House Study Bill 649 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON COMMERCE BILL BY CHAIRPERSON LUNDGREN) A BILL FOR An Act relating to alcoholic beverage control concerning the 1 sale of beer and liquor for resale. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5748YC (2) 89 ec/rn
H.F. _____ Section 1. Section 123.22, subsection 1, Code 2022, is 1 amended to read as follows: 2 1. The division has the exclusive right of importation 3 into the state of all forms of alcoholic liquor, except as 4 otherwise provided in this chapter , and a person shall not 5 import alcoholic liquor, except that an individual of legal age 6 may import and have in the individual’s possession an amount of 7 alcoholic liquor not exceeding nine liters per calendar month 8 that the individual personally obtained outside the state. 9 Alcoholic liquor imported by an individual pursuant to this 10 subsection shall be for personal consumption only in a private 11 home or other private accommodation. A distillery shall not 12 sell alcoholic liquor within the state to any person but only 13 to the division, except as otherwise provided in this chapter . 14 This section vests in the division exclusive control within the 15 state as purchaser of all alcoholic liquor sold by distilleries 16 within the state or imported, except beer and wine, and except 17 as otherwise provided in this chapter . The division shall 18 receive alcoholic liquor on a bailment system for resale by the 19 division in the manner set forth in this chapter . The division 20 shall act as the sole wholesaler of alcoholic liquor to class 21 “E” liquor control licensees. 22 Sec. 2. Section 123.30, subsection 3, paragraphs a and b, 23 Code 2022, are amended to read as follows: 24 a. Class “A”. A class “A” liquor control license may be 25 issued to a club and shall authorize the holder to purchase 26 alcoholic liquors in original unopened containers from class 27 “E” liquor control licensees or the division only, wine from 28 class “A” wine permittees or class “B” wine permittees who also 29 hold class “E” liquor control licenses only as provided in 30 sections 123.173 and 123.177 , and to sell alcoholic beverages 31 to bona fide members and their guests by the individual drink 32 for consumption on the premises only. 33 b. Class “B”. A class “B” liquor control license may be 34 issued to a hotel or motel and shall authorize the holder to 35 -1- LSB 5748YC (2) 89 ec/rn 1/ 4
H.F. _____ purchase alcoholic liquors in original unopened containers from 1 class “E” liquor control licensees or the division only, wine 2 from class “A” wine permittees or class “B” wine permittees who 3 also hold class “E” liquor control licenses only as provided in 4 sections 123.173 and 123.177 , and to sell alcoholic beverages 5 to patrons by the individual drink for consumption on the 6 premises only. However, beer may also be sold for consumption 7 off the premises. Each license shall be effective throughout 8 the premises described in the application. 9 Sec. 3. Section 123.30, subsection 3, paragraph c, 10 subparagraphs (1) and (2), Code 2022, are amended to read as 11 follows: 12 (1) A class “C” liquor control license may be issued to 13 a commercial establishment but must be issued in the name of 14 the individuals who actually own the entire business and shall 15 authorize the holder to purchase alcoholic liquors in original 16 unopened containers from class “E” liquor control licensees or 17 the division only, wine from class “A” wine permittees or class 18 “B” wine permittees who also hold class “E” liquor control 19 licenses only as provided in sections 123.173 and 123.177 , beer 20 from a class “A” beer permittee or a class “C” beer permittee 21 who also holds a class “E” liquor control license as provided 22 in section 123.132, and to sell alcoholic beverages to patrons 23 by the individual drink for consumption on the premises only. 24 However, alcoholic liquor, wine, and beer in original unopened 25 containers may also be sold for consumption off the premises. 26 In addition, mixed drinks or cocktails may also be sold for 27 consumption off the premises subject to the requirements of 28 section 123.49, subsection 2 , paragraph “d” . The holder of a 29 class “C” liquor control license may also hold a special class 30 “A” beer permit for the premises licensed under a class “C” 31 liquor control license for the purpose of operating a brewpub 32 pursuant to this chapter . 33 (2) A special class “C” liquor control license may be issued 34 to a commercial establishment and shall authorize the holder 35 -2- LSB 5748YC (2) 89 ec/rn 2/ 4
H.F. _____ to purchase wine from class “A” wine permittees or class “B” 1 wine permittees who also hold class “E” liquor control licenses 2 only as provided in sections 123.173 and 123.177 , beer from a 3 class “A” beer permittee or a class “C” beer permittee who also 4 holds a class “E” liquor control license as provided in section 5 123.132, and to sell wine and beer to patrons by the individual 6 drink for consumption on the premises only. However, beer may 7 also be sold for consumption off the premises. The license 8 issued to holders of a special class “C” liquor control license 9 shall clearly state on its face that the license is limited. 10 Sec. 4. Section 123.131, subsection 1, Code 2022, is amended 11 to read as follows: 12 1. Subject to the provisions of this chapter , any person 13 holding a class “B” beer permit shall be authorized to sell 14 beer for consumption on or off the premises. A holder of 15 a class “B” beer permit shall be authorized to purchase 16 beer from a class “A” beer permittee or a class “C” beer 17 permittee who also holds a class “E” liquor control license as 18 provided in section 123.132. Sales of beer for consumption 19 off the premises made pursuant to this section shall be made 20 in original containers except as provided in subsection 2 . 21 However, unless otherwise provided in this chapter , no sale 22 of beer shall be made for consumption on the premises unless 23 the place where such service is made is equipped with tables 24 and seats sufficient to accommodate not less than twenty-five 25 persons at one time. 26 Sec. 5. Section 123.132, subsection 4, Code 2022, is amended 27 to read as follows: 28 4. The holder of a class “C” beer permit or the permittee’s 29 agents or employees shall not sell beer to other retail license 30 or permit holders knowing or having reasonable cause to believe 31 that the beer will be resold in another licensed establishment. 32 However, a holder of a class “C” beer permit who also holds a 33 class “E” liquor control license may sell beer to class “B” 34 permittees, and class “C” and special class “C” liquor control 35 -3- LSB 5748YC (2) 89 ec/rn 3/ 4
H.F. _____ licensees, for resale for consumption on the premises. Beer 1 sales shall be in quantities in a twenty-four-hour period as 2 determined by the division. 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 concerns alcoholic beverage control relating 7 to the sale of alcoholic liquor by the alcoholic beverages 8 division of the department of commerce and the sale of beer for 9 resale by a class “C” beer permittee who also holds a class “E” 10 liquor control license. 11 Code section 123.22, concerning the state monopoly regarding 12 alcoholic liquor, is amended to allow the alcoholic beverages 13 division to be the sole wholesaler of alcoholic liquor to all 14 liquor control licensees, not just class “E” liquor control 15 licensees. Code section 123.30, concerning liquor control 16 licenses, is amended to allow this purchase of alcoholic liquor 17 from the alcoholic beverages division. 18 Code section 123.132, concerning the authority of a class 19 “C” beer permit, is amended to allow a holder of a class “C” 20 beer permit who also holds a class “E” liquor control license 21 to sell beer to class “B” permittees, and class “C” and special 22 class “C” liquor control licensees, for resale for consumption 23 on the premises in such quantities in a 24-hour period as the 24 alcoholic beverages division determines. Code section 123.30, 25 concerning class “C” and special class “C” liquor control 26 licensees, and Code section 123.131, concerning class “B” beer 27 permittees, are amended to allow for the purchase of beer from 28 a holder of a class “C” beer permit who also holds a class “E” 29 liquor control license. 30 -4- LSB 5748YC (2) 89 ec/rn 4/ 4