “e”, have not been convicted of a violation of this chapter.
    Sec. 8.  EFFECTIVE DATE.  This division of this Act takes effect January 1, 2023.
DIVISION III
ALCOHOLIC BEVERAGE CONTROL REVENUES

    Sec. 9.  Section 123.17, subsection 5, Code 2022, is amended to read as follows:
   5.  a.  After any transfer provided for in subsection 3 is made, the department of commerce shall transfer into a special revenue account in the general fund of the state, a sum of money at least equal to seven percent of the gross amount of sales made by the division from the beer and liquor control fund on a monthly basis but not less than nine million dollars annually.
   b.  Of the amounts transferred, two million dollars, plus an additional amount determined by the general assembly, shall be appropriated to the Iowa department of public health for use by the staff who administer the comprehensive substance abuse program under chapter 125 for substance abuse treatment and prevention programs.
   c.  In addition, of the amounts transferred, one million dollars, plus an additional amount determined by the general assembly, shall be appropriated to the Iowa department of public health for distribution pursuant to section 125.59.
   d.  Any amounts received in excess of the amounts appropriated to the Iowa department of public health for use by the staff who administer the comprehensive substance abuse program under chapter 125 pursuant to this subsection shall be considered part of the general fund balance.
    Sec. 10.  Section 123.143, subsection 1, Code 2022, is amended by striking the subsection.
    Sec. 11.  Section 123.143, subsection 2, Code 2022, is amended to read as follows:
   2.  All permit fees collected by the division under this subchapter shall accrue to the beer and liquor control fund, except as otherwise provided.  All permit fees and taxes collected by the division under this subchapter shall accrue to the state general fund, except as otherwise provided.
    Sec. 12.  Section 123.143, Code 2022, is amended by adding the following new subsection:
   NEW SUBSECTION.  2A.  All retail beer permit fees collected by the division shall be credited to the beer and liquor control fund. The division shall remit to the appropriate local authority a sum of money equal to the total amount of the fees collected for each retail beer permit covering premises located within the local authority’s jurisdiction.
    Sec. 13.  Section 125.59, unnumbered paragraph 1, Code 2022, is amended to read as follows:
   The treasurer of state, on each July 1 for that fiscal year, shall transfer the estimated amounts to be received from section 123.36, subsection 8 and section 123.143, subsection 1 section 123.17, subsection 5, paragraph “c”, to the department.
    Sec. 14.  REPEAL.  Section 123.97, Code 2022, is repealed.
    Sec. 15.  EFFECTIVE DATE.  This division of this Act takes effect January 1, 2023.
DIVISION IV
CLASS “E” LIQUOR CONTROL LICENSES

    Sec. 16.  Section 123.30, subsection 3, paragraph e, subparagraph (1), Code 2022, is amended to read as follows:
   (1)  A class “E” liquor control license may be issued and shall authorize the holder to purchase alcoholic liquor in original unopened containers from the division only, wine from a class “A” wine permittee only, and high alcoholic content beer from a class “A” beer permittee only; and to sell the alcoholic liquor, wine, and beer in original unopened containers and high alcoholic content beer at retail to patrons for consumption off the licensed premises; and to sell alcoholic liquor and high alcoholic content beer at wholesale to other liquor control licensees, provided the holder has filed with the division a basic permit issued by the alcohol and tobacco tax and trade bureau of the United States department of the treasury. A holder of a class “E” liquor control license may hold other retail liquor control licenses or retail wine or beer permits, but the premises licensed under a class “E” liquor control license shall be separate from other licensed premises, though the separate premises may have a common entrance. However, the holder of a class “E” liquor control license may also hold a class “B” wine or class “C” beer permit or both for the premises licensed under a class “E” liquor control license.
    Sec. 17.  Section 123.36, subsection 9, Code 2022, is amended by striking the subsection and inserting in lieu thereof the following:
   9.  Class “E” liquor control license fees shall be determined as follows:
   a.  For premises located within the corporate limits of a city with a population of one thousand five hundred or less, a sum determined as follows:
   (1)  For a premises with a square footage of one thousand five hundred or less, seven hundred fifty dollars.
