Senate Study Bill 3053 - Introduced SENATE/HOUSE FILE _____ BY (PROPOSED DEPARTMENT OF COMMERCE/ALCOHOLIC BEVERAGES DIVISION BILL) A BILL FOR An Act relating to alcoholic beverage control and matters 1 under the purview of the alcoholic beverages division of 2 the department of commerce and including effective date 3 provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 5292XD (6) 89 ec/rn

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

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

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

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

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

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

S.F. _____ H.F. _____ sell alcoholic liquor and high alcoholic content beer at 1 wholesale to other liquor control licensees, provided the 2 holder has filed with the division a basic permit issued by the 3 alcohol and tobacco tax and trade bureau of the United States 4 department of the treasury. A holder of a class “E” liquor 5 control license may hold other retail liquor control licenses 6 or retail wine or beer permits, but the premises licensed under 7 a class “E” liquor control license shall be separate from other 8 licensed premises, though the separate premises may have a 9 common entrance. However, the holder of a class “E” liquor 10 control license may also hold a class “B” wine or class “C” 11 beer permit or both for the premises licensed under a class “E” 12 liquor control license. 13 Sec. 17. Section 123.36, subsection 9, Code 2022, is amended 14 by striking the subsection and inserting in lieu thereof the 15 following: 16 9. Class “E” liquor control license fees shall be determined 17 as follows: 18 a. For premises located within the corporate limits of a 19 city with a population of one thousand five hundred or less, a 20 sum determined as follows: 21 (1) For a premises with a square footage of one thousand 22 five hundred or less, seven hundred fifty dollars. 23 (2) For a premises with a square footage of more than one 24 thousand five hundred but not more than two thousand, one 25 thousand five hundred dollars. 26 (3) For a premises with a square footage of more than two 27 thousand but not more than five thousand, two thousand five 28 hundred dollars. 29 (4) For a premises with a square footage over five thousand, 30 three thousand five hundred dollars. 31 b. For premises located within the corporate limits of a 32 city with a population of more than one thousand five hundred 33 but less than ten thousand, a sum determined as follows: 34 (1) For a premises with a square footage of one thousand 35 -7- LSB 5292XD (6) 89 ec/rn 7/ 20

S.F. _____ H.F. _____ five hundred or less, one thousand five hundred dollars. 1 (2) For a premises with a square footage of more than one 2 thousand five hundred but not more than two thousand, two 3 thousand five hundred dollars. 4 (3) For a premises with a square footage of more than two 5 thousand but not more than five thousand, three thousand five 6 hundred dollars. 7 (4) For a premises with a square footage over five thousand, 8 five thousand dollars. 9 c. For premises located within the corporate limits 10 of a city with a population of ten thousand or more, a sum 11 determined as follows: 12 (1) For a premises with a square footage of one thousand 13 five hundred or less, two thousand five hundred dollars. 14 (2) For a premises with a square footage of more than one 15 thousand five hundred but not more than two thousand, three 16 thousand five hundred dollars. 17 (3) For a premises with a square footage of more than 18 two thousand but not more than five thousand, five thousand 19 dollars. 20 (4) For a premises with a square footage over five thousand, 21 seven thousand five hundred dollars. 22 d. For premises located outside the corporate limits of 23 any city, a sum equal to that charged to a premises with the 24 same square footage in the incorporated city located nearest 25 the premises to be licensed. If there is doubt as to which 26 of two or more differing corporate limits is the nearest, the 27 license fee which is the largest shall prevail. However, if 28 the premises is located in an unincorporated town, for purposes 29 of this paragraph, the unincorporated town shall be treated as 30 if it is a city. 31 Sec. 18. EFFECTIVE DATE. This division of this Act takes 32 effect January 1, 2023. 33 DIVISION V 34 SPECIAL LICENSES AND PERMITS 35 -8- LSB 5292XD (6) 89 ec/rn 8/ 20

