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- SF 2374 (4) 89 ec/rn/mb 1/ 72

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- SF 2374 (4) 89 ec/rn/mb 2/ 72

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- SF 2374 (4) 89 ec/rn/mb 3/ 72

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- SF 2374 (4) 89 ec/rn/mb 4/ 72

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- SF 2374 (4) 89 ec/rn/mb 5/ 72

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- SF 2374 (4) 89 ec/rn/mb 6/ 72

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- SF 2374 (4) 89 ec/rn/mb 7/ 72

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- SF 2374 (4) 89 ec/rn/mb 8/ 72

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- SF 2374 (4) 89 ec/rn/mb 9/ 72

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- SF 2374 (4) 89 ec/rn/mb 10/ 72

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- SF 2374 (4) 89 ec/rn/mb 11/ 72

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- SF 2374 (4) 89 ec/rn/mb 12/ 72

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- SF 2374 (4) 89 ec/rn/mb 13/ 72

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- SF 2374 (4) 89 ec/rn/mb 14/ 72

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- SF 2374 (4) 89 ec/rn/mb 15/ 72

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- SF 2374 (4) 89 ec/rn/mb 16/ 72

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- SF 2374 (4) 89 ec/rn/mb 17/ 72

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- SF 2374 (4) 89 ec/rn/mb 18/ 72

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- SF 2374 (4) 89 ec/rn/mb 19/ 72

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, 11, 22, 29, and 30, 15 Code 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 11. “Canned cocktail” means a mixed drink or cocktail that 24 is premixed and packaged in a metal can and contains more than 25 six and twenty-five hundredths one-half of one percent of 26 alcohol by volume but not more than fifteen percent of alcohol 27 by volume. A mixed drink or cocktail mixed and packaged in a 28 metal can pursuant to section 123.49, subsection 2 , paragraph 29 “d” , subparagraph (3), shall not be considered a canned 30 cocktail. 31 22. “High alcoholic content beer” means beer which contains 32 more than six and twenty-five hundredths percent of alcohol by 33 volume, but not more than fifteen nineteen percent of alcohol 34 by volume, that is made by the fermentation of an infusion 35 -20- SF 2374 (4) 89 ec/rn/mb 20/ 72

S.F. 2374 in potable water of barley, malt, and hops, with or without 1 unmalted grains or decorticated and degerminated grains. Not 2 more than one and five-tenths percent of the volume of a “high 3 alcoholic content beer” may consist of alcohol derived from 4 added flavors and other nonbeverage ingredients containing 5 alcohol. The added flavors and other nonbeverage ingredients 6 may not include added caffeine or other added stimulants 7 including but not limited to guarana, ginseng, and taurine. 8 29. “Licensed premises” or “premises” means all rooms, 9 enclosures, contiguous areas, or places susceptible of precise 10 description satisfactory to the administrator where alcoholic 11 beverages, wine, or beer is sold or consumed under authority of 12 a liquor control retail alcohol license, wine permit, or beer 13 permit. A single licensed premises may consist of multiple 14 rooms, enclosures, areas, or places if they are wholly within 15 the confines of a single building or contiguous grounds. 16 30. “Local authority” means the city council of any 17 incorporated city in this state, or the county board of 18 supervisors of any county in this state, which is empowered by 19 this chapter to approve or deny applications for retail beer or 20 wine permits and liquor control alcohol licenses; empowered to 21 recommend that such permits or licenses be granted and issued 22 by the division; and empowered to take other actions reserved 23 to them by this chapter . 24 Sec. 17. Section 123.3, subsection 40, paragraph b, Code 25 2022, is amended to read as follows: 26 b. The person is not prohibited by section 123.40 from 27 obtaining a liquor control retail alcohol license or a wine or 28 beer permit. 29 Sec. 18. Section 123.3, subsection 45, Code 2022, is amended 30 by striking the subsection and inserting in lieu thereof the 31 following: 32 45. “Retail alcohol license” means a class “B”, class “C”, 33 special class “C”, class “D”, class “E”, or class “F” retail 34 alcohol license, or a special class “B” retail native wine 35 -21- SF 2374 (4) 89 ec/rn/mb 21/ 72

S.F. 2374 license issued under this chapter. 1 Sec. 19. Section 123.3, subsection 46, Code 2022, is amended 2 by striking the subsection. 3 Sec. 20. Section 123.9, subsections 5 and 7, Code 2022, are 4 amended to read as follows: 5 5. To grant and issue beer permits, wine permits, liquor 6 control retail alcohol licenses, and other licenses; and to 7 suspend or revoke all such permits and licenses for cause under 8 this chapter . 9 7. To accept alcoholic liquors ordered delivered to the 10 alcoholic beverages division pursuant to chapter 809A , and 11 offer for sale and deliver the alcoholic liquors to class 12 “E” liquor control retail alcohol licensees, unless the 13 administrator determines that the alcoholic liquors may be 14 adulterated or contaminated. If the administrator determines 15 that the alcoholic liquors may be adulterated or contaminated, 16 the administrator shall order their destruction. 17 Sec. 21. Section 123.10, subsections 3, 6, and 14, Code 18 2022, are amended to read as follows: 19 3. Regulating the purchase of alcoholic liquor generally 20 and the furnishing of the liquor to class “E” liquor control 21 retail alcohol licensees under this chapter , and determining 22 the classes, varieties, and brands of alcoholic liquors to be 23 kept in state warehouses. 24 6. Providing for the issuance and electronic distribution 25 of price lists which show the price to be paid by class “E” 26 liquor control retail alcohol licensees for each brand, 27 class, or variety of liquor kept for sale by the division, 28 providing for the filing or posting of prices charged in sales 29 between class “A” beer and class “A” wine permit holders and 30 retailers, as provided in this chapter , and establishing or 31 controlling the prices based on minimum standards of fill, 32 quantity, or alcoholic content for each individual sale of 33 alcoholic beverages as deemed necessary for retail or consumer 34 protection. However, the division shall not regulate markups, 35 -22- SF 2374 (4) 89 ec/rn/mb 22/ 72

S.F. 2374 prices, discounts, allowances, or other terms of sale at which 1 alcoholic liquor may be purchased by the retail public or 2 liquor control retail alcohol licensees from class “E” liquor 3 control retail alcohol licensees or at which wine may be 4 purchased and sold by class “A” and retail wine permittees, or 5 change, nullify, or vary the terms of an agreement between a 6 holder of a vintner certificate of compliance and a class “A” 7 wine permittee. 8 14. Prescribing the uniform fee to be assessed against 9 a class “B” beer permittee, class “C” native wine permittee, 10 or liquor control retail alcohol licensee, except a class 11 “B”, special class “B”, or class “E” liquor control retail 12 alcohol licensee, to cover the administrative costs incurred 13 by the division resulting from the failure of the licensee or 14 permittee to maintain dramshop liability insurance coverage 15 pursuant to section 123.92, subsection 2 , paragraph “a” . 16 Sec. 22. Section 123.15, Code 2022, is amended to read as 17 follows: 18 123.15 Favors from licensee or permittee. 19 A person responsible for the administration or enforcement 20 of this chapter shall not accept or solicit donations, 21 gratuities, political advertising, gifts, or other favors, 22 directly or indirectly, from any liquor control retail alcohol 23 licensee, wine permittee, or beer permittee. 24 Sec. 23. Section 123.16, subsections 6 and 7, Code 2022, are 25 amended to read as follows: 26 6. The number of liquor control retail alcohol licenses, 27 wine permits, and beer permits issued, by class, the number in 28 effect on the last day included in the report, and the number 29 which have been suspended or revoked during the period covered 30 by the report. 31 7. Amount of fees paid to the division from liquor control 32 retail alcohol licenses, wine permits, and beer permits, in 33 gross, and the amount of liquor control retail alcohol license 34 fees returned to local subdivisions of government as provided 35 -23- SF 2374 (4) 89 ec/rn/mb 23/ 72