   (2)  For a premises with a square footage of more than one thousand five hundred but not more than two thousand, one thousand five hundred dollars.
   (3)  For a premises with a square footage of more than two thousand but not more than five thousand, two thousand five hundred dollars.
   (4)  For a premises with a square footage over five thousand, three thousand five hundred dollars.
   b.  For premises located within the corporate limits of a city with a population of more than one thousand five hundred but less than ten thousand, a sum determined as follows:
   (1)  For a premises with a square footage of one thousand five hundred or less, one thousand five hundred dollars.
   (2)  For a premises with a square footage of more than one thousand five hundred but not more than two thousand, two thousand five hundred dollars.
   (3)  For a premises with a square footage of more than two thousand but not more than five thousand, three thousand five hundred dollars.
   (4)  For a premises with a square footage over five thousand, five thousand dollars.
   c.  For premises located within the corporate limits of a city with a population of ten thousand or more, a sum determined as follows:
   (1)  For a premises with a square footage of one thousand five hundred or less, two thousand five hundred dollars.
   (2)  For a premises with a square footage of more than one thousand five hundred but not more than two thousand, three thousand five hundred dollars.
   (3)  For a premises with a square footage of more than two thousand but not more than five thousand, five thousand dollars.
   (4)  For a premises with a square footage over five thousand, seven thousand five hundred dollars.
   d.  For premises located outside the corporate limits of any city, a sum equal to that charged to a premises with the same square footage in the incorporated city located nearest the premises to be licensed. If there is doubt as to which of two or more differing corporate limits is the nearest, the license fee which is the largest shall prevail. However, if the premises is located in an unincorporated town, for purposes of this paragraph, the unincorporated town shall be treated as if it is a city.
    Sec. 18.  EFFECTIVE DATE.  This division of this Act takes effect January 1, 2023.
DIVISION V
SPECIAL LICENSES AND PERMITS

    Sec. 19.  Section 123.32, subsection 1, paragraph b, subparagraph (7), Code 2022, is amended to read as follows:
   (7)  A charity beer, spirits, and wine auction special event permit as provided in section 123.173A.
    Sec. 20.  Section 123.32, subsection 1, paragraph b, subparagraph (8), Code 2022, is amended by striking the subparagraph.
    Sec. 21.  Section 123.34, subsection 2, Code 2022, is amended to read as follows:
   2.  a.  The administrator may issue six-month or eight-month seasonal class “A”, class “B”, class “C”, special class “C”, and class “D” liquor control licenses, class “B” wine permits, class “B” or class “C” native wine permits, or class “B” beer permits.
   b.  The fee for a six-month or an eight-month seasonal license or permit issued pursuant to this subsection shall be for a proportionate part fifty percent of the license or permit fee for that class of license or permit. However, the fee for a seasonal class “B” native wine permit shall be the permit fee provided in section 123.179, subsection 4, and the fee for a seasonal class “C” native wine permit shall be the permit fee provided in section 123.179, subsection 5.
    Sec. 22.  Section 123.39, subsection 1, paragraph a, subparagraph (2), Code 2022, is amended to read as follows:
   (2)  The administrator may suspend a certificate of compliance, a class “D” liquor control license, a manufacturer’s license, a broker’s permit, a class “A” native distilled spirits license, a class “A” or special class “A” beer permit, a charity beer, spirits, and wine auction special event permit, a class “A” wine permit, a wine direct shipper’s permit, or a wine carrier permit for a period not to exceed one year, revoke the license, permit, or certificate, or impose a civil penalty not to exceed one thousand dollars per violation.
    Sec. 23.  Section 123.173A, Code 2022, is amended by striking the section and inserting in lieu thereof the following:
   123.173A  Charity beer, spirits, and wine special event permit.
