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House Study Bill 95 - IntroducedA Bill ForAn Act 1relating to alcoholic beverage control and matters under
2the purview of the alcoholic beverages division of the
3department of commerce.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 123.3, subsections 5, 6, 7, 20, 26, 27,
234, and 48, Code 2019, are amended to read as follows:
35. “Alcoholic liquor” means the varieties of liquor defined
4in subsections 3 and 44 which contain more than five six and
5twenty-five hundredths percent of alcohol by weight volume,
6beverages made as described in subsection 7 which beverages
7contain more than five percent of alcohol by weight or six and
8twenty-five hundredths percent of alcohol by volume but which
9are not wine as defined in subsection 48 or high alcoholic
10content beer as defined in subsection 20, and every other
11liquid or solid, patented or not, containing spirits and every
12beverage obtained by the process described in subsection 48
13containing more than seventeen percent alcohol by weight or
14 twenty-one and twenty-five hundredths percent of alcohol by
15volume, and susceptible of being consumed by a human being,
16for beverage purposes. Alcohol manufactured in this state
17for use as fuel pursuant to an experimental distilled spirits
18plant permit or its equivalent issued by the federal bureau of
19alcohol, tobacco and firearms is not an “alcoholic liquor”.
206. “Application” means a written request for the issuance
21of a permit, or license, or certificate that is supported by a
22verified statement of facts and submitted electronically, or in
23a manner prescribed by the administrator.
247. “Beer” means any liquid capable of being used for
25beverage purposes made by the fermentation of an infusion
26in potable water of barley, malt, and hops, with or without
27unmalted grains or decorticated and degerminated grains or made
28by the fermentation of or by distillation of the fermented
29products of fruit, fruit extracts, or other agricultural
30products, containing more than one-half of one percent of
31alcohol by volume but not more than five percent of alcohol by
32weight or six and twenty-five hundredths percent of alcohol by
33volume but not including mixed drinks or cocktails mixed on the
34premises.
3520. “High alcoholic content beer” means beer which
-1-1contains more than five percent of alcohol by weight or six
2and twenty-five hundredths percent of alcohol by volume, but
3not more than twelve percent of alcohol by weight or fifteen
4percent of alcohol by volume, that is made by the fermentation
5of an infusion in potable water of barley, malt, and hops, with
6or without unmalted grains or decorticated and degerminated
7grains. Not more than one and five-tenths percent of the
8volume of a “high alcoholic content beer” may consist of alcohol
9derived from added flavors and other nonbeverage ingredients
10containing alcohol. The added flavors and other nonbeverage
11ingredients may not include added caffeine or other added
12stimulants including but not limited to guarana, ginseng, and
13taurine.
1426. “Licensed premises” or “premises” means all rooms,
15enclosures, contiguous areas, or places susceptible of precise
16description satisfactory to the administrator where alcoholic
17beverages, wine, or beer is sold or consumed under authority
18of a liquor control license, wine permit, or beer permit.
19A single licensed premises may consist of multiple rooms,
20enclosures, areas, or places if they are wholly within the
21confines of a single building or contiguous grounds, or areas
22or places susceptible of precise description satisfactory to
23the administrator.
2427. “Local authority” means the city council or designee
25of the city council of any incorporated city in this state, or
26the county board of supervisors or designee of the county board
27of supervisors of any county in this state, which is empowered
28by this chapter to approve or deny applications for retail
29beer or wine permits and liquor control licenses; empowered to
30recommend that such permits or licenses be granted and issued
31by the division; and empowered to take other actions reserved
32to them by this chapter.
3334. “Person” means any individual, association, or
34 partnership, any corporation, limited liability company, or
35other similar legal entity, any club, hotel or motel, or any
-2-1municipal corporation owning or operating a bona fide airport,
2marina, park, coliseum, auditorium, or recreational facility in
3or at which the sale of alcoholic liquor, wine, or beer is only
4an incidental part of the ownership or operation.
548. “Wine” means any beverage containing more than five
6 six and twenty-five hundredths percent of alcohol by weight
7 volume but not more than seventeen percent of alcohol by weight
8or twenty-one and twenty-five hundredths percent of alcohol
9by volume obtained by the fermentation of the natural sugar
10contents of fruits or other agricultural products but excluding
11any product containing alcohol derived from malt or by the
12distillation process from grain, cereal, molasses, or cactus.
13 Sec. 2. Section 123.3, Code 2019, is amended by adding the
14following new subsections:
15 NEW SUBSECTION. 14A. “Completed application” means an
16application where all necessary fees have been paid in full,
17any required bonds have been submitted, the applicant has
18provided all information requested by the division, and
19the application meets the requirements of section 123.92,
20subsection 2, if applicable.
21 NEW SUBSECTION. 28A. “Mixed drink or cocktail” means an
22alcoholic beverage, composed in whole or in part of alcoholic
23liquor, that is combined with other alcoholic beverages or
24nonalcoholic beverages or ingredients including but not limited
25to ice, water, soft drinks, or flavorings.
26 NEW SUBSECTION. 28B. “Native brewery” means a business
27which manufactures beer or high alcoholic content beer and is
28operated by a person who holds a class “A” beer permit that
29authorizes the holder to manufacture and sell beer pursuant to
30this chapter.
31 NEW SUBSECTION. 36A. “Private place” means a location
32which, at the time alcoholic beverages are kept, dispensed, or
33consumed, meets all of the following criteria:
34a. The general public does not have access to the location
35and attendees are limited to bona fide social hosts and invited
-3-1guests.
2b. The location is not of a commercial nature.
3c. Goods or services are neither sold nor purchased at the
4location.
5d. The location is not a licensed premises.
6e. Admission fees or other kinds of entrance fees, fare,
7ticket, donation or charges are not made or are required of the
8invited guests to enter the location.
9 Sec. 3. Section 123.10, subsection 13, Code 2019, is amended
10to read as follows:
1113. Providing for the issuance of a waiver for an individual
12of legal age desiring to import alcoholic liquor, wine, or
13beer in excess of the amount provided in section 123.22,
14123.146123.122, or 123.171, as applicable. The waiver shall
15be limited to those individuals who were domiciled outside the
16state within one year of the request for a waiver and shall
17provide that any alcoholic liquor, wine, or beer imported
18pursuant to the waiver shall be for personal consumption only
19in a private home or other private accommodation.
20 Sec. 4. Section 123.10, Code 2019, is amended by adding the
21following new subsections:
22 NEW SUBSECTION. 14. Prescribing the uniform fee to be
23assessed against a class “B” beer permittee, class “C” native
24wine permittee, or liquor control licensee, except a class “E”
25liquor control licensee, to cover the administrative costs
26incurred by the division resulting from the failure of the
27licensee or permittee to maintain dramshop liability insurance
28coverage pursuant to section 123.92, subsection 2, paragraph
29“a”.
30 NEW SUBSECTION. 15. Prescribing the uniform fee, not to
31exceed one hundred dollars, to be assessed against a licensee
32or permittee for a contested case hearing conducted by the
33division or by an administrative law judge from the department
34of inspections and appeals which results in administrative
35action taken against the licensee or permittee by the division.
-4-1 Sec. 5. Section 123.14, Code 2019, is amended by striking
2the section and inserting in lieu thereof the following:
3123.14 Alcoholic beverage control law enforcement.
41. The department of public safety, the division, a county
5attorney, a county sheriff and the sheriff’s deputies, and the
6police department of every city shall be the alcoholic beverage
7control law enforcement authority for this state.
82. Investigators and compliance officers of the division
9shall have the powers and authority of peace officers
10when acting within the scope of their responsibilities as
11specified in section 123.4 and section 123.9, subsection 6.
12Investigators and compliance officers of the division shall not
13carry a weapon to perform responsibilities as described in this
14section.
153. Any neglect, misfeasance, or malfeasance shown by any
16peace officer included in this section shall be sufficient
17cause for the peace officer’s removal as provided by law.
18 Sec. 6. Section 123.23, subsections 1 and 4, Code 2019, are
19amended to read as follows:
201. Any manufacturer, distiller, or importer of alcoholic
21liquors shipping, selling, or having alcoholic liquors brought
22into this state for resale by the state shall, as a condition
23precedent to the privilege of so trafficking in alcoholic
24liquors in this state, annually make application for and hold
25a distiller’s certificate of compliance which shall be issued
26by the administrator for that purpose. No brand of alcoholic
27liquor shall be sold by the division in this state unless
28the manufacturer, distiller, importer, and all other persons
29participating in the distribution of that brand in this state
30have obtained a certificate. The certificate of compliance
31shall expire at the end of one year from the date of issuance
32and shall be renewed for a like period upon application to the
33administrator unless otherwise suspended or revoked for cause.