S.F. 2374 under this chapter . 1 Sec. 24. Section 123.22, subsection 1, Code 2022, is amended 2 to read as follows: 3 1. The division has the exclusive right of importation 4 into the state of all forms of alcoholic liquor, except as 5 otherwise provided in this chapter , and a person shall not 6 import alcoholic liquor, except that an individual of legal age 7 may import and have in the individual’s possession an amount of 8 alcoholic liquor not exceeding nine liters per calendar month 9 that the individual personally obtained outside the state. 10 Alcoholic liquor imported by an individual pursuant to this 11 subsection shall be for personal consumption only in a private 12 home or other private accommodation. A distillery shall not 13 sell alcoholic liquor within the state to any person but only 14 to the division, except as otherwise provided in this chapter . 15 This section vests in the division exclusive control within the 16 state as purchaser of all alcoholic liquor sold by distilleries 17 within the state or imported, except beer and wine, and except 18 as otherwise provided in this chapter . The division shall 19 receive alcoholic liquor on a bailment system for resale by the 20 division in the manner set forth in this chapter . The division 21 shall act as the sole wholesaler of alcoholic liquor to class 22 “E” liquor control retail alcohol licensees. 23 Sec. 25. Section 123.24, Code 2022, is amended to read as 24 follows: 25 123.24 Alcoholic liquor sales by the division —— dishonored 26 payments —— liquor prices. 27 1. The division shall sell alcoholic liquor at wholesale 28 only. The division shall sell alcoholic liquor to class “E” 29 liquor control retail alcohol licensees only. The division 30 shall offer the same price on alcoholic liquor to all class “E” 31 liquor control retail alcohol licensees without regard for the 32 quantity of purchase or the distance for delivery. 33 2. The price of alcoholic liquor sold by the division shall 34 consist of the following: 35 -24- SF 2374 (4) 89 ec/rn/mb 24/ 72

S.F. 2374 a. The manufacturer’s price. 1 b. A markup of up to fifty percent of the wholesale price 2 paid by the division for the alcoholic liquor. The division 3 may increase the markup on selected kinds of alcoholic liquor 4 sold by the division if the average return to the division on 5 all sales of alcoholic liquor does not exceed the wholesale 6 price paid by the division and the fifty percent markup. 7 c. A split case charge in an amount determined by the 8 division when alcoholic liquor is sold in quantities which 9 require a case to be split. 10 d. A bottle surcharge in an amount sufficient, when added 11 to the amount not refunded to class “E” liquor control retail 12 alcohol licensees pursuant to section 455C.2 , to pay the costs 13 incurred by the division for collecting and properly disposing 14 of the liquor containers. The amount collected pursuant to 15 this paragraph, in addition to any amounts not refunded to 16 class “E” liquor control retail alcohol licensees pursuant 17 to section 455C.2 , shall be deposited in the beer and liquor 18 control fund established under section 123.17 . 19 3. a. The division may accept from a class “E” liquor 20 control retail alcohol licensee electronic funds transferred 21 by automated clearing house, wire transfer, or another method 22 deemed acceptable by the administrator, in payment of alcoholic 23 liquor. If a payment is subsequently dishonored, the division 24 shall cause a notice of nonpayment and penalty to be served 25 upon the class “E” liquor control retail alcohol licensee or 26 upon any person in charge of the licensed premises. The notice 27 shall state that if payment or satisfaction for the dishonored 28 payment is not made within ten days of the service of notice, 29 the licensee’s liquor control retail alcohol license may be 30 suspended under section 123.39 . The notice of nonpayment and 31 penalty shall be in a form prescribed by the administrator, and 32 shall be sent by certified mail. 33 b. If upon notice and hearing under section 123.39 and 34 pursuant to the provisions of chapter 17A concerning a 35 -25- SF 2374 (4) 89 ec/rn/mb 25/ 72

S.F. 2374 contested case hearing, the administrator determines that the 1 class “E” liquor control retail alcohol licensee failed to 2 satisfy the obligation for which the payment was issued within 3 ten days after the notice of nonpayment and penalty was served 4 on the licensee as provided in paragraph “a” of this subsection , 5 the administrator may suspend the licensee’s class “E” liquor 6 control retail alcohol license for a period not to exceed ten 7 days. 8 4. The administrator may refuse to sell alcoholic liquor 9 to a class “E” liquor control retail alcohol licensee who 10 tenders a payment which is subsequently dishonored until the 11 outstanding obligation is satisfied. 12 Sec. 26. Section 123.26, Code 2022, is amended to read as 13 follows: 14 123.26 Restrictions on sales —— seals —— labeling. 15 Alcoholic liquor shall not be sold by a class “E” liquor 16 control retail alcohol licensee except in a sealed container 17 with identifying markers as prescribed by the administrator 18 and affixed in the manner prescribed by the administrator, and 19 no such container shall be opened upon the premises of a state 20 warehouse. The division shall cooperate with the department 21 of natural resources so that only one identifying marker or 22 mark is needed to satisfy the requirements of this section and 23 section 455C.5, subsection 1 . Possession of alcoholic liquors 24 which do not carry the prescribed identifying markers is a 25 violation of this chapter except as provided in section 123.22 . 26 Sec. 27. Section 123.28, subsections 2 and 5, Code 2022, are 27 amended to read as follows: 28 2. The division shall deliver alcoholic liquor purchased by 29 class “E” liquor control retail alcohol licensees. Class “E” 30 liquor control retail alcohol licensees may deliver alcoholic 31 liquor purchased by class “A”, class “B”, class “C”, class “C” 32 native distilled spirits, or class “D” liquor control , or class 33 “F” retail alcohol licensees, and class “A”, class “B”, class 34 “C”, class “C” native distilled spirits, or class “D” liquor 35 -26- SF 2374 (4) 89 ec/rn/mb 26/ 72