   1.  For purposes of this section:
   a.  “Authorized nonprofit entity” includes a nonprofit entity which has a principal office in the state, a nonprofit corporation organized under chapter 504, or a foreign corporation as defined in section 504.141, whose income is exempt from federal taxation under section 501(c) of the Internal Revenue Code.
   b.  “Charity auction” means an auction conducted by an authorized nonprofit entity which includes beer, spirits, and wine.
   c.  “Charity event” means an event at which an authorized nonprofit entity may serve the event’s attendees beer, spirits, and wine for consumption on the premises of the event, regardless of whether the entity charges an admission fee to the event or otherwise collects the cost of the beer, spirits, and wine served from the event’s attendees.
   d.  “Charity special event” means a charity auction, charity event, or a combined charity auction and charity event.
   2.  Upon application to the division and receipt of a charity beer, spirits, and wine special event permit, an authorized nonprofit entity may conduct a charity special event subject to the requirements of this section.
   3.  A charity auction conducted by a charity beer, spirits, and wine special event permittee shall comply with the following requirements:
   a.  The authorized nonprofit entity conducting the charity auction shall obtain the beer, spirits, and wine to be auctioned at the charity auction from an Iowa retail beer permittee, an Iowa retail liquor control licensee, or an Iowa retail wine permittee, or may receive donations of beer, spirits, or wine to be auctioned at the charity auction from persons who purchased the donated beer, spirits, or wine from an Iowa retail beer permittee, an Iowa retail liquor control licensee, an Iowa class “A” native distilled spirits licensee, or an Iowa retail wine permittee and who present a receipt documenting the purchase at the time the beer, spirits, or wine is donated. The authorized nonprofit entity conducting the charity auction shall retain a copy of the receipt for a period of one year from the date of the charity beer, spirits, and wine auction.
   b.  The beer, spirits, and wine sold at the charity auction shall be in original containers for consumption off of the premises where the charity auction is conducted. No other alcoholic beverage may be sold by the charity beer, spirits, and wine special event permittee at the charity auction. A purchaser of beer, spirits, or wine at a charity auction shall not take possession of the beer, spirits, or wine until the person is leaving the event. A purchaser of beer, spirits, or wine at a charity auction shall not open the container or consume or permit the consumption of the beer, spirits, or wine purchased on the premises where the charity auction is conducted. A purchaser of beer, spirits, or wine at a charity auction shall not resell the beer, spirits, or wine.
   c.  A liquor control licensee, beer permittee, class “A” native distilled spirits licensee, or wine permittee shall not purchase beer, spirits, or wine at a charity auction. The charity auction may be conducted on a premises for which a class “B” liquor control license or class “C” liquor control license has been issued, provided that the liquor control licensee does not participate in the charity auction, supply beer, spirits, or wine to be auctioned at the charity auction, or receive any of the proceeds of the charity auction. 
   4.  A charity event conducted by a charity beer, spirits, and wine special event permittee shall comply with the following requirements:
   a.  The charity event shall be conducted on a premises covered by a valid liquor control license or retail wine or beer permit issued by the division.
   b.  The authorized nonprofit entity conducting a charity event shall have a written agreement with the liquor control licensee or wine or beer permittee covering the premises where the charity event is to be conducted specifying that that licensee or permittee shall act as the agent of the authorized nonprofit entity for the purpose of providing and serving alcoholic beverages to the attendees of the charity event.
   c.  The liquor control licensee or wine or beer permittee covering the premises where the charity event is to be conducted shall supply all alcoholic beverages served to the attendees of the charity event.
   d.  Only those types of alcoholic beverages as are authorized to be sold by the liquor control license or wine or beer permit covering the premises where the charity event is to be conducted are to be served to the attendees of the charity event.