34Each completed application for a certificate of compliance
35or renewal shall be submitted electronically, or in a manner
-5-1prescribed by the administrator, and shall be accompanied by a
2fee of fifty dollars payable to the division. However, this
3subsection need not apply to a manufacturer, distiller, or
4importer who ships or sells in this state no more than eleven
5gallons or its case equivalent during any fiscal year as a
6result of “special orders” which might be placed, as defined
7and allowed by divisional rules adopted under this chapter.
84. Any violation of the requirements of this section, except
9subsection 3, chapter or rules adopted pursuant to this chapter
10 shall subject the violator holder of a distiller’s certificate
11of compliance to the general penalties provided in this chapter
12and in addition to the general penalties, is shall constitute
13 grounds for imposition of a civil penalty, suspension of the
14certificate, or revocation of the certificate of compliance,
15after notice and opportunity for a hearing before the
16administrator pursuant to section 123.39 and chapter 17A.
17Willful However, willful failure to comply with requirements
18which may be imposed under subsection 3 is grounds for
19suspension or revocation of the certificate of compliance only.
20 Sec. 7. Section 123.24, subsection 1, Code 2019, is amended
21to read as follows:
221. The division shall sell alcoholic liquor at wholesale
23only. The division shall sell alcoholic liquor to class “E”
24liquor control licensees only. The division shall offer the
25same price on alcoholic liquor to all class “E” liquor control
26licensees without regard for the quantity of purchase or the
27distance for delivery. However, the division may assess a
28split-case charge when liquor is sold in quantities which
29require a case to be split.
30 Sec. 8. Section 123.24, Code 2019, is amended by adding the
31following new subsection:
32 NEW SUBSECTION. 1A. The price of alcoholic liquor sold by
33the division shall consist of the following:
34a. The manufacturer’s price.
35b. A markup of up to fifty percent of the wholesale price
-6-1paid by the division for the alcoholic liquor. The division
2may increase the markup on selected kinds of alcoholic liquor
3sold by the division if the average return to the division on
4all sales of alcoholic liquor does not exceed the wholesale
5price paid by the division and the fifty percent markup.
6c. A split case charge in an amount determined by the
7division when alcoholic liquor is sold in quantities which
8require a case to be split.
9d. A bottle surcharge in an amount sufficient, when
10added to the amount not refunded to class “E” liquor control
11licensees pursuant to section 455C.2, to pay the costs incurred
12by the division for collecting and properly disposing of the
13liquor containers. The amount collected pursuant to this
14paragraph, in addition to any amounts not refunded to class “E”
15liquor control licensees pursuant to section 455C.2, shall be
16deposited in the beer and liquor control fund established under
17section 123.17.
18 Sec. 9. Section 123.24, subsections 4 and 5, Code 2019, are
19amended by striking the subsections.
20 Sec. 10. Section 123.27, subsection 3, Code 2019, is amended
21by striking the subsection.
22 Sec. 11. Section 123.28, subsection 2, Code 2019, is amended
23to read as follows:
242. The division shall deliver alcoholic liquor purchased by
25class “E” liquor control licensees. Class “E” liquor control
26licensees may deliver alcoholic liquor purchased by class “A”,
27class “B”, class “C”, class “C” native distilled spirits,
28or class “D” liquor control licensees, and class “A”, class
29 “B”, class “C”, class “C” native distilled spirits, or class
30 “D” liquor control licensees may transport alcoholic liquor
31purchased from class “E” liquor control licensees.
32 Sec. 12. Section 123.30, subsection 2, Code 2019, is amended
33to read as follows:
342. A liquor control license shall not be issued for premises
35which do not constitute a safe and proper place or building
-7-1and which do not conform to all applicable laws, ordinances,
2resolutions, and health and fire regulations. A licensee
3shall not have or maintain any interior access to residential
4or sleeping quarters unless permission is granted by the
5administrator in the form of a living quarters permit.
6 Sec. 13. Section 123.30, subsection 4, Code 2019, is amended
7to read as follows:
84. Notwithstanding any provision of this chapter to the
9contrary, a person holding a liquor control license to sell
10alcoholic beverages for consumption on the licensed premises
11may permit a customer to remove one unsealed bottle of wine
12for consumption off the premises if the customer has purchased
13and consumed a portion of the bottle of wine on the licensed
14premises. The licensee or the licensee’s agent shall securely
15reseal such bottle in a bag designed so that it is visibly
16apparent that the resealed bottle of wine has not been tampered
17with and provide a dated receipt for the resealed bottle of
18wine to the customer. A wine bottle resealed pursuant to the
19requirements of this subsection is subject to the requirements
20of sections 321.284 and 321.284A. A person holding a liquor
21control license to sell alcoholic beverages for consumption on
22the licensed premises may permit a customer to carry an open
23container of wine from their the person’s licensed premises
24into another immediately adjacent licensed premises, temporary
25 that is covered by a license or permit that authorizes the
26consumption of wine, a temporarily closed public right-of-way,
27or a private property place.
28 Sec. 14. Section 123.30, subsection 5, Code 2019, is amended
29by striking the subsection.
30 Sec. 15. Section 123.31, subsection 3, Code 2019, is amended
31to read as follows:
323. The names and addresses of all persons or, in the case of
33a corporation, limited liability company, or any other similar
34legal entity, the officers, directors, and persons owning or
35controlling ten percent or more of the capital stock thereof,
-8-1having a financial interest, by way of loan, ownership, or
2otherwise, in the business.
3 Sec. 16. Section 123.32, subsections 1, 2, 3, and 6, Code
42019, are amended to read as follows:
51. Filing of application.
6a. An A completed application for a class “A”, class “B”,
7class “C”, special class “C”, class “C” native distilled
8spirits, or class “E” liquor control license as provided in
9section 123.31, for a class “A” native distilled spirits
10license, for a retail beer permit as provided in sections
11123.128 and 123.129, or for a class “B”, class “B” native, or
12class “C” native retail wine permit as provided in section
13123.175, accompanied by the necessary fee and bond, if
14required, shall be filed with the appropriate city council or
15designee of the city council if the premises for which the
16license or permit is sought are located within the corporate
17limits of a city, or with the board of supervisors or designee
18of the board of supervisors if the premises for which the
19license or permit is sought are located outside the corporate
20limits of a city.
21b. An A completed application for a class “D” liquor control
22license and for a class “A” beer or class “A” wine permit,
23accompanied by the necessary fee and bond, if required, any
24of the following certificates, licenses, or permits shall
25be submitted to the division electronically, or in a manner
26prescribed by the administrator, which shall proceed in the
27same manner as in the case of an application approved by local
28authorities.:
29(1) A certificate of compliance as provided in sections
30123.23, 123.135, and 123.180.
31(2) A class “D” liquor control license as provided in
32section 123.31.
33(3) A manufacturer’s license as provided in section 123.41.
34(4) A broker’s permit as provided in section 123.42.
35(5) A class “A” native distilled spirits license as provided
-9-1in section 123.43.
2(6) A class “A” or special class “A” beer permit as provided
3in section 123.127.
4(7) A charity beer, spirits, and wine auction permit as
5provided in section 123.173A.
6(8) A class “A” wine permit as provided in section 123.175.
7(9) A wine direct shipper’s permit as provided in section
8123.187.
9(10) A wine carrier permit as provided in section 123.188.
102. Action by local authorities. The local authority shall
11either approve or disapprove the issuance of a liquor control
12license, a retail wine permit, or a retail beer permit, shall
13endorse its approval or disapproval on the application, and
14shall forward the application with the necessary fee and bond,
15if required, to the division. There is no limit upon the
16number of liquor control licenses, retail wine permits, or
17retail beer permits which may be approved for issuance by local
18authorities.
193. Licensed premises for local events. A local authority
20may define, by motion of the local authority, licensed premises
21which shall be used by holders of liquor control licenses, beer
22permits, and wine permits at festivals, fairs, or celebrations
23which are sponsored or authorized by the local authority. The
24licensed premises defined by motion of the local authority
25shall be used by the holders of five-day or fourteen-day class
26“A”, class “B”, class “C”, special class “C”, or class “D”
27liquor control licenses, or five-day or fourteen-day class “B”
28or class “C” native wine permits, or class “B” beer permits
29only.