S.F. 2374 control , or class “F” retail alcohol licensees may transport 1 alcoholic liquor purchased from class “E” liquor control retail 2 alcohol licensees. 3 5. This section does not affect the right of a liquor 4 control retail alcohol license holder to purchase, possess, or 5 transport alcoholic liquors subject to this chapter . 6 Sec. 28. Section 123.32, Code 2022, is amended to read as 7 follows: 8 123.32 Action by local authorities and division on 9 applications for liquor control retail alcohol licenses, native 10 distilled spirits licenses, and wine and beer permits. 11 1. Filing of application. 12 a. A completed application for a class “A”, class “B”, class 13 “C”, special class “C”, class “C” native distilled spirits, or 14 class “E” liquor control retail alcohol license as provided 15 in section 123.31 , for a retail beer permit as provided in 16 sections 123.128 and 123.129 , or for a class “B”, class “B” 17 native, or class “C” native retail wine permit as provided in 18 section 123.175 except a class “D” retail alcohol license , 19 shall be filed with the appropriate city council if the 20 premises for which the license or permit is sought are located 21 within the corporate limits of a city, or with the board of 22 supervisors if the premises for which the license or permit is 23 sought are located outside the corporate limits of a city. 24 b. A completed application for a class “D” liquor 25 control retail alcohol license and for any of the following 26 certificates, licenses, or permits shall be submitted to the 27 division electronically, or in a manner prescribed by the 28 administrator, which shall proceed in the same manner as in the 29 case of an application approved by local authorities: 30 (1) A certificate of compliance as provided in sections 31 123.23 , 123.135 , and 123.180 . 32 (2) A class “D” liquor control retail alcohol license as 33 provided in section 123.31 . 34 (3) A manufacturer’s license as provided in section 123.41 . 35 -27- SF 2374 (4) 89 ec/rn/mb 27/ 72

S.F. 2374 (4) A broker’s permit as provided in section 123.42 . 1 (5) A class “A” native distilled spirits license as provided 2 in section 123.43 . 3 (6) A class “A” or special class “A” beer permit as provided 4 in section 123.127 . 5 (7) A charity beer, spirits, and wine auction permit special 6 event license as provided in section 123.173A . 7 (8) A charity beer, spirits, and wine event permit as 8 provided in section 123.173B . 9 (9) (8) A class “A” wine permit as provided in section 10 123.175 . 11 (10) (9) A wine direct shipper’s permit as provided in 12 section 123.187 . 13 (11) (10) A wine carrier permit as provided in section 14 123.188 . 15 2. Action by local authorities. The local authority shall 16 either approve or disapprove the issuance of a liquor control 17 retail alcohol license, a retail wine permit, or a retail 18 beer permit, shall endorse its approval or disapproval on 19 the application, and shall forward the application with the 20 necessary fee and bond, if required, to the division. There 21 is no limit upon the number of liquor control retail alcohol 22 licenses , retail wine permits, or retail beer permits which may 23 be approved for issuance by local authorities. 24 3. Licensed premises for local events. A local authority 25 may define, by motion of the local authority, licensed premises 26 which shall be used by holders of liquor control retail alcohol 27 licenses , beer permits, and wine permits at festivals, fairs, 28 or celebrations which are sponsored or authorized by the local 29 authority. The licensed premises defined by motion of the 30 local authority shall be used by the holders of five-day or 31 fourteen-day class “A”, class “B”, class “C”, special class 32 “C”, or class “D” liquor control , or class “F” retail alcohol 33 licenses , or five-day or fourteen-day class “B” or class “C” 34 native wine permits, or class “B” beer permits only . 35 -28- SF 2374 (4) 89 ec/rn/mb 28/ 72

S.F. 2374 4. Security employee training. A local authority, as a 1 condition of obtaining and holding a license or permit for 2 on-premises consumption, may require a designated security 3 employee as defined in section 123.3 to be trained and 4 certified in security methods. The training shall include but 5 is not limited to de-escalation techniques, anger management 6 techniques, civil rights or unfair practices awareness as 7 provided in section 216.7 , recognition of fake or altered 8 identification, information on laws applicable to the serving 9 of alcohol at a licensed premises, use of force and techniques 10 for safely removing patrons, and instruction on the proper 11 physical restraint methods used against a person who has become 12 combative. 13 5. Occupancy rates. A local authority located in a county 14 with a population that exceeds three hundred thousand persons, 15 as a condition of obtaining and holding a license or permit 16 for on-premises consumption, shall require the applicant , or 17 licensee , or permittee to provide, and update if necessary, the 18 occupancy rate of the licensed premises. 19 6. Action by administrator. 20 a. Upon receipt of an application having been disapproved 21 by the local authority, the administrator shall notify the 22 applicant that the applicant may appeal the disapproval of 23 the application to the administrator. The applicant shall 24 be notified by certified mail or personal service, and the 25 application, the fee, and any bond shall be returned to the 26 applicant. 27 b. Upon receipt of an application having been approved by 28 the local authority, the division shall make an investigation 29 as the administrator deems necessary to determine that 30 the applicant complies with all requirements for holding a 31 license or permit , and may require the applicant to appear 32 to be examined under oath to demonstrate that the applicant 33 complies with all of the requirements to hold a license 34 or permit . If the administrator requires the applicant to 35 -29- SF 2374 (4) 89 ec/rn/mb 29/ 72

S.F. 2374 appear and to testify under oath, a record shall be made of 1 all testimony or evidence and the record shall become a part 2 of the application. The administrator may appoint a member 3 of the division or may request an administrative law judge 4 of the department of inspections and appeals to receive the 5 testimony under oath and evidence, and to issue a proposed 6 decision to approve or disapprove the application for a license 7 or permit . The administrator may affirm, reverse, or modify 8 the proposed decision to approve or disapprove the application 9 for the license or permit . If the application is approved 10 by the administrator, the license or permit shall be issued. 11 If the application is disapproved by the administrator, the 12 applicant shall be so notified by certified mail or personal 13 service and the appropriate local authority shall be notified 14 electronically, or in a manner prescribed by the administrator. 15 7. Appeal to administrator. An applicant for a liquor 16 control retail alcohol license , wine permit, or beer permit may 17 appeal from the local authority’s disapproval of an application 18 for a license or permit to the administrator. In the appeal 19 the applicant shall be allowed the opportunity to demonstrate 20 in an evidentiary hearing conducted pursuant to chapter 17A 21 that the applicant complies with all of the requirements for 22 holding the license or permit. The administrator may appoint 23 a member of the division or may request an administrative law 24 judge from the department of inspections and appeals to conduct 25 the evidentiary hearing and to render a proposed decision to 26 approve or disapprove the issuance of the license or permit. 27 The administrator may affirm, reverse, or modify the proposed 28 decision. If the administrator determines that the applicant 29 complies with all of the requirements for holding a license 30 or permit, the administrator shall order the issuance of the 31 license or permit. If the administrator determines that the 32 applicant does not comply with the requirements for holding 33 a license or permit, the administrator shall disapprove the 34 issuance of the license or permit. 35 -30- SF 2374 (4) 89 ec/rn/mb 30/ 72