   5.  An application for a charity beer, spirits, and wine special event permit to conduct a charity special event shall include all of the following information:
   a.  The date and time when the charity special event is to be conducted and the location of the premises in this state where the charity special event is to be physically conducted.
   b.  The liquor control license or wine or beer permit number issued by the division for the premises where a charity event is to be conducted, if applicable.
   c.  A certification that the objective of the charity special event is to raise funds solely to be used for educational, religious, or charitable purposes and that the entire proceeds from the charity special event are to be expended for any of the purposes described in section 423.3, subsection 78. 
   6.  An authorized nonprofit entity shall be eligible to receive no more than two charity beer, spirits, and wine special event permits during a calendar year and each charity beer, spirits, and wine special event permit shall be valid for a period not to exceed thirty-six consecutive hours.
   7.  Any violation of the requirements of this chapter or the rules adopted pursuant to this chapter shall subject the charity beer, spirits, and wine special event permit holder to the general penalties provided in this chapter and shall constitute grounds for imposition of a civil penalty, suspension of the permit, or revocation of the permit after notice and opportunity for a hearing pursuant to section 123.39 and chapter 17A.
    Sec. 24.  Section 123.179, subsection 6, Code 2022, is amended to read as follows:
   6.  The fee for a charity beer, spirits, and wine auction special event permit is one hundred dollars.
    Sec. 25.  Section 123.179, subsection 7, Code 2022, is amended by striking the subsection.
    Sec. 26.  REPEAL.  Section 123.173B, Code 2022, is repealed.
    Sec. 27.  EFFECTIVE DATE.  This division of this Act takes effect January 1, 2023.
DIVISION VI
SUNDAY SALES

    Sec. 28.  Section 123.34, subsections 3 and 4, Code 2022, are amended to read as follows:
   3.  a.  The administrator may issue fourteen-day class “A”, class “B”, class “C”, special class “C”, and class “D” liquor control licenses, and fourteen-day class “B” beer permits, class “B” native wine permits, and class “C” native wine permits.
   b.  A fourteen-day license or permit, if granted, is valid for fourteen consecutive days, but the holder shall not sell on the two Sundays in the fourteen-day period unless the holder qualifies for and obtains the privilege to sell on Sundays contained in section 123.36, subsection 6, and section 123.134, subsection 4.
   c.  (1)  The fee for a fourteen-day liquor control license or beer permit is one quarter of the annual fee for that class of liquor control license or beer permit. The fee for the privilege to sell on the two Sundays in the fourteen-day period is twenty percent of the price of the fourteen-day liquor control license or beer permit.
   (2)  The fee for a fourteen-day class “B” native wine permit shall be the permit fee provided in section 123.179, subsection 4, and the fee for a fourteen-day class “C” native wine permit is the permit fee provided in section 123.179, subsection 5.
   4.  a.  The administrator may issue five-day class “A”, class “B”, class “C”, special class “C”, and class “D” liquor control licenses, and five-day class “B” beer permits, class “B” native wine permits, and class “C” native wine permits.
   b.  A five-day license or permit is valid for five consecutive days, but the holder shall not sell alcoholic beverages on Sunday in the five-day period unless the holder qualifies for and obtains the privilege to sell on Sunday pursuant to section 123.36, subsection 6, and section 123.134, subsection 4.
   c.  (1)  The fee for the five-day liquor control license or beer permit is one-eighth of the annual fee for that class of license or permit. The fee for the privilege to sell on a Sunday in the five-day period is ten percent of the price of the five-day liquor control license or beer permit.
   (2)  The fee for a five-day class “B” native wine permit shall be the permit fee provided in section 123.179, subsection 4, and the fee for a five-day class “C” native wine permit is the permit fee provided in section 123.179, subsection 5.
    Sec. 29.  Section 123.36, subsection 6, Code 2022, is amended by striking the subsection.
    Sec. 30.  Section 123.36, subsection 8, Code 2022, is amended to read as follows:
   8.  The division shall credit all fees to the beer and liquor control fund. The division shall remit to the appropriate local authority, a sum equal to sixty-five percent of the fees collected for each class “A”, class “B”, or class “C” license except special class “C” licenses or class “E” licenses, covering premises located within the local authority’s jurisdiction. The division shall remit to the appropriate local authority a sum equal to seventy-five percent of the fees collected for each special class “C” license covering premises located within the local authority’s jurisdiction. Those fees collected for the privilege authorized under subsection 6 and those fees collected for each class “E” liquor control license shall be credited to the beer and liquor control fund.