306. Action by administrator.
31a. Upon receipt of an application having been disapproved
32by the local authority, the administrator shall notify the
33applicant that the applicant may appeal the disapproval of
34the application to the administrator. The applicant shall
35be notified by certified mail or personal service, and the
-10-1application, the fee, and any bond shall be returned to the
2applicant.
3b. Upon receipt of an application having been approved by
4the local authority, the division shall make an investigation
5as the administrator deems necessary to determine that
6the applicant complies with all requirements for holding a
7license or permit, and may require the applicant to appear
8to be examined under oath to demonstrate that the applicant
9complies with all of the requirements to hold a license
10or permit. If the administrator requires the applicant to
11appear and to testify under oath, a record shall be made of
12all testimony or evidence and the record shall become a part
13of the application. The administrator may appoint a member
14of the division or may request an administrative law judge
15of the department of inspections and appeals to receive the
16testimony under oath and evidence, and to issue a proposed
17decision to approve or disapprove the application for a license
18or permit. The administrator may affirm, reverse, or modify
19the proposed decision to approve or disapprove the application
20for the license or permit. If the application is approved
21by the administrator, the license or permit shall be issued.
22If the application is disapproved by the administrator, the
23applicant shall be so notified by certified mail or personal
24service and the appropriate local authority shall be notified
25electronically, or in a manner prescribed by the administrator.
26 Sec. 17. Section 123.34, Code 2019, is amended to read as
27follows:
28123.34 Expiration of licenses, and permits, and certificates
29of compliance — seasonal, five-day, and fourteen-day, and
30five-day licenses and permits — fees.
311. Liquor control All licenses, wine permits, and beer
32 permits, and certificates of compliance, unless sooner
33suspended or revoked, expire one year from date of issuance.
34The administrator shall notify a license, or permit, or
35certificate holder electronically, or in a manner prescribed by
-11-1the administrator, sixty days prior to the expiration of each
2license, or permit, or certificate.
32. a. However, the The administrator may issue six-month or
4eight-month seasonal class “A”, class “B”, class “C”, special
5class “C”, and class “D” liquor control licenses, class “B”
6wine permits, class “B” or class “C” native wine permits,
7 or class “B” beer permits for a proportionate part of the
8license or permit fee or may issue fourteen-day liquor control
9licenses, native wine permits, or beer permits as provided in
10subsection 2.
11b. No refund shall be made for seasonal licenses or
12permits or for fourteen-day liquor control licenses, native
13wine permits, or beer permits. No seasonal license or permit
14shall be renewed. However, after a period of two months the
15applicant may apply for a new seasonal license or permit for
16the same location. The fee for a six-month or eight-month
17seasonal license or permit issued pursuant to this subsection
18shall be for a proportionate part of the license or permit fee
19for that class of license or permit. However, the fee for a
20seasonal class “B” native wine permit shall be the permit fee
21provided in section 123.179, subsection 3, and the fee for a
22seasonal class “C” native wine permit shall be the permit fee
23provided in section 123.179, subsection 4.
242. 3. a. The administrator may issue fourteen-day class
25“A”, class “B”, class “C”, special class “C”, and class “D”
26liquor control licenses, and fourteen-day class “B” beer
27permits, class “B” native wine permits, and class “C” native
28wine permits.
29b. A fourteen-day license or permit, if granted, is valid
30for fourteen consecutive days, but the holder shall not sell on
31the two Sundays in the fourteen-day period unless the holder
32qualifies for and obtains the privilege to sell on Sundays
33contained in section 123.36, subsection 6, and section 123.134,
34subsection 4.
353. c. (1) The fee for a fourteen-day liquor control
-12-1license or beer permit is one quarter of the annual fee for
2that class of liquor control license or beer permit. The
3fee for the privilege to sell on the two Sundays in the
4fourteen-day period is twenty percent of the price of the
5fourteen-day liquor control license or beer permit.
6(2) The fee for a fourteen-day class “B” native wine permit
7shall be the permit fee provided in section 123.179, subsection
83, and the fee for a fourteen-day class “C” native wine permit
9is the permit fee provided in section 123.179, subsection 4.
104. a. The administrator may issue five-day class “A”, class
11“B”, class “C”, special class “C”, and class “D” liquor control
12licenses, and five-day class “B” beer permits, class “B” native
13wine permits, and class “C” native wine permits.
14b. A five-day license or permit is valid for five
15consecutive days, but the holder shall not sell alcoholic
16beverages on Sunday in the five-day period unless the holder
17qualifies for and obtains the privilege to sell on Sunday
18pursuant to sections section 123.36, subsection 6, and section
19 123.134, subsection 4.
205. c. (1) The fee for the five-day liquor control license
21or beer permit is one-eighth of the annual fee for that class
22of license or permit. The fee for the privilege to sell on a
23Sunday in the five-day period is ten percent of the price of
24the five-day liquor control license or beer permit.
25(2) The fee for a five-day class “B” native wine permit
26shall be the permit fee provided in section 123.179, subsection
273, and the fee for a five-day class “C” native wine permit is
28the permit fee provided in section 123.179, subsection 4.
295. A refund of fees paid shall not be made for seasonal
30licenses or permits, or for fourteen-day or five-day liquor
31control licenses, native wine permits, or beer permits. In
32addition, a seasonal, fourteen-day, or five-day license or
33permit shall not be renewed.
34 Sec. 18. Section 123.36, subsection 5, paragraph c, Code
352019, is amended to read as follows:
-13- 1c. For air common carriers, each company shall pay a
2base annual fee of five hundred dollars and, in addition,
3shall quarterly remit to the division an amount equal to
4seven dollars for each gallon of alcoholic liquor sold, given
5away, or dispensed in or over this state during the preceding
6calendar quarter. The class “D” license fee and tax for air
7common carriers is in lieu of any other fee or tax collected
8from the carriers in this state for the possession and sale of
9alcoholic liquor, wine, and beer.
10 Sec. 19. Section 123.36, subsection 6, Code 2019, is amended
11to read as follows:
126. Any club, hotel, motel, native distillery,
13passenger-carrying boat or ship, railway corporation, air
14common carrier, or commercial establishment holding a liquor
15control license, subject to section 123.49, subsection 2,
16paragraph “b”, may apply for and receive permission to sell and
17dispense alcoholic beverages as authorized by section 123.30 to
18patrons between the hours of 8:00 a.m.on Sunday and 2:00 a.m.
19on the following Monday. A class “D” liquor control licensee
20may apply for and receive permission to sell and dispense
21alcoholic beverages to patrons for consumption on the premises
22only between the hours of 8:00 a.m.on Sunday and 2:00 a.m.
23on the following Monday. For the privilege of selling beer,
24wine, and alcoholic liquor on the premises on Sunday the liquor
25control license fee of the applicant shall be increased by
26twenty percent of the regular fee prescribed for the license
27pursuant to this section, and the privilege shall be noted on
28the liquor control license.
29 Sec. 20. Section 123.36, subsection 10, Code 2019, is
30amended to read as follows:
3110. There is imposed a surcharge on the fee for each class
32“A”, class “B”, class “C”, class “C” native distilled spirits,
33 or special class “C” liquor control license equal to thirty
34percent of the scheduled license fee. The surcharges collected
35under this subsection shall be deposited in the beer and liquor
-14-1control fund, and notwithstanding subsection 8, no portion
2of the surcharges collected under this subsection shall be
3remitted to the local authority.
4 Sec. 21. NEW SECTION. 123.38A Confidential investigative
5records.
6In order to assure a free flow of information for
7accomplishing the purposes of section 123.4 and section
8123.9, subsection 6, all complaint information, investigation
9files, audit files, and inspection files, other investigation
10reports, and other investigative information in the possession
11of the division or employees acting under the authority of
12the administrator are privileged and confidential, and are
13not subject to discovery, subpoena, or other means of legal
14compulsion for their release before administrative or criminal
15charges are filed. However, investigative information in
16the possession of division employees may be disclosed to the
17licensing authorities of a city or county within this state,
18in another state, the District of Columbia, or territory
19or county in which the licensee or permittee is licensed
20or permitted or has applied for a license or permit. In
21addition, the investigative information can be shared with
22any law enforcement agency or other state agency that also
23has regulatory or enforcement jurisdiction authorized by law.