S.F. 2374 8. Judicial review. The applicant or the local authority 1 may seek judicial review of the action of the administrator 2 in accordance with the terms of the Iowa administrative 3 procedure Act, chapter 17A . Notwithstanding the terms of the 4 Iowa administrative procedure Act, chapter 17A , petitions 5 for judicial review may be filed in the district court of 6 the county where the premises covered by the application are 7 situated. 8 9. Suspension by local authority. A liquor control retail 9 alcohol licensee or a wine or beer permittee whose license 10 or permit has been suspended or revoked or a civil penalty 11 imposed by a local authority for a violation of this chapter 12 or suspended by a local authority for violation of a local 13 ordinance may appeal the suspension, revocation, or civil 14 penalty to the administrator. 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 hear 17 the appeal which shall be conducted in accordance with chapter 18 17A and to issue a proposed decision. The administrator may 19 review the proposed decision upon the motion of a party to the 20 appeal or upon the administrator’s own motion in accordance 21 with chapter 17A . Upon review of the proposed decision, the 22 administrator may affirm, reverse, or modify the proposed 23 decision. A liquor control retail alcohol licensee , wine or 24 beer permittee, or a local authority aggrieved by a decision 25 of the administrator may seek judicial review of the decision 26 pursuant to chapter 17A . 27 Sec. 29. Section 123.34, Code 2022, is amended to read as 28 follows: 29 123.34 Expiration of licenses, permits, and certificates 30 of compliance —— seasonal Seasonal , fourteen-day, and five-day 31 licenses and permits —— fees. 32 1. All licenses, permits, and certificates of compliance, 33 unless sooner suspended or revoked, expire one year from date 34 of issuance. The administrator shall notify a license, permit, 35 -31- SF 2374 (4) 89 ec/rn/mb 31/ 72

S.F. 2374 or certificate holder electronically, or in a manner prescribed 1 by the administrator, sixty days prior to the expiration of 2 each license, permit, or certificate. 3 2. 1. a. The administrator may issue six-month or 4 eight-month seasonal class “A”, class “B”, class “C”, special 5 class “C”, and class “D” liquor control and class “F” retail 6 alcohol licenses , class “B” wine permits, class “B” or class 7 “C” native wine permits, or class “B” beer permits . 8 b. The fee for a six-month or an eight-month seasonal 9 license or permit issued pursuant to this subsection shall be 10 for a proportionate part fifty percent of the license or permit 11 fee for that class of license or permit . However, the fee for 12 a seasonal class “B” native wine permit shall be the permit fee 13 provided in section 123.179, subsection 4 , and the fee for a 14 seasonal class “C” native wine permit shall be the permit fee 15 provided in section 123.179, subsection 5 . 16 3. 2. a. The administrator may issue fourteen-day class 17 “A”, class “B”, class “C”, special class “C”, and class “D” 18 liquor control and class “F” retail alcohol licenses , and 19 fourteen-day class “B” beer permits, class “B” native wine 20 permits, and class “C” native wine permits . 21 b. A fourteen-day retail alcohol license or permit , if 22 granted, is valid for fourteen consecutive days , but the holder 23 shall not sell on the two Sundays in the fourteen-day period 24 unless the holder qualifies for and obtains the privilege to 25 sell on Sundays contained in section 123.36, subsection 6 , and 26 section 123.134, subsection 4 . 27 c. (1) The fee for a fourteen-day liquor control retail 28 alcohol license or beer permit is one quarter of the annual fee 29 for that class of liquor control retail alcohol license or beer 30 permit . The fee for the privilege to sell on the two Sundays in 31 the fourteen-day period is twenty percent of the price of the 32 fourteen-day liquor control license or beer permit. 33 (2) The fee for a fourteen-day class “B” native wine permit 34 shall be the permit fee provided in section 123.179, subsection 35 -32- SF 2374 (4) 89 ec/rn/mb 32/ 72

S.F. 2374 4 , and the fee for a fourteen-day class “C” native wine permit 1 is the permit fee provided in section 123.179, subsection 5 . 2 4. 3. a. The administrator may issue five-day class “A”, 3 class “B”, class “C”, special class “C”, and class “D” liquor 4 control , and class “F” retail alcohol licenses , and five-day 5 class “B” beer permits, class “B” native wine permits, and 6 class “C” native wine permits . 7 b. A five-day retail alcohol license or permit is valid for 8 five consecutive days , but the holder shall not sell alcoholic 9 beverages on Sunday in the five-day period unless the holder 10 qualifies for and obtains the privilege to sell on Sunday 11 pursuant to section 123.36, subsection 6, and section 123.134, 12 subsection 4 . 13 c. (1) The fee for the five-day liquor control retail 14 alcohol license or beer permit is one-eighth of the annual fee 15 for that class of license or permit. The fee for the privilege 16 to sell on a Sunday in the five-day period is ten percent of the 17 price of the five-day liquor control license or beer permit. 18 (2) The fee for a five-day class “B” native wine permit 19 shall be the permit fee provided in section 123.179, subsection 20 4 , and the fee for a five-day class “C” native wine permit is 21 the permit fee provided in section 123.179, subsection 5 . 22 5. 4. A refund of fees paid shall not be made for seasonal 23 licenses or permits , or for fourteen-day or five-day liquor 24 control retail alcohol licenses , native wine permits, or beer 25 permits . In addition, a seasonal, fourteen-day, or five-day 26 license or permit shall not be renewed. 27 Sec. 30. NEW SECTION . 123.35 Expiration of licenses, 28 permits, and certificates of compliance —— automatic renewals. 29 1. Except as otherwise provided by this chapter, all 30 licenses, permits, and certificates of compliance, unless 31 sooner suspended or revoked, expire one year from date of 32 issuance. 33 2. Notwithstanding section 123.31 and any other provision 34 of this chapter to the contrary, a class “E” retail alcohol 35 -33- SF 2374 (4) 89 ec/rn/mb 33/ 72

S.F. 2374 license shall automatically renew without the endorsement 1 of a local authority or approval by the administrator upon 2 collection of the annual fee by the division, provided all of 3 the following conditions are met since the preceding license 4 was issued: 5 a. The licensee has given written consent to the division 6 to have the license automatically renewed as provided in this 7 section. 8 b. The license has not been suspended or revoked. 9 c. A civil penalty has not been imposed against the 10 licensee. 11 d. An administrative proceeding is not pending against the 12 licensee to suspend or revoke the license or to impose a civil 13 penalty under this chapter. 14 e. The licensee has not submitted payment for alcoholic 15 liquor to the division that was subsequently dishonored. 16 f. The licensee and all persons associated with the licensee 17 as described in section 123.3, subsection 40, paragraph “e” , 18 have not been convicted of a violation of this chapter. 19 g. The licensed premises constitutes a safe and proper place 20 or building and conforms with all applicable federal, state, 21 and local laws, orders, ordinances, rules, resolutions, and 22 health and fire regulations. 23 h. A local authority has not notified the division, in 24 a manner established by the division and made available to 25 local authorities, that automatic renewal should not occur and 26 that further review of the licensee by the division and the 27 applicable local authority is warranted. 28 3. Notwithstanding sections 123.23, 123.135, 123.180, 29 and any other provision of this chapter to the contrary, a 30 distiller’s, brewer’s, or vintner’s certificate of compliance 31 shall automatically renew without approval by the administrator 32 upon collection of the annual fee by the division, provided 33 all of the following conditions are met since the preceding 34 certificate was issued: 35 -34- SF 2374 (4) 89 ec/rn/mb 34/ 72