S.F. _____ H.F. _____ Sec. 19. Section 123.32, subsection 1, paragraph b, 1 subparagraph (7), Code 2022, is amended to read as follows: 2 (7) A charity beer, spirits, and wine auction special event 3 permit as provided in section 123.173A . 4 Sec. 20. Section 123.32, subsection 1, paragraph b, 5 subparagraph (8), Code 2022, is amended by striking the 6 subparagraph. 7 Sec. 21. Section 123.34, subsection 2, Code 2022, is amended 8 to read as follows: 9 2. a. The administrator may issue six-month or eight-month 10 seasonal class “A”, class “B”, class “C”, special class “C”, 11 and class “D” liquor control licenses, class “B” wine permits, 12 class “B” or class “C” native wine permits, or class “B” beer 13 permits. 14 b. The fee for a six-month or an eight-month seasonal 15 license or permit issued pursuant to this subsection shall be 16 for a proportionate part fifty percent of the license or permit 17 fee for that class of license or permit. However, the fee for 18 a seasonal class “B” native wine permit shall be the permit fee 19 provided in section 123.179, subsection 4 , and the fee for a 20 seasonal class “C” native wine permit shall be the permit fee 21 provided in section 123.179, subsection 5 . 22 Sec. 22. Section 123.39, subsection 1, paragraph a, 23 subparagraph (2), Code 2022, is amended to read as follows: 24 (2) The administrator may suspend a certificate 25 of compliance, a class “D” liquor control license, a 26 manufacturer’s license, a broker’s permit, a class “A” native 27 distilled spirits license, a class “A” or special class “A” 28 beer permit, a charity beer, spirits, and wine auction special 29 event permit, a class “A” wine permit, a wine direct shipper’s 30 permit, or a wine carrier permit for a period not to exceed one 31 year, revoke the license, permit, or certificate, or impose a 32 civil penalty not to exceed one thousand dollars per violation. 33 Sec. 23. Section 123.173A, Code 2022, is amended by striking 34 the section and inserting in lieu thereof the following: 35 -9- LSB 5292XD (6) 89 ec/rn 9/ 20

S.F. _____ H.F. _____ 123.173A Charity beer, spirits, and wine special event 1 permit. 2 1. For purposes of this section: 3 a. “Authorized nonprofit entity” includes a nonprofit 4 entity which has a principal office in the state, a nonprofit 5 corporation organized under chapter 504, or a foreign 6 corporation as defined in section 504.141, whose income is 7 exempt from federal taxation under section 501(c) of the 8 Internal Revenue Code. 9 b. “Charity auction” means an auction conducted by an 10 authorized nonprofit entity which includes beer, spirits, and 11 wine. 12 c. “Charity event” means an event at which an authorized 13 nonprofit entity may serve the event’s attendees beer, 14 spirits, and wine for consumption on the premises of the event, 15 regardless of whether the entity charges an admission fee to 16 the event or otherwise collects the cost of the beer, spirits, 17 and wine served from the event’s attendees. 18 d. “Charity special event” means a charity auction, charity 19 event, or a combined charity auction and charity event. 20 2. Upon application to the division and receipt of a charity 21 beer, spirits, and wine special event permit, an authorized 22 nonprofit entity may conduct a charity special event subject to 23 the requirements of this section. 24 3. A charity auction conducted by a charity beer, spirits, 25 and wine special event permittee shall comply with the 26 following requirements: 27 a. The authorized nonprofit entity conducting the charity 28 auction shall obtain the beer, spirits, and wine to be 29 auctioned at the charity auction from an Iowa retail beer 30 permittee, an Iowa retail liquor control licensee, or an Iowa 31 retail wine permittee, or may receive donations of beer, 32 spirits, or wine to be auctioned at the charity auction from 33 persons who purchased the donated beer, spirits, or wine from 34 an Iowa retail beer permittee, an Iowa retail liquor control 35 -10- LSB 5292XD (6) 89 ec/rn 10/ 20

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

S.F. _____ H.F. _____ b. The authorized nonprofit entity conducting a charity 1 event shall have a written agreement with the liquor control 2 licensee or wine or beer permittee covering the premises where 3 the charity event is to be conducted specifying that that 4 licensee or permittee shall act as the agent of the authorized 5 nonprofit entity for the purpose of providing and serving 6 alcoholic beverages to the attendees of the charity event. 7 c. The liquor control licensee or wine or beer permittee 8 covering the premises where the charity event is to be 9 conducted shall supply all alcoholic beverages served to the 10 attendees of the charity event. 11 d. Only those types of alcoholic beverages as are authorized 12 to be sold by the liquor control license or wine or beer 13 permit covering the premises where the charity event is to be 14 conducted are to be served to the attendees of the charity 15 event. 16 5. An application for a charity beer, spirits, and wine 17 special event permit to conduct a charity special event shall 18 include all of the following information: 19 a. The date and time when the charity special event is to be 20 conducted and the location of the premises in this state where 21 the charity special event is to be physically conducted. 22 b. The liquor control license or wine or beer permit number 23 issued by the division for the premises where a charity event 24 is to be conducted, if applicable. 25 c. A certification that the objective of the charity special 26 event is to raise funds solely to be used for educational, 27 religious, or charitable purposes and that the entire proceeds 28 from the charity special event are to be expended for any of 29 the purposes described in section 423.3, subsection 78. 30 6. An authorized nonprofit entity shall be eligible to 31 receive no more than two charity beer, spirits, and wine 32 special event permits during a calendar year and each charity 33 beer, spirits, and wine special event permit shall be valid for 34 a period not to exceed thirty-six consecutive hours. 35 -12- LSB 5292XD (6) 89 ec/rn 12/ 20

