Senate File 2374 - Introduced SENATE FILE 2374 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO SF 2350) (SUCCESSOR TO SSB 3140) A BILL FOR An Act relating to alcoholic beverage control and licensing, 1 providing for fees, and including effective date provisions. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5045SZ (3) 89 ec/rn
S.F. 2374 DIVISION I 1 RETAIL ALCOHOL LICENSES 2 Section 1. Section 123.30, Code 2022, is amended by striking 3 the section and inserting in lieu thereof the following: 4 123.30 Retail alcohol licenses —— classes. 5 1. a. A retail alcohol license may be issued to any person 6 who is of good moral character as defined by this chapter. 7 b. As a condition for issuance of a retail alcohol license 8 or wine or beer permit, the applicant must give consent 9 to members of the fire, police, and health departments and 10 the building inspector of cities; the county sheriff or 11 deputy sheriff; members of the department of public safety; 12 representatives of the division and of the department of 13 inspections and appeals; certified police officers; and 14 any official county health officer to enter upon areas of 15 the premises where alcoholic beverages are stored, served, 16 or sold, without a warrant during business hours of the 17 licensee or permittee to inspect for violations of this 18 chapter or ordinances and regulations that cities and boards 19 of supervisors may adopt. However, a subpoena issued under 20 section 421.17 or a warrant is required for inspection of 21 private records, a private business office, or attached living 22 quarters. Persons who are not certified peace officers shall 23 limit the scope of their inspections of licensed premises 24 to the regulatory authority under which the inspection is 25 conducted. All persons who enter upon a licensed premises to 26 conduct an inspection shall present appropriate identification 27 to the owner of the establishment or the person who appears 28 to be in charge of the establishment prior to commencing 29 an inspection; however, this provision does not apply to 30 undercover criminal investigations conducted by peace officers. 31 c. As a further condition for the issuance of a class “E” 32 retail alcohol license, the applicant shall post a bond in 33 a sum of not less than five thousand nor more than fifteen 34 thousand dollars as determined on a sliding scale established 35 -1- LSB 5045SZ (3) 89 ec/rn 1/ 81
S.F. 2374 by the division; however, a bond shall not be required if all 1 purchases of alcoholic liquor from the division by the licensee 2 are made by means that ensure that the division will receive 3 full payment in advance of delivery of the alcoholic liquor. 4 d. A class “E” retail alcohol license may be issued to a 5 city council for premises located within the limits of the city 6 if there are no class “E” retail alcohol licensees operating 7 within the limits of the city and no other applications for a 8 class “E” license for premises located within the limits of 9 the city at the time the city council’s application is filed. 10 If a class “E” retail alcohol license is subsequently issued 11 to a private person for premises located within the limits of 12 the city, the city council shall surrender its license to the 13 division within one year of the date that the class “E” retail 14 alcohol licensee begins operating, liquidate any remaining 15 assets connected with the liquor store, and cease operating the 16 liquor store. 17 2. A retail alcohol license shall not be issued for premises 18 which do not constitute a safe and proper place or building 19 and which do not conform to all applicable laws, ordinances, 20 resolutions, and health and fire regulations. A licensee 21 shall not have or maintain any interior access to residential 22 or sleeping quarters unless permission is granted by the 23 administrator in the form of a living quarters permit. 24 3. Retail alcohol licenses issued under this chapter shall 25 be of the following classes: 26 a. Class “B”. 27 (1) (a) A class “B” retail alcohol license may be 28 issued and shall authorize the holder to purchase wine from 29 a class “A” wine permittee only and beer from a class “A” 30 beer permittee only, and to sell wine and beer in original 31 unopened containers at retail to patrons for consumption off 32 the licensed premises. 33 (b) The holder of a class “B” retail alcohol license may 34 sell wine to class “C”, special class “C”, class “D”, and class 35 -2- LSB 5045SZ (3) 89 ec/rn 2/ 81
S.F. 2374 “F” retail alcohol licensees for resale for consumption on 1 the premises. Such wine sales shall be in quantities of less 2 than one case of any wine brand but not more than one such 3 sale shall be made to the same retail alcohol licensee in a 4 twenty-four-hour period. 5 (c) The holder of a class “B” retail alcohol license may 6 sell beer to class “C”, special class “C”, class “D”, and class 7 “F” retail alcohol licensees for resale for consumption on 8 the premises. Such beer sales shall be in quantities of not 9 more than five cases of beer, high alcoholic content beer, and 10 canned cocktails, but not more than one such sale shall be 11 made to the same retail alcohol licensee in a twenty-four-hour 12 period. A class “A” beer permittee shall be held harmless 13 concerning any beer resold as authorized by this subparagraph 14 division. 15 (2) A special class “B” retail native wine license shall 16 authorize the holder to purchase wine from a native winery 17 holding a class “A” wine permit and to sell native wine only at 18 retail for consumption off the licensed premises. 19 b. Class “C”. 20 (1) (a) A class “C” retail alcohol license may be issued to 21 a commercial establishment but must be issued in the name of 22 the individuals who actually own the entire business. 23 (b) The holder of a class “C” retail alcohol license shall 24 be authorized to purchase alcoholic beverages as follows: 25 (i) Alcoholic liquors in original unopened containers from 26 class “E” retail alcohol licensees only. 27 (ii) Wine from class “A” wine permittees. 28 (iii) Wine from class “B” retail alcohol licensees or class 29 “E” retail alcohol licensees in quantities of less than one 30 case of any wine brand in a twenty-four-hour period, but not 31 more than one such purchase shall be made by the licensee in a 32 twenty-four-hour period. 33 (iv) Beer from class “A” beer permittees. 34 (v) Beer from class “B” retail alcohol licensees or class 35 -3- LSB 5045SZ (3) 89 ec/rn 3/ 81
S.F. 2374 “E” retail alcohol licensees in quantities of not more than 1 five cases of beer, high alcoholic content beer, and canned 2 cocktails, but not more than one such purchase shall be made by 3 the licensee in a twenty-four-hour period. A class “A” beer 4 permittee shall be held harmless concerning any beer resold as 5 authorized by this subparagraph subdivision. 6 (c) The holder of a class “C” retail alcohol license 7 shall be authorized to sell alcoholic beverages to patrons by 8 the individual drink for consumption on the premises only. 9 However, alcoholic liquor, wine, and beer in original unopened 10 containers may also be sold for consumption off the premises. 11 In addition, mixed drinks or cocktails may also be sold for 12 consumption off the premises subject to the requirements of 13 section 123.49, subsection 2, paragraph “d” . 14 (d) The holder of a class “C” retail alcohol license may 15 also hold a special class “A” beer permit for the premises 16 licensed under a class “C” retail alcohol license for the 17 purpose of operating a brewpub pursuant to this chapter. 18 (2) (a) A special class “C” retail alcohol license may be 19 issued to a commercial establishment. 20 (b) The holder of a special class “C” retail alcohol license 21 shall be authorized to purchase alcoholic beverages as follows: 22 (i) Wine from class “A” wine permittees. 23 (ii) Wine from class “B” retail alcohol licensees or class 24 “E” retail alcohol licensees in quantities of less than one 25 case of any wine brand in a twenty-four-hour period, but not 26 more than one such purchase shall be made by the licensee in a 27 twenty-four-hour period. 28 (iii) Beer from class “A” beer permittees. 29 (iv) Beer from class “B” retail alcohol licensees or class 30 “E” retail alcohol licensees in quantities of not more than 31 five cases of beer, high alcoholic content beer, and canned 32 cocktails, but not more than one such purchase shall be made by 33 the licensee in a twenty-four-hour period. A class “A” beer 34 permittee shall be held harmless concerning any beer resold as 35 -4- LSB 5045SZ (3) 89 ec/rn 4/ 81
S.F. 2374 authorized by this subparagraph subdivision. 1 (c) The holder of a special class “C” retail alcohol 2 license shall be authorized to sell wine and beer to patrons 3 by the individual drink for consumption on the premises only. 4 However, wine and beer in original unopened containers may also 5 be sold for consumption off the premises. 6 (d) The license issued to holders of a special class “C” 7 retail alcohol license shall clearly state on its face that the 8 license is limited. 9 c. Class “D”. 10 (1) A class “D” retail alcohol license may be issued 11 to a railway corporation, to an air common carrier, and to 12 passenger-carrying boats or ships for hire with a capacity of 13 twenty-five persons or more operating in inland or boundary 14 waters, and shall authorize the holder to sell or furnish 15 alcoholic beverages to passengers for consumption only on 16 trains, watercraft as described in this section, or aircraft, 17 respectively. Each license is valid throughout the state. 18 Only one license is required for all trains, watercraft, or 19 aircraft operated in the state by the licensee. However, if a 20 watercraft is an excursion gambling boat licensed under chapter 21 99F, the owner shall obtain a separate class “D” retail alcohol 22 license for each excursion gambling boat operating in the 23 waters of this state. 24 (2) A class “D” retail alcohol licensee who operates a train 25 or a watercraft intrastate only, or an excursion gambling boat 26 licensed under chapter 99F, shall be authorized to purchase 27 alcoholic beverages as follows: 28 (a) Alcoholic liquors in original unopened containers from 29 class “E” retail alcohol licensees only. 30 (b) Wine from class “A” wine permittees. 31 (c) Wine from class “B” retail alcohol licensees or class 32 “E” retail alcohol licensees in quantities of less than one 33 case of any wine brand in a twenty-four-hour period, but not 34 more than one such purchase shall be made by the licensee in a 35 -5- LSB 5045SZ (3) 89 ec/rn 5/ 81
S.F. 2374 twenty-four-hour period. 1 (d) Beer from class “A” beer permittees. 2 (e) Beer from class “B” retail alcohol licensees or class 3 “E” retail alcohol licensees in quantities of not more than 4 five cases of beer, high alcoholic content beer, and canned 5 cocktails, but not more than one such purchase shall be made by 6 the licensee in a twenty-four-hour period. A class “A” beer 7 permittee shall be held harmless concerning any beer resold as 8 authorized by this subparagraph division. 9 d. Class “E”. 10 (1) A class “E” retail alcohol license may be issued and 11 shall authorize the holder to purchase alcoholic liquor in 12 original unopened containers from the division only, wine 13 from a class “A” wine permittee only, and beer from a class 14 “A” beer permittee only; to sell alcoholic liquor, wine, and 15 beer in original unopened containers at retail to patrons for 16 consumption off the licensed premises; and to sell alcoholic 17 liquor and high alcoholic content beer at wholesale to other 18 retail alcohol licensees, provided the holder has filed with 19 the division a basic permit issued by the alcohol and tobacco 20 tax and trade bureau of the United States department of the 21 treasury. 22 (2) A holder of a class “E” retail alcohol license may hold 23 other retail alcohol licenses, but the premises licensed under 24 a class “E” retail alcohol license shall be separate from other 25 licensed premises, though the separate premises may have a 26 common entrance. 27 (3) The holder of a class “E” retail alcohol license may 28 sell wine to class “C”, special class “C”, class “D”, and class 29 “F” retail alcohol licensees for resale for consumption on 30 the premises. Such wine sales shall be in quantities of less 31 than one case of any wine brand but not more than one such 32 sale shall be made to the same retail alcohol licensee in a 33 twenty-four-hour period. 34 (4) The holder of a class “E” retail alcohol license may 35 -6- LSB 5045SZ (3) 89 ec/rn 6/ 81
S.F. 2374 sell beer to class “C”, special class “C”, class “D”, and class 1 “F” retail alcohol licensees for resale for consumption on 2 the premises. Such beer sales shall be in quantities of not 3 more than five cases of beer, high alcoholic content beer, and 4 canned cocktails, but not more than one such sale shall be 5 made to the same retail alcohol licensee in a twenty-four-hour 6 period. A class “A” beer permittee shall be held harmless 7 concerning any beer resold as authorized by this subparagraph. 8 (5) The division may issue a class “E” retail alcohol 9 license for premises covered by a retail alcohol license 10 for on-premises consumption under any of the following 11 circumstances: 12 (a) If the premises are in a county having a population 13 under nine thousand five hundred in which no other class “E” 14 retail alcohol license has been issued by the division, and no 15 other application for a class “E” retail alcohol license has 16 been made within the previous twelve consecutive months. 17 (b) If, notwithstanding any provision of this chapter to the 18 contrary, the premises covered by a retail alcohol license is a 19 grocery store that is at least five thousand square feet. 20 e. Class “F”. 21 (1) A class “F” retail alcohol license may be issued to a 22 club and shall authorize the holder to sell alcoholic beverages 23 to bona fide members and their guests by the individual drink 24 for consumption on the premises only. 25 (2) The holder of a class “F” retail alcohol license shall 26 be authorized to purchase alcoholic beverages as follows: 27 (a) Alcoholic liquors in original unopened containers from 28 class “E” retail alcohol licensees only. 29 (b) Wine from class “A” wine permittees. 30 (c) Wine from class “B” retail alcohol licensees or class 31 “E” retail alcohol licensees in quantities of less than one 32 case of any wine brand in a twenty-four—hour period, but not 33 more than one such purchase shall be made by the licensee in a 34 twenty-four-hour period. 35 -7- LSB 5045SZ (3) 89 ec/rn 7/ 81
S.F. 2374 (d) Beer from class “A” beer permittees. 1 (e) Beer from class “B” retail alcohol licensees or class 2 “E” retail alcohol licensees in quantities of not more than 3 five cases of beer, high alcoholic content beer, and canned 4 cocktails, but not more than one such purchase shall be made by 5 the licensee in a twenty-four-hour period. A class “A” beer 6 permittee shall be held harmless concerning any beer resold as 7 authorized by this subparagraph division. 8 4. Notwithstanding any provision of this chapter to the 9 contrary, a person holding a retail alcohol license to sell 10 alcoholic beverages for consumption on the licensed premises 11 may permit a customer to remove one unsealed bottle of wine 12 for consumption off the premises if the customer has purchased 13 and consumed a portion of the bottle of wine on the licensed 14 premises. The licensee or the licensee’s agent shall securely 15 reseal such bottle in a bag designed so that it is visibly 16 apparent that the resealed bottle of wine has not been tampered 17 with and provide a dated receipt for the resealed bottle of 18 wine to the customer. A wine bottle resealed pursuant to the 19 requirements of this subsection is subject to the requirements 20 of sections 321.284 and 321.284A. A person holding a retail 21 alcohol license to sell alcoholic beverages for consumption on 22 the licensed premises may permit a customer to carry an open 23 container of wine from the person’s licensed premises into 24 another immediately adjacent licensed premises that is covered 25 by a license or permit that authorizes the consumption of wine, 26 a temporarily closed public right-of-way, or a private place. 27 Sec. 2. Section 123.31, Code 2022, is amended by striking 28 the section and inserting in lieu thereof the following: 29 123.31 Retail alcohol licenses —— application. 30 1. A person applying for a retail alcohol license shall 31 submit a completed application electronically, or in a manner 32 prescribed by the administrator, which shall set forth under 33 oath the following: 34 a. The name and place of residence of the applicant. 35 -8- LSB 5045SZ (3) 89 ec/rn 8/ 81
S.F. 2374 b. The names and addresses of all persons or, in the case of 1 a corporation, limited liability company, or any other similar 2 legal entity, the officers, directors, and persons owning or 3 controlling ten percent or more of the capital stock thereof, 4 having a financial interest, by way of loan, ownership, or 5 otherwise, in the business. 6 c. The location of the premises where the applicant intends 7 to operate. 8 d. The name of the owner of the premises and if the owner of 9 the premises is not the applicant, whether the applicant is the 10 actual lessee of the premises. 11 e. When required by the administrator, and in such form and 12 containing such information as the administrator may require, 13 a description of the premises where the applicant intends to 14 use the license, to include a sketch or drawing of the premises 15 and, if applicable, the number of square feet of interior floor 16 space which comprises the retail sales area of the premises. 17 f. Whether any person specified in paragraph “b” has ever 18 been convicted of any offense against the laws of the United 19 States, or any state or territory thereof, or any political 20 subdivision of any such state or territory. 21 g. Any other information as required by the administrator. 22 2. The retail alcohol license shall only be issued to an 23 applicant who establishes all of the following: 24 a. That the applicant has submitted a completed application 25 as required by subsection 1. 26 b. That the applicant is a person of good moral character as 27 provided in section 123.3, subsection 40. 28 c. That the applicant is a citizen of the state of Iowa 29 or, if a corporation, that the applicant is authorized to do 30 business in the state. 31 d. That the premises where the applicant intends to use the 32 license conforms to all applicable laws, health regulations, 33 and fire regulations, and constitutes a safe and proper place 34 or building and that the applicant shall not have or maintain 35 -9- LSB 5045SZ (3) 89 ec/rn 9/ 81
S.F. 2374 any interior access to residential or sleeping quarters unless 1 permission is granted by the administrator in the form of a 2 living quarters permit. 3 e. That the applicant gives consent to a person, pursuant 4 to section 123.30, subsection 1, to enter upon the premises 5 without a warrant during the business hours of the applicant 6 to inspect for violations of the provisions of this chapter or 7 ordinances and regulations that local authorities may adopt. 8 Sec. 3. NEW SECTION . 123.31A Authority under class “B”, 9 class “C”, special class “C”, and class “E” retail alcohol 10 license. 11 1. The holder of a class “B”, class “C”, special class “C”, 12 or class “E” retail alcohol license shall be allowed to sell 13 beer and wine to consumers at retail for consumption off the 14 premises. The sales made pursuant to this section shall be 15 made in original containers except as provided in subsection 3. 16 2. Every person holding a class “B”, class “C”, special 17 class “C”, or class “E” retail alcohol license having more 18 than one place of business where beer and wine is sold which 19 places do not constitute a single premises within the meaning 20 of section 123.3, subsection 29, shall be required to have a 21 separate license for each separate place of business, except as 22 otherwise provided by this chapter. 23 3. Subject to the rules of the division, sales made pursuant 24 to this section may be made in a container other than the 25 original container only if all of the following requirements 26 are met: 27 a. The beer or wine is transferred from the original 28 container to the container to be sold on the licensed premises 29 at the time of sale. 30 b. The person transferring the beer or wine from the 31 original container to the container to be sold shall be 32 eighteen years of age or older. 33 c. The container to be sold shall be no larger than 34 seventy-two ounces. 35 -10- LSB 5045SZ (3) 89 ec/rn 10/ 81