S.F. 2374 a. The certificate holder has given written consent to 1 the division to have the certificate automatically renewed as 2 provided in this section. 3 b. The certificate has not been suspended or revoked. 4 c. A civil penalty has not been imposed against the 5 certificate holder. 6 d. An administrative proceeding is not pending against the 7 certificate holder to suspend or revoke the certificate or to 8 impose a civil penalty under this chapter. 9 e. The certificate holder and all persons associated 10 with the certificate holder as described in section 123.3, 11 subsection 40, paragraph “e” , have not been convicted of a 12 violation of this chapter. 13 4. Notwithstanding section 123.187 and any other provision 14 of this chapter to the contrary, a wine direct shipper’s permit 15 shall automatically renew without approval by the administrator 16 upon collection of the annual fee by the division, provided all 17 of the following conditions are met since the preceding permit 18 was issued: 19 a. The permittee has given written consent to the division 20 to have the permit automatically renewed as provided in this 21 section. 22 b. The permit has not been suspended or revoked. 23 c. A civil penalty has not been imposed against the 24 permittee. 25 d. An administrative proceeding is not pending against the 26 permittee to suspend or revoke the permit or to impose a civil 27 penalty under this chapter. 28 e. The permittee has filed all required reports and remitted 29 all wine gallonage tax owed pursuant to section 123.183. 30 f. The permittee and all persons associated with the 31 permittee as described in section 123.3, subsection 40, 32 paragraph “e” , have not been convicted of a violation of this 33 chapter. 34 Sec. 31. Section 123.38, subsection 1, Code 2022, is amended 35 -35- SF 2374 (4) 89 ec/rn/mb 35/ 72

S.F. 2374 to read as follows: 1 1. A liquor control retail alcohol license, wine permit, 2 or beer permit is a personal privilege and is revocable for 3 cause. It is not property nor is it subject to attachment 4 and execution nor alienable nor assignable, and it shall 5 cease upon the death of the permittee or licensee. However, 6 the administrator of the division may in the administrator’s 7 discretion allow the executor or administrator of the estate of 8 a permittee or licensee to operate the business of the decedent 9 for a reasonable time not to exceed the expiration date of the 10 permit or license. Every permit or license shall be issued in 11 the name of the applicant and no person holding a permit or 12 license shall allow any other person to use it. 13 Sec. 32. Section 123.38, subsection 2, paragraph a, 14 subparagraph (4), Code 2022, is amended to read as follows: 15 (4) No refund shall be made for any liquor control retail 16 alcohol license, wine permit, or beer permit surrendered more 17 than nine months after issuance. 18 Sec. 33. Section 123.39, subsection 1, paragraph a, Code 19 2022, is amended to read as follows: 20 a. (1) The administrator or the local authority may suspend 21 a class “A”, class “B”, special class “B” native wine, class 22 “C”, special class “C”, class “C” native distilled spirits, or 23 class “E” liquor control , or class “F” retail alcohol license , 24 or retail wine or beer permit charity beer, spirits, and wine 25 special event license for a period not to exceed one year, 26 revoke the license or permit , or impose a civil penalty not to 27 exceed one thousand dollars per violation. 28 (2) The administrator may suspend a certificate of 29 compliance, a class “D” liquor control retail alcohol license, 30 a manufacturer’s license, a broker’s permit, a class “A” native 31 distilled spirits license, a class “A” or special class “A” 32 beer permit, a charity beer, spirits, and wine auction permit, 33 a class “A” wine permit, a wine direct shipper’s permit, or a 34 wine carrier permit for a period not to exceed one year, revoke 35 -36- SF 2374 (4) 89 ec/rn/mb 36/ 72

S.F. 2374 the license, permit, or certificate, or impose a civil penalty 1 not to exceed one thousand dollars per violation. 2 Sec. 34. Section 123.39, subsection 1, paragraph b, 3 subparagraph (3), Code 2022, is amended to read as follows: 4 (3) Any change in the ownership or interest in the business 5 operated under a liquor control retail alcohol license , or any 6 wine or beer permit, which change was not previously reported 7 in a manner prescribed by the administrator within thirty days 8 of the change and subsequently approved by the local authority, 9 when applicable, and the division. 10 Sec. 35. Section 123.39, subsections 2 and 3, Code 2022, are 11 amended to read as follows: 12 2. Local authorities may suspend any liquor control retail 13 alcohol license or retail wine or beer permit for a violation 14 of any ordinance or regulation adopted by the local authority. 15 Local authorities may adopt ordinances or regulations for the 16 location of the premises of liquor control retail alcohol 17 licensed and retail wine or beer permitted establishments 18 and local authorities may adopt ordinances, not in conflict 19 with this chapter and that do not diminish the hours during 20 which alcoholic beverages may be sold or consumed at retail, 21 governing any other activities or matters which may affect the 22 retail sale and consumption of alcoholic beverages and the 23 health, welfare and morals of the community involved. 24 3. When a liquor control retail alcohol license or retail 25 wine or beer permit is suspended after a hearing as a result 26 of violations of this chapter by the licensee , permittee 27 or the licensee’s or permittee’s agents or employees, the 28 premises which were licensed by the license or permit shall 29 not be relicensed for a new applicant until the suspension 30 has terminated or time of suspension has elapsed, or ninety 31 days have elapsed since the commencement of the suspension, 32 whichever occurs first. However, this section does not 33 prohibit the premises from being relicensed to a new applicant 34 before the suspension has terminated or before the time of 35 -37- SF 2374 (4) 89 ec/rn/mb 37/ 72

S.F. 2374 suspension has elapsed or before ninety days have elapsed from 1 the commencement of the suspension, if the premises prior to 2 the time of the suspension had been purchased under contract, 3 and the vendor under that contract had exercised the person’s 4 rights under chapter 656 and sold the property to a different 5 person who is not related to the previous licensee or permittee 6 by marriage or within the third degree of consanguinity or 7 affinity and if the previous licensee or permittee does not 8 have a financial interest in the business of the new applicant. 9 Sec. 36. Section 123.40, Code 2022, is amended to read as 10 follows: 11 123.40 Effect of revocation. 12 Any liquor control retail alcohol licensee, wine permittee, 13 or beer permittee whose license or permit is revoked under this 14 chapter shall not thereafter be permitted to hold a liquor 15 control retail alcohol license, wine permit, or beer permit in 16 the state of Iowa for a period of two years from the date of 17 revocation. A spouse or business associate holding ten percent 18 or more of the capital stock or ownership interest in the 19 business of a person whose license or permit has been revoked 20 shall not be issued a liquor control retail alcohol license, 21 wine permit, or beer permit, and no liquor control retail 22 alcohol license, wine permit, or beer permit shall be issued 23 which covers any business in which such person has a financial 24 interest for a period of two years from the date of revocation. 25 If a license or permit is revoked, the premises which had been 26 covered by the license or permit shall not be relicensed for 27 one year. 28 Sec. 37. Section 123.43A, subsection 2, Code 2022, is 29 amended to read as follows: 30 2. A native distillery shall not sell more than one and 31 one-half nine liters per person per day, of native distilled 32 spirits on the premises of the native distillery. However, a 33 native distillery which, combining all production facilities 34 of the business, produces and manufactures not more than one 35 -38- SF 2374 (4) 89 ec/rn/mb 38/ 72