S.F. _____ H.F. _____ 7. Any violation of the requirements of this chapter or 1 the rules adopted pursuant to this chapter shall subject 2 the charity beer, spirits, and wine special event permit 3 holder to the general penalties provided in this chapter and 4 shall constitute grounds for imposition of a civil penalty, 5 suspension of the permit, or revocation of the permit after 6 notice and opportunity for a hearing pursuant to section 123.39 7 and chapter 17A. 8 Sec. 24. Section 123.179, subsection 6, Code 2022, is 9 amended to read as follows: 10 6. The fee for a charity beer, spirits, and wine auction 11 special event permit is one hundred dollars. 12 Sec. 25. Section 123.179, subsection 7, Code 2022, is 13 amended by striking the subsection. 14 Sec. 26. REPEAL. Section 123.173B, Code 2022, is repealed. 15 Sec. 27. EFFECTIVE DATE. This division of this Act takes 16 effect January 1, 2023. 17 DIVISION VI 18 SUNDAY SALES 19 Sec. 28. Section 123.34, subsections 3 and 4, Code 2022, are 20 amended to read as follows: 21 3. a. The administrator may issue fourteen-day class “A”, 22 class “B”, class “C”, special class “C”, and class “D” liquor 23 control licenses, and fourteen-day class “B” beer permits, 24 class “B” native wine permits, and class “C” native wine 25 permits. 26 b. A fourteen-day license or permit, if granted, is valid 27 for fourteen consecutive days , but the holder shall not sell on 28 the two Sundays in the fourteen-day period unless the holder 29 qualifies for and obtains the privilege to sell on Sundays 30 contained in section 123.36, subsection 6 , and section 123.134, 31 subsection 4 . 32 c. (1) The fee for a fourteen-day liquor control license 33 or beer permit is one quarter of the annual fee for that class 34 of liquor control license or beer permit. The fee for the 35 -13- LSB 5292XD (6) 89 ec/rn 13/ 20

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

S.F. _____ H.F. _____ covering premises located within the local authority’s 1 jurisdiction. The division shall remit to the appropriate 2 local authority a sum equal to seventy-five percent of the fees 3 collected for each special class “C” license covering premises 4 located within the local authority’s jurisdiction. Those fees 5 collected for the privilege authorized under subsection 6 and 6 those fees collected for each class “E” liquor control license 7 shall be credited to the beer and liquor control fund. 8 Sec. 31. Section 123.46A, subsection 3, paragraph b, Code 9 2022, is amended to read as follows: 10 b. Orders for deliveries may be taken by the licensee or 11 permittee between the hours of 2:00 a.m. and 6:00 a.m. 12 on a day other than Sunday, and orders for deliveries may 13 be taken between the hours of 2:00 a.m. and 6:00 a.m. on a 14 Sunday provided the licensee or permittee has been granted 15 the privilege of selling alcoholic liquor, wine, beer, or 16 mixed drinks or cocktails on Sunday on any day of the week , 17 notwithstanding any provision of section 123.49, subsection 2 , 18 paragraph “b” , to the contrary. 19 Sec. 32. Section 123.49, subsection 2, paragraph b, Code 20 2022, is amended to read as follows: 21 b. Sell or dispense any alcoholic beverage on the premises 22 covered by the license or permit, or permit its consumption 23 thereon between the hours of 2:00 a.m. and 6:00 a.m. on a 24 weekday, and between the hours of 2:00 a.m. on Sunday and 6:00 25 a.m. on the following Monday, however, a holder of a liquor 26 control license or retail wine or beer permit granted the 27 privilege of selling alcoholic liquor, wine, or beer on Sunday 28 may sell or dispense alcoholic liquor, wine, or beer between 29 the hours of 6:00 a.m. on Sunday and 2:00 a.m. on the following 30 Monday any day of the week . 31 Sec. 33. Section 123.49, subsection 4, Code 2022, is amended 32 by striking the subsection. 33 Sec. 34. Section 123.134, subsection 4, Code 2022, is 34 amended by striking the subsection. 35 -15- LSB 5292XD (6) 89 ec/rn 15/ 20