S.F. 2374 d. The container to be sold shall be securely sealed by 1 a method authorized by the division that is designed so that 2 if the sealed container is reopened or the seal tampered with, 3 it is visibly apparent that the seal on the container of beer 4 or wine has been tampered with or the sealed container has 5 otherwise been reopened. 6 4. A container of beer or wine other than the original 7 container that is sold and sealed in compliance with the 8 requirements of subsection 3 and the division’s rules shall 9 not be deemed an open container subject to the requirements 10 of sections 321.284 and 321.284A if the sealed container is 11 unopened and the seal has not been tampered with, and the 12 contents of the container have not been partially removed. 13 5. a. The holder of a class “C” or special class “C” retail 14 alcohol license, or the licensee’s agents or employees, shall 15 not sell beer or wine to other retail alcohol license holders 16 knowing or having reasonable cause to believe that the beer 17 will be resold in another licensed establishment. 18 b. A holder of any retail alcohol permit shall not sell wine 19 except wine which is purchased from a person holding a class 20 “A” wine permit and on which the tax imposed by section 123.183 21 has been paid. 22 Sec. 4. NEW SECTION . 123.31B Authority under special class 23 “B” retail native wine license. 24 1. A person holding a special class “B” retail native wine 25 license may sell native wine only at retail for consumption off 26 the premises. Native wine shall be sold for consumption off 27 the premises in original containers. 28 2. A special class “B” retail native wine licensee having 29 more than one place of business where wine is sold shall obtain 30 a separate license for each place of business. 31 Sec. 5. REPEAL. Sections 123.128, 123.129, 123.131, 32 123.132, 123.140, 123.178, 123.178A, and 123.178B, Code 2022, 33 are repealed. 34 Sec. 6. EFFECTIVE DATE. This division of this Act takes 35 -11- LSB 5045SZ (3) 89 ec/rn 11/ 81
S.F. 2374 effect January 1, 2023. 1 DIVISION II 2 ALCOHOLIC BEVERAGE CONTROL FEES 3 Sec. 7. Section 123.23, subsection 1, Code 2022, is amended 4 to read as follows: 5 1. Any manufacturer, distiller, or importer of alcoholic 6 liquors shipping, selling, or having alcoholic liquors brought 7 into this state for resale by the state shall, as a condition 8 precedent to the privilege of so trafficking in alcoholic 9 liquors in this state, annually make application for and hold 10 a distiller’s certificate of compliance which shall be issued 11 by the administrator for that purpose. No brand of alcoholic 12 liquor shall be sold by the division in this state unless 13 the manufacturer, distiller, importer, and all other persons 14 participating in the distribution of that brand in this state 15 have obtained a certificate. The certificate of compliance 16 shall expire at the end of one year from the date of issuance 17 and shall be renewed for a like period upon application to the 18 administrator unless otherwise suspended or revoked for cause. 19 Each completed application for a certificate of compliance 20 or renewal shall be submitted electronically, or in a manner 21 prescribed by the administrator, and shall be accompanied by 22 a fee of fifty two hundred dollars payable to the division. 23 However, this subsection need not apply to a manufacturer, 24 distiller, or importer who ships or sells in this state no more 25 than eleven gallons or its case equivalent during any fiscal 26 year as a result of “special orders” which might be placed, 27 as defined and allowed by divisional rules adopted under this 28 chapter . 29 Sec. 8. Section 123.36, Code 2022, is amended by striking 30 the section and inserting in lieu thereof the following: 31 123.36 Retail alcohol license fees. 32 1. The following fees shall be paid to the division annually 33 for retail alcohol licenses issued under section 123.30: 34 a. Class “B” retail alcohol license fees shall be determined 35 -12- LSB 5045SZ (3) 89 ec/rn 12/ 81
S.F. 2374 as follows: 1 (1) For premises located within the corporate limits of a 2 city with a population of two thousand five hundred or less, a 3 fee determined as follows: 4 (a) For a premises with a square footage of one thousand 5 five hundred or less, seventy-five dollars. 6 (b) For a premises with a square footage of more than one 7 thousand five hundred but not more than two thousand, one 8 hundred fifty dollars. 9 (c) For a premises with a square footage of more than two 10 thousand but not more than five thousand, two hundred fifty 11 dollars. 12 (d) For a premises with a square footage over five thousand, 13 three hundred fifty dollars. 14 (2) For premises located within the corporate limits of a 15 city with a population of more than two thousand five hundred 16 but less than fifteen thousand, a fee determined as follows: 17 (a) For a premises with a square footage of one thousand 18 five hundred or less, one hundred fifty dollars. 19 (b) For a premises with a square footage of more than one 20 thousand five hundred but not more than two thousand, two 21 hundred fifty dollars. 22 (c) For a premises with a square footage of more than two 23 thousand but not more than five thousand, three hundred fifty 24 dollars. 25 (d) For a premises with a square footage over five thousand, 26 five hundred dollars. 27 (3) For premises located within the corporate limits of 28 a city with a population of fifteen thousand or more, a fee 29 determined as follows: 30 (a) For a premises with a square footage of one thousand 31 five hundred or less, two hundred fifty dollars. 32 (b) For a premises with a square footage of more than one 33 thousand five hundred but not more than two thousand, three 34 hundred fifty dollars. 35 -13- LSB 5045SZ (3) 89 ec/rn 13/ 81
S.F. 2374 (c) For a premises with a square footage of more than two 1 thousand but not more than five thousand, five hundred dollars. 2 (d) For a premises with a square footage over five thousand, 3 seven hundred fifty dollars. 4 (4) For premises located outside the corporate limits of 5 any city, a fee equal to that charged to a premises with the 6 same square footage in the incorporated city located nearest 7 the premises to be licensed. If there is doubt as to which 8 of two or more differing corporate limits is the nearest, the 9 license fee which is the largest shall prevail. However, if 10 the premises is located in an unincorporated town, for purposes 11 of this paragraph, the unincorporated town shall be treated as 12 if it is a city. 13 b. Special class “B” retail native wine license fees shall 14 be one hundred twenty-five dollars. 15 c. Class “C” retail alcohol license fees shall be determined 16 as follows: 17 (1) Commercial establishments located within the corporate 18 limits of cities of two thousand five hundred population or 19 less, five hundred fifty dollars. 20 (2) Commercial establishments located within the corporate 21 limits of cities of over two thousand five hundred and less 22 than fifteen thousand population, nine hundred dollars. 23 (3) Commercial establishments located within the corporate 24 limits of cities of fifteen thousand population and over, one 25 thousand two hundred fifty dollars. 26 (4) Commercial establishments located outside the corporate 27 limits of any city, a fee equal to that charged in the 28 incorporated city located nearest the premises to be licensed, 29 and in case there is doubt as to which of two or more differing 30 corporate limits is the nearest, the license fee which is the 31 largest shall prevail. However, if a commercial establishment 32 is located in an unincorporated town, for purposes of this 33 paragraph, the unincorporated town shall be treated as if it 34 is a city. 35 -14- LSB 5045SZ (3) 89 ec/rn 14/ 81
S.F. 2374 d. Special class “C” retail alcohol license fees shall be 1 determined as follows: 2 (1) Commercial establishments located within the corporate 3 limits of cities of two thousand five hundred population or 4 less, one hundred fifty dollars. 5 (2) Commercial establishments located within the corporate 6 limits of cities of over two thousand five hundred and less 7 than fifteen thousand population, three hundred dollars. 8 (3) Commercial establishments located within the corporate 9 limits of cities of fifteen thousand population and over, four 10 hundred fifty dollars. 11 (4) Commercial establishments located outside the corporate 12 limits of any city, a fee equal to that charged in the 13 incorporated city located nearest the premises to be licensed, 14 and in case there is doubt as to which of two or more differing 15 corporate limits is the nearest, the license fee which is the 16 largest shall prevail. However, if a commercial establishment 17 is located in an unincorporated town, for purposes of this 18 paragraph, the unincorporated town shall be treated as if it 19 is a city. 20 e. Class “D” retail alcohol license fees shall be determined 21 as follows: 22 (1) For watercraft, one hundred fifty dollars. 23 (2) For trains, five hundred dollars. 24 (3) For air common carriers, each company shall pay five 25 hundred dollars. 26 f. Class “E” retail alcohol license fees shall be determined 27 as follows: 28 (1) For premises located within the corporate limits of a 29 city with a population of two thousand five hundred or less, a 30 fee determined as follows: 31 (a) For a premises with a square footage of one thousand 32 five hundred or less, seven hundred fifty dollars. 33 (b) For a premises with a square footage of more than one 34 thousand five hundred but not more than two thousand, one 35 -15- LSB 5045SZ (3) 89 ec/rn 15/ 81
S.F. 2374 thousand five hundred dollars. 1 (c) For a premises with a square footage of more than two 2 thousand but not more than five thousand, two thousand five 3 hundred dollars. 4 (d) For a premises with a square footage over five thousand, 5 three thousand five hundred dollars. 6 (2) For premises located within the corporate limits of a 7 city with a population of more than two thousand five hundred 8 but less than fifteen thousand, a fee determined as follows: 9 (a) For a premises with a square footage of one thousand 10 five hundred or less, one thousand five hundred dollars. 11 (b) For a premises with a square footage of more than one 12 thousand five hundred but not more than two thousand, two 13 thousand five hundred dollars. 14 (c) For a premises with a square footage of more than two 15 thousand but not more than five thousand, three thousand five 16 hundred dollars. 17 (d) For a premises with a square footage over five thousand, 18 five thousand dollars. 19 (3) For premises located within the corporate limits of 20 a city with a population of fifteen thousand or more, a fee 21 determined as follows: 22 (a) For a premises with a square footage of one thousand 23 five hundred or less, two thousand five hundred dollars. 24 (b) For a premises with a square footage of more than one 25 thousand five hundred but not more than two thousand, three 26 thousand five hundred dollars. 27 (c) For a premises with a square footage of more than 28 two thousand but not more than five thousand, five thousand 29 dollars. 30 (d) For a premises with a square footage over five thousand, 31 seven thousand five hundred dollars. 32 (4) For premises located outside the corporate limits of 33 any city, a fee equal to that charged to a premises with the 34 same square footage in the incorporated city located nearest 35 -16- LSB 5045SZ (3) 89 ec/rn 16/ 81
S.F. 2374 the premises to be licensed. If there is doubt as to which 1 of two or more differing corporate limits is the nearest, the 2 license fee which is the largest shall prevail. However, if 3 the premises is located in an unincorporated town, for purposes 4 of this paragraph, the unincorporated town shall be treated as 5 if it is a city. 6 g. Class “F” retail alcohol license fees shall be six 7 hundred dollars, except that for class “F” licenses in cities 8 of less than two thousand population, and for clubs of less 9 than two hundred fifty members, the license fee shall be four 10 hundred dollars; however, the fee shall be two hundred dollars 11 for any club which is a post, branch, or chapter of a veterans 12 organization chartered by the Congress of the United States, if 13 the club does not sell or permit the consumption of alcoholic 14 beverages on the premises more than one day in any week or 15 more than a total of fifty-two days in a year, and if the 16 application for a license states that the club does not and 17 will not sell or permit the consumption of alcoholic beverages 18 on the premises more than one day in any week or more than a 19 total of fifty-two days in a year. 20 2. The division shall credit all fees to the beer and liquor 21 control fund. The division shall remit to the appropriate 22 local authority a sum equal to sixty-five percent of the fees 23 collected for each class “B”, class “C”, or class “F” license 24 except special class “C” licenses or class “E” licenses, 25 covering premises located within the local authority’s 26 jurisdiction. The division shall remit to the appropriate 27 local authority a sum equal to seventy-five percent of the fees 28 collected for each special class “C” license covering premises 29 located within the local authority’s jurisdiction. Those fees 30 collected for each class “E” retail alcohol license shall be 31 credited to the beer and liquor control fund. 32 3. There is imposed a surcharge on the fee for each class 33 “C”, special class “C”, or class “F” retail alcohol license 34 equal to thirty percent of the scheduled license fee. The 35 -17- LSB 5045SZ (3) 89 ec/rn 17/ 81
S.F. 2374 surcharges collected under this subsection shall be deposited 1 in the beer and liquor control fund, and notwithstanding 2 subsection 2, no portion of the surcharges collected under this 3 subsection shall be remitted to the local authority. 4 Sec. 9. Section 123.41, subsection 1, Code 2022, is amended 5 to read as follows: 6 1. Each completed application to obtain or renew a 7 manufacturer’s license shall be submitted to the division 8 electronically, or in a manner prescribed by the administrator, 9 and shall be accompanied by a fee of three hundred fifty 10 dollars payable to the division. The administrator may in 11 accordance with this chapter grant and issue to a manufacturer 12 a manufacturer’s license, valid for a one-year period after 13 date of issuance, which shall allow the manufacture, storage, 14 and wholesale disposition and sale of alcoholic liquors to the 15 division and to customers outside of the state. 16 Sec. 10. Section 123.43, subsection 3, Code 2022, is amended 17 to read as follows: 18 3. A class “A” native distilled spirits license for a native 19 distillery shall be issued and renewed annually upon payment of 20 a fee of five three hundred dollars. 21 Sec. 11. Section 123.134, Code 2022, is amended by striking 22 the section and inserting in lieu thereof the following: 23 123.134 Beer permit fees. 24 1. The annual permit fee for a class “A” beer permit is 25 seven hundred fifty dollars. 26 2. The annual permit fee for a class “A” beer permit for a 27 native brewery is three hundred dollars. 28 3. The annual permit fee for a special class “A” beer permit 29 is three hundred dollars. 30 Sec. 12. Section 123.135, subsection 1, Code 2022, is 31 amended to read as follows: 32 1. A manufacturer, brewer, bottler, importer, or vendor of 33 beer, or any agent thereof, desiring to ship or sell beer, or 34 have beer brought into this state for resale by a class “A” 35 -18- LSB 5045SZ (3) 89 ec/rn 18/ 81
S.F. 2374 beer permittee, shall first make application for and be issued 1 a brewer’s certificate of compliance by the administrator for 2 that purpose. The certificate of compliance expires at the 3 end of one year from the date of issuance and shall be renewed 4 for a like period upon application to the administrator unless 5 otherwise revoked for cause. Each completed application for 6 a certificate of compliance or renewal of a certificate shall 7 be submitted electronically, or in a manner prescribed by the 8 administrator, and shall be accompanied by a fee of five two 9 hundred dollars payable to the division. Each holder of a 10 certificate of compliance shall furnish the information in a 11 manner the administrator requires. 12 Sec. 13. Section 123.179, Code 2022, is amended by striking 13 the section and inserting in lieu thereof the following: 14 123.179 Wine permit and license fees. 15 1. The annual permit fee for a class “A” wine permit that 16 is not issued to a native wine manufacturer is seven hundred 17 fifty dollars. 18 2. The annual permit fee for a class “A” wine permit issued 19 to a native wine manufacturer is one hundred dollars. 20 3. The fee for a charity beer, spirits, and wine special 21 event license is one hundred dollars. 22 Sec. 14. Section 123.180, subsection 1, Code 2022, is 23 amended to read as follows: 24 1. A manufacturer, vintner, bottler, importer, or vendor of 25 wine, or an agent thereof, desiring to ship, sell, or have wine 26 brought into this state for sale at wholesale by a class “A” 27 permittee shall first make application for and shall be issued 28 a vintner’s certificate of compliance by the administrator 29 for that purpose. The vintner’s certificate of compliance 30 shall expire at the end of one year from the date of issuance 31 and shall be renewed for a like period upon application to 32 the administrator unless otherwise revoked for cause. Each 33 completed application for a vintner’s certificate of compliance 34 or renewal of a certificate shall be submitted electronically, 35 -19- LSB 5045SZ (3) 89 ec/rn 19/ 81
S.F. 2374 or in a manner prescribed by the administrator, and shall be 1 accompanied by a fee of one two hundred dollars payable to the 2 division. Each holder of a vintner’s certificate of compliance 3 shall furnish the information required by the administrator in 4 the form the administrator requires. A vintner or wine bottler 5 whose plant is located in Iowa and who otherwise holds a class 6 “A” wine permit to sell wine at wholesale is exempt from the 7 fee, but not the other terms and conditions. The holder of a 8 vintner’s certificate of compliance may also hold a class “A” 9 wine permit. 10 Sec. 15. EFFECTIVE DATE. This division of this Act takes 11 effect January 1, 2023. 12 DIVISION III 13 ALCOHOLIC BEVERAGE CONTROL 14 Sec. 16. Section 123.3, subsections 9, 22, 29, and 30, Code 15 2022, are amended to read as follows: 16 9. “Brewpub” means a commercial establishment authorized to 17 sell beer at retail for consumption on or off the premises that 18 is operated by a person who holds a class “C” liquor control or 19 special class “C” retail alcohol license or a class “B” beer 20 permit and who also holds a special class “A” beer permit that 21 authorizes the holder to manufacture and sell beer pursuant to 22 this chapter . 23 22. “High alcoholic content beer” means beer which contains 24 more than six and twenty-five hundredths percent of alcohol by 25 volume, but not more than fifteen nineteen percent of alcohol 26 by volume, that is made by the fermentation of an infusion 27 in potable water of barley, malt, and hops, with or without 28 unmalted grains or decorticated and degerminated grains. Not 29 more than one and five-tenths percent of the volume of a “high 30 alcoholic content beer” may consist of alcohol derived from 31 added flavors and other nonbeverage ingredients containing 32 alcohol. The added flavors and other nonbeverage ingredients 33 may not include added caffeine or other added stimulants 34 including but not limited to guarana, ginseng, and taurine. 35 -20- LSB 5045SZ (3) 89 ec/rn 20/ 81
S.F. 2374 29. “Licensed premises” or “premises” means all rooms, 1 enclosures, contiguous areas, or places susceptible of precise 2 description satisfactory to the administrator where alcoholic 3 beverages, wine, or beer is sold or consumed under authority of 4 a liquor control retail alcohol license, wine permit, or beer 5 permit. A single licensed premises may consist of multiple 6 rooms, enclosures, areas, or places if they are wholly within 7 the confines of a single building or contiguous grounds. 8 30. “Local authority” means the city council of any 9 incorporated city in this state, or the county board of 10 supervisors of any county in this state, which is empowered by 11 this chapter to approve or deny applications for retail beer or 12 wine permits and liquor control alcohol licenses; empowered to 13 recommend that such permits or licenses be granted and issued 14 by the division; and empowered to take other actions reserved 15 to them by this chapter . 16 Sec. 17. Section 123.3, subsection 40, paragraph b, Code 17 2022, is amended to read as follows: 18 b. The person is not prohibited by section 123.40 from 19 obtaining a liquor control retail alcohol license or a wine or 20 beer permit. 21 Sec. 18. Section 123.3, subsection 45, Code 2022, is amended 22 by striking the subsection and inserting in lieu thereof the 23 following: 24 45. “Retail alcohol license” means a class “B”, class “C”, 25 special class “C”, class “D”, class “E”, or class “F” retail 26 alcohol license, or a special class “B” retail native wine 27 license issued under this chapter. 28 Sec. 19. Section 123.3, subsection 46, Code 2022, is amended 29 by striking the subsection. 30 Sec. 20. Section 123.9, subsections 5 and 7, Code 2022, are 31 amended to read as follows: 32 5. To grant and issue beer permits, wine permits, liquor 33 control retail alcohol licenses, and other licenses; and to 34 suspend or revoke all such permits and licenses for cause under 35 -21- LSB 5045SZ (3) 89 ec/rn 21/ 81