S.F. 2374 hundred thousand proof gallons of native distilled spirits on 1 an annual basis, may sell not more than nine liters per person 2 per day, of native distilled spirits. In addition, a native 3 distillery shall not directly ship native distilled spirits for 4 sale at retail. The native distillery shall maintain records 5 of individual purchases of native distilled spirits at the 6 native distillery for three years. 7 Sec. 38. Section 123.43A, subsection 6, Code 2022, is 8 amended to read as follows: 9 6. Notwithstanding any provision of this chapter to the 10 contrary or the fact that a person is the holder of a class “A” 11 native distilled spirits license, a native distillery which, 12 combining all production facilities of the business, produces 13 and manufactures not more than one hundred thousand proof 14 gallons of native distilled spirits on an annual basis may sell 15 those native distilled spirits manufactured on the premises 16 of the native distillery for consumption on the premises by 17 applying for be granted a class “C” native distilled spirits 18 liquor control retail alcohol license as provided defined in 19 section 123.30 . A native distillery may be granted not more 20 than two class “C” native distilled spirits liquor control 21 retail alcohol licenses. All native distilled spirits sold 22 by a native distillery for on-premises consumption and mixed 23 drinks or cocktails sold for consumption off the premises 24 shall be purchased from a class “E” liquor control licensee. 25 A manufacturer of native distilled spirits may be issued a 26 class “C” native distilled spirits liquor control retail 27 alcohol license regardless of whether the manufacturer is also 28 a manufacturer of beer pursuant to a class “A” beer permit or 29 a manufacturer of native wine pursuant to a class “A” wine 30 permit. 31 Sec. 39. Section 123.45, subsection 1, paragraph d, Code 32 2022, is amended to read as follows: 33 d. Hold a retail liquor control alcohol license or retail 34 wine or beer permit, unless the licensee or permittee holding a 35 -39- SF 2374 (4) 89 ec/rn/mb 39/ 72

S.F. 2374 retail liquor control alcohol license or retail wine or beer 1 permit does not purchase or sell the alcoholic beverages of 2 the person engaged in the business of manufacturing, bottling, 3 or wholesaling alcoholic beverages. However, a person engaged 4 in the business of manufacturing wine that is not native wine 5 may purchase and sell the person’s wine under the authority 6 of a special class “C” liquor control retail alcohol license 7 and a class “B” wine permit retail alcohol license provided 8 the licensed premises is the principal office, as defined in 9 section 490.140 , of the person. 10 Sec. 40. Section 123.45, subsection 3, Code 2022, is amended 11 to read as follows: 12 3. A person engaged in the wholesaling of beer or wine 13 may sell only disposable glassware, which is constructed of 14 paper, paper laminated, or plastic materials and designed 15 primarily for personal consumption on a one-time usage 16 basis, to retailers for use within the premises of licensed 17 establishments, for an amount which is greater than or equal 18 to an amount which represents the greater of either the amount 19 paid for the disposable glassware by the supplier or the amount 20 paid for the disposable glassware by the wholesaler. Also, a 21 person engaged in the business of manufacturing beer may sell 22 beer at retail for consumption on or off the premises of the 23 manufacturing facility and, notwithstanding any other provision 24 of this chapter or the fact that a person is the holder of a 25 class “A” beer permit, a native brewery may be granted not more 26 than two class “B” beer permits “C” retail alcohol licenses as 27 defined in section 123.124 for that purpose 123.30 regardless 28 of whether that person is also a manufacturer of native 29 distilled spirits pursuant to a class “A” native distilled 30 spirits license or a manufacturer of native wine pursuant to a 31 class “A” wine permit. 32 Sec. 41. Section 123.46, subsection 2, Code 2022, is amended 33 to read as follows: 34 2. A person shall not use or consume alcoholic liquor, wine, 35 -40- SF 2374 (4) 89 ec/rn/mb 40/ 72

S.F. 2374 or beer upon the public streets or highways. A person shall 1 not use or consume alcoholic liquor in any public place except 2 premises covered by a liquor control retail alcohol license. 3 A person shall not possess or consume alcoholic liquors, 4 wine, or beer on public school property or while attending a 5 public or private school-related function. A person shall not 6 be intoxicated in a public place. A person violating this 7 subsection is guilty of a simple misdemeanor. 8 Sec. 42. Section 123.46A, Code 2022, is amended to read as 9 follows: 10 123.46A Delivery of alcoholic beverages by retailers. 11 1. Licensees and permittees authorized to sell alcoholic 12 liquor, wine, or beer in original unopened containers for 13 consumption off the licensed premises may deliver alcoholic 14 liquor, wine, or beer to a home, another licensed premises if 15 there is identical ownership of the premises by the licensee 16 or permittee , or other designated location in this state. 17 Deliveries shall be limited to alcoholic beverages authorized 18 by the licensee’s or permittee’s license or permit . Orders 19 delivered to another licensed premises shall contain only 20 those alcoholic beverages authorized for sale by the liquor 21 control retail alcohol license or retail wine or beer permit 22 covering the premises to which the alcoholic beverages will 23 be delivered. Orders delivered to another licensed premises 24 shall be fulfilled using the alcoholic beverages inventory 25 owned by the licensee or permittee who will receive the order 26 for delivery. If the recipient refuses or fails to pick up 27 the delivery, or is ineligible to receive the delivery, the 28 alcoholic beverages shall be returned to the licensee or 29 permittee who fulfilled the order. 30 2. Licensees and permittees authorized to sell wine, beer, 31 or mixed drinks or cocktails for consumption off the licensed 32 premises in a container other than the original container may 33 deliver the wine, beer, or mixed drinks or cocktails to a 34 home or other designated location in this state only if the 35 -41- SF 2374 (4) 89 ec/rn/mb 41/ 72

S.F. 2374 container other than the original container has been sold and 1 securely sealed in compliance with this chapter or the rules 2 of the division. Deliveries shall be limited to alcoholic 3 beverages authorized by the licensee’s or permittee’s license 4 or permit. 5 3. All deliveries of alcoholic liquor, wine, beer, or 6 mixed drinks or cocktails shall be subject to the following 7 requirements and restrictions: 8 a. Payment for the alcoholic liquor, wine, beer, or mixed 9 drinks or cocktails shall be received by the licensee or 10 permittee at the time of order. 11 b. Orders for deliveries may be taken by the licensee or 12 permittee between the hours of 2:00 a.m. and 6:00 a.m. 13 on a day other than Sunday, and orders for deliveries may 14 be taken between the hours of 2:00 a.m. and 6:00 a.m. on a 15 Sunday provided the licensee or permittee has been granted 16 the privilege of selling alcoholic liquor, wine, beer, or 17 mixed drinks or cocktails on Sunday on any day of the week , 18 notwithstanding any provision of section 123.49, subsection 2 , 19 paragraph “b” , to the contrary. 20 c. Alcoholic liquor, wine, beer, or mixed drinks or 21 cocktails delivered to a person shall be for personal use and 22 not for resale. 23 d. Deliveries shall only be made to persons in this state 24 who are twenty-one years of age or older. 25 e. Deliveries shall not be made to a person who is 26 intoxicated or is simulating intoxication. 27 f. Deliveries shall occur between 6:00 a.m. and 10:00 p.m. 28 Monday through Sunday on the same day the order for alcoholic 29 liquor, wine, beer, or mixed drinks or cocktails is removed 30 from the licensed premises . 31 g. Delivery of alcoholic liquor, wine, beer, or mixed drinks 32 or cocktails shall be made by the licensee or permittee , the 33 licensee’s or permittee’s employee, or a third party, provided 34 the licensee or permittee has entered into a written agreement 35 -42- SF 2374 (4) 89 ec/rn/mb 42/ 72