24Records received by the division from other agencies which
25would be confidential if created by the division are considered
26confidential.
27 Sec. 22. Section 123.39, subsection 1, Code 2019, is amended
28to read as follows:
291. a. (1) The administrator or the local authority
30may suspend a license or permit issued pursuant to this
31chapterclass “A”, class “B”, class “C”, special class “C”,
32class “C” native distilled spirits, or class “E” liquor
33control license or retail wine or beer permit for a period
34not to exceed one year, revoke the license or permit, or
35impose a civil penalty not to exceed one thousand dollars
-15-1per violation. Before suspension, revocation, or imposition
2of a civil penalty, the license or permit holder shall be
3given written notice and an opportunity for a hearing. The
4administrator may appoint a member of the division or may
5request an administrative law judge from the department of
6inspections and appeals to conduct the hearing and issue a
7proposed decision. Upon the motion of a party to the hearing
8or upon the administrator’s own motion, the administrator may
9review the proposed decision in accordance with chapter 17A.
10Upon review of the proposed decision, the administrator may
11affirm, reverse, or modify the proposed decision. A licensee
12or permittee aggrieved by a decision of the administrator
13may seek judicial review of the administrator’s decision in
14accordance with chapter 17A.
15(2) The administrator may suspend a certificate
16of compliance, a class “D” liquor control license, a
17manufacturer’s license, a broker’s permit, a class “A” native
18distilled spirits license, a class “A” or special class “A”
19beer permit, a charity beer, spirits, and wine auction permit,
20a class “A” wine permit, a wine direct shipper’s permit, or a
21wine carrier permit for a period not to exceed one year, revoke
22the license, permit, or certificate, or impose a civil penalty
23not to exceed one thousand dollars per violation.
24b. A license, or permit, or certificate of compliance issued
25under this chapter may be suspended or revoked, or a civil
26penalty may be imposed on the license or permit holder by the
27local authority or the administrator for any of the following
28causes:
29(1) Misrepresentation of any material fact in the
30application for the license, or permit, or certificate.
31(2) Violation of any of the provisions of this chapter.
32(3) Any change in the ownership or interest in the business
33operated under a liquor control license, or any wine or beer
34permit, which change was not previously reported in a manner
35prescribed by the administrator within thirty days of the
-16-1change and subsequently approved by the local authority, when
2applicable, and the division.
3(4) An event which would have resulted in disqualification
4from receiving the license, or permit, or certificate when
5originally issued.
6(5) Any sale, hypothecation, or transfer of the license, or
7 permit, or certificate.
8(6) The failure or refusal on the part of any licensee or
9permittee license, permit, or certificate holder to render any
10report or remit any taxes to the division under this chapter
11when due.
12c. A criminal conviction is not a prerequisite to
13suspension, revocation, or imposition of a civil penalty
14pursuant to this section.
15d. A local authority which acts pursuant to this section,
16section 123.32, or section 123.50 shall notify the division
17in writing of the action taken, and shall notify the licensee
18 license or permit holder of the right to appeal a suspension,
19revocation, or imposition of a civil penalty to the division.
20e. Before suspension, revocation, or imposition of a
21civil penalty by the administrator, the license, permit,
22or certificate holder shall be given written notice and an
23opportunity for a hearing. The administrator may appoint
24a member of the division or may request an administrative
25law judge from the department of inspections and appeals to
26conduct the hearing and issue a proposed decision. Upon the
27motion of a party to the hearing or upon the administrator’s
28own motion, the administrator may review the proposed decision
29in accordance with chapter 17A. Upon review of the proposed
30decision, the administrator may affirm, reverse, or modify the
31proposed decision. A license, permit, or certificate holder
32aggrieved by a decision of the administrator may seek judicial
33review of the administrator’s decision in accordance with
34chapter 17A.
35f. Civil penalties imposed and collected by the local
-17-1authority under this section shall be retained by the local
2authority. Civil penalties imposed and collected by the
3division under this section shall be retained by the division
4 credited to the general fund of the state pursuant to section
5123.17, subsection 7.
6 Sec. 23. Section 123.39, subsection 4, Code 2019, is amended
7to read as follows:
84. If the cause for suspension is a first offense
9violation of section 123.49, subsection 2, paragraph “h”, the
10administrator or local authority shall impose a civil penalty
11in the amount of five hundred dollars in lieu of suspension of
12the license or permit. Local authorities shall retain civil
13penalties collected under this paragraph if the proceeding to
14impose the penalty is conducted by the local authority. The
15division shall retain civil penalties collected under this
16paragraph if the proceeding to impose the penalty is conducted
17by the administrator of the division.
18 Sec. 24. Section 123.41, subsection 1, Code 2019, is amended
19to read as follows:
201. Each completed application to obtain or renew a
21manufacturer’s license shall be submitted to the division
22electronically, or in a manner prescribed by the administrator,
23and shall be accompanied by a fee of three hundred fifty
24dollars payable to the division. The administrator may in
25accordance with this chapter grant and issue to a manufacturer
26a manufacturer’s license, valid for a one-year period after
27date of issuance, which shall allow the manufacture, storage,
28and wholesale disposition and sale of alcoholic liquors to the
29division and to customers outside of the state.
30 Sec. 25. Section 123.41, Code 2019, is amended by adding the
31following new subsection:
32 NEW SUBSECTION. 3A. A person who holds a manufacturer’s
33license shall file with the division, on or before the
34fifteenth day of each calendar month, all documents filed
35by the manufacturer with the alcohol and tobacco tax and
-18-1trade bureau of the United States department of the treasury,
2including all production, storage, and processing reports.
3 Sec. 26. Section 123.41, subsection 4, Code 2019, is amended
4to read as follows:
54. A Any violation of the requirements of this section
6 chapter or rules adopted pursuant to this chapter shall subject
7the licensee license holder to the general penalties provided
8in this chapter and shall constitute grounds for imposition of
9a civil penalty, or suspension of the license, or revocation of
10the license after notice and opportunity for a hearing pursuant
11to section 123.39 and chapter 17A.
12 Sec. 27. Section 123.42, subsection 1, Code 2019, is amended
13to read as follows:
141. Prior to representing or promoting alcoholic liquor
15products in the state, the broker shall submit an a completed
16 application to the division electronically, or in a manner
17prescribed by the administrator, for a broker’s permit. The
18administrator may in accordance with this chapter issue a
19broker’s permit which shall be valid for one year from the date
20of issuance unless it is sooner suspended or revoked for a
21violation of this chapter.
22 Sec. 28. Section 123.42, Code 2019, is amended by adding the
23following new subsection:
24 NEW SUBSECTION. 7. Any violation of the requirements of
25this chapter or the rules adopted pursuant to this chapter
26shall subject the permit holder to the general penalties
27provided in this chapter and shall constitute grounds for
28imposition of a civil penalty, suspension of the permit, or
29revocation of the permit after notice and opportunity for a
30hearing pursuant to section 123.39 and chapter 17A.
31 Sec. 29. Section 123.43, subsection 1, paragraph b, Code
322019, is amended to read as follows:
33b. The names and addresses of all persons or, in the case of
34a corporation, limited liability company, or any other similar
35legal entity, the officers, directors, and persons owning or
-19-1controlling ten percent or more of the capital stock thereof,
2having a financial interest, by way of loan, ownership, or
3otherwise, in the business.
4 Sec. 30. Section 123.43A, subsection 5, Code 2019, is
5amended to read as follows:
65. The division shall issue no more than three class “A”
7native distilled spirits licenses to a person. In addition,
8a A native distillery issued a class “A” native distilled
9spirits license shall file with the division, on or before the
10fifteenth day of each calendar month, all documents filed by
11the native distillery with the alcohol and tobacco tax and
12trade bureau of the United States department of the treasury,
13including all production, storage, and processing reports.
14 Sec. 31. Section 123.46A, subsection 2, paragraph a, Code
152019, is amended to read as follows:
16a. Payment for the alcoholic liquor, wine, or beer shall be
17received on the licensed premises by the licensee or permittee
18 at the time of order.
19 Sec. 32. Section 123.49, subsection 2, unnumbered paragraph
201, Code 2019, is amended to read as follows:
21A person or club holding a liquor control license or retail
22wine or beer permit under this chapter, and the person’s or
23club’s agents or employees, shall not do any of the following:
24 Sec. 33. Section 123.49, subsection 2, paragraph d,
25subparagraph (1), Code 2019, is amended to read as follows:
26(1) Keep on premises covered by a liquor control license
27any alcoholic liquor in any container except the original
28package purchased from the division, and except mixed drinks
29or cocktails mixed on the premises for immediate consumption
30on the licensed premises or as otherwise provided by this
31paragraph “d”. This prohibition does not apply to common
32carriers holding holders of a class “D” liquor control license.