S.F. 2374 this chapter . 1 7. To accept alcoholic liquors ordered delivered to the 2 alcoholic beverages division pursuant to chapter 809A , and 3 offer for sale and deliver the alcoholic liquors to class 4 “E” liquor control retail alcohol licensees, unless the 5 administrator determines that the alcoholic liquors may be 6 adulterated or contaminated. If the administrator determines 7 that the alcoholic liquors may be adulterated or contaminated, 8 the administrator shall order their destruction. 9 Sec. 21. Section 123.10, subsections 3, 6, and 14, Code 10 2022, are amended to read as follows: 11 3. Regulating the purchase of alcoholic liquor generally 12 and the furnishing of the liquor to class “E” liquor control 13 retail alcohol licensees under this chapter , and determining 14 the classes, varieties, and brands of alcoholic liquors to be 15 kept in state warehouses. 16 6. Providing for the issuance and electronic distribution 17 of price lists which show the price to be paid by class “E” 18 liquor control retail alcohol licensees for each brand, 19 class, or variety of liquor kept for sale by the division, 20 providing for the filing or posting of prices charged in sales 21 between class “A” beer and class “A” wine permit holders and 22 retailers, as provided in this chapter , and establishing or 23 controlling the prices based on minimum standards of fill, 24 quantity, or alcoholic content for each individual sale of 25 alcoholic beverages as deemed necessary for retail or consumer 26 protection. However, the division shall not regulate markups, 27 prices, discounts, allowances, or other terms of sale at which 28 alcoholic liquor may be purchased by the retail public or 29 liquor control retail alcohol licensees from class “E” liquor 30 control retail alcohol licensees or at which wine may be 31 purchased and sold by class “A” and retail wine permittees, or 32 change, nullify, or vary the terms of an agreement between a 33 holder of a vintner certificate of compliance and a class “A” 34 wine permittee. 35 -22- LSB 5045SZ (3) 89 ec/rn 22/ 81
S.F. 2374 14. Prescribing the uniform fee to be assessed against 1 a class “B” beer permittee, class “C” native wine permittee, 2 or liquor control retail alcohol licensee, except a class 3 “B”, special class “B”, or class “E” liquor control retail 4 alcohol licensee, to cover the administrative costs incurred 5 by the division resulting from the failure of the licensee or 6 permittee to maintain dramshop liability insurance coverage 7 pursuant to section 123.92, subsection 2 , paragraph “a” . 8 Sec. 22. Section 123.15, Code 2022, is amended to read as 9 follows: 10 123.15 Favors from licensee or permittee. 11 A person responsible for the administration or enforcement 12 of this chapter shall not accept or solicit donations, 13 gratuities, political advertising, gifts, or other favors, 14 directly or indirectly, from any liquor control retail alcohol 15 licensee, wine permittee, or beer permittee. 16 Sec. 23. Section 123.16, subsections 6 and 7, Code 2022, are 17 amended to read as follows: 18 6. The number of liquor control retail alcohol licenses, 19 wine permits, and beer permits issued, by class, the number in 20 effect on the last day included in the report, and the number 21 which have been suspended or revoked during the period covered 22 by the report. 23 7. Amount of fees paid to the division from liquor control 24 retail alcohol licenses, wine permits, and beer permits, in 25 gross, and the amount of liquor control retail alcohol license 26 fees returned to local subdivisions of government as provided 27 under this chapter . 28 Sec. 24. Section 123.22, subsection 1, Code 2022, is amended 29 to read as follows: 30 1. The division has the exclusive right of importation 31 into the state of all forms of alcoholic liquor, except as 32 otherwise provided in this chapter , and a person shall not 33 import alcoholic liquor, except that an individual of legal age 34 may import and have in the individual’s possession an amount of 35 -23- LSB 5045SZ (3) 89 ec/rn 23/ 81
S.F. 2374 alcoholic liquor not exceeding nine liters per calendar month 1 that the individual personally obtained outside the state. 2 Alcoholic liquor imported by an individual pursuant to this 3 subsection shall be for personal consumption only in a private 4 home or other private accommodation. A distillery shall not 5 sell alcoholic liquor within the state to any person but only 6 to the division, except as otherwise provided in this chapter . 7 This section vests in the division exclusive control within the 8 state as purchaser of all alcoholic liquor sold by distilleries 9 within the state or imported, except beer and wine, and except 10 as otherwise provided in this chapter . The division shall 11 receive alcoholic liquor on a bailment system for resale by the 12 division in the manner set forth in this chapter . The division 13 shall act as the sole wholesaler of alcoholic liquor to class 14 “E” liquor control retail alcohol licensees. 15 Sec. 25. Section 123.24, Code 2022, is amended to read as 16 follows: 17 123.24 Alcoholic liquor sales by the division —— dishonored 18 payments —— liquor prices. 19 1. The division shall sell alcoholic liquor at wholesale 20 only. The division shall sell alcoholic liquor to class “E” 21 liquor control retail alcohol licensees only. The division 22 shall offer the same price on alcoholic liquor to all class “E” 23 liquor control retail alcohol licensees without regard for the 24 quantity of purchase or the distance for delivery. 25 2. The price of alcoholic liquor sold by the division shall 26 consist of the following: 27 a. The manufacturer’s price. 28 b. A markup of up to fifty percent of the wholesale price 29 paid by the division for the alcoholic liquor. The division 30 may increase the markup on selected kinds of alcoholic liquor 31 sold by the division if the average return to the division on 32 all sales of alcoholic liquor does not exceed the wholesale 33 price paid by the division and the fifty percent markup. 34 c. A split case charge in an amount determined by the 35 -24- LSB 5045SZ (3) 89 ec/rn 24/ 81
S.F. 2374 division when alcoholic liquor is sold in quantities which 1 require a case to be split. 2 d. A bottle surcharge in an amount sufficient, when added 3 to the amount not refunded to class “E” liquor control retail 4 alcohol licensees pursuant to section 455C.2 , to pay the costs 5 incurred by the division for collecting and properly disposing 6 of the liquor containers. The amount collected pursuant to 7 this paragraph, in addition to any amounts not refunded to 8 class “E” liquor control retail alcohol licensees pursuant 9 to section 455C.2 , shall be deposited in the beer and liquor 10 control fund established under section 123.17 . 11 3. a. The division may accept from a class “E” liquor 12 control retail alcohol licensee electronic funds transferred 13 by automated clearing house, wire transfer, or another method 14 deemed acceptable by the administrator, in payment of alcoholic 15 liquor. If a payment is subsequently dishonored, the division 16 shall cause a notice of nonpayment and penalty to be served 17 upon the class “E” liquor control retail alcohol licensee or 18 upon any person in charge of the licensed premises. The notice 19 shall state that if payment or satisfaction for the dishonored 20 payment is not made within ten days of the service of notice, 21 the licensee’s liquor control retail alcohol license may be 22 suspended under section 123.39 . The notice of nonpayment and 23 penalty shall be in a form prescribed by the administrator, and 24 shall be sent by certified mail. 25 b. If upon notice and hearing under section 123.39 and 26 pursuant to the provisions of chapter 17A concerning a 27 contested case hearing, the administrator determines that the 28 class “E” liquor control retail alcohol licensee failed to 29 satisfy the obligation for which the payment was issued within 30 ten days after the notice of nonpayment and penalty was served 31 on the licensee as provided in paragraph “a” of this subsection , 32 the administrator may suspend the licensee’s class “E” liquor 33 control retail alcohol license for a period not to exceed ten 34 days. 35 -25- LSB 5045SZ (3) 89 ec/rn 25/ 81
S.F. 2374 4. The administrator may refuse to sell alcoholic liquor 1 to a class “E” liquor control retail alcohol licensee who 2 tenders a payment which is subsequently dishonored until the 3 outstanding obligation is satisfied. 4 Sec. 26. Section 123.26, Code 2022, is amended to read as 5 follows: 6 123.26 Restrictions on sales —— seals —— labeling. 7 Alcoholic liquor shall not be sold by a class “E” liquor 8 control retail alcohol licensee except in a sealed container 9 with identifying markers as prescribed by the administrator 10 and affixed in the manner prescribed by the administrator, and 11 no such container shall be opened upon the premises of a state 12 warehouse. The division shall cooperate with the department 13 of natural resources so that only one identifying marker or 14 mark is needed to satisfy the requirements of this section and 15 section 455C.5, subsection 1 . Possession of alcoholic liquors 16 which do not carry the prescribed identifying markers is a 17 violation of this chapter except as provided in section 123.22 . 18 Sec. 27. Section 123.28, subsections 2 and 5, Code 2022, are 19 amended to read as follows: 20 2. The division shall deliver alcoholic liquor purchased by 21 class “E” liquor control retail alcohol licensees. Class “E” 22 liquor control retail alcohol licensees may deliver alcoholic 23 liquor purchased by class “A”, class “B”, class “C”, class “C” 24 native distilled spirits, or class “D” liquor control , or class 25 “F” retail alcohol licensees, and class “A”, class “B”, class 26 “C”, class “C” native distilled spirits, or class “D” liquor 27 control , or class “F” retail alcohol licensees may transport 28 alcoholic liquor purchased from class “E” liquor control retail 29 alcohol licensees. 30 5. This section does not affect the right of a liquor 31 control retail alcohol license holder to purchase, possess, or 32 transport alcoholic liquors subject to this chapter . 33 Sec. 28. Section 123.32, Code 2022, is amended to read as 34 follows: 35 -26- LSB 5045SZ (3) 89 ec/rn 26/ 81
S.F. 2374 123.32 Action by local authorities and division on 1 applications for liquor control retail alcohol licenses, native 2 distilled spirits licenses, and wine and beer permits. 3 1. Filing of application. 4 a. A completed application for a class “A”, class “B”, class 5 “C”, special class “C”, class “C” native distilled spirits, or 6 class “E” liquor control retail alcohol license as provided 7 in section 123.31 , for a retail beer permit as provided in 8 sections 123.128 and 123.129 , or for a class “B”, class “B” 9 native, or class “C” native retail wine permit as provided in 10 section 123.175 except a class “D” retail alcohol license , 11 shall be filed with the appropriate city council if the 12 premises for which the license or permit is sought are located 13 within the corporate limits of a city, or with the board of 14 supervisors if the premises for which the license or permit is 15 sought are located outside the corporate limits of a city. 16 b. A completed application for a class “D” liquor 17 control retail alcohol license and for any of the following 18 certificates, licenses, or permits shall be submitted to the 19 division electronically, or in a manner prescribed by the 20 administrator, which shall proceed in the same manner as in the 21 case of an application approved by local authorities: 22 (1) A certificate of compliance as provided in sections 23 123.23 , 123.135 , and 123.180 . 24 (2) A class “D” liquor control retail alcohol license as 25 provided in section 123.31 . 26 (3) A manufacturer’s license as provided in section 123.41 . 27 (4) A broker’s permit as provided in section 123.42 . 28 (5) A class “A” native distilled spirits license as provided 29 in section 123.43 . 30 (6) A class “A” or special class “A” beer permit as provided 31 in section 123.127 . 32 (7) A charity beer, spirits, and wine auction permit special 33 event license as provided in section 123.173A . 34 (8) A charity beer, spirits, and wine event permit as 35 -27- LSB 5045SZ (3) 89 ec/rn 27/ 81
S.F. 2374 provided in section 123.173B . 1 (9) (8) A class “A” wine permit as provided in section 2 123.175 . 3 (10) (9) A wine direct shipper’s permit as provided in 4 section 123.187 . 5 (11) (10) A wine carrier permit as provided in section 6 123.188 . 7 2. Action by local authorities. The local authority shall 8 either approve or disapprove the issuance of a liquor control 9 retail alcohol license, a retail wine permit, or a retail 10 beer permit, shall endorse its approval or disapproval on 11 the application, and shall forward the application with the 12 necessary fee and bond, if required, to the division. There 13 is no limit upon the number of liquor control retail alcohol 14 licenses , retail wine permits, or retail beer permits which may 15 be approved for issuance by local authorities. 16 3. Licensed premises for local events. A local authority 17 may define, by motion of the local authority, licensed premises 18 which shall be used by holders of liquor control retail alcohol 19 licenses , beer permits, and wine permits at festivals, fairs, 20 or celebrations which are sponsored or authorized by the local 21 authority. The licensed premises defined by motion of the 22 local authority shall be used by the holders of five-day or 23 fourteen-day class “A”, class “B”, class “C”, special class 24 “C”, or class “D” liquor control , or class “F” retail alcohol 25 licenses , or five-day or fourteen-day class “B” or class “C” 26 native wine permits, or class “B” beer permits only . 27 4. Security employee training. A local authority, as a 28 condition of obtaining and holding a license or permit for 29 on-premises consumption, may require a designated security 30 employee as defined in section 123.3 to be trained and 31 certified in security methods. The training shall include but 32 is not limited to de-escalation techniques, anger management 33 techniques, civil rights or unfair practices awareness as 34 provided in section 216.7 , recognition of fake or altered 35 -28- LSB 5045SZ (3) 89 ec/rn 28/ 81
S.F. 2374 identification, information on laws applicable to the serving 1 of alcohol at a licensed premises, use of force and techniques 2 for safely removing patrons, and instruction on the proper 3 physical restraint methods used against a person who has become 4 combative. 5 5. Occupancy rates. A local authority located in a county 6 with a population that exceeds three hundred thousand persons, 7 as a condition of obtaining and holding a license or permit 8 for on-premises consumption, shall require the applicant , or 9 licensee , or permittee to provide, and update if necessary, the 10 occupancy rate of the licensed premises. 11 6. Action by administrator. 12 a. Upon receipt of an application having been disapproved 13 by the local authority, the administrator shall notify the 14 applicant that the applicant may appeal the disapproval of 15 the application to the administrator. The applicant shall 16 be notified by certified mail or personal service, and the 17 application, the fee, and any bond shall be returned to the 18 applicant. 19 b. Upon receipt of an application having been approved by 20 the local authority, the division shall make an investigation 21 as the administrator deems necessary to determine that 22 the applicant complies with all requirements for holding a 23 license or permit , and may require the applicant to appear 24 to be examined under oath to demonstrate that the applicant 25 complies with all of the requirements to hold a license 26 or permit . If the administrator requires the applicant to 27 appear and to testify under oath, a record shall be made of 28 all testimony or evidence and the record shall become a part 29 of the application. The administrator may appoint a member 30 of the division or may request an administrative law judge 31 of the department of inspections and appeals to receive the 32 testimony under oath and evidence, and to issue a proposed 33 decision to approve or disapprove the application for a license 34 or permit . The administrator may affirm, reverse, or modify 35 -29- LSB 5045SZ (3) 89 ec/rn 29/ 81
S.F. 2374 the proposed decision to approve or disapprove the application 1 for the license or permit . If the application is approved 2 by the administrator, the license or permit shall be issued. 3 If the application is disapproved by the administrator, the 4 applicant shall be so notified by certified mail or personal 5 service and the appropriate local authority shall be notified 6 electronically, or in a manner prescribed by the administrator. 7 7. Appeal to administrator. An applicant for a liquor 8 control retail alcohol license , wine permit, or beer permit may 9 appeal from the local authority’s disapproval of an application 10 for a license or permit to the administrator. In the appeal 11 the applicant shall be allowed the opportunity to demonstrate 12 in an evidentiary hearing conducted pursuant to chapter 17A 13 that the applicant complies with all of the requirements for 14 holding the license or permit. The administrator may appoint 15 a member of the division or may request an administrative law 16 judge from the department of inspections and appeals to conduct 17 the evidentiary hearing and to render a proposed decision to 18 approve or disapprove the issuance of the license or permit. 19 The administrator may affirm, reverse, or modify the proposed 20 decision. If the administrator determines that the applicant 21 complies with all of the requirements for holding a license 22 or permit, the administrator shall order the issuance of the 23 license or permit. If the administrator determines that the 24 applicant does not comply with the requirements for holding 25 a license or permit, the administrator shall disapprove the 26 issuance of the license or permit. 27 8. Judicial review. The applicant or the local authority 28 may seek judicial review of the action of the administrator 29 in accordance with the terms of the Iowa administrative 30 procedure Act, chapter 17A . Notwithstanding the terms of the 31 Iowa administrative procedure Act, chapter 17A , petitions 32 for judicial review may be filed in the district court of 33 the county where the premises covered by the application are 34 situated. 35 -30- LSB 5045SZ (3) 89 ec/rn 30/ 81
S.F. 2374 9. Suspension by local authority. A liquor control retail 1 alcohol licensee or a wine or beer permittee whose license 2 or permit has been suspended or revoked or a civil penalty 3 imposed by a local authority for a violation of this chapter 4 or suspended by a local authority for violation of a local 5 ordinance may appeal the suspension, revocation, or civil 6 penalty to the administrator. The administrator may appoint 7 a member of the division or may request an administrative law 8 judge from the department of inspections and appeals to hear 9 the appeal which shall be conducted in accordance with chapter 10 17A and to issue a proposed decision. The administrator may 11 review the proposed decision upon the motion of a party to the 12 appeal or upon the administrator’s own motion in accordance 13 with chapter 17A . Upon review of the proposed decision, the 14 administrator may affirm, reverse, or modify the proposed 15 decision. A liquor control retail alcohol licensee , wine or 16 beer permittee, or a local authority aggrieved by a decision 17 of the administrator may seek judicial review of the decision 18 pursuant to chapter 17A . 19 Sec. 29. Section 123.34, Code 2022, is amended to read as 20 follows: 21 123.34 Expiration of licenses, permits, and certificates 22 of compliance —— seasonal Seasonal , fourteen-day, and five-day 23 licenses and permits —— fees. 24 1. All licenses, permits, and certificates of compliance, 25 unless sooner suspended or revoked, expire one year from date 26 of issuance. The administrator shall notify a license, permit, 27 or certificate holder electronically, or in a manner prescribed 28 by the administrator, sixty days prior to the expiration of 29 each license, permit, or certificate. 30 2. 1. a. The administrator may issue six-month or 31 eight-month seasonal class “A”, class “B”, class “C”, special 32 class “C”, and class “D” liquor control and class “F” retail 33 alcohol licenses , class “B” wine permits, class “B” or class 34 “C” native wine permits, or class “B” beer permits . 35 -31- LSB 5045SZ (3) 89 ec/rn 31/ 81