S.F. 2374 with the third party that authorizes the third party to act 1 as an agent of the licensee or permittee for the purpose of 2 delivering alcoholic liquor, wine, beer, or mixed drinks or 3 cocktails. Each licensee or permittee shall submit to the 4 division electronically, or in a manner prescribed by the 5 administrator, a list of names and addresses of all third 6 parties it has authorized to act as its agent for the purpose 7 of delivering alcoholic liquor, wine, beer, or mixed drinks 8 or cocktails. The licensee or permittee shall provide the 9 division with amendments to the list as necessary to ensure the 10 division possesses an accurate, current list. 11 h. Delivery personnel shall be twenty-one years of age or 12 older. 13 i. Valid proof of the recipient’s identity and age shall 14 be obtained at the time of delivery, and the signature of a 15 person twenty-one years of age or older shall be obtained as a 16 condition of delivery. 17 j. Licensees and permittees shall maintain records 18 of deliveries which include the quantity delivered, the 19 recipient’s name and address, and the signature of the 20 recipient of the alcoholic liquor, wine, beer, or mixed drinks 21 or cocktails. The records shall be maintained on the licensed 22 premises for a period of three years. 23 4. A violation of this section or any other provision 24 of this chapter shall subject the licensee or permittee to 25 the penalty provisions of section 123.39 . If the licensee 26 or permittee , an employee of the licensee or permittee , or 27 a person delivering alcoholic liquor, wine, beer, or mixed 28 drinks or cocktails for a third party acting on behalf of the 29 licensee or permittee pursuant to a written agreement violates 30 this section , the licensee or permittee shall not be assessed 31 a penalty under section 123.39 if the licensee or permittee 32 establishes all of the following: 33 a. The violation was committed off of the licensee’s 34 or permittee’s premises after the liquor, wine, beer, or 35 -43- SF 2374 (4) 89 ec/rn/mb 43/ 72

S.F. 2374 mixed drinks or cocktails was removed from the licensee’s or 1 permittee’s premises in fulfillment of a delivery order. 2 b. (1) If the person who committed the violation is an 3 employee of the licensee or permittee , that no other violation 4 of this section was committed by any employee of the licensee 5 or permittee within the two-year period immediately preceding 6 the date of violation. 7 (2) If the person who committed the violation is a person 8 delivering for a third party acting on behalf of the licensee 9 or permittee , that no other violation of this section was 10 committed by any person delivering for the same third party 11 while the third party was acting on behalf of the licensee or 12 permittee within the two-year period immediately preceding the 13 date of violation. 14 5. Nothing in this section shall impact the direct shipment 15 of wine as regulated by section 123.187 . 16 Sec. 43. Section 123.47, subsection 3, Code 2022, is amended 17 to read as follows: 18 3. A person or persons under legal age shall not purchase 19 or attempt to purchase, consume, or individually or jointly 20 have alcoholic beverages in their possession or control; except 21 in the case of any alcoholic beverage given or dispensed to 22 a person under legal age within a private home and with the 23 knowledge, presence, and consent of the parent or guardian, for 24 beverage or medicinal purposes or as administered to the person 25 by either a physician or dentist for medicinal purposes and 26 except to the extent that a person under legal age may handle 27 alcoholic beverages during the regular course of the person’s 28 employment by a liquor control retail alcohol licensee, or wine 29 or beer permittee under this chapter . 30 Sec. 44. Section 123.48, subsections 1 and 3, Code 2022, are 31 amended to read as follows: 32 1. If a liquor control retail alcohol licensee or wine or 33 beer permittee or an employee of the licensee or permittee 34 has a reasonable belief based on factual evidence that a 35 -44- SF 2374 (4) 89 ec/rn/mb 44/ 72

S.F. 2374 driver’s license as defined in section 321.1, subsection 1 20A , or nonoperator’s identification card issued pursuant to 2 section 321.190 offered by a person who wishes to purchase 3 an alcoholic beverage at the licensed premises is altered 4 or falsified or belongs to another person, the licensee , 5 permittee, or employee may retain the driver’s license or 6 nonoperator’s identification card. Within twenty-four hours, 7 the license or card shall be delivered to the appropriate 8 city or county law enforcement agency of the jurisdiction in 9 which the licensed premises is located. When the license or 10 card is delivered to the appropriate law enforcement agency, 11 the licensee shall file a written report of the circumstances 12 under which the license or card was retained. The local law 13 enforcement agency may investigate whether a violation of 14 section 321.216 , 321.216A , or 321.216B has occurred. If an 15 investigation is not initiated or a probable cause is not 16 established by the local law enforcement agency, the driver’s 17 license or nonoperator’s identification card shall be delivered 18 to the person to whom it was issued. The local law enforcement 19 agency may forward the license or card with the report to the 20 department of transportation for investigation, in which case, 21 the department may investigate whether a violation of section 22 321.216 , 321.216A , or 321.216B has occurred. The department of 23 transportation shall return the license or card to the person 24 to whom it was issued if an investigation is not initiated or a 25 probable cause is not established. 26 3. A liquor control retail alcohol licensee or wine or 27 beer permittee or an employee of the licensee or permittee 28 is not subject to criminal prosecution for, or to civil 29 liability for damages alleged to have resulted from, the 30 retention and delivery of a driver’s license or a nonoperator’s 31 identification card which is taken pursuant to subsections 32 1 and 2 . This section shall not be construed to relieve a 33 licensee , permittee, or employee of the licensee or permittee 34 from civil liability for damages resulting from the use of 35 -45- SF 2374 (4) 89 ec/rn/mb 45/ 72