33 Sec. 34. Section 123.49, subsection 2, paragraph g, Code
342019, is amended to read as follows:
35g. Allow any person other than the licensee, permittee,
-20-1or employees of the licensee or permittee, to use or keep
2on the licensed premises any alcoholic liquor in any bottle
3or other container which is designed for the transporting of
4such beverages, except as permitted in section 123.95. This
5paragraph does not apply to the lodging quarters of a class “B”
6liquor control licensee or wine or beer permittee, or to common
7carriers holding holders of a class “D” liquor control license.
8 Sec. 35. Section 123.56, subsection 1, Code 2019, is amended
9to read as follows:
101. Subject to rules of the division, manufacturers of
11native wines from grapes, cherries, other fruits or other fruit
12juices, vegetables, vegetable juices, dandelions, clover,
13honey, or any combination of these ingredients, holding a class
14“A” wine permit as required by this chapter, may sell, keep, or
15offer for sale and deliver the wine. Notwithstanding section
16123.24, subsection 4 1A, paragraph “b”, or any other provision
17of this chapter, manufacturers of native wine may obtain and
18possess grape brandy from the division for the sole purpose of
19manufacturing wine.
20 Sec. 36. Section 123.56, subsection 4, Code 2019, is amended
21to read as follows:
224. Notwithstanding section 123.179, subsection 1, a A
23 class “A” wine permit issued for a native wine manufacturer
24shall be issued and renewed annually upon payment of a fee of
25twenty-five dollars which shall be in lieu of any other license
26fee required by this chapter. The class “A” permit shall only
27allow the native wine manufacturer to sell, keep, or offer for
28sale and deliver the manufacturer’s native wines as provided
29under this section.
30 Sec. 37. Section 123.56, Code 2019, is amended by adding the
31following new subsection:
32 NEW SUBSECTION. 7A. A manufacturer of native wines shall
33file with the division, on or before the fifteenth day of
34each calendar month, all documents filed with the alcohol and
35tobacco tax and trade bureau of the United States department of
-21-1the treasury, including all wine premises operations and excise
2tax return reports.
3 Sec. 38. Section 123.95, subsections 1 and 2, Code 2019, are
4amended to read as follows:
51. A person shall not allow the dispensing or consumption of
6alcoholic liquor, except wines and beer, in any establishment
7unless the establishment is licensed under this chapter or
8except as otherwise provided in this section.
92. a. The holder of an annual class “B” liquor control
10license or an annual class “C” liquor control license may
11act as the agent of a private social host for the purpose
12of providing and serving alcoholic liquor, wine, and beer
13 beverages as part of a food catering service for a private
14social gathering in a private place, provided the licensee
15has applied for and been granted a catering privilege by the
16division. The holder of an annual special class “C” liquor
17control license shall not act as the agent of a private social
18host for the purpose of providing and serving wine and beer as
19part of a food catering service for a private social gathering
20in a private place. An applicant for a class “B” or class “C”
21liquor control license shall state on the application for the
22license that the licensee intends to engage in catering food
23and alcoholic beverages for private social gatherings and the
24catering privilege shall be noted on the license.
25b. The private social host or the licensee shall not solicit
26donations in payment of any kind, including donations, for the
27food or alcoholic beverages from the guests, and the alcoholic
28beverages and food shall be served without cost to the guests.
29c. Section 123.92 does not apply to a liquor control
30licensee who acts in accordance with this section when the
31liquor control licensee is providing and serving food and
32alcoholic beverages as an agent of a private social host at a
33private social gathering in a private place which is not on the
34licensed premises.
352. An applicant for a class “B” liquor control license or
-22-1class “C” liquor control license shall state on the application
2for the license that the licensee intends to engage in catering
3food and alcoholic beverages for private social gatherings and
4the catering privilege shall be noted on the license or permit.
5d. A licensee who engages in catering food and alcoholic
6beverages for private social gatherings shall maintain a record
7on the licensed premises which includes the name and address
8of the host of the private social gathering, and the date for
9which catering was provided. The record maintained pursuant to
10this section shall be open to inspection pursuant to section
11123.30, subsection 1, during normal business hours of the
12licensee.
13 Sec. 39. Section 123.122, Code 2019, is amended by striking
14the section and inserting in lieu thereof the following:
15123.122 Beer certificate, permit, or license required —
16exception for personal use.
171. A person shall not cause the manufacture, importation,
18or sale of beer in this state unless a certificate or permit
19as provided in this subchapter, or a liquor control license as
20provided in subchapter 1 of this chapter, is first obtained
21which authorizes that manufacture, importation, or sale.
222. Any person of legal age may manufacture beer for
23personal use without a class “A” beer permit, subject to the
24requirements of this subsection. Such beer may be consumed
25on the premises or removed from the premises where it was
26manufactured only if the beer is not sold, exchanged, bartered,
27dispensed, or given in consideration of purchase for any
28property or services or in evasion of the requirements of this
29chapter.
303. Except as otherwise provided in this chapter, a person
31shall not import beer. However, an individual of legal age
32may import beer into the state without a certificate, permit,
33or license an amount of beer not to exceed four and one-half
34gallons per calendar month that the individual personally
35obtained outside the state or, in the case of beer personally
-23-1obtained outside the United States, a quantity which does
2not exceed the amount allowed by federal law governing the
3importation of alcoholic beverages into the United States
4for personal consumption. Beer imported pursuant to this
5section shall be for personal consumption in a private home or
6other private accommodation and only if the beer is not sold,
7exchanged, bartered, dispensed, or given in consideration of
8purchase for any property or services or in evasion of the
9requirements of this chapter.
10 Sec. 40. Section 123.127, subsection 1, unnumbered
11paragraph 1, Code 2019, is amended to read as follows:
12A person applying for a class “A” or special class “A” beer
13permit shall submit an a completed application electronically,
14or in a manner prescribed by the administrator, which shall set
15forth under oath the following:
16 Sec. 41. Section 123.127, subsection 1, paragraph b, Code
172019, is amended to read as follows:
18b. The names and addresses of all persons or, in the case of
19a corporation, limited liability company, or any other similar
20legal entity, the officers, directors, and persons owning or
21controlling ten percent or more of the capital stock thereof,
22having a financial interest, by way of loan, ownership, or
23otherwise, in the business.
24 Sec. 42. Section 123.130, subsection 1, Code 2019, is
25amended to read as follows:
261. Any person holding a class “A” beer permit issued by the
27division shall be authorized to manufacture and sell, or sell
28at wholesale, beer for consumption off the premises, such sales
29within the state to be made only to persons holding subsisting
30class “A”, “B”, or “C” beer permits, both a class “C” native
31wine permit and a class “A” wine permit pursuant to section
32123.178B, subsection 4, or liquor control licenses issued in
33accordance with the provisions of this chapter. A person
34holding a class “A” beer permit may sell beer to distributors
35outside of the state that are authorized by the laws of that
-24-1jurisdiction to sell beer at wholesale. A class “A” or special
2class “A” beer permit does not grant authority to manufacture
3wine as defined in section 123.3, subsection 48.
4 Sec. 43. Section 123.130, Code 2019, is amended by adding
5the following new subsection:
6 NEW SUBSECTION. 1A. Pursuant to section 123.45, subsection
72, a native brewery may be granted not more than one class “B”
8beer permit as defined in section 123.124 for the purpose of
9selling beer at retail for consumption on or off the premises
10of the manufacturing facility.
11 Sec. 44. Section 123.130, Code 2019, is amended by adding
12the following new subsection:
13 NEW SUBSECTION. 4. A manufacturer of beer issued a class
14“A” or special class “A” beer permit shall file with the
15division, on or before the fifteenth day of each calendar
16month, all documents filed with the alcohol and tobacco tax and
17trade bureau of the United States department of the treasury,
18including all brewer’s operation and excise tax return reports.