S.F. 2374 b. The fee for a six-month or an eight-month seasonal 1 license or permit issued pursuant to this subsection shall be 2 for a proportionate part fifty percent of the license or permit 3 fee for that class of license or permit . However, the fee for 4 a seasonal class “B” native wine permit shall be the permit fee 5 provided in section 123.179, subsection 4 , and the fee for a 6 seasonal class “C” native wine permit shall be the permit fee 7 provided in section 123.179, subsection 5 . 8 3. 2. a. The administrator may issue fourteen-day class 9 “A”, class “B”, class “C”, special class “C”, and class “D” 10 liquor control and class “F” retail alcohol licenses , and 11 fourteen-day class “B” beer permits, class “B” native wine 12 permits, and class “C” native wine permits . 13 b. A fourteen-day retail alcohol license or permit , if 14 granted, is valid for fourteen consecutive days , but the holder 15 shall not sell on the two Sundays in the fourteen-day period 16 unless the holder qualifies for and obtains the privilege to 17 sell on Sundays contained in section 123.36, subsection 6 , and 18 section 123.134, subsection 4 . 19 c. (1) The fee for a fourteen-day liquor control retail 20 alcohol license or beer permit is one quarter of the annual fee 21 for that class of liquor control retail alcohol license or beer 22 permit . The fee for the privilege to sell on the two Sundays in 23 the fourteen-day period is twenty percent of the price of the 24 fourteen-day liquor control license or beer permit. 25 (2) The fee for a fourteen-day class “B” native wine permit 26 shall be the permit fee provided in section 123.179, subsection 27 4 , and the fee for a fourteen-day class “C” native wine permit 28 is the permit fee provided in section 123.179, subsection 5 . 29 4. 3. a. The administrator may issue five-day class “A”, 30 class “B”, class “C”, special class “C”, and class “D” liquor 31 control , and class “F” retail alcohol licenses , and five-day 32 class “B” beer permits, class “B” native wine permits, and 33 class “C” native wine permits . 34 b. A five-day retail alcohol license or permit is valid for 35 -32- LSB 5045SZ (3) 89 ec/rn 32/ 81
S.F. 2374 five consecutive days , but the holder shall not sell alcoholic 1 beverages on Sunday in the five-day period unless the holder 2 qualifies for and obtains the privilege to sell on Sunday 3 pursuant to section 123.36, subsection 6, and section 123.134, 4 subsection 4 . 5 c. (1) The fee for the five-day liquor control retail 6 alcohol license or beer permit is one-eighth of the annual fee 7 for that class of license or permit. The fee for the privilege 8 to sell on a Sunday in the five-day period is ten percent of the 9 price of the five-day liquor control license or beer permit. 10 (2) The fee for a five-day class “B” native wine permit 11 shall be the permit fee provided in section 123.179, subsection 12 4 , and the fee for a five-day class “C” native wine permit is 13 the permit fee provided in section 123.179, subsection 5 . 14 5. 4. A refund of fees paid shall not be made for seasonal 15 licenses or permits , or for fourteen-day or five-day liquor 16 control retail alcohol licenses , native wine permits, or beer 17 permits . In addition, a seasonal, fourteen-day, or five-day 18 license or permit shall not be renewed. 19 Sec. 30. NEW SECTION . 123.35 Expiration of licenses, 20 permits, and certificates of compliance —— automatic renewals. 21 1. Except as otherwise provided by this chapter, all 22 licenses, permits, and certificates of compliance, unless 23 sooner suspended or revoked, expire one year from date of 24 issuance. 25 2. Notwithstanding section 123.31 and any other provision 26 of this chapter to the contrary, a class “E” retail alcohol 27 license shall automatically renew without the endorsement 28 of a local authority or approval by the administrator upon 29 collection of the annual fee by the division, provided all of 30 the following conditions are met since the preceding license 31 was issued: 32 a. The licensee has given written consent to the division 33 to have the license automatically renewed as provided in this 34 section. 35 -33- LSB 5045SZ (3) 89 ec/rn 33/ 81
S.F. 2374 b. The license has not been suspended or revoked. 1 c. A civil penalty has not been imposed against the 2 licensee. 3 d. An administrative proceeding is not pending against the 4 licensee to suspend or revoke the license or to impose a civil 5 penalty under this chapter. 6 e. The licensee has not submitted payment for alcoholic 7 liquor to the division that was subsequently dishonored. 8 f. The licensee and all persons associated with the licensee 9 as described in section 123.3, subsection 40, paragraph “e” , 10 have not been convicted of a violation of this chapter. 11 g. The licensed premises constitutes a safe and proper place 12 or building and conforms with all applicable federal, state, 13 and local laws, orders, ordinances, rules, resolutions, and 14 health and fire regulations. 15 h. A local authority has not notified the division, in 16 a manner established by the division and made available to 17 local authorities, that automatic renewal should not occur and 18 that further review of the licensee by the division and the 19 applicable local authority is warranted. 20 3. Notwithstanding sections 123.23, 123.135, 123.180, 21 and any other provision of this chapter to the contrary, a 22 distiller’s, brewer’s, or vintner’s certificate of compliance 23 shall automatically renew without approval by the administrator 24 upon collection of the annual fee by the division, provided 25 all of the following conditions are met since the preceding 26 certificate was issued: 27 a. The certificate holder has given written consent to 28 the division to have the certificate automatically renewed as 29 provided in this section. 30 b. The certificate has not been suspended or revoked. 31 c. A civil penalty has not been imposed against the 32 certificate holder. 33 d. An administrative proceeding is not pending against the 34 certificate holder to suspend or revoke the certificate or to 35 -34- LSB 5045SZ (3) 89 ec/rn 34/ 81
S.F. 2374 impose a civil penalty under this chapter. 1 e. The certificate holder and all persons associated 2 with the certificate holder as described in section 123.3, 3 subsection 40, paragraph “e” , have not been convicted of a 4 violation of this chapter. 5 4. Notwithstanding section 123.187 and any other provision 6 of this chapter to the contrary, a wine direct shipper’s permit 7 shall automatically renew without approval by the administrator 8 upon collection of the annual fee by the division, provided all 9 of the following conditions are met since the preceding permit 10 was issued: 11 a. The permittee has given written consent to the division 12 to have the permit automatically renewed as provided in this 13 section. 14 b. The permit has not been suspended or revoked. 15 c. A civil penalty has not been imposed against the 16 permittee. 17 d. An administrative proceeding is not pending against the 18 permittee to suspend or revoke the permit or to impose a civil 19 penalty under this chapter. 20 e. The permittee has filed all required reports and remitted 21 all wine gallonage tax owed pursuant to section 123.183. 22 f. The permittee and all persons associated with the 23 permittee as described in section 123.3, subsection 40, 24 paragraph “e” , have not been convicted of a violation of this 25 chapter. 26 Sec. 31. Section 123.38, subsection 1, Code 2022, is amended 27 to read as follows: 28 1. A liquor control retail alcohol license, wine permit, 29 or beer permit is a personal privilege and is revocable for 30 cause. It is not property nor is it subject to attachment 31 and execution nor alienable nor assignable, and it shall 32 cease upon the death of the permittee or licensee. However, 33 the administrator of the division may in the administrator’s 34 discretion allow the executor or administrator of the estate of 35 -35- LSB 5045SZ (3) 89 ec/rn 35/ 81
S.F. 2374 a permittee or licensee to operate the business of the decedent 1 for a reasonable time not to exceed the expiration date of the 2 permit or license. Every permit or license shall be issued in 3 the name of the applicant and no person holding a permit or 4 license shall allow any other person to use it. 5 Sec. 32. Section 123.38, subsection 2, paragraph a, 6 subparagraph (4), Code 2022, is amended to read as follows: 7 (4) No refund shall be made for any liquor control retail 8 alcohol license, wine permit, or beer permit surrendered more 9 than nine months after issuance. 10 Sec. 33. Section 123.39, subsection 1, paragraph a, Code 11 2022, is amended to read as follows: 12 a. (1) The administrator or the local authority may suspend 13 a class “A”, class “B”, special class “B” native wine, class 14 “C”, special class “C”, class “C” native distilled spirits, or 15 class “E” liquor control , or class “F” retail alcohol license , 16 or retail wine or beer permit charity beer, spirits, and wine 17 special event license for a period not to exceed one year, 18 revoke the license or permit , or impose a civil penalty not to 19 exceed one thousand dollars per violation. 20 (2) The administrator may suspend a certificate of 21 compliance, a class “D” liquor control retail alcohol license, 22 a manufacturer’s license, a broker’s permit, a class “A” native 23 distilled spirits license, a class “A” or special class “A” 24 beer permit, a charity beer, spirits, and wine auction permit, 25 a class “A” wine permit, a wine direct shipper’s permit, or a 26 wine carrier permit for a period not to exceed one year, revoke 27 the license, permit, or certificate, or impose a civil penalty 28 not to exceed one thousand dollars per violation. 29 Sec. 34. Section 123.39, subsection 1, paragraph b, 30 subparagraph (3), Code 2022, is amended to read as follows: 31 (3) Any change in the ownership or interest in the business 32 operated under a liquor control retail alcohol license , or any 33 wine or beer permit, which change was not previously reported 34 in a manner prescribed by the administrator within thirty days 35 -36- LSB 5045SZ (3) 89 ec/rn 36/ 81
S.F. 2374 of the change and subsequently approved by the local authority, 1 when applicable, and the division. 2 Sec. 35. Section 123.39, subsections 2 and 3, Code 2022, are 3 amended to read as follows: 4 2. Local authorities may suspend any liquor control retail 5 alcohol license or retail wine or beer permit for a violation 6 of any ordinance or regulation adopted by the local authority. 7 Local authorities may adopt ordinances or regulations for the 8 location of the premises of liquor control retail alcohol 9 licensed and retail wine or beer permitted establishments 10 and local authorities may adopt ordinances, not in conflict 11 with this chapter and that do not diminish the hours during 12 which alcoholic beverages may be sold or consumed at retail, 13 governing any other activities or matters which may affect the 14 retail sale and consumption of alcoholic beverages and the 15 health, welfare and morals of the community involved. 16 3. When a liquor control retail alcohol license or retail 17 wine or beer permit is suspended after a hearing as a result 18 of violations of this chapter by the licensee , permittee 19 or the licensee’s or permittee’s agents or employees, the 20 premises which were licensed by the license or permit shall 21 not be relicensed for a new applicant until the suspension 22 has terminated or time of suspension has elapsed, or ninety 23 days have elapsed since the commencement of the suspension, 24 whichever occurs first. However, this section does not 25 prohibit the premises from being relicensed to a new applicant 26 before the suspension has terminated or before the time of 27 suspension has elapsed or before ninety days have elapsed from 28 the commencement of the suspension, if the premises prior to 29 the time of the suspension had been purchased under contract, 30 and the vendor under that contract had exercised the person’s 31 rights under chapter 656 and sold the property to a different 32 person who is not related to the previous licensee or permittee 33 by marriage or within the third degree of consanguinity or 34 affinity and if the previous licensee or permittee does not 35 -37- LSB 5045SZ (3) 89 ec/rn 37/ 81
S.F. 2374 have a financial interest in the business of the new applicant. 1 Sec. 36. Section 123.40, Code 2022, is amended to read as 2 follows: 3 123.40 Effect of revocation. 4 Any liquor control retail alcohol licensee, wine permittee, 5 or beer permittee whose license or permit is revoked under this 6 chapter shall not thereafter be permitted to hold a liquor 7 control retail alcohol license, wine permit, or beer permit in 8 the state of Iowa for a period of two years from the date of 9 revocation. A spouse or business associate holding ten percent 10 or more of the capital stock or ownership interest in the 11 business of a person whose license or permit has been revoked 12 shall not be issued a liquor control retail alcohol license, 13 wine permit, or beer permit, and no liquor control retail 14 alcohol license, wine permit, or beer permit shall be issued 15 which covers any business in which such person has a financial 16 interest for a period of two years from the date of revocation. 17 If a license or permit is revoked, the premises which had been 18 covered by the license or permit shall not be relicensed for 19 one year. 20 Sec. 37. Section 123.43A, subsection 2, Code 2022, is 21 amended to read as follows: 22 2. A native distillery shall not sell more than one and 23 one-half nine liters per person per day, of native distilled 24 spirits on the premises of the native distillery. However, a 25 native distillery which, combining all production facilities 26 of the business, produces and manufactures not more than one 27 hundred thousand proof gallons of native distilled spirits on 28 an annual basis, may sell not more than nine liters per person 29 per day, of native distilled spirits. In addition, a native 30 distillery shall not directly ship native distilled spirits for 31 sale at retail. The native distillery shall maintain records 32 of individual purchases of native distilled spirits at the 33 native distillery for three years. 34 Sec. 38. Section 123.43A, subsection 6, Code 2022, is 35 -38- LSB 5045SZ (3) 89 ec/rn 38/ 81
S.F. 2374 amended to read as follows: 1 6. Notwithstanding any provision of this chapter to the 2 contrary or the fact that a person is the holder of a class “A” 3 native distilled spirits license, a native distillery which, 4 combining all production facilities of the business, produces 5 and manufactures not more than one hundred thousand proof 6 gallons of native distilled spirits on an annual basis may sell 7 those native distilled spirits manufactured on the premises 8 of the native distillery for consumption on the premises by 9 applying for be granted a class “C” native distilled spirits 10 liquor control retail alcohol license as provided defined in 11 section 123.30 . A native distillery may be granted not more 12 than two class “C” native distilled spirits liquor control 13 retail alcohol licenses. All native distilled spirits sold 14 by a native distillery for on-premises consumption and mixed 15 drinks or cocktails sold for consumption off the premises 16 shall be purchased from a class “E” liquor control licensee. 17 A manufacturer of native distilled spirits may be issued a 18 class “C” native distilled spirits liquor control retail 19 alcohol license regardless of whether the manufacturer is also 20 a manufacturer of beer pursuant to a class “A” beer permit or 21 a manufacturer of native wine pursuant to a class “A” wine 22 permit. 23 Sec. 39. Section 123.45, subsection 1, paragraph d, Code 24 2022, is amended to read as follows: 25 d. Hold a retail liquor control alcohol license or retail 26 wine or beer permit, unless the licensee or permittee holding a 27 retail liquor control alcohol license or retail wine or beer 28 permit does not purchase or sell the alcoholic beverages of 29 the person engaged in the business of manufacturing, bottling, 30 or wholesaling alcoholic beverages. However, a person engaged 31 in the business of manufacturing wine that is not native wine 32 may purchase and sell the person’s wine under the authority 33 of a special class “C” liquor control retail alcohol license 34 and a class “B” wine permit retail alcohol license provided 35 -39- LSB 5045SZ (3) 89 ec/rn 39/ 81
S.F. 2374 the licensed premises is the principal office, as defined in 1 section 490.140 , of the person. 2 Sec. 40. Section 123.45, subsection 3, Code 2022, is amended 3 to read as follows: 4 3. A person engaged in the wholesaling of beer or wine 5 may sell only disposable glassware, which is constructed of 6 paper, paper laminated, or plastic materials and designed 7 primarily for personal consumption on a one-time usage 8 basis, to retailers for use within the premises of licensed 9 establishments, for an amount which is greater than or equal 10 to an amount which represents the greater of either the amount 11 paid for the disposable glassware by the supplier or the amount 12 paid for the disposable glassware by the wholesaler. Also, a 13 person engaged in the business of manufacturing beer may sell 14 beer at retail for consumption on or off the premises of the 15 manufacturing facility and, notwithstanding any other provision 16 of this chapter or the fact that a person is the holder of a 17 class “A” beer permit, a native brewery may be granted not more 18 than two class “B” beer permits “C” retail alcohol licenses as 19 defined in section 123.124 for that purpose 123.30 regardless 20 of whether that person is also a manufacturer of native 21 distilled spirits pursuant to a class “A” native distilled 22 spirits license or a manufacturer of native wine pursuant to a 23 class “A” wine permit. 24 Sec. 41. Section 123.46, subsection 2, Code 2022, is amended 25 to read as follows: 26 2. A person shall not use or consume alcoholic liquor, wine, 27 or beer upon the public streets or highways. A person shall 28 not use or consume alcoholic liquor in any public place except 29 premises covered by a liquor control retail alcohol license. 30 A person shall not possess or consume alcoholic liquors, 31 wine, or beer on public school property or while attending a 32 public or private school-related function. A person shall not 33 be intoxicated in a public place. A person violating this 34 subsection is guilty of a simple misdemeanor. 35 -40- LSB 5045SZ (3) 89 ec/rn 40/ 81
S.F. 2374 Sec. 42. Section 123.46A, Code 2022, is amended to read as 1 follows: 2 123.46A Delivery of alcoholic beverages by retailers. 3 1. Licensees and permittees authorized to sell alcoholic 4 liquor, wine, or beer in original unopened containers for 5 consumption off the licensed premises may deliver alcoholic 6 liquor, wine, or beer to a home, another licensed premises if 7 there is identical ownership of the premises by the licensee 8 or permittee , or other designated location in this state. 9 Deliveries shall be limited to alcoholic beverages authorized 10 by the licensee’s or permittee’s license or permit . Orders 11 delivered to another licensed premises shall contain only 12 those alcoholic beverages authorized for sale by the liquor 13 control retail alcohol license or retail wine or beer permit 14 covering the premises to which the alcoholic beverages will 15 be delivered. Orders delivered to another licensed premises 16 shall be fulfilled using the alcoholic beverages inventory 17 owned by the licensee or permittee who will receive the order 18 for delivery. If the recipient refuses or fails to pick up 19 the delivery, or is ineligible to receive the delivery, the 20 alcoholic beverages shall be returned to the licensee or 21 permittee who fulfilled the order. 22 2. Licensees and permittees authorized to sell wine, beer, 23 or mixed drinks or cocktails for consumption off the licensed 24 premises in a container other than the original container may 25 deliver the wine, beer, or mixed drinks or cocktails to a 26 home or other designated location in this state only if the 27 container other than the original container has been sold and 28 securely sealed in compliance with this chapter or the rules 29 of the division. Deliveries shall be limited to alcoholic 30 beverages authorized by the licensee’s or permittee’s license 31 or permit. 32 3. All deliveries of alcoholic liquor, wine, beer, or 33 mixed drinks or cocktails shall be subject to the following 34 requirements and restrictions: 35 -41- LSB 5045SZ (3) 89 ec/rn 41/ 81