S.F. 2374 unreasonable force in obtaining the altered or falsified 1 driver’s license or nonoperator’s identification card or the 2 driver’s license or nonoperator’s identification card believed 3 to belong to another person. 4 Sec. 45. Section 123.49, subsection 2, unnumbered paragraph 5 1, Code 2022, is amended to read as follows: 6 A person holding a liquor control retail alcohol license or 7 retail wine or beer permit under this chapter , and the person’s 8 agents or employees, shall not do any of the following: 9 Sec. 46. Section 123.49, subsection 2, paragraph b, Code 10 2022, is amended to read as follows: 11 b. Sell or dispense any alcoholic beverage on the premises 12 covered by the license or permit , or permit its consumption 13 thereon between the hours of 2:00 a.m. and 6:00 a.m. on a 14 weekday, and between the hours of 2:00 a.m. on Sunday and 6:00 15 a.m. on the following Monday, however, a holder of a liquor 16 control license or retail wine or beer permit granted the 17 privilege of selling alcoholic liquor, wine, or beer on Sunday 18 may sell or dispense alcoholic liquor, wine, or beer between 19 the hours of 6:00 a.m. on Sunday and 2:00 a.m. on the following 20 Monday any day of the week . 21 Sec. 47. Section 123.49, subsection 2, paragraph d, 22 subparagraphs (1) and (3), Code 2022, are amended to read as 23 follows: 24 (1) Keep on premises covered by a liquor control retail 25 alcohol license any alcoholic liquor in any container except 26 the original package purchased from the division, and except 27 mixed drinks or cocktails mixed on the premises for immediate 28 consumption on the licensed premises or as otherwise provided 29 by this paragraph “d” . This prohibition does not apply to 30 holders of a class “D” liquor control retail alcohol license 31 or to alcoholic liquor delivered in accordance with section 32 123.46A . 33 (3) Mixed drinks or cocktails mixed on premises covered by 34 a class “C” liquor control retail alcohol license or a class 35 -46- SF 2374 (4) 89 ec/rn/mb 46/ 72

S.F. 2374 “C” native distilled spirits liquor control retail alcohol 1 license for consumption off the licensed premises may be 2 sold if the mixed drink or cocktail is immediately filled in 3 a sealed container and is promptly taken from the licensed 4 premises prior to consumption of the mixed drink or cocktail. 5 A mixed drink or cocktail that is sold in a sealed container in 6 compliance with the requirements of this subparagraph and rules 7 adopted by the division shall not be deemed an open container 8 subject to the requirements of sections 321.284 and 321.284A 9 if the sealed container is unopened and the seal has not been 10 tampered with, and the contents of the container have not been 11 partially removed. 12 Sec. 48. Section 123.49, subsection 2, paragraphs g and j, 13 Code 2022, are amended to read as follows: 14 g. Allow any person other than the licensee , permittee, 15 or employees of the licensee or permittee, to use or keep 16 on the licensed premises any alcoholic liquor in any bottle 17 or other container which is designed for the transporting of 18 such beverages, except as permitted in section 123.95 . This 19 paragraph does not apply to the lodging quarters of a class 20 “B” liquor control licensee or wine or beer permittee hotel 21 or motel holding a retail alcohol license , or to holders of a 22 class “D” liquor control retail alcohol license. 23 j. Knowingly permit or engage in any criminal activity 24 on the premises covered by the license or permit . However, 25 the absence of security personnel on the licensed premises 26 is insufficient, without additional evidence, to prove that 27 criminal activity occurring on the licensed premises was 28 knowingly permitted in violation of this paragraph “j” . For 29 purposes of this paragraph “j” , “premises” includes parking lots 30 and areas adjacent to the premises of a liquor control retail 31 alcohol licensee or wine or beer permittee authorized to sell 32 alcoholic beverages for consumption on the licensed premises 33 and used by patrons of the liquor control retail alcohol 34 licensee or wine or beer permittee . 35 -47- SF 2374 (4) 89 ec/rn/mb 47/ 72

S.F. 2374 Sec. 49. Section 123.49, subsection 3, Code 2022, is amended 1 to read as follows: 2 3. A person under legal age shall not misrepresent the 3 person’s age for the purpose of purchasing or attempting 4 to purchase any alcoholic beverage from any liquor control 5 retail alcohol licensee or wine or beer permittee . If any 6 person under legal age misrepresents the person’s age, and 7 the licensee or permittee establishes that the licensee or 8 permittee made reasonable inquiry to determine whether the 9 prospective purchaser was over legal age, the licensee or 10 permittee is not guilty of selling alcoholic beverages to a 11 person under legal age. 12 Sec. 50. Section 123.49, subsection 4, Code 2022, is amended 13 by striking the subsection. 14 Sec. 51. Section 123.50, subsections 1, 2, 4, and 5, Code 15 2022, are amended to read as follows: 16 1. Any person who violates any of the provisions of section 17 123.49 , except section 123.49, subsection 2 , paragraph “h” , 18 or who fails to affix upon sale, defaces, or fails to record 19 a keg identification sticker label or produce a record of keg 20 identification stickers labels pursuant to section 123.138 , 21 shall be guilty of a simple misdemeanor. A person who violates 22 section 123.49, subsection 2 , paragraph “h” , commits a simple 23 misdemeanor punishable as a scheduled violation under section 24 805.8C, subsection 2 . 25 2. The conviction of any liquor control retail alcohol 26 licensee or wine or beer permittee for a violation of any of 27 the provisions of section 123.49 , subject to subsection 3 of 28 this section , is grounds for the suspension or revocation of 29 the license or permit by the division or the local authority. 30 However, if any liquor control retail alcohol licensee is 31 convicted of any violation of section 123.49, subsection 2 , 32 paragraph “a” , “d” , or “e” , or any wine or beer permittee retail 33 alcohol licensee, excluding a special class “B” or class “D” 34 retail alcohol licensee, is convicted of a violation of section 35 -48- SF 2374 (4) 89 ec/rn/mb 48/ 72

S.F. 2374 123.49, subsection 2 , paragraph “a” or “e” “d” , the liquor 1 control retail alcohol license or wine or beer permit shall be 2 revoked and shall immediately be surrendered by the holder, 3 and the bond, if any, of the license or permit holder shall be 4 forfeited to the division. However, the division shall retain 5 only that portion of the bond equal to the amount the division 6 determines the license or permit holder owes the division. 7 4. In addition to any other penalties imposed under this 8 chapter , the division shall assess a civil penalty up to 9 the amount of five thousand dollars upon a class “E” liquor 10 control retail alcohol licensee when the class “E” liquor 11 retail alcohol license is revoked for a violation of section 12 123.59 . Failure to pay the civil penalty as required under 13 this subsection shall result in forfeiture of the bond to the 14 division. However, the division shall retain only that portion 15 of the bond equal to the amount the division determines the 16 license or permit holder owes the division. 17 5. If an employee of a liquor control retail alcohol 18 licensee or wine or beer permittee violates section 123.49, 19 subsection 2 , paragraph “h” , the licensee or permittee shall 20 not be assessed a penalty under subsection 3 , and the violation 21 shall be deemed not to be a violation of section 123.49, 22 subsection 2 , paragraph “h” , for the purpose of determining 23 the number of violations for which a penalty may be assessed 24 pursuant to subsection 3 , if the employee holds a valid 25 certificate of completion of the alcohol compliance employee 26 training program pursuant to section 123.50A at the time of the 27 violation, and if the violation involves selling, giving, or 28 otherwise supplying any alcoholic beverage to a person between 29 the ages of eighteen and twenty years of age. A violation 30 involving a pe