19 Sec. 45. Section 123.131, subsection 2, unnumbered
20paragraph 1, Code 2019, is amended to read as follows:
21Subject to the rules of the division, sales of beer for
22consumption off the premises made pursuant to this section
23may be made in a container other than the original container
24only if the container is carried into an immediately adjacent
25licensed or permitted premises covered by a license or permit
26that authorizes the consumption of beer, temporary temporarily
27 closed public right-of-way, or a private property place, or if
28all of the following requirements are met:
29 Sec. 46. Section 123.135, subsection 1, Code 2019, is
30amended to read as follows:
311. A manufacturer, brewer, bottler, importer, or vendor of
32beer, or any agent thereof, desiring to ship or sell beer, or
33have beer brought into this state for resale by a class “A”
34beer permittee, shall first make application for and be issued
35a brewer’s certificate of compliance by the administrator for
-25-1that purpose. The certificate of compliance expires at the
2end of one year from the date of issuance and shall be renewed
3for a like period upon application to the administrator unless
4otherwise revoked for cause. Each completed application for
5a certificate of compliance or renewal of a certificate shall
6be submitted electronically, or in a manner prescribed by
7the administrator, and shall be accompanied by a fee of five
8hundred dollars payable to the division. Each holder of a
9certificate of compliance shall furnish the information in a
10manner the administrator requires.
11 Sec. 47. Section 123.135, subsection 5, Code 2019, is
12amended by striking the subsection and inserting in lieu
13thereof the following:
145. Any violation of the requirements of this chapter or
15the rules adopted pursuant to this chapter shall subject the
16holder of a brewer’s certificate of compliance or a class “A”
17beer permit holder to the general penalties provided in this
18chapter and shall constitute grounds for imposition of a civil
19penalty, suspension of the certificate or permit, or revocation
20of the certificate or permit after notice and opportunity for a
21hearing pursuant to section 123.39 and chapter 17A.
22 Sec. 48. Section 123.136, subsection 1, Code 2019, is
23amended to read as follows:
241. In addition to the annual permit fee to be paid by
25all class “A” beer permittees under this chapter there shall
26be levied and collected from the permittees on all beer
27manufactured for sale or sold in this state at wholesale and
28on all beer imported into this state for sale at wholesale and
29sold in this state at wholesale, and from special class “A”
30beer permittees on all beer manufactured for consumption on the
31premises and on all beer sold at retail at the manufacturing
32premises for consumption off the premises pursuant to section
33123.130, subsection 3, a tax of five and eighty-nine hundredths
34dollars for every barrel containing thirty-one gallons, and at
35a like rate for any other quantity or for the fractional part
-26-1of a barrel. However, no tax shall be levied or collected on
2beer shipped outside this state by a class “A” beer permittee
3or special class “A” beer permittee or on beer sold to a class
4“A” beer permittee by one a special class “A” beer permittee to
5 or another class “A” beer permittee.
6 Sec. 49. Section 123.143, subsection 3, Code 2019, is
7amended to read as follows:
83. Barrel tax revenues collected on beer manufactured in
9this state from a class “A” beer permittee which owns and
10operates a native brewery located in Iowa shall be credited
11to the barrel tax fund hereby created in the office of the
12treasurer of state. Moneys deposited in the barrel tax fund
13shall not revert to the general fund of the state without a
14specific appropriation by the general assembly. Moneys in the
15barrel tax fund are appropriated to the economic development
16authority for purposes of section 15E.117.
17 Sec. 50. Section 123.173A, subsection 2, Code 2019, is
18amended to read as follows:
192. An authorized nonprofit entity may, upon application
20to the division and receipt of a charity beer, spirits, and
21wine auction permit from the division, conduct a charity
22auction which includes beer, spirits, and wine. The completed
23 application shall specify the date and time when the charity
24beer, spirits, and wine auction is to be conducted and the
25premises in this state where the charity beer, spirits, and
26wine auction is to be physically conducted. The applicant
27shall certify that the objective of the charity beer, spirits,
28and wine auction is to raise funds solely to be used for
29educational, religious, or charitable purposes and that the
30entire proceeds from the charity beer, spirits, and wine
31auction are to be expended for any of the purposes described in
32section 423.3, subsection 78.
33 Sec. 51. Section 123.173A, Code 2019, is amended by adding
34the following new subsection:
35 NEW SUBSECTION. 8. Any violation of the requirements of
-27-1this chapter or the rules adopted pursuant to this chapter
2shall subject the permit holder to the general penalties
3provided in this chapter and shall constitute grounds for
4imposition of a civil penalty, suspension of the permit, or
5revocation of the permit after notice and opportunity for a
6hearing pursuant to section 123.39 and chapter 17A.
7 Sec. 52. Section 123.175, subsection 1, unnumbered
8paragraph 1, Code 2019, is amended to read as follows:
9A person applying for a class “A” or retail wine permit
10shall submit an a completed application electronically, or in a
11manner prescribed by the administrator, which shall set forth
12under oath the following:
13 Sec. 53. Section 123.175, subsection 1, paragraph b, Code
142019, is amended to read as follows:
15b. The names and addresses of all persons or, in the case of
16a corporation, limited liability company, or any other similar
17legal entity, the officers, directors, and persons owning or
18controlling ten percent or more of the capital stock thereof,
19having a financial interest, by way of loan, ownership, or
20otherwise, in the business.
21 Sec. 54. Section 123.177, subsection 1, Code 2019, is
22amended to read as follows:
231. A person holding a class “A” wine permit may manufacture
24and sell, or sell at wholesale, wine for consumption off the
25premises. Sales within the state may be made only to persons
26holding a class “A” or “B” wine permit and to persons holding a
27retail liquor control license. However, if the person holding
28the class “A” permit is a manufacturer of native wine, the
29person may sell only native wine to a person holding a retail
30wine permit or a retail liquor control license. A person
31holding a class “A” wine permit may sell wine to distributors
32outside of the state that are authorized by the laws of that
33jurisdiction to sell wine at wholesale. A class “A” wine
34permittee having more than one place of business shall obtain a
35separate permit for each place of business where wine is to be
-28-1manufactured, stored, warehoused, or sold.
2 Sec. 55. Section 123.179, subsection 1, Code 2019, is
3amended to read as follows:
41. The annual permit fee for a class “A” wine permit that
5is not issued to a native wine manufacturer is seven hundred
6fifty dollars.
7 Sec. 56. Section 123.179, Code 2019, is amended by adding
8the following new subsection:
9 NEW SUBSECTION. 1A. The annual permit fee for a class “A”
10wine permit issued to a native wine manufacturer is twenty-five
11dollars.
12 Sec. 57. Section 123.180, subsection 1, Code 2019, is
13amended to read as follows:
141. A manufacturer, vintner, bottler, importer, or vendor of
15wine, or an agent thereof, desiring to ship, sell, or have wine
16brought into this state for sale at wholesale by a class “A”
17permittee shall first make application for and shall be issued
18a vintner’s certificate of compliance by the administrator
19for that purpose. The vintner’s certificate of compliance
20shall expire at the end of one year from the date of issuance
21and shall be renewed for a like period upon application to
22the administrator unless otherwise revoked for cause. Each
23completed application for a vintner’s certificate of compliance
24or renewal of a certificate shall be submitted electronically,
25or in a manner prescribed by the administrator, and shall be
26accompanied by a fee of one hundred dollars payable to the
27division. Each holder of a vintner’s certificate of compliance
28shall furnish the information required by the administrator in
29the form the administrator requires. A vintner or wine bottler
30whose plant is located in Iowa and who otherwise holds a class
31“A” wine permit to sell wine at wholesale is exempt from the
32fee, but not the other terms and conditions. The holder of a
33vintner’s certificate of compliance may also hold a class “A”
34wine permit.
35 Sec. 58. Section 123.180, subsection 6, Code 2019, is
-29-1amended by striking the subsection and inserting in lieu
2thereof the following:
36. Any violation of the requirements of this chapter or
4the rules adopted pursuant to this chapter shall subject the
5holder of a vintner’s certificate of compliance or a class “A”
6wine permit holder to the general penalties provided in this
7chapter and shall constitute grounds for imposition of a civil
8penalty, suspension of the certificate or permit, or revocation
9of the certificate or permit after notice and opportunity for a
10hearing pursuant to section 123.39 and chapter 17A.
11 Sec. 59. Section 123.183, subsection 1, Code 2019, is
12amended to read as follows:
131. In addition to the annual permit fee to be paid by each
14class “A” wine permittee, a wine gallonage tax shall be levied
15and collected from each class “A” wine permittee on all wine
16manufactured for sale and sold in this state at wholesale and
17on all wine imported into this state for sale at wholesale and
18sold in this state at wholesale. A wine gallonage tax shall
19also be levied and collected on the direct shipment of wine
20pursuant to section 123.187. The rate of the wine gallonage
21tax is one dollar and seventy-five cents for each wine gallon.