S.F. 2374 a. Payment for the alcoholic liquor, wine, beer, or mixed 1 drinks or cocktails shall be received by the licensee or 2 permittee at the time of order. 3 b. Orders for deliveries may be taken by the licensee or 4 permittee between the hours of 2:00 a.m. and 6:00 a.m. 5 on a day other than Sunday, and orders for deliveries may 6 be taken between the hours of 2:00 a.m. and 6:00 a.m. on a 7 Sunday provided the licensee or permittee has been granted 8 the privilege of selling alcoholic liquor, wine, beer, or 9 mixed drinks or cocktails on Sunday on any day of the week , 10 notwithstanding any provision of section 123.49, subsection 2 , 11 paragraph “b” , to the contrary. 12 c. Alcoholic liquor, wine, beer, or mixed drinks or 13 cocktails delivered to a person shall be for personal use and 14 not for resale. 15 d. Deliveries shall only be made to persons in this state 16 who are twenty-one years of age or older. 17 e. Deliveries shall not be made to a person who is 18 intoxicated or is simulating intoxication. 19 f. Deliveries shall occur between 6:00 a.m. and 10:00 p.m. 20 Monday through Sunday on the same day the order for alcoholic 21 liquor, wine, beer, or mixed drinks or cocktails is removed 22 from the licensed premises . 23 g. Delivery of alcoholic liquor, wine, beer, or mixed drinks 24 or cocktails shall be made by the licensee or permittee , the 25 licensee’s or permittee’s employee, or a third party, provided 26 the licensee or permittee has entered into a written agreement 27 with the third party that authorizes the third party to act 28 as an agent of the licensee or permittee for the purpose of 29 delivering alcoholic liquor, wine, beer, or mixed drinks or 30 cocktails. Each licensee or permittee shall submit to the 31 division electronically, or in a manner prescribed by the 32 administrator, a list of names and addresses of all third 33 parties it has authorized to act as its agent for the purpose 34 of delivering alcoholic liquor, wine, beer, or mixed drinks 35 -42- LSB 5045SZ (3) 89 ec/rn 42/ 81
S.F. 2374 or cocktails. The licensee or permittee shall provide the 1 division with amendments to the list as necessary to ensure the 2 division possesses an accurate, current list. 3 h. Delivery personnel shall be twenty-one years of age or 4 older. 5 i. Valid proof of the recipient’s identity and age shall 6 be obtained at the time of delivery, and the signature of a 7 person twenty-one years of age or older shall be obtained as a 8 condition of delivery. 9 j. Licensees and permittees shall maintain records 10 of deliveries which include the quantity delivered, the 11 recipient’s name and address, and the signature of the 12 recipient of the alcoholic liquor, wine, beer, or mixed drinks 13 or cocktails. The records shall be maintained on the licensed 14 premises for a period of three years. 15 4. A violation of this section or any other provision 16 of this chapter shall subject the licensee or permittee to 17 the penalty provisions of section 123.39 . If the licensee 18 or permittee , an employee of the licensee or permittee , or 19 a person delivering alcoholic liquor, wine, beer, or mixed 20 drinks or cocktails for a third party acting on behalf of the 21 licensee or permittee pursuant to a written agreement violates 22 this section , the licensee or permittee shall not be assessed 23 a penalty under section 123.39 if the licensee or permittee 24 establishes all of the following: 25 a. The violation was committed off of the licensee’s 26 or permittee’s premises after the liquor, wine, beer, or 27 mixed drinks or cocktails was removed from the licensee’s or 28 permittee’s premises in fulfillment of a delivery order. 29 b. (1) If the person who committed the violation is an 30 employee of the licensee or permittee , that no other violation 31 of this section was committed by any employee of the licensee 32 or permittee within the two-year period immediately preceding 33 the date of violation. 34 (2) If the person who committed the violation is a person 35 -43- LSB 5045SZ (3) 89 ec/rn 43/ 81
S.F. 2374 delivering for a third party acting on behalf of the licensee 1 or permittee , that no other violation of this section was 2 committed by any person delivering for the same third party 3 while the third party was acting on behalf of the licensee or 4 permittee within the two-year period immediately preceding the 5 date of violation. 6 5. Nothing in this section shall impact the direct shipment 7 of wine as regulated by section 123.187 . 8 Sec. 43. Section 123.47, subsection 3, Code 2022, is amended 9 to read as follows: 10 3. A person or persons under legal age shall not purchase 11 or attempt to purchase, consume, or individually or jointly 12 have alcoholic beverages in their possession or control; except 13 in the case of any alcoholic beverage given or dispensed to 14 a person under legal age within a private home and with the 15 knowledge, presence, and consent of the parent or guardian, for 16 beverage or medicinal purposes or as administered to the person 17 by either a physician or dentist for medicinal purposes and 18 except to the extent that a person under legal age may handle 19 alcoholic beverages during the regular course of the person’s 20 employment by a liquor control retail alcohol licensee, or wine 21 or beer permittee under this chapter . 22 Sec. 44. Section 123.48, subsections 1 and 3, Code 2022, are 23 amended to read as follows: 24 1. If a liquor control retail alcohol licensee or wine or 25 beer permittee or an employee of the licensee or permittee 26 has a reasonable belief based on factual evidence that a 27 driver’s license as defined in section 321.1, subsection 28 20A , or nonoperator’s identification card issued pursuant to 29 section 321.190 offered by a person who wishes to purchase 30 an alcoholic beverage at the licensed premises is altered 31 or falsified or belongs to another person, the licensee , 32 permittee, or employee may retain the driver’s license or 33 nonoperator’s identification card. Within twenty-four hours, 34 the license or card shall be delivered to the appropriate 35 -44- LSB 5045SZ (3) 89 ec/rn 44/ 81
S.F. 2374 city or county law enforcement agency of the jurisdiction in 1 which the licensed premises is located. When the license or 2 card is delivered to the appropriate law enforcement agency, 3 the licensee shall file a written report of the circumstances 4 under which the license or card was retained. The local law 5 enforcement agency may investigate whether a violation of 6 section 321.216 , 321.216A , or 321.216B has occurred. If an 7 investigation is not initiated or a probable cause is not 8 established by the local law enforcement agency, the driver’s 9 license or nonoperator’s identification card shall be delivered 10 to the person to whom it was issued. The local law enforcement 11 agency may forward the license or card with the report to the 12 department of transportation for investigation, in which case, 13 the department may investigate whether a violation of section 14 321.216 , 321.216A , or 321.216B has occurred. The department of 15 transportation shall return the license or card to the person 16 to whom it was issued if an investigation is not initiated or a 17 probable cause is not established. 18 3. A liquor control retail alcohol licensee or wine or 19 beer permittee or an employee of the licensee or permittee 20 is not subject to criminal prosecution for, or to civil 21 liability for damages alleged to have resulted from, the 22 retention and delivery of a driver’s license or a nonoperator’s 23 identification card which is taken pursuant to subsections 24 1 and 2 . This section shall not be construed to relieve a 25 licensee , permittee, or employee of the licensee or permittee 26 from civil liability for damages resulting from the use of 27 unreasonable force in obtaining the altered or falsified 28 driver’s license or nonoperator’s identification card or the 29 driver’s license or nonoperator’s identification card believed 30 to belong to another person. 31 Sec. 45. Section 123.49, subsection 2, unnumbered paragraph 32 1, Code 2022, is amended to read as follows: 33 A person holding a liquor control retail alcohol license or 34 retail wine or beer permit under this chapter , and the person’s 35 -45- LSB 5045SZ (3) 89 ec/rn 45/ 81
S.F. 2374 agents or employees, shall not do any of the following: 1 Sec. 46. Section 123.49, subsection 2, paragraph b, Code 2 2022, is amended to read as follows: 3 b. Sell or dispense any alcoholic beverage on the premises 4 covered by the license or permit , or permit its consumption 5 thereon between the hours of 2:00 a.m. and 6:00 a.m. on a 6 weekday, and between the hours of 2:00 a.m. on Sunday and 6:00 7 a.m. on the following Monday, however, a holder of a liquor 8 control license or retail wine or beer permit granted the 9 privilege of selling alcoholic liquor, wine, or beer on Sunday 10 may sell or dispense alcoholic liquor, wine, or beer between 11 the hours of 6:00 a.m. on Sunday and 2:00 a.m. on the following 12 Monday any day of the week . 13 Sec. 47. Section 123.49, subsection 2, paragraph d, 14 subparagraphs (1) and (3), Code 2022, are amended to read as 15 follows: 16 (1) Keep on premises covered by a liquor control retail 17 alcohol license any alcoholic liquor in any container except 18 the original package purchased from the division, and except 19 mixed drinks or cocktails mixed on the premises for immediate 20 consumption on the licensed premises or as otherwise provided 21 by this paragraph “d” . This prohibition does not apply to 22 holders of a class “D” liquor control retail alcohol license 23 or to alcoholic liquor delivered in accordance with section 24 123.46A . 25 (3) Mixed drinks or cocktails mixed on premises covered by 26 a class “C” liquor control retail alcohol license or a class 27 “C” native distilled spirits liquor control retail alcohol 28 license for consumption off the licensed premises may be 29 sold if the mixed drink or cocktail is immediately filled in 30 a sealed container and is promptly taken from the licensed 31 premises prior to consumption of the mixed drink or cocktail. 32 A mixed drink or cocktail that is sold in a sealed container in 33 compliance with the requirements of this subparagraph and rules 34 adopted by the division shall not be deemed an open container 35 -46- LSB 5045SZ (3) 89 ec/rn 46/ 81
S.F. 2374 subject to the requirements of sections 321.284 and 321.284A 1 if the sealed container is unopened and the seal has not been 2 tampered with, and the contents of the container have not been 3 partially removed. 4 Sec. 48. Section 123.49, subsection 2, paragraphs g and j, 5 Code 2022, are amended to read as follows: 6 g. Allow any person other than the licensee , permittee, 7 or employees of the licensee or permittee, to use or keep 8 on the licensed premises any alcoholic liquor in any bottle 9 or other container which is designed for the transporting of 10 such beverages, except as permitted in section 123.95 . This 11 paragraph does not apply to the lodging quarters of a class 12 “B” liquor control licensee or wine or beer permittee hotel 13 or motel holding a retail alcohol license , or to holders of a 14 class “D” liquor control retail alcohol license. 15 j. Knowingly permit or engage in any criminal activity 16 on the premises covered by the license or permit . However, 17 the absence of security personnel on the licensed premises 18 is insufficient, without additional evidence, to prove that 19 criminal activity occurring on the licensed premises was 20 knowingly permitted in violation of this paragraph “j” . For 21 purposes of this paragraph “j” , “premises” includes parking lots 22 and areas adjacent to the premises of a liquor control retail 23 alcohol licensee or wine or beer permittee authorized to sell 24 alcoholic beverages for consumption on the licensed premises 25 and used by patrons of the liquor control retail alcohol 26 licensee or wine or beer permittee . 27 Sec. 49. Section 123.49, subsection 3, Code 2022, is amended 28 to read as follows: 29 3. A person under legal age shall not misrepresent the 30 person’s age for the purpose of purchasing or attempting 31 to purchase any alcoholic beverage from any liquor control 32 retail alcohol licensee or wine or beer permittee . If any 33 person under legal age misrepresents the person’s age, and 34 the licensee or permittee establishes that the licensee or 35 -47- LSB 5045SZ (3) 89 ec/rn 47/ 81
S.F. 2374 permittee made reasonable inquiry to determine whether the 1 prospective purchaser was over legal age, the licensee or 2 permittee is not guilty of selling alcoholic beverages to a 3 person under legal age. 4 Sec. 50. Section 123.49, subsection 4, Code 2022, is amended 5 by striking the subsection. 6 Sec. 51. Section 123.50, subsections 1, 2, 4, and 5, Code 7 2022, are amended to read as follows: 8 1. Any person who violates any of the provisions of section 9 123.49 , except section 123.49, subsection 2 , paragraph “h” , 10 or who fails to affix upon sale, defaces, or fails to record 11 a keg identification sticker label or produce a record of keg 12 identification stickers labels pursuant to section 123.138 , 13 shall be guilty of a simple misdemeanor. A person who violates 14 section 123.49, subsection 2 , paragraph “h” , commits a simple 15 misdemeanor punishable as a scheduled violation under section 16 805.8C, subsection 2 . 17 2. The conviction of any liquor control retail alcohol 18 licensee or wine or beer permittee for a violation of any of 19 the provisions of section 123.49 , subject to subsection 3 of 20 this section , is grounds for the suspension or revocation of 21 the license or permit by the division or the local authority. 22 However, if any liquor control retail alcohol licensee is 23 convicted of any violation of section 123.49, subsection 2 , 24 paragraph “a” , “d” , or “e” , or any wine or beer permittee retail 25 alcohol licensee, excluding a special class “B” or class “D” 26 retail alcohol licensee, is convicted of a violation of section 27 123.49, subsection 2 , paragraph “a” or “e” “d” , the liquor 28 control retail alcohol license or wine or beer permit shall be 29 revoked and shall immediately be surrendered by the holder, 30 and the bond, if any, of the license or permit holder shall be 31 forfeited to the division. However, the division shall retain 32 only that portion of the bond equal to the amount the division 33 determines the license or permit holder owes the division. 34 4. In addition to any other penalties imposed under this 35 -48- LSB 5045SZ (3) 89 ec/rn 48/ 81
S.F. 2374 chapter , the division shall assess a civil penalty up to 1 the amount of five thousand dollars upon a class “E” liquor 2 control retail alcohol licensee when the class “E” liquor 3 retail alcohol license is revoked for a violation of section 4 123.59 . Failure to pay the civil penalty as required under 5 this subsection shall result in forfeiture of the bond to the 6 division. However, the division shall retain only that portion 7 of the bond equal to the amount the division determines the 8 license or permit holder owes the division. 9 5. If an employee of a liquor control retail alcohol 10 licensee or wine or beer permittee violates section 123.49, 11 subsection 2 , paragraph “h” , the licensee or permittee shall 12 not be assessed a penalty under subsection 3 , and the violation 13 shall be deemed not to be a violation of section 123.49, 14 subsection 2 , paragraph “h” , for the purpose of determining 15 the number of violations for which a penalty may be assessed 16 pursuant to subsection 3 , if the employee holds a valid 17 certificate of completion of the alcohol compliance employee 18 training program pursuant to section 123.50A at the time of the 19 violation, and if the violation involves selling, giving, or 20 otherwise supplying any alcoholic beverage to a person between 21 the ages of eighteen and twenty years of age. A violation 22 involving a person under the age of eighteen years of age 23 shall not qualify for the bar against assessment of a penalty 24 pursuant to subsection 3 , for a violation of section 123.49, 25 subsection 2 , paragraph “h” . A licensee or permittee may assert 26 only once in a four-year period the bar under this subsection 27 against assessment of a penalty pursuant to subsection 3 , for a 28 violation of section 123.49, subsection 2 , paragraph “h” , that 29 takes place at the same place of business location. 30 Sec. 52. Section 123.50, subsection 3, unnumbered paragraph 31 1, Code 2022, is amended to read as follows: 32 If any liquor control retail alcohol licensee , wine or 33 beer permittee, or employee of a licensee or permittee is 34 convicted or found in violation of section 123.49, subsection 35 -49- LSB 5045SZ (3) 89 ec/rn 49/ 81
S.F. 2374 2 , paragraph “h” , the administrator or local authority shall, 1 in addition to criminal penalties fixed for violations by this 2 section , assess a civil penalty as follows: 3 Sec. 53. Section 123.92, subsection 2, paragraphs a and c, 4 Code 2022, are amended to read as follows: 5 a. Every liquor control retail alcohol licensee, class “B” 6 beer permittee, and class “C” native wine permittee, except 7 a class “B”, special class “B”, or class “E” liquor control 8 retail alcohol licensee, shall furnish proof of financial 9 responsibility by the existence of a liability insurance 10 policy in an amount determined by the division. If an insurer 11 provides dramshop liability insurance at a new location to 12 a licensee or permittee who has a positive loss experience 13 at other locations for which such insurance is provided by 14 the insurer, and the insurer bases premium rates at the new 15 location on the negative loss history of the previous licensee 16 or permittee at that location, the insurer shall examine and 17 consider adjusting the premium for the new location not less 18 than thirty months after the insurance is issued, based on the 19 loss experience of the licensee or permittee at that location 20 during that thirty-month period of time. 21 c. The purpose of dramshop liability insurance is to provide 22 protection for members of the public who experience damages 23 as a result of licensees or permittees serving patrons any 24 alcoholic beverage to a point that reaches or exceeds the 25 standard set forth in law for liability. Minimum coverage 26 requirements for such insurance are not for the purpose of 27 making the insurance affordable for all licensees or permittees 28 regardless of claims experience. A dramshop liability 29 insurance policy obtained by a licensee or permittee shall meet 30 the minimum insurance coverage requirements as determined by 31 the division and is a mandatory condition for holding a license 32 or permit . 33 Sec. 54. Section 123.92, subsection 3, paragraphs a and b, 34 Code 2022, are amended to read as follows: 35 -50- LSB 5045SZ (3) 89 ec/rn 50/ 81
S.F. 2374 a. Notwithstanding section 123.49, subsection 1 , any 1 person who is injured in person or property or means of 2 support by an intoxicated person who is under legal age or 3 resulting from the intoxication of a person who is under 4 legal age, has a right of action for all damages actually 5 sustained, severally or jointly, against a person who is 6 not a licensee or permittee and who dispensed or gave any 7 alcoholic beverage to the intoxicated underage person when the 8 nonlicensee or nonpermittee who dispensed or gave the alcoholic 9 beverage to the underage person knew or should have known the 10 underage person was intoxicated, or who dispensed or gave any 11 alcoholic beverage to the underage person to a point where the 12 nonlicensee or nonpermittee knew or should have known that the 13 underage person would become intoxicated. 14 b. If the injury was caused by an intoxicated person who is 15 under legal age, a person who is not a licensee or permittee 16 and who dispensed or gave the alcoholic beverage to the 17 underage person may establish as an affirmative defense that 18 the intoxication did not contribute to the injurious action of 19 the underage person. 20 Sec. 55. Section 123.95, subsection 2, paragraphs a and c, 21 Code 2022, are amended to read as follows: 22 a. The holder of an annual class “B” liquor control license 23 or an annual class “C” liquor control retail alcohol license 24 may act as the agent of a private social host for the purpose 25 of providing and serving alcoholic beverages as part of a food 26 catering service for a private social gathering in a private 27 place, provided the licensee has applied for and been granted a 28 catering privilege by the division. The holder of an annual 29 special class “C” liquor control retail alcohol license shall 30 not act as the agent of a private social host for the purpose of 31 providing and serving wine and beer as part of a food catering 32 service for a private social gathering in a private place. 33 An applicant for a class “B” or class “C” liquor control 34 retail alcohol license shall state on the application for the 35 -51- LSB 5045SZ (3) 89 ec/rn 51/ 81