    Sec. 31.  Section 123.46A, subsection 3, paragraph b, Code 2022, is amended to read as follows:
   b.  Orders for deliveries may be taken by the licensee or permittee between the hours of 2:00 a.m. and 6:00 a.m.

on a day other than Sunday, and orders for deliveries may be taken between the hours of 2:00 a.m. and 6:00 a.m. on a Sunday provided the licensee or permittee has been granted the privilege of selling alcoholic liquor, wine, beer, or mixed drinks or cocktails on Sunday on any day of the week, notwithstanding any provision of section 123.49, subsection 2, paragraph “b”, to the contrary.
    Sec. 32.  Section 123.49, subsection 2, paragraph b, Code 2022, is amended to read as follows:
   b.  Sell or dispense any alcoholic beverage on the premises covered by the license or permit, or permit its consumption thereon between the hours of 2:00 a.m. and 6:00 a.m. on a weekday, and between the hours of 2:00 a.m. on Sunday and 6:00 a.m. on the following Monday, however, a holder of a liquor control license or retail wine or beer permit granted the privilege of selling alcoholic liquor, wine, or beer on Sunday may sell or dispense alcoholic liquor, wine, or beer between the hours of 6:00 a.m. on Sunday and 2:00 a.m. on the following Monday any day of the week.
    Sec. 33.  Section 123.49, subsection 4, Code 2022, is amended by striking the subsection.
    Sec. 34.  Section 123.134, subsection 4, Code 2022, is amended by striking the subsection.
    Sec. 35.  REPEAL.  Section 123.150, Code 2022, is repealed.
    Sec. 36.  EFFECTIVE DATE.  This division of this Act takes effect January 1, 2023.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to alcoholic beverage control and matters under the purview of the alcoholic beverages division.
   Division I of the bill relates to keg identification stickers, deliveries of alcoholic beverages, and the wine direct shipper permit.
   Code section 123.46A, concerning delivery of alcoholic beverages by retailers, is amended to provide that deliveries shall occur on the same day the order for delivery of alcoholic beverages is removed from the licensed premises of the retailer.
   Code section 123.138, concerning keg identification stickers, is amended to provide for a keg identification label instead of a sticker. In addition, the bill strikes provisions concerning the forfeiture and remittance of deposits relating to defacing the keg identification label.
   Code section 123.187, concerning the wine direct shipper permit, is amended to remove the requirement that an application for the permit be accompanied by a bond if not otherwise required to submit a bond as a wine manufacturer.
   Division II of the bill relates to the renewal of certain licenses, permits, and certificates of compliance.
   Code section 123.34, subsection 1, providing generally for the expiration of licenses, permits, and certificates of compliance one year from the date of issuance, and including a notification requirement by the administrator of the alcoholic beverage division prior to expiration, is stricken.
   New Code section 123.35 includes the provision from current Code section 123.34 providing for the expiration of licenses, permits, and certificates of compliance without the notification requirement. The new Code section further provides, notwithstanding any provision of Code chapter 123 to the contrary, for the automatic renewal of a class “E” liquor control license, a distiller’s, vintner’s, or brewer’s certificate of compliance, and a wine direct shipper’s permit. The bill allows the renewal of the applicable license, certificate, or permit without approval by the administrator of the alcoholic beverages division or endorsement of any applicable local authority upon collection of the annual fee for that license, certificate, or permit by the alcoholic beverages division, provided certain conditions are met since the preceding license, certificate, or permit was issued. The bill provides that the license, certificate, or permit can be automatically renewed if, in the preceding year, the license, certificate, or permit has not been suspended or revoked, a civil penalty has not been imposed, an administrative proceeding is not pending to suspend or revoke the license, certificate, or permit or to impose a civil penalty, all required payments to the division have been made, and the licensee, certificate holder, or permittee, and all persons associated with the licensee, certificate holder, or permittee as described in Code section 123.3, subsection 40, paragraph “e”, have not been convicted of a violation of Code chapter 123. In addition, for renewal of a class “E” liquor control license, the licensed premises shall constitute a safe and proper place and building that complies with all applicable building-related regulations.