22The same rate shall apply for the fractional parts of a
23wine gallon. The wine gallonage tax shall not be levied or
24collected on wine sold by one class “A” wine permittee to
25another class “A” wine permittee or on wine that is sold by a
26class “A” wine permittee to a distributor outside of the state.
27 Sec. 60. Section 123.186, subsection 1, Code 2019, is
28amended to read as follows:
291. The division shall adopt as rules the substance of the
30federal regulations 27 C.F.R. pt.6, 27 C.F.R. pt.8, 27 C.F.R.
31pt.10, and 27 C.F.R. pt.11 as they relate to transactions
32between wholesalers and retailers.
33 Sec. 61. Section 123.187, subsection 3, paragraph d, Code
342019, is amended to read as follows:
35d. All containers of wine shipped directly to a resident
-30-1of this state shall be shipped by a holder of a wine carrier
2permit as provided in subsection 6 section 123.188.
3 Sec. 62. Section 123.187, subsection 6, Code 2019, is
4amended by striking the subsection.
5 Sec. 63. NEW SECTION. 123.188 Wine carrier — permit and
6requirements.
71. A person desiring to deliver wine subject to direct
8shipment within this state pursuant to section 123.187 shall
9submit an application for a wine carrier permit electronically,
10or in a manner prescribed by the administrator, and shall be
11accompanied by a fee in the amount of one hundred dollars.
122. The administrator may in accordance with this chapter
13issue a wine carrier permit which shall be valid for one year
14from the date of issuance unless it is sooner suspended or
15revoked for a violation of this chapter.
163. A permit issued pursuant to this section may be
17renewed annually by submitting a renewal application with the
18administrator in a manner prescribed by the administrator,
19accompanied by the one hundred dollar permit fee.
204. The delivery of wine pursuant to this section shall be
21subject to the following requirements and restrictions:
22a. A wine carrier permittee shall not deliver wine to
23any person under twenty-one years of age, or to any person
24who either is or appears to be in an intoxicated state or
25condition.
26b. A wine carrier permittee shall obtain valid proof of
27identity and age prior to delivery, and shall obtain the
28signature of an adult as a condition of delivery.
29c. A wine carrier permittee shall maintain records of wine
30shipped which include the permit number and name of the wine
31manufacturer, quantity of wine shipped, recipient’s name and
32address, and an electronic or paper form of signature from
33the recipient of the wine. Records shall be submitted to
34the division on a monthly basis in a form and manner to be
35determined by the division.
-31- 15. A violation of this section shall subject the permittee
2to the general penalties provided in this chapter and shall
3constitute grounds for imposition of a civil penalty or
4suspension or revocation of the permit pursuant to section
5123.39.
6 Sec. 64. CODE EDITOR DIRECTIVE.
71. The Code editor is directed to make the following
8transfer:
9Section 123.56 to section 123.176.
102. The Code editor is directed to correct internal
11references in the Code as necessary due to enactment of this
12section.
13 Sec. 65. REPEAL. Sections 123.144 and 123.146, Code 2019,
14are repealed.
15EXPLANATION
16The inclusion of this explanation does not constitute agreement with
17the explanation’s substance by the members of the general assembly.
18This bill concerns alcoholic beverage control and matters
19under the purview of the alcoholic beverages division of the
20department of commerce.
21Code section 123.3, providing definitions, is amended.
22The bill amends the definitions for “alcoholic liquor”,
23“beer”, “high alcoholic content beer”, and “wine”, by removing
24references to a percent of alcohol by weight and, if not
25already included in the definition, providing for the percent
26of alcohol by volume for each definition. In addition, the
27bill strikes the exclusion of mixed drinks or cocktails mixed
28on the premises from the definition of “beer”. The definition
29of “application” is amended by adding certificate. The
30definition of “licensed premises” is amended by striking areas
31susceptible of precise definition from what may constitute a
32single licensed premises. The definition of “local authority”
33is amended to include a designee of a city council or county
34board of supervisors. The definition of “person” is also
35amended to add limited liability companies and to add, in
-32-1relation to corporations and limited liability companies, other
2similar legal entities. The bill also adds definitions for
3“completed application”, “mixed drink or cocktail”, “native
4brewery”, and “private place”. “Completed application” is
5defined as an application for a license, permit, or certificate
6where all necessary fees or bonds have been paid or submitted
7and the applicant has provided all information to the alcoholic
8beverages division. The bill makes corresponding changes
9in Code chapter 123 referencing the requirement to file
10a completed application for a particular license, permit,
11or certificate. “Mixed drink or cocktail” is defined as
12an alcoholic beverage, consisting in whole or in part of
13alcoholic liquors, that is combined with other alcoholic or
14nonalcoholic beverages. “Native brewery” is defined as a
15business that manufactures beer or high alcoholic content beer
16by a person holding a class “A” beer permit that authorizes
17the manufacture. “Private place” is defined as a location
18which, at the time alcoholic beverages are kept, dispensed, or
19consumed, does not provide access to the general public, limits
20access to bona fide social hosts and invited guests, is not of
21a commercial nature, does not provide for the sale and purchase
22of goods and services, is not a licensed premises, and does not
23charge admission.
24Code section 123.10, concerning rules, is amended to
25authorize the alcoholic beverages division to prescribe a
26uniform fee to be assessed against certain licensees and
27permittees to recover administrative costs incurred relating
28to the failure of a licensee or permittee to maintain
29dramshop liability insurance coverage and for contested case
30proceedings.
31Code section 123.14, concerning alcoholic beverage control
32law enforcement, is rewritten to provide that the alcoholic
33beverage control law enforcement authority of the state
34shall include the department of public safety, the alcoholic
35beverages division, county attorneys and sheriffs and deputy
-33-1sheriffs, and city police departments. The rewritten section
2also provides that investigators and compliance officers of
3the alcoholic beverages division shall have the power and
4authority of peace officers as it relates to alcoholic beverage
5control. The rewritten section also strikes a provision
6relating to access to certain records within the alcoholic
7beverages division by the department of public safety. The
8bill establishes new Code section 123.38A to provide access to
9law enforcement for certain confidential investigative records.
10Code section 123.23, concerning distiller’s certificate of
11compliance, is amended to specifically provide that the general
12penalty provisions of the Code chapter apply to any violation
13of the Code chapter or rules adopted pursuant to the Code
14chapter by a holder of a distiller’s certificate of compliance.
15Code section 123.24, relating to liquor prices, is amended
16to contain all current provisions of the Code section relating
17to establishing liquor prices sold by the alcoholic beverages
18division in a new Code subsection.
19Code section 123.27, concerning sales and deliveries of
20alcoholic liquor from the state warehouse, is amended to
21eliminate the restriction on sales and deliveries on Sunday.
22Code section 123.30, concerning liquor control licenses, is
23amended. The bill provides that a liquor control license not
24be issued for a premises that does not constitute a safe and
25proper place or building. The bill also strikes a provision
26that allowed a person holding a liquor control license to
27permit a customer to carry an open container of alcoholic
28liquor from the licensed premises to an adjacent licensed
29premises, temporary closed public right-of-way, or private
30property.
31Code section 123.31, concerning liquor control license
32applications, is amended to provide that officers, directors,
33and persons owning at least 10 percent of stock in a limited
34liability company or other similar legal entity shall be
35included on the application for a license.
-34- 1Code section 123.32, concerning action by local authorities
2and the alcoholic beverages division on applications for
3certain licenses and permits is amended. The bill provides
4that liquor control licenses and permits currently required
5to be filed with the appropriate city council or county board
6of supervisors may also be filed with a designee of the city
7or county board of supervisors. The bill adds a completed
8application for a certificate of compliance to the list of
9applications covered by the Code section and specifically
10lists all completed applications for licenses, permits,
11and certificates that shall be submitted to the alcoholic
12beverages division. The bill also allows the administrator of
13the alcoholic beverages division to notify an applicant of a
14disapproval of an application by personal service.
15Code section 123.34, concerning seasonal and shorter
16duration licenses and permits, is amended to specifically
17authorize these types of permits for class “B” and class “C”
18native wine permits and to provide for the appropriate fee for
19these shorter duration class “B” and class “C” native wine
20permits.