S.F. 2374 license that the licensee intends to engage in catering food 1 and alcoholic beverages for private social gatherings and the 2 catering privilege shall be noted on the license. 3 c. Section 123.92 does not apply to a liquor control retail 4 alcohol licensee who acts in accordance with this section when 5 the liquor control retail alcohol licensee is providing and 6 serving food and alcoholic beverages as an agent of a private 7 social host at a private social gathering in a private place 8 which is not on the licensed premises. 9 Sec. 56. Section 123.122, subsection 1, Code 2022, is 10 amended to read as follows: 11 1. A person shall not cause the manufacture, importation, 12 or sale of beer in this state unless a certificate or permit as 13 provided in this subchapter , or a liquor control retail alcohol 14 license as provided in subchapter I of this chapter , is first 15 obtained which authorizes that manufacture, importation, or 16 sale. 17 Sec. 57. Section 123.124, Code 2022, is amended to read as 18 follows: 19 123.124 Beer permits —— classes. 20 Permits for the manufacture and sale, or sale, of beer shall 21 be divided into four classes, known as class “A” , and special 22 class “A” , class “B”, or class “C” beer permits . A holder of 23 a class “A” or special class “A” beer permit shall have the 24 authority as provided in section 123.130 . A holder of a class 25 “B” beer permit shall have the authority as provided in section 26 123.131 , and a holder of a class “C” beer permit shall have the 27 authority as provided in section 123.132 . 28 Sec. 58. Section 123.125, Code 2022, is amended to read as 29 follows: 30 123.125 Issuance of beer permits. 31 The administrator shall issue class “A” , and special class 32 “A” , class “B”, and class “C” beer permits and may suspend or 33 revoke permits for cause as provided in this chapter . 34 Sec. 59. Section 123.127, subsection 2, paragraph h, Code 35 -52- LSB 5045SZ (3) 89 ec/rn 52/ 81
S.F. 2374 2022, is amended to read as follows: 1 h. If the person is applying for a special class “A” beer 2 permit, that the applicant holds or has applied for a class “C” 3 liquor control or special class “C” retail alcohol license or 4 class “B” beer permit . 5 Sec. 60. Section 123.130, subsection 1, paragraph a, Code 6 2022, is amended to read as follows: 7 a. Any person holding a class “A” beer permit issued by 8 the division shall be authorized to manufacture and sell, or 9 sell at wholesale, beer for consumption off the premises, such 10 sales within the state to be made only to persons holding a 11 subsisting class “A” , “B”, or “C” beer permits permit , both 12 a class “C” native wine permit and a class “A” wine permit 13 pursuant to section 123.178B, subsection 4 , or liquor control 14 retail alcohol licenses , excluding a special class “B” retail 15 native wine license, issued in accordance with the provisions 16 of this chapter . However, a person holding a class “A” beer 17 permit issued by the division who also holds a brewer’s notice 18 issued by the alcohol and tobacco tax and trade bureau of the 19 United States department of the treasury shall be authorized 20 to sell, at wholesale, no more than thirty thousand barrels of 21 beer on an annual basis for consumption off the premises to a 22 licensee or permittee authorized under this chapter to sell 23 beer at retail. 24 Sec. 61. Section 123.130, subsections 2 and 4, Code 2022, 25 are amended to read as follows: 26 2. Pursuant to section 123.45, subsection 3 , a native 27 brewery may be granted not more than two class “B” beer permits 28 as defined in section 123.124 for the purpose of selling 29 beer at retail for consumption on or off the premises of the 30 manufacturing facility class “C” retail alcohol licenses . 31 4. All special class “A” premises shall be located within 32 the state. A person who holds a special class “A” beer permit 33 for the same location at which the person holds a class “C” 34 liquor control or special class “C” retail alcohol license or 35 -53- LSB 5045SZ (3) 89 ec/rn 53/ 81
S.F. 2374 class “B” beer permit for the purpose of operating as a brewpub 1 may manufacture and sell beer to be consumed on the premises, 2 may sell beer at retail at the manufacturing premises for 3 consumption off the premises beer that is transferred at the 4 time of sale to another container subject to the requirements 5 of section 123.131, subsection 2 , may sell beer to a class 6 “A” beer permittee for resale purposes, and may sell beer to 7 distributors outside of the state that are authorized by the 8 laws of that jurisdiction to sell beer at wholesale. The 9 permit issued to holders of a special class “A” beer permit 10 shall clearly state on its face that the permit is limited. 11 Sec. 62. Section 123.135, subsection 4, Code 2022, is 12 amended to read as follows: 13 4. It shall be unlawful for any holder of a certificate 14 of compliance or the holder’s agent, or any class “A” beer 15 permit holder or the beer permit holder’s agent, to grant to 16 any retail beer permit alcohol license holder, directly or 17 indirectly, any rebates, free goods, or quantity discounts on 18 beer which are not uniformly offered to all retail permittees 19 alcohol licensees . 20 Sec. 63. Section 123.138, subsection 1, Code 2022, is 21 amended to read as follows: 22 1. Each class “A” or special class “A” beer permittee 23 shall keep proper records showing the amount of beer sold 24 by the permittee, and these records shall be at all times 25 open to inspection by the administrator and to other persons 26 pursuant to section 123.30, subsection 1 . Each class “B” 27 beer permittee, class “C” beer permittee, or retail liquor 28 control alcohol licensee as described in section 123.30 shall 29 keep proper records showing each purchase of beer made by the 30 permittee or licensee, and the date and the amount of each 31 purchase and the name of the person from whom each purchase 32 was made, which records shall be open to inspection pursuant 33 to section 123.30, subsection 1 , during normal business hours 34 of the permittee or licensee. 35 -54- LSB 5045SZ (3) 89 ec/rn 54/ 81
S.F. 2374 Sec. 64. Section 123.138, subsection 2, paragraph a, Code 1 2022, is amended to read as follows: 2 a. Each class “B”, “C”, or special class “C” liquor control 3 retail alcohol licensee and class “B” or “C” beer permittee who 4 sells beer for off-premises consumption shall affix to each 5 keg of beer an identification sticker label provided by the 6 administrator. The sticker label provided shall allow for its 7 full removal when common external keg cleaning procedures are 8 performed. For the purposes of this subsection , “keg” means 9 all durable and disposable containers with a liquid capacity 10 of five gallons or more. Each class “B”, “C”, or special class 11 “C” liquor control retail alcohol licensee and class “B” or “C” 12 beer permittee shall also keep a record of the identification 13 sticker label number of each keg of beer sold by the licensee 14 or permittee with the name and address of the purchaser and 15 the number of the purchaser’s driver’s license, nonoperator’s 16 identification card, or military identification card, if the 17 military identification card contains a picture and signature. 18 This information shall be retained by the licensee or permittee 19 for a minimum of ninety days. The records kept pursuant to 20 this subsection shall be available for inspection by any law 21 enforcement officer during normal business hours. 22 Sec. 65. Section 123.138, subsection 2, paragraph b, Code 23 2022, is amended to read as follows: 24 b. (1) The division shall provide the keg identification 25 stickers labels described in paragraph “a” and shall, prior to 26 utilizing a sticker label , notify licensed brewers and licensed 27 beer importers of the type of sticker label to be utilized. 28 Each sticker label shall contain a number and the following 29 statement: 30 It is unlawful to sell, give, or otherwise supply any 31 alcoholic beverage, wine, or beer to any person under legal 32 age. Any person who defaces this sticker label shall be guilty 33 of criminal mischief punishable pursuant to section 716.6 and 34 shall cause the forfeiture of any deposit, if applicable . 35 -55- LSB 5045SZ (3) 89 ec/rn 55/ 81
S.F. 2374 (2) The identification sticker label shall be placed on 1 the keg at the time of retail sale. The licensee or permittee 2 shall purchase obtain the stickers labels referred to in this 3 subsection from the division and shall remit to the division 4 deposits forfeited pursuant to this lettered paragraph due to 5 defacement . The cost of the stickers labels to licensees and 6 permittees shall not exceed the division’s cost of producing 7 and distributing the stickers labels . The moneys collected by 8 the division relating to the sale of stickers and forfeited 9 deposits labels shall be credited to the beer and liquor 10 control fund. 11 Sec. 66. Section 123.138, subsection 2, paragraph d, Code 12 2022, is amended by striking the paragraph. 13 Sec. 67. Section 123.141, Code 2022, is amended to read as 14 follows: 15 123.141 Keeping liquor where beer is sold. 16 No alcoholic liquor for beverage purposes shall be used, 17 or kept for any purpose in the place of business of a special 18 class “B” beer permittees “C” retail alcohol licensee , or on 19 the premises of such special class “B” beer permittees “C” 20 retail alcohol licensee , at any time. A violation of any 21 provision of this section shall be grounds for suspension or 22 revocation of the beer permit pursuant to section 123.50, 23 subsection 3 . This section shall not apply in any manner or 24 in any way to the premises of any hotel or motel for which a 25 special class “B” beer permit “C” retail alcohol license has 26 been issued, other than that part of such premises regularly 27 used by the hotel or motel for the principal purpose of selling 28 beer or food to the general public, to a premises for which 29 both a class “B” beer permit and a class “A” native distilled 30 spirits license have been issued, or to keep a pharmacy from 31 having alcohol in stock for medicinal and compounding purposes. 32 Sec. 68. Section 123.142, subsection 1, Code 2022, is 33 amended to read as follows: 34 1. It is unlawful for the holder of a class “B” or class “C” 35 -56- LSB 5045SZ (3) 89 ec/rn 56/ 81
S.F. 2374 beer permit retail alcohol license issued under this chapter 1 to sell beer, except beer brewed on the premises covered by a 2 special class “A” beer permit or beer purchased from a person 3 holding a class “A” beer permit issued in accordance with this 4 chapter , and on which the tax provided in section 123.136 has 5 been paid. However, this section does not apply to class “D” 6 liquor control retail alcohol licensees as provided in this 7 chapter . 8 Sec. 69. Section 123.143, subsection 1, Code 2022, is 9 amended by striking the subsection. 10 Sec. 70. Section 123.143, subsection 2, Code 2022, is 11 amended to read as follows: 12 2. All permit fees collected by the division under this 13 subchapter shall accrue to the beer and liquor control fund, 14 except as otherwise provided. All permit fees and taxes 15 collected by the division under this subchapter shall accrue to 16 the state general fund, except as otherwise provided. 17 Sec. 71. Section 123.171, subsection 1, Code 2022, is 18 amended to read as follows: 19 1. A person shall not cause the manufacture, importation, 20 or sale of wine in this state unless a certificate or permit as 21 provided in this subchapter , or a liquor control retail alcohol 22 license as provided in subchapter I of this chapter , is first 23 obtained which authorizes that manufacture, importation, or 24 sale. 25 Sec. 72. Section 123.173, Code 2022, is amended to read as 26 follows: 27 123.173 Wine permits permit —— classes class “A” —— 28 authority. 29 1. Except as provided in section 123.187 , permits a permit 30 exclusively for the sale or manufacture and sale of wine shall 31 be divided into four classes, and shall be known as a class 32 “A” , “B”, “B” native, or “C” native wine permits permit . 33 2. A class “A” wine permit allows the holder to manufacture 34 and sell, or sell at wholesale, in this state, wine. The 35 -57- LSB 5045SZ (3) 89 ec/rn 57/ 81
S.F. 2374 holder of a class “A” wine permit may manufacture in this state 1 wine having an alcoholic content greater than seventeen percent 2 by weight or twenty-one and twenty-five hundredths percent of 3 alcohol by volume for shipment outside this state. All class 4 “A” premises shall be located within the state. A class “B” or 5 class “B” native wine permit allows the holder to sell wine at 6 retail for consumption off the premises. A class “B” or class 7 “B” native wine permittee who also holds a class “E” liquor 8 control license may sell wine to class “A”, class “B”, class 9 “C”, special class “C”, and class “D” liquor control licensees 10 for resale for consumption on the premises. Such wine sales 11 shall be in quantities of less than one case of any wine brand 12 but not more than one such sale shall be made to the same liquor 13 control licensee in a twenty-four-hour period. A class “B” or 14 class “B” native wine permittee shall not sell wine to other 15 class “B” or class “B” native wine permittees. A class “C” 16 native wine permit allows the holder to sell native wine for 17 consumption on or off the premises. 18 3. A class “A” wine permittee shall be required to deliver 19 wine to a retail wine permittee alcohol licensee , and a retail 20 wine permittee alcohol licensee shall be required to accept 21 delivery of wine from a class “A” wine permittee, only at 22 the licensed premises of the retail wine permittee alcohol 23 licensee . Except as specifically permitted by the division 24 upon good cause shown, delivery or transfer of wine from an 25 unlicensed premises to a licensed retail wine permittee’s 26 alcohol licensee’s premises, or from one licensed retail wine 27 permittee’s alcohol licensee’s premises to another licensed 28 retail wine permittee’s alcohol licensee’s premises, even if 29 there is common ownership of all of the premises by one retail 30 permittee, is prohibited. A class “B” or class “B” native wine 31 permittee who also holds a class “E” liquor control license 32 shall keep and maintain records for each sale of wine to liquor 33 control licensees showing the name of the establishment to 34 which wine was sold, the date of sale, and the brands and 35 -58- LSB 5045SZ (3) 89 ec/rn 58/ 81
S.F. 2374 number of bottles sold to the liquor control licensee. 1 4. When a class “B” or class “B” native wine permittee who 2 also holds a class “E” liquor control license sells wine to a 3 liquor control licensee, the liquor control licensee shall sign 4 a report attesting to the purchase. The class “B” or class “B” 5 native wine permittee who also holds a class “E” liquor control 6 license shall submit a report to the division electronically, 7 or in a manner prescribed by the administrator, not later than 8 the tenth of each month stating each sale of wine to liquor 9 control licensees during the preceding month, the date of each 10 sale, and the brands and numbers of bottles with each sale. 11 A class “B” permittee who holds a class “E” liquor control 12 license may sell to class “A”, class “B”, or class “C” liquor 13 control licensees only if the licensed premises of the liquor 14 control licensee is located within the geographic territory of 15 the class “A” wine permittee from which the wine was originally 16 purchased by the class “B” or class “B” native wine permittee. 17 Sec. 73. Section 123.173A, Code 2022, is amended by striking 18 the section and inserting in lieu thereof the following: 19 123.173A Charity beer, spirits, and wine special event 20 license. 21 1. For purposes of this section: 22 a. “Authorized nonprofit entity” includes a nonprofit 23 entity which has a principal office in the state, a nonprofit 24 corporation organized under chapter 504, or a foreign 25 corporation as defined in section 504.141, whose income is 26 exempt from federal taxation under section 501(c) of the 27 Internal Revenue Code. 28 b. “Charity auction” means an auction conducted by an 29 authorized nonprofit entity which includes beer, spirits, and 30 wine. 31 c. “Charity event” means an event at which an authorized 32 nonprofit entity may serve the event’s attendees beer, 33 spirits, and wine for consumption on the premises of the event, 34 regardless of whether the entity charges an admission fee to 35 -59- LSB 5045SZ (3) 89 ec/rn 59/ 81
S.F. 2374 the event or otherwise collects the cost of the beer, spirits, 1 and wine served from the event’s attendees. 2 d. “Charity special event” means a charity auction, charity 3 event, or a combined charity auction and charity event. 4 2. Upon application to the division and receipt of a charity 5 beer, spirits, and wine special event license, an authorized 6 nonprofit entity may conduct a charity special event subject to 7 the requirements of this section. 8 3. A charity auction conducted by a charity beer, spirits, 9 and wine special event licensee shall comply with the following 10 requirements: 11 a. The authorized nonprofit entity conducting the charity 12 auction shall obtain the beer, spirits, and wine to be 13 auctioned at the charity auction from an Iowa retail alcohol 14 licensee, or may receive donations of beer, spirits, or wine to 15 be auctioned at the charity auction from persons who purchased 16 the donated beer, spirits, or wine from an Iowa retail alcohol 17 licensee or an Iowa class “A” native distilled spirits licensee 18 and who present a receipt documenting the purchase at the 19 time the beer, spirits, or wine is donated. The authorized 20 nonprofit entity conducting the charity auction shall retain a 21 copy of the receipt for a period of one year from the date of 22 the charity beer, spirits, and wine auction. 23 b. The beer, spirits, and wine sold at the charity auction 24 shall be in original containers for consumption off of the 25 premises where the charity auction is conducted. No other 26 alcoholic beverage may be sold by the charity beer, spirits, 27 and wine special event licensee at the charity auction. A 28 purchaser of beer, spirits, or wine at a charity auction shall 29 not take possession of the beer, spirits, or wine until the 30 person is leaving the event. A purchaser of beer, spirits, 31 or wine at a charity auction shall not open the container or 32 consume or permit the consumption of the beer, spirits, or 33 wine purchased on the premises where the charity auction is 34 conducted. A purchaser of beer, spirits, or wine at a charity 35 -60- LSB 5045SZ (3) 89 ec/rn 60/ 81
S.F. 2374 auction shall not resell the beer, spirits, or wine. 1 c. A retail alcohol licensee or class “A” native distilled 2 spirits licensee shall not purchase beer, spirits, or wine at 3 a charity auction. The charity auction may be conducted on 4 a premises for which a class “B” or class “C” retail alcohol 5 license has been issued, provided that the retail alcohol 6 licensee does not participate in the charity auction, supply 7 beer, spirits, or wine to be auctioned at the charity auction, 8 or receive any of the proceeds of the charity auction. 9 4. A charity event conducted by a charity beer, spirits, 10 and wine special event licensee shall comply with the following 11 requirements: 12 a. The charity event shall be conducted on a premises 13 covered by a valid retail alcohol license issued by the 14 division. 15 b. The authorized nonprofit entity conducting a charity 16 event shall have a written agreement with the retail alcohol 17 licensee covering the premises where the charity event is to be 18 conducted specifying that that licensee shall act as the agent 19 of the authorized nonprofit entity for the purpose of providing 20 and serving alcoholic beverages to the attendees of the charity 21 event. 22 c. The retail alcohol licensee covering the premises where 23 the charity event is to be conducted shall supply all alcoholic 24 beverages served to the attendees of the charity event. 25 d. Only those types of alcoholic beverages as are authorized 26 to be sold by the retail alcohol license covering the premises 27 where the charity event is to be conducted are to be served to 28 the attendees of the charity event. 29 5. An application for a charity beer, spirits, and wine 30 special event license to conduct a charity special event shall 31 include all of the following information: 32 a. The date and time when the charity special event is to be 33 conducted and the location of the premises in this state where 34 the charity special event is to be physically conducted. 35 -61- LSB 5045SZ (3) 89 ec/rn 61/ 81