   This division of the bill takes effect January 1, 2023.
   Division III of the bill relates to the distribution of certain alcoholic beverage control revenues.
   Code section 123.17, concerning transfers from the beer and liquor control fund, is amended. The bill provides that of the moneys transferred to a special revenue account in the general fund of the state from the beer and liquor control fund, $1 million, plus any additional amount as determined by the general assembly, shall be appropriated to the department of public health to be distributed as provided in Code section 125.59 as grants to counties, persons, or nonprofit entities for substance abuse and prevention programs. Code section 125.59 is amended to reflect that only this new appropriation shall be transferred to the department of public health for the purposes of Code section 125.59.
   Code section 123.143, concerning distribution of certain beer permit fees, is amended. The bill provides that all beer-related permit fees collected by the alcoholic beverages division shall accrue to the beer and liquor control fund except as otherwise provided. The bill also provides that of the retail beer permit fees collected by the alcoholic beverages division, the division shall remit to the applicable local authority a sum of money equal to the retail beer permit fees collected by the division covering premises covered by the local authority’s jurisdiction. The bill further eliminates the requirement that retail beer permit fees collected by the local authority be transferred as provided in Code section 125.59.
   Code section 123.97, providing that most revenues arising under the operation of Code chapter 123 become part of the general fund of the state, is repealed as inconsistent with the provisions of current Code section 123.17. 
   This division of the bill takes effect January 1, 2023.
   Division IV of the bill relates to class “E” liquor control licenses.
   Code section 123.30, concerning liquor control licenses, is amended. The bill provides that a class “E” liquor control licensee can purchase wine and beer from a class “A” wine or beer permittee only, respectively. The bill specifically allows the class “E” licensee to sell wine and beer in unopened containers at retail, and to sell alcoholic liquor and high alcoholic content beer at wholesale. The bill strikes a provision allowing the holder of a class “E” liquor control license to also hold a class “B” wine or class “C” beer permit for the premises licensed under the class “E” license.
   Code section 123.36, concerning class “E” liquor control license fees, is amended. The bill establishes license fees based on the population of the city where the premises is located as well as the square footage of the licensed premises. Current law bases the fees only on the population of the city where the premises is located.
   This division of the bill takes effect January 1, 2023.
   Division V of the bill relates to certain special licenses and permits.
   Code section 123.34, concerning seasonal licenses and permits, is amended. The bill eliminates the six-month seasonal license or permit and provides that the fee for an eight-month seasonal license or permit shall be 50 percent of the license or permit fee for that class of license or permit instead of a proportional share of that fee.
   Code section 123.173A, providing for a charity beer, spirits, and wine auction permit, and Code section 123.173B, providing for a charity beer, spirits, and wine event permit, are stricken and replaced with a combined charity beer, spirits, and wine special event permit, allowing the permit holder to conduct a charity auction, charity event, or a combined charity auction and charity event in a similar manner as is allowed under current law for the two separate permits. The bill only allows one charity auction, charity event, or combined charity auction and charity event, to be conducted during the period of the permit and limits a person to no more than two special event permits in a calendar year.
   This division of the bill takes effect January 1, 2023.
   Division VI of the bill concerns Sunday sales of alcoholic beverages. The bill eliminates the requirement to obtain a special privilege to sell alcoholic beverages on Sunday and provides that sales or other activities relating to alcoholic beverages on Sunday will be allowed to the same extent as they are allowed on any other day. 
   This division of the bill takes effect January 1, 2023.