S.F. _____ H.F. _____ Sec. 35. REPEAL. Section 123.150, Code 2022, is repealed. 1 Sec. 36. EFFECTIVE DATE. This division of this Act takes 2 effect January 1, 2023. 3 EXPLANATION 4 The inclusion of this explanation does not constitute agreement with 5 the explanation’s substance by the members of the general assembly. 6 This bill relates to alcoholic beverage control and matters 7 under the purview of the alcoholic beverages division. 8 Division I of the bill relates to keg identification 9 stickers, deliveries of alcoholic beverages, and the wine 10 direct shipper permit. 11 Code section 123.46A, concerning delivery of alcoholic 12 beverages by retailers, is amended to provide that deliveries 13 shall occur on the same day the order for delivery of alcoholic 14 beverages is removed from the licensed premises of the 15 retailer. 16 Code section 123.138, concerning keg identification 17 stickers, is amended to provide for a keg identification label 18 instead of a sticker. In addition, the bill strikes provisions 19 concerning the forfeiture and remittance of deposits relating 20 to defacing the keg identification label. 21 Code section 123.187, concerning the wine direct shipper 22 permit, is amended to remove the requirement that an 23 application for the permit be accompanied by a bond if not 24 otherwise required to submit a bond as a wine manufacturer. 25 Division II of the bill relates to the renewal of certain 26 licenses, permits, and certificates of compliance. 27 Code section 123.34, subsection 1, providing generally 28 for the expiration of licenses, permits, and certificates of 29 compliance one year from the date of issuance, and including a 30 notification requirement by the administrator of the alcoholic 31 beverage division prior to expiration, is stricken. 32 New Code section 123.35 includes the provision from 33 current Code section 123.34 providing for the expiration of 34 licenses, permits, and certificates of compliance without 35 -16- LSB 5292XD (6) 89 ec/rn 16/ 20

S.F. _____ H.F. _____ the notification requirement. The new Code section further 1 provides, notwithstanding any provision of Code chapter 123 2 to the contrary, for the automatic renewal of a class “E” 3 liquor control license, a distiller’s, vintner’s, or brewer’s 4 certificate of compliance, and a wine direct shipper’s 5 permit. The bill allows the renewal of the applicable license, 6 certificate, or permit without approval by the administrator 7 of the alcoholic beverages division or endorsement of any 8 applicable local authority upon collection of the annual fee 9 for that license, certificate, or permit by the alcoholic 10 beverages division, provided certain conditions are met since 11 the preceding license, certificate, or permit was issued. The 12 bill provides that the license, certificate, or permit can be 13 automatically renewed if, in the preceding year, the license, 14 certificate, or permit has not been suspended or revoked, 15 a civil penalty has not been imposed, an administrative 16 proceeding is not pending to suspend or revoke the license, 17 certificate, or permit or to impose a civil penalty, all 18 required payments to the division have been made, and the 19 licensee, certificate holder, or permittee, and all persons 20 associated with the licensee, certificate holder, or permittee 21 as described in Code section 123.3, subsection 40, paragraph 22 “e”, have not been convicted of a violation of Code chapter 23 123. In addition, for renewal of a class “E” liquor control 24 license, the licensed premises shall constitute a safe and 25 proper place and building that complies with all applicable 26 building-related regulations. 27 This division of the bill takes effect January 1, 2023. 28 Division III of the bill relates to the distribution of 29 certain alcoholic beverage control revenues. 30 Code section 123.17, concerning transfers from the beer 31 and liquor control fund, is amended. The bill provides that 32 of the moneys transferred to a special revenue account in the 33 general fund of the state from the beer and liquor control 34 fund, $1 million, plus any additional amount as determined by 35 -17- LSB 5292XD (6) 89 ec/rn 17/ 20

S.F. _____ H.F. _____ the general assembly, shall be appropriated to the department 1 of public health to be distributed as provided in Code section 2 125.59 as grants to counties, persons, or nonprofit entities 3 for substance abuse and prevention programs. Code section 4 125.59 is amended to reflect that only this new appropriation 5 shall be transferred to the department of public health for the 6 purposes of Code section 125.59. 7 Code section 123.143, concerning distribution of certain 8 beer permit fees, is amended. The bill provides that all 9 beer-related permit fees collected by the alcoholic beverages 10 division shall accrue to the beer and liquor control fund 11 except as otherwise provided. The bill also provides that 12 of the retail beer permit fees collected by the alcoholic 13 beverages division, the division shall remit to the applicable 14 local authority a sum of money equal to the retail beer permit 15 fees collected by the division covering premises covered by the 16 local authority’s jurisdiction. The bill further eliminates 17 the requirement that retail beer permit fees collected by the 18 local authority be transferred as provided in Code section 19 125.59. 20 Code section 123.97, providing that most revenues arising 21 under the operation of Code chapter 123 become part of the 22 general fund of the state, is repealed as inconsistent with the 23 provisions of current Code section 123.17. 24 This division of the bill takes effect January 1, 2023. 25 Division IV of the bill relates to class “E” liquor control 26 licenses. 27 Code section 123.30, concerning liquor control licenses, is 28 amended. The bill provides that a class “E” liquor control 29 licensee can purchase wine and beer from a class “A” wine 30 or beer permittee only, respectively. The bill specifically 31 allows the class “E” licensee to sell wine and beer in unopened 32 containers at retail, and to sell alcoholic liquor and high 33 alcoholic content beer at wholesale. The bill strikes a 34 provision allowing the holder of a class “E” liquor control 35 -18- LSB 5292XD (6) 89 ec/rn 18/ 20