S.F. 2374 b. The retail alcohol license number issued by the division 1 for the premises where a charity event is to be conducted, if 2 applicable. 3 c. A certification that the objective of the charity special 4 event is to raise funds solely to be used for educational, 5 religious, or charitable purposes and that the entire proceeds 6 from the charity special event are to be expended for any of 7 the purposes described in section 423.3, subsection 78. 8 6. An authorized nonprofit entity shall be eligible to 9 receive no more than two charity beer, spirits, and wine 10 special event licenses during a calendar year and each charity 11 beer, spirits, and wine special event license shall be valid 12 for a period not to exceed thirty-six consecutive hours. 13 7. Any violation of the requirements of this chapter or 14 the rules adopted pursuant to this chapter shall subject 15 the charity beer, spirits, and wine special event license 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 license, or revocation of the permit after 19 notice and opportunity for a hearing pursuant to section 123.39 20 and chapter 17A. 21 Sec. 74. Section 123.175, subsection 1, unnumbered 22 paragraph 1, Code 2022, is amended to read as follows: 23 A person applying for a class “A” or retail wine permit shall 24 submit a completed application electronically, or in a manner 25 prescribed by the administrator, which shall set forth under 26 oath the following: 27 Sec. 75. Section 123.175, subsection 1, paragraph e, Code 28 2022, is amended to read as follows: 29 e. When required by the administrator, and in such form and 30 containing such information as the administrator may require, 31 a description of the premises where the applicant intends to 32 use the permit, to include a sketch or drawing of the premises 33 and, if applicable, the number of square feet of interior floor 34 space which comprises the retail sales area of the premises . 35 -62- LSB 5045SZ (3) 89 ec/rn 62/ 81
S.F. 2374 Sec. 76. Section 123.175, subsection 2, unnumbered 1 paragraph 1, Code 2022, is amended to read as follows: 2 The administrator shall issue a class “A” or retail wine 3 permit to any applicant who establishes all of the following: 4 Sec. 77. Section 123.175, subsection 2, paragraphs d and g, 5 Code 2022, are amended to read as follows: 6 d. That , in the case of a class “A” wine permit, the 7 applicant has filed with the division a basic permit issued 8 by the alcohol and tobacco tax and trade bureau of the United 9 States department of the treasury, and that the applicant will 10 faithfully observe and comply with all the laws, rules, and 11 regulations governing the manufacture and sale of wine. 12 g. That the applicant has submitted , in the case of a class 13 “A” wine permit, a bond in the amount of five thousand dollars 14 in a manner prescribed by the administrator with good and 15 sufficient sureties to be approved by the division conditioned 16 upon compliance with this chapter . 17 Sec. 78. Section 123.176, subsections 2, 5, and 7, Code 18 2022, are amended to read as follows: 19 2. Native wine may be sold at retail for off-premises 20 consumption when sold on the premises of the manufacturer, or 21 in a retail establishment operated by the manufacturer. Sales 22 may also be made to class “A” or retail wine permittees or 23 liquor control alcohol licensees as authorized by sections 24 123.173 123.30 and 123.177 . A manufacturer of native wines 25 shall not sell the wines other than as permitted in this 26 chapter and shall not allow wine sold to be consumed upon the 27 premises of the manufacturer. However, prior to sale, native 28 wines may be tasted pursuant to the rules of the division 29 on the premises where made, when no charge is made for the 30 tasting. 31 5. Notwithstanding any other provision of this chapter , a 32 person engaged in the business of manufacturing native wine 33 may sell native wine at retail for consumption on the premises 34 of the manufacturing facility by applying for be granted a 35 -63- LSB 5045SZ (3) 89 ec/rn 63/ 81
S.F. 2374 class “C” native wine permit retail alcohol license as provided 1 defined in section 123.178B 123.30 . A manufacturer of native 2 wine may be granted not more than two class “C” native wine 3 permits retail alcohol licenses . A manufacturer of native wine 4 may be issued a class “C” native wine permit retail alcohol 5 license regardless of whether the manufacturer is also a 6 manufacturer of beer pursuant to a class “A” beer permit or a 7 manufacturer of native distilled spirits pursuant to a class 8 “A” native distilled spirits license. 9 7. A manufacturer may use the space and equipment of another 10 manufacturer for the purpose of manufacturing native wine, 11 provided that such an alternating proprietorship arrangement 12 is approved by the alcohol and tobacco tax and trade bureau 13 of the United States department of the treasury. A separate 14 class “A” wine permit shall be issued to each manufacturer, 15 and each manufacturer shall be subject to the provisions of 16 this chapter and the rules of the division. Notwithstanding 17 subsection 5 , not more than one class “C” native wine permit 18 retail alcohol license shall be issued to a premises with 19 alternating proprietorships. 20 Sec. 79. Section 123.177, subsection 1, Code 2022, is 21 amended to read as follows: 22 1. A person holding a class “A” wine permit may manufacture 23 and sell, or sell at wholesale, wine for consumption off the 24 premises. Sales within the state may be made only to persons 25 holding a class “A” or “B” wine permit and to persons holding a 26 retail liquor control alcohol license. However, if the person 27 holding the class “A” permit is a manufacturer of native wine, 28 the person may sell only native wine to a person holding a 29 retail wine permit or a retail liquor control alcohol license. 30 A person holding a class “A” wine permit may sell wine to 31 distributors outside of the state that are authorized by the 32 laws of that jurisdiction to sell wine at wholesale. A class 33 “A” wine permittee having more than one place of business shall 34 obtain a separate permit for each place of business where wine 35 -64- LSB 5045SZ (3) 89 ec/rn 64/ 81
S.F. 2374 is to be manufactured, stored, warehoused, or sold. 1 Sec. 80. Section 123.177, subsection 3, Code 2022, is 2 amended by striking the subsection. 3 Sec. 81. Section 123.180, subsection 4, Code 2022, is 4 amended to read as follows: 5 4. It is unlawful for a holder of a vintner’s certificate 6 of compliance or the holder’s agent, or any class “A” wine 7 permittee or the permittee’s agent, to discriminate between 8 class “B” wine permittees class “B”, special class “B”, and 9 class “E” retail alcohol licensees authorized to sell wine at 10 retail. 11 Sec. 82. Section 123.181, subsection 1, Code 2022, is 12 amended by striking the subsection. 13 Sec. 83. Section 123.181, subsection 2, Code 2022, is 14 amended to read as follows: 15 2. A class “A” wine permittee shall not sell wine on 16 credit to a retail alcohol licensee or permittee for a period 17 exceeding thirty days from date of delivery. 18 Sec. 84. Section 123.187, subsection 2, paragraph a, Code 19 2022, is amended to read as follows: 20 a. Only a wine manufacturer that holds a wine direct shipper 21 permit issued pursuant to this section shall sell wine at 22 retail for direct shipment to any person within this state. 23 This section shall not prohibit an authorized retail licensee 24 or permittee from delivering wine pursuant to section 123.46A . 25 Sec. 85. Section 123.187, subsection 2, paragraph d, Code 26 2022, is amended by striking the paragraph. 27 Sec. 86. Section 125.59, unnumbered paragraph 1, Code 2022, 28 is amended to read as follows: 29 The treasurer of state, on each July 1 for that fiscal 30 year, shall transfer the estimated amounts to be received from 31 section 123.36, subsection 8 and section 123.143, subsection 1 32 for purposes of this section to the department. 33 Sec. 87. REPEAL. Sections 123.97, 123.123, 123.150, 34 123.172, 123.173B, and 123.185, Code 2022, are repealed. 35 -65- LSB 5045SZ (3) 89 ec/rn 65/ 81
S.F. 2374 Sec. 88. EFFECTIVE DATE. This division of this Act takes 1 effect January 1, 2023. 2 DIVISION IV 3 CONFORMING CHANGES 4 Sec. 89. Section 7D.16, Code 2022, is amended to read as 5 follows: 6 7D.16 Alcoholic beverages in state capitol or on complex 7 grounds. 8 Notwithstanding any contrary provision of law prohibiting 9 the use and consumption of alcoholic beverages in a public 10 place, the executive council may authorize, by resolution, 11 the temporary use and consumption of alcoholic beverages, 12 as defined in section 123.3 , in the state capitol or on the 13 state capitol complex grounds, as if the state capitol or 14 state capitol complex grounds were a private place. The 15 authorization by resolution shall be limited to the use and 16 consumption of alcoholic beverages as an accompaniment to food 17 at a single award ceremony, social event, or other occasion 18 deemed appropriate by the executive council. The authorization 19 shall require that the person providing the food and alcoholic 20 beverages possess an appropriate liquor control retail alcohol 21 license in accordance with section 123.95 . The secretary 22 of the executive council shall inform the secretary of the 23 legislative council and the director of the department of 24 administrative services of the approval of any such resolution. 25 Sec. 90. Section 12.43, subsection 5, paragraph e, Code 26 2022, is amended to read as follows: 27 e. Liquor, beer, and wine sales must not exceed twenty 28 percent of annual sales for establishments holding a class 29 “C” liquor retail alcohol license issued pursuant to section 30 123.30 . 31 Sec. 91. Section 99B.3, subsection 2, Code 2022, is amended 32 to read as follows: 33 2. A person whose license is revoked under this section 34 who is a person for whom a class “A”, class “B”, class “C”, or 35 -66- LSB 5045SZ (3) 89 ec/rn 66/ 81
S.F. 2374 class “D” liquor control retail alcohol license has been issued 1 pursuant to chapter 123 shall have the person’s liquor control 2 retail alcohol license suspended for a period of fourteen days 3 in the same manner as provided in section 123.50, subsection 4 3 , paragraph “a” . 5 Sec. 92. Section 99B.3, subsection 3, Code 2022, is amended 6 by striking the subsection. 7 Sec. 93. Section 99B.43, subsection 1, unnumbered paragraph 8 1, Code 2022, is amended to read as follows: 9 Social gambling is lawful on the premises of an 10 establishment for which a class “A”, class “B”, class “C”, 11 special class “C”, or class “D” liquor control , class “E”, or 12 class “F” retail alcohol license , or class “B” beer permit 13 has been issued pursuant to chapter 123 when, subject to the 14 provisions of section 99B.42 , all of the following requirements 15 are met: 16 Sec. 94. Section 99B.43, subsection 1, paragraph a, Code 17 2022, is amended to read as follows: 18 a. The liquor control retail alcohol licensee or beer 19 permittee has submitted an application for a social gambling 20 license and a license fee of one hundred fifty dollars to the 21 department, and a license has been issued. 22 Sec. 95. Section 99B.43, subsection 2, unnumbered paragraph 23 1, Code 2022, is amended to read as follows: 24 A liquor control retail alcohol licensee or beer permittee 25 with a social gambling license issued pursuant to this section 26 may conduct a sports betting pool if all of the requirements of 27 this subsection are met. 28 Sec. 96. Section 99B.43, subsection 3, Code 2022, is amended 29 to read as follows: 30 3. An establishment issued a social gambling license under 31 this section that is required to obtain a new liquor retail 32 alcohol license or permit under chapter 123 due to a change in 33 ownership shall be required to obtain a new social gambling 34 license under this section to conduct social gambling. 35 -67- LSB 5045SZ (3) 89 ec/rn 67/ 81
S.F. 2374 Sec. 97. Section 99B.53, subsections 2, 3, 4, and 13, Code 1 2022, are amended to read as follows: 2 2. Except as provided in subsection 3 , an electrical or 3 mechanical amusement device requiring registration may be 4 located on premises for which a class “A”, class “B”, class 5 “C”, special class “C”, or class “D” liquor control , class “E”, 6 or class “F” retail alcohol license has been issued pursuant 7 to chapter 123 . 8 3. a. An electrical or mechanical amusement device 9 requiring registration may be located on premises for which a 10 class “B” or class “C” beer permit “E” retail alcohol license 11 has been issued pursuant to chapter 123 , but the department 12 shall not initially register an electrical or mechanical 13 amusement device to an owner or distributor for a location for 14 which a class “B” or class “C” beer permit “E” retail alcohol 15 license has been issued pursuant to chapter 123 on or after 16 April 28, 2004. 17 b. A distributor that owns an amusement device at a location 18 for which only a class “B” or class “C” beer permit “E” retail 19 alcohol license has been issued pursuant to chapter 123 shall 20 not relocate an amusement device registered as provided in 21 this section to a location other than a location for which a 22 class “A”, class “B”, class “C”, special class “C”, or class 23 “D” liquor , class “E”, or class “F” retail alcohol license has 24 been issued and shall not transfer, assign, sell, or lease an 25 amusement device registered as provided in this section to 26 another person for which only a class “B” or class “C” beer 27 permit “E” retail alcohol license has been issued pursuant to 28 chapter 123 after April 28, 2004. 29 c. If ownership of the location changes, the class “B” 30 or class “C” beer permit “E” retail alcohol license does not 31 lapse, and the device is not removed from the location, the 32 device may remain at the location. 33 4. An electrical or mechanical amusement device required 34 to be registered and at a location for which only a class “B” 35 -68- LSB 5045SZ (3) 89 ec/rn 68/ 81
S.F. 2374 or class “C” beer permit “E” retail alcohol license has been 1 issued pursuant to chapter 123 shall include on the device 2 a security mechanism which prevents the device from being 3 operated by a person until action is taken by the owner or 4 owner’s designee to allow the person to operate the device. 5 13. A person owning or leasing an electrical or mechanical 6 amusement device required to be registered by this section 7 shall not relocate and place into operation an amusement 8 device in any location other than a location which has been 9 issued an appropriate liquor control retail alcohol license in 10 good standing and to which the device has been appropriately 11 registered with the department. 12 Sec. 98. Section 99B.55, subsection 2, Code 2022, is amended 13 to read as follows: 14 2. a. A person who commits an offense of awarding a cash 15 prize of fifty dollars or less in violation of section 99B.52, 16 subsection 3 , pursuant to rules adopted by the department, 17 shall be subject to a civil penalty in the amount of two 18 hundred fifty dollars. Additional sanctions beyond the civil 19 penalty prescribed by this paragraph, including but not limited 20 to the suspension or revocation of any liquor control retail 21 alcohol license issued pursuant to chapter 123 or registration 22 issued pursuant to section 99B.53 or 99B.56 , shall not be 23 applicable. 24 b. A person who commits, within two years, a second offense 25 of awarding a cash prize of fifty dollars or less in violation 26 of section 99B.52, subsection 3 , or a person who commits an 27 offense of awarding a cash prize of more than fifty dollars in 28 violation of section 99B.52, subsection 3 , pursuant to rules 29 adopted by the department, shall be subject to revocation of 30 the person’s registration and the following: 31 (1) If the person whose registration is revoked under this 32 paragraph “b” is a person for which a class “A”, class “B”, 33 class “C”, special class “C”, or class “D” liquor control , 34 class “E”, or class “F” retail alcohol license has been 35 -69- LSB 5045SZ (3) 89 ec/rn 69/ 81
S.F. 2374 issued pursuant to chapter 123 , the person’s liquor control 1 retail alcohol license shall be suspended for a period of 2 fourteen days in the same manner as provided in section 123.50, 3 subsection 3 , paragraph “a” . 4 (2) If the person whose registration is revoked under this 5 paragraph “b” is a person for which only a class “B” or class 6 “C” beer permit “E” retail alcohol license has been issued 7 pursuant to chapter 123 , the person’s class “B” or class “C” 8 beer permit “E” retail alcohol license shall be suspended for 9 a period of fourteen days in the same manner as provided in 10 section 123.50, subsection 3 , paragraph “a” . 11 (3) If a person owning or employed by an establishment 12 having a class “A”, class “B”, class “C”, special class “C”, 13 or class “D” liquor control , class “E”, or class “F” retail 14 alcohol license issued pursuant to chapter 123 commits an 15 offense as provided in this paragraph “b” , the liquor control 16 retail alcohol license of the establishment shall be suspended 17 for a period of fourteen days in the same manner as provided in 18 section 123.50, subsection 3 , paragraph “a” . 19 (4) If a person owning or employed by an establishment 20 having a class “B” or class “C” beer permit “E” retail alcohol 21 license issued pursuant to chapter 123 commits an offense as 22 provided in this paragraph “b” , the beer permit retail alcohol 23 license of the establishment shall be suspended for a period of 24 fourteen days in the same manner as provided in section 123.50, 25 subsection 3 , paragraph “a” . 26 Sec. 99. Section 137F.1, subsection 9, paragraph c, Code 27 2022, is amended to read as follows: 28 c. A premises covered by a class “A” wine permit or a class 29 “B” wine permit as provided in chapter 123 . 30 Sec. 100. Section 331.303, subsection 4, Code 2022, is 31 amended to read as follows: 32 4. Act upon applications for liquor control retail alcohol 33 licenses and retail beer permits in accordance with section 34 123.32 . 35 -70- LSB 5045SZ (3) 89 ec/rn 70/ 81
S.F. 2374 Sec. 101. Section 455C.4, subsection 4, Code 2022, is 1 amended to read as follows: 2 4. A class “E” liquor control retail alcohol licensee 3 may refuse to accept and to pay the refund value on an empty 4 alcoholic liquor container from a dealer or a redemption center 5 or from a person acting on behalf of or who has received empty 6 alcoholic liquor containers from a dealer or a redemption 7 center. 8 Sec. 102. EFFECTIVE DATE. This division of this Act takes 9 effect January 1, 2023. 10 DIVISION V 11 TRANSITION PROVISIONS 12 Sec. 103. TRANSITION PROVISIONS. 13 1. Any license or permit issued by the alcoholic beverages 14 division of the department of commerce that is repealed, 15 merged, or altered in this Act, and in effect on January 16 1, 2023, shall continue in full force and effect with the 17 authority granted by that license or permit until expiration 18 or renewal. 19 2. The alcoholic beverages division of the department of 20 commerce shall be authorized to adopt alternative procedures 21 for the issuance of any license or permit that is repealed, 22 merged, or altered in this Act on January 1, 2023, that are 23 issued on or after the effective date of this division of this 24 Act but before January 1, 2023. The alternative procedures 25 shall not be inconsistent with the provisions of this Act 26 governing the issuance of licenses or permits on or after 27 January 1, 2023. 28 Sec. 104. EFFECTIVE DATE. This division of this Act, being 29 deemed of immediate importance, takes effect upon enactment. 30 EXPLANATION 31 The inclusion of this explanation does not constitute agreement with 32 the explanation’s substance by the members of the general assembly. 33 This bill relates to alcoholic beverage control. The bill is 34 organized by divisions. 35 -71- LSB 5045SZ (3) 89 ec/rn 71/ 81
S.F. 2374 DIVISION I —— RETAIL ALCOHOL LICENSES. Code section 123.30, 1 establishing liquor control licenses, is stricken and rewritten 2 by the bill. The bill replaces liquor control licenses with 3 retail alcohol licenses and modifies the classes within the 4 new category of retail alcohol licenses. The current class 5 “A” liquor control license and class “D” liquor control 6 license are renamed a class “F” and a class “D” retail alcohol 7 license, respectively. The current class “B” liquor control 8 license that may be issued to a hotel or motel is eliminated. 9 Instead, the bill establishes a new class “B” retail alcohol 10 license and special class “B” retail alcohol license. The 11 new class “B” retail alcohol license allows the holder to 12 purchase wine from a class “A” wine permittee and beer from a 13 class “A” beer permittee and to sell wine and beer in original 14 unopened containers at retail to patrons for consumption off 15 the licensed premises. The bill also allows a holder of the 16 new class “B” retail alcohol license to sell wine and beer 17 in limited quantities to class “C”, special class “C”, class 18 “D”, and class “F” retail alcohol licensees for resale for 19 consumption on the premises. This new license combines, in 20 part, the authority granted under the current class “C” beer 21 permit for beer and the class “B” wine permit for wine. The 22 new special class “B” retail native wine license authorizes 23 the holder to purchase wine from a native winery holding a 24 class “A” wine permit and to sell native wine only at retail 25 for consumption off the licensed premises. The authority 26 under this new special class “B” retail alcohol license is 27 similar to the authority granted a holder of a current class 28 “B” native wine permit. The current class “C” and special 29 class “C” liquor control licenses are renamed as class “C” and 30 special class “C” retail alcohol licenses. The current special 31 class “C” native distilled spirits liquor control license 32 is repealed. Finally, the current class “E” liquor control 33 license is renamed a class “E” retail alcohol license. In 34 addition, the bill provides that a class “E” retail alcohol 35 -72- LSB 5045SZ (3) 89 ec/rn 72/ 81
S.F. 2374 licensee can purchase wine and beer from a class “A” wine or 1 beer permittee, respectively. The bill specifically allows the 2 class “E” licensee to sell wine and beer in unopened containers 3 at retail, and to sell alcoholic liquor and high alcoholic 4 content beer at wholesale. The bill also allows a holder 5 of a class “E” retail alcohol license to sell wine and beer 6 in limited quantities to class “C”, special class “C”, class 7 “D”, and class “F” retail alcohol licensees for resale for 8 consumption on the premises. 9 Code section 123.31, providing for liquor control license 10 applications, is stricken and rewritten by the bill. Existing 11 application requirements for liquor control licenses are made 12 applicable to retail alcohol licenses established by the bill. 13 In addition, requirements for issuance of a current class “B” 14 beer permit, class “C” beer permit, and retail wine permit 15 are generally made applicable to issuance of a retail alcohol 16 license. 17 New Code section 123.31A establishes the authority granted 18 a holder of a new class “B”, class “C”, special class “C”, 19 and class “E” retail alcohol license. The authority granted 20 a holder of these licenses as to both wine and beer is similar 21 to the authority granted current holders of a class “B” beer 22 permit, class “C” beer permit, and class “B” wine permit, 23 to include sales of beer or wine in other than the original 24 container. The new Code section provides that a holder of 25 a new class “C” or special class “C” retail alcohol license 26 cannot sell beer or wine to other retail alcohol license 27 holders. The bill also provides, similarly to current Code 28 section 123.181(1), that a holder of any retail alcohol permit 29 shall not sell wine except wine purchased from a person holding 30 a class “A” permit or native wine manufacturer. 31 New Code section 123.31B establishes the authority granted a 32 holder of a new special class “B” retail native wine license. 33 The authority granted a holder of this new license is similar 34 to the authority granted a holder of a current class “B” native 35 -73- LSB 5045SZ (3) 89 ec/rn 73/ 81
S.F. 2374 wine permit. 1 With the authority granted retail alcohol licensees 2 regarding beer, the current class “B” and class “C” beer 3 permits are repealed. As a result, the division repeals, as 4 to beer permits, Code section 123.138, providing for class 5 “B” beer permit applications, Code section 123.129, providing 6 for class “C” beer permit applications, Code section 123.131, 7 concerning authority under a class “B” beer permit, Code 8 section 123.132, concerning authority under a class “C” beer 9 permit, and Code section 123.140, concerning separate locations 10 for class “B” or class “C” beer permits. In addition, based 11 on the authority granted the new retail licenses regarding 12 wine, the current class “B” wine, class “B” native wine, and 13 class “C” native wine permits are repealed. As a result, the 14 division repeals, as to wine permits, Code section 123.178, 15 concerning authority under a class “B” wine permit, Code 16 section 123.178A, concerning authority under a class “B” native 17 wine permit, and Code section 123.178B, concerning authority 18 under a class “C” native wine permit. 19 The division takes effect January 1, 2023. 20 DIVISION II —— ALCOHOLIC BEVERAGE CONTROL FEES. This 21 division concerns fees for the new retail alcohol licenses as 22 well as changes to fees for other licenses and permits in Code 23 chapter 123. 24 Code section 123.23, concerning the distiller’s certificate 25 of compliance, is amended to increase the annual fee for the 26 certificate from $50 to $200. 27 Code section 123.36, concerning liquor control license 28 fees, is stricken and rewritten and made applicable to the new 29 retail alcohol licenses. The current fees for a class “A” 30 liquor control licensee are made applicable to the new class 31 “F” retail alcohol license. The current fees for a class 32 “B” liquor control license are repealed. Instead, the bill 33 establishes fees for the new class “B” retail alcohol license 34 based on the population of the city where the premises is 35 -74- LSB 5045SZ (3) 89 ec/rn 74/ 81
S.F. 2374 located as well as the square footage of the licensed premises. 1 The fee for the new special class “B” native wine license is 2 $125, an increase from the fee for a current class “B” native 3 wine permit of $25. The fees for the new class “C” and special 4 class “C” retail alcohol license are modified from the current 5 fees for class “C” liquor control licenses. The new fees 6 increase the population thresholds for increased fees for both 7 the new class “C” and special class “C” licenses and reduce the 8 fees for the class “C” retail alcohol license by $50 over the 9 current fees for a class “C” liquor control license. The new 10 class “D” retail alcohol license fees remain the same as the 11 fees for the current class “D” liquor control license. The 12 bill establishes fees for the new class “E” retail alcohol 13 license based on the population of the city where the premises 14 is located as well as the square footage of the licensed 15 premises. Current fees for the class “E” liquor control 16 license are based only on the population of the city where 17 the premises is located. Current provisions in Code section 18 123.36 governing crediting of liquor control license fees to 19 the beer and liquor control fund are made applicable to the new 20 retail alcohol license fees, excluding the new special class 21 “B” retail alcohol licenses. Current provisions imposing fee 22 surcharges are also made applicable to the new retail alcohol 23 license fees, excluding the new class “B” and special class “B” 24 retail alcohol licenses. 25 Code section 123.41, concerning the manufacturer’s license, 26 is amended to decrease the annual fee for the license from $350 27 to $300. 28 Code section 123.43(3), concerning a class “A” native 29 distilled spirits license, is amended to decrease the annual 30 fee for the license from $500 to $300. 31 Code section 123.134, concerning beer permit fees, is 32 stricken and rewritten. The bill keeps the annual permit fee 33 for a class “A” beer permit at $750, reduces the annual permit 34 fee for a special class “A” beer permit from $750 to $300, and 35 -75- LSB 5045SZ (3) 89 ec/rn 75/ 81
S.F. 2374 provides that the annual fee for a class “A” beer permit for a 1 native brewery is $300. Fees for class “B” and class “C” beer 2 permits are repealed as those permits are repealed by the bill. 3 Code section 123.135, concerning the brewer’s certificate 4 of compliance, is amended to reduce the annual fee for the 5 certificate from $500 to $200. 6 Code section 123.179, concerning wine permit fees, is 7 stricken and rewritten by the bill. The bill keeps the annual 8 permit fee for a class “A” wine permit that is not issued 9 to a native wine manufacturer at $750, increases the annual 10 permit fee for a class “A” wine permit issued to a native wine 11 manufacturer from $25 to $100, and provides that the annual fee 12 for a charity beer, spirits, and wine special event license 13 created in the bill is $100. Fees for class “B” wine permits 14 and class “B” and class “C” native wine permits are stricken 15 as those permits are repealed by the bill. The current fees 16 for charity wine auctions and charity wine event permits are 17 stricken as those permits are repealed by the bill and combined 18 in the new charity beer, spirits, and wine special event 19 license created by the bill. 20 Code section 123.180, concerning the vintner’s certificate 21 of compliance, is amended to increase the annual fee for the 22 certificate from $150 to $200. 23 The division takes effect January 1, 2023. 24 DIVISION III —— ALCOHOLIC BEVERAGE CONTROL. This division 25 makes changes to Code chapter 123 relative to alcoholic 26 beverage control, to include making conforming changes relative 27 to the creation of the new retail alcohol licenses and the 28 elimination of certain native distilled spirits, beer, and wine 29 permits in the bill. The bill also eliminates the requirement 30 to obtain a special privilege to sell alcoholic beverages on 31 Sunday and provides that sales or other activities relating 32 to alcoholic beverages on Sunday will be allowed to the same 33 extent as they are allowed on any other day. 34 Code section 123.3, definitions, is amended to reflect the 35 -76- LSB 5045SZ (3) 89 ec/rn 76/ 81
S.F. 2374 new retail alcohol licenses. The bill strikes definitions for 1 “retail beer permit” and “retail wine permit” as those permits 2 are repealed by the bill and creates a new “retail alcohol 3 license” definition reflecting the classes of licenses included 4 within this new license. The definition of “high alcoholic 5 content beer” is also amended to provide that high alcoholic 6 content beer may contain up to 19 percent of alcohol by volume 7 instead of the current 15 percent. 8 Code section 123.34, concerning seasonal licenses and 9 permits, is amended. The bill amends the Code section to 10 reflect the new retail alcohol licenses and allows seasonal 11 and shortened licenses for new class “C”, special class 12 “C”, class “D”, and class “F” retail alcohol licensees. The 13 bill eliminates the six-month seasonal license or permit and 14 provides that the fee for an eight-month seasonal license shall 15 be 50 percent of the license fee for that class of license 16 instead of a proportional share of that fee. 17 New Code section 123.35 includes the provision from 18 current Code section 123.34 providing for the expiration of 19 licenses, permits, and certificates of compliance without 20 the notification requirement. The new Code section further 21 provides, notwithstanding any provision of Code chapter 123 22 to the contrary, for the automatic renewal of a class “E” 23 retail alcohol license, a distiller’s, vintner’s, or brewer’s 24 certificate of compliance, and a wine direct shipper’s 25 permit. The bill allows the renewal of the applicable license, 26 certificate, or permit without approval by the administrator 27 of the alcoholic beverages division or endorsement of any 28 applicable local authority upon collection of the annual fee 29 for that license, certificate, or permit by the alcoholic 30 beverages division, provided certain conditions are met since 31 the preceding license, certificate, or permit was issued. The 32 bill provides that the license, certificate, or permit can be 33 automatically renewed if, in the preceding year, the license, 34 certificate, or permit has not been suspended or revoked, 35 -77- LSB 5045SZ (3) 89 ec/rn 77/ 81
S.F. 2374 a civil penalty has not been imposed, an administrative 1 proceeding is not pending to suspend or revoke the license, 2 certificate, or permit or to impose a civil penalty, all 3 required payments to the division have been made, and the 4 licensee, certificate holder, or permittee, and all persons 5 associated with the licensee, certificate holder, or permittee 6 as described in Code section 123.3(40)(e), have not been 7 convicted of a violation of Code chapter 123. In addition, for 8 renewal of a class “E” retail alcohol license, the licensed 9 premises shall constitute a safe and proper place and building 10 that complies with all applicable building-related regulations. 11 Code section 123.43A, concerning native distilleries, is 12 amended to reflect the new retail alcohol licenses in the bill. 13 The bill also provides that a native distillery, regardless 14 of the quantity of native distilled spirits the distillery 15 produces, has the ability to sell not more than nine liters 16 per person per day of native distilled spirits on the premises 17 of the native distillery and to apply for not more than two 18 class “C” retail alcohol licenses. Under current law, a native 19 distillery that produces and manufactures more than 100,000 20 proof gallons of native distilled spirits on an annual basis 21 may sell no more than 1.5 liters per person per day and is 22 not authorized to apply for a class “C” native distilled 23 spirits liquor control license. A holder of a class “C” retail 24 alcohol license under the bill is granted the authority to sell 25 alcoholic liquor, wine, and beer while a holder of the current 26 class “C” native distilled spirits liquor control licenses has 27 the authority to only sell native distilled spirits and mixed 28 drinks or cocktails. 29 Code section 123.46A, concerning delivery of alcoholic 30 beverages by retailers, is amended to reflect that the new 31 retail alcohol licenses in the bill are licenses, not permits. 32 The bill also provides that deliveries shall occur on the same 33 day the order for delivery of alcoholic beverages is removed 34 from the licensed premises of the retailer. 35 -78- LSB 5045SZ (3) 89 ec/rn 78/ 81
S.F. 2374 Code sections 123.49 and 123.50, concerning prohibitions 1 and criminal and civil penalties, are amended to reflect the 2 new retail alcohol licenses created in the bill and the fact 3 that the authority to sell at retail is granted only to retail 4 alcohol licensees and not permittees. 5 Code section 123.92, the dramshop Act, is amended to 6 provide that every retail alcohol licensee, except a class 7 “B”, special class “B”, or class “E” retail alcohol licensee, 8 shall furnish proof of financial responsibility by the 9 existence of a liability insurance policy. Under current law, 10 every liquor control licensee, class “B” beer permittee, and 11 class “C” native wine permittee, except a class “E” liquor 12 control licensee, is required to furnish proof of financial 13 responsibility. 14 Code section 123.97, providing that most revenues arising 15 under the operation of Code chapter 123 become part of the 16 general fund of the state, is repealed as inconsistent with the 17 provisions of current Code section 123.17. 18 Code section 123.123, concerning the applicability of 19 provisions relating to class “B” beer permits to liquor control 20 licensees, is repealed as class “B” beer permits are repealed 21 in the bill. 22 Code section 123.130, concerning authority under class “A” 23 beer permits, is amended to reflect the new retail alcohol 24 licenses in the bill. The bill also provides that a native 25 brewery may be granted not more than two class “C” retail 26 alcohol licenses instead of two class “B” permits which permits 27 are repealed by the bill. 28 Code section 123.138, concerning keg identification 29 stickers, is amended to reflect the new retail alcohol licenses 30 and provides for a keg identification label instead of a 31 sticker. In addition, the bill strikes provisions concerning 32 the forfeiture and remittance of deposits relating to defacing 33 the keg identification label. 34 Code section 123.143, concerning distribution of funds, is 35 -79- LSB 5045SZ (3) 89 ec/rn 79/ 81
S.F. 2374 amended to strike the provision directing where retail beer 1 permit fees shall be distributed. The bill repeals all retail 2 beer permit fees and the distribution of funds from retail 3 alcohol licenses is governed by Code section 123.36 as amended 4 by the bill. 5 Code section 123.172, concerning the applicability of 6 provisions relating to class “B” wine permits to liquor control 7 licensees, is repealed as class “B” wine permits are repealed 8 in the bill. 9 Code section 123.173, concerning classes of wine permits, is 10 amended by striking provisions relating to class “B”, class “B” 11 native wine, and class “C” native wine permits as those permits 12 are repealed by the bill. 13 Code section 123.173A, providing for a charity beer, 14 spirits, and wine auction permit, and Code section 123.173B, 15 providing for a charity beer, spirits, and wine event permit, 16 are stricken and replaced with a combined charity beer, 17 spirits, and wine special event license, allowing the license 18 holder to conduct a charity auction, charity event, or a 19 combined charity auction and charity event in a similar manner 20 as is allowed under current law for the two separate permits. 21 The bill only allows one charity auction, charity event, or 22 combined charity auction and charity event to be conducted 23 during the period of the license and limits a person to no more 24 than two special event licenses in a calendar year. 25 Code section 123.176, concerning native wines, is amended 26 to reflect the new retail alcohol licenses in the bill. The 27 bill also provides that a manufacturer of native wines may be 28 granted not more than two class “C” retail alcohol licenses 29 instead of two class “C” native wine permits which permits are 30 repealed by the bill. A holder of a class “C” retail alcohol 31 license under the bill is granted the authority to sell wine 32 and beer. 33 Code section 123.187, concerning the wine direct shipper 34 permit, is amended to remove the requirement that an 35 -80- LSB 5045SZ (3) 89 ec/rn 80/ 81
S.F. 2374 application for the permit be accompanied by a bond if not 1 otherwise required to submit a bond as a wine manufacturer. 2 Code section 125.59 is amended to reflect that current 3 provisions providing for transfer of certain revenues to the 4 department of public health are stricken by the bill. 5 The division takes effect January 1, 2023. 6 DIVISION IV —— CONFORMING CHANGES. This division makes 7 conforming changes to Code chapters 7D, 12, and 99B, relative 8 to the creation of the new retail alcohol licenses and the 9 elimination of certain native distilled spirits, beer, and wine 10 permits in the bill. 11 Code section 137F.1, defining food establishments for 12 purposes of licensure, is amended to provide that a food 13 establishment does not include only a premises covered by a 14 class “A” wine permit. Under current law, a food establishment 15 also does not include a premises covered by a class “B” wine 16 permit which is stricken by the bill. 17 The division takes effect January 1, 2023. 18 DIVISION V —— TRANSITION PROVISIONS. This division provides 19 that any license or permit issued by the alcoholic beverages 20 division that is repealed, merged, or altered in the bill and 21 in effect on January 1, 2023, shall continue in full force and 22 effect with the authority granted by that license or permit 23 until expiration or renewal. The division also authorizes the 24 alcoholic beverages division to adopt alternative procedures 25 for the issuance of any license or permit that is repealed, 26 merged, or altered in the bill that are issued on or after the 27 effective date of the division of the bill but before January 28 1, 2023. The alternative procedures shall not be inconsistent 29 with the provisions of the bill governing the issuance of 30 licenses or permits on or after January 1, 2023. 31 The division takes effect upon enactment. 32 -81- LSB 5045SZ (3) 89 ec/rn 81/ 81