21Code section 123.36, concerning liquor control license fees,
22is amended to eliminate the additional tax imposed on an air
23common carrier for a class “D” license.
24New Code section 123.38A provides for the confidential
25treatment of investigative information in the possession of
26the alcoholic beverages division before administrative or
27criminal charges are filed. The new Code section authorizes
28the disclosure of information to other law enforcement or
29regulatory agencies, including other licensing authorities in
30other jurisdictions.
31Code section 123.39, concerning suspension or revocation
32of a license or permit, is amended to include a certificate
33of compliance and to provide that civil penalties imposed and
34collected by the alcoholic beverages division shall be credited
35and used as provided in the general provision covering civil
-35-1penalties imposed and collected by the division in Code section
2123.17, subsection 7.
3Code section 123.41, concerning manufacturer’s licenses,
4is amended to specifically provide that the general penalty
5provisions of the Code chapter apply to any violation of the
6Code chapter or rules adopted pursuant to the Code chapter by a
7holder of a manufacturer’s license.
8Code section 123.43, concerning class “A” native distilled
9spirits license applications and issuance, is amended to
10provide that officers, directors, and persons owning at least
1110 percent of stock in a limited liability company or other
12similar legal entity shall be included on the application for
13a license.
14Code section 123.43A, concerning native distilleries, is
15amended to eliminate the restriction on the number of class
16“A” native distilled spirits licenses that may be issued to a
17person.
18Code section 123.49, miscellaneous provisions, is amended
19to provide that the exception on certain prohibitions relating
20to the keeping of any alcoholic liquor in certain containers
21for common carriers holding a class “D” liquor control license
22applies to all holders of that license.
23Code section 123.56, concerning native wines, is amended.
24The bill removes the license fee for a class “A” wine permit
25for a native wine manufacturer from the Code section and adds
26the fee to Code section 123.179 providing for wine permit fees.
27The bill also requires a person who manufactures native wine
28to file with the division the records that are filed monthly
29with the alcohol and tobacco tax and trade bureau of the United
30States department of the treasury. The bill directs the Code
31editor to transfer this Code section to new Code section
32123.176.
33Code section 123.122, concerning required beer permits or
34licenses, is amended to add to the Code section provisions
35concerning exceptions for personal use relative to homemade
-36-1beer and importation of beer currently provided in Code section
2123.144, subsection 2, and Code section 123.146.
3Code section 123.127, concerning class “A” and special
4class “A” beer permit applications, is amended to provide that
5officers, directors, and persons owning at least 10 percent of
6stock in a limited liability company or other similar legal
7entity shall be included on the application for the permit.
8Code section 123.130, concerning authority under a class “A”
9and special class “A” beer permit, is amended to provide that a
10holder of a class “A” beer permit may sell beer to distributors
11outside Iowa, pursuant to the laws of that jurisdiction, to
12provide that a native brewery may be granted not more than one
13class “B” beer permit for selling beer at the manufacturing
14facility, and to require a person who manufactures beer to file
15with the alcoholic beverages division the records it files
16monthly with the alcohol and tobacco tax and trade bureau of
17the United States department of the treasury.
18Code section 123.131, concerning authority under a class “B”
19beer permit, is amended. The bill provides that sales of beer
20for consumption off the premises in a container that is not the
21original container may be carried into an immediately adjacent
22premises only if the premises is covered by a license or permit
23that allows the consumption of beer.
24Code section 123.135, concerning a brewer’s certificate of
25compliance, is amended to provide that the general penalty
26provisions of Code chapter 123 apply to any violation of the
27Code chapter or rules adopted pursuant to the Code chapter by a
28holder of a brewer’s certificate of compliance.
29Code section 123.136, concerning the barrel tax on beer, is
30amended to provide that the exceptions for tax applicable to
31class “A” beer permittees also applies to special class “A”
32beer permittees.
33Code section 123.173A, concerning a charity beer, spirits,
34and wine auction permit, is amended to provide that the general
35penalty provisions of Code chapter 123 apply to any violation
-37-1of the Code chapter or rules adopted pursuant to the Code
2chapter by a holder of an auction permit.
3Code section 123.175, concerning class “A” or retail wine
4permit applications, is amended to provide that officers,
5directors, and persons owning at least 10 percent of stock in a
6limited liability company or other similar legal entity shall
7be included on the application for the permit.
8Code section 123.177, concerning authority under a class “A”
9wine permit, is amended to provide that a holder of a class
10“A” wine permit may sell wine to distributors outside Iowa,
11pursuant to the laws of that jurisdiction.
12Code section 123.179, concerning wine permit fees, is
13amended to include the fee for a class “A” wine permit issued
14to a native wine manufacturer currently provided in Code
15section 123.56.
16Code section 123.180, concerning a vintner’s certificate
17of compliance, is amended to provide that the general penalty
18provisions of Code chapter 123 apply to any violation of the
19Code chapter or rules adopted pursuant to the Code chapter by a
20holder of a vintner’s certificate or a class “A” permit.
21Code section 123.183, concerning the wine gallonage tax, is
22amended to provide that the tax shall not be levied on wine
23sold by a class “A” wine permittee to a distributor outside of
24the state.
25Code section 123.186, concerning federal regulations adopted
26as rules, is amended to provide that the alcoholic beverages
27division adopt as rules the substance of the entirety of
28federal regulations 27 C.F.R. pt.6, 27 C.F.R. pt.8, 27 C.F.R.
29pt.10, and 27 C.F.R. pt.11, and not just those regulations as
30they relate to transactions between wholesalers and retailers.
31Code section 123.187, concerning the direct shipment of
32wine, is amended by striking provisions relating to a wine
33carrier permit. The bill relocates the stricken provisions to
34new Code section 123.188.
35Code sections 123.144, relating to bottling beer, and
-38-1123.146, relating to importation of beer for personal use, are
2repealed.
-39-ec/rn
2the purview of the alcoholic beverages division of the
3department of commerce.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 123.3, subsections 5, 6, 7, 20, 26, 27,
234, and 48, Code 2019, are amended to read as follows:
35. “Alcoholic liquor” means the varieties of liquor defined
4in subsections 3 and 44 which contain more than five six and
5twenty-five hundredths percent of alcohol by weight volume,
6beverages made as described in subsection 7 which beverages
7contain more than five percent of alcohol by weight or six and
8twenty-five hundredths percent of alcohol by volume but which
9are not wine as defined in subsection 48 or high alcoholic
10content beer as defined in subsection 20, and every other
11liquid or solid, patented or not, containing spirits and every
12beverage obtained by the process described in subsection 48
13containing more than seventeen percent alcohol by weight or
14 twenty-one and twenty-five hundredths percent of alcohol by
15volume, and susceptible of being consumed by a human being,
16for beverage purposes. Alcohol manufactured in this state
17for use as fuel pursuant to an experimental distilled spirits
18plant permit or its equivalent issued by the federal bureau of
19alcohol, tobacco and firearms is not an “alcoholic liquor”.
206. “Application” means a written request for the issuance
21of a permit, or license, or certificate that is supported by a
22verified statement of facts and submitted electronically, or in
23a manner prescribed by the administrator.
247. “Beer” means any liquid capable of being used for
25beverage purposes made by the fermentation of an infusion
26in potable water of barley, malt, and hops, with or without
27unmalted grains or decorticated and degerminated grains or made
28by the fermentation of or by distillation of the fermented
29products of fruit, fruit extracts, or other agricultural
30products, containing more than one-half of one percent of
31alcohol by volume but not more than five percent of alcohol by
32weight or six and twenty-five hundredths percent of alcohol by
33volume but not including mixed drinks or cocktails mixed on the
34premises.
3520. “High alcoholic content beer” means beer which
-1-1contains more than five percent of alcohol by weight or six
2and twenty-five hundredths percent of alcohol by volume, but
3not more than twelve percent of alcohol by weight or fifteen
4percent of alcohol by volume, that is made by the fermentation
5of an infusion in potable water of barley, malt, and hops, with
6or without unmalted grains or decorticated and degerminated
7grains. Not more than one and five-tenths percent of the
8volume of a “high alcoholic content beer” may consist of alcohol
9derived from added flavors and other nonbeverage ingredients
10containing alcohol. The added flavors and other nonbeverage
11ingredients may not include added caffeine or other added
12stimulants including but not limited to guarana, ginseng, and
13taurine.
1426. “Licensed premises” or “premises” means all rooms,
15enclosures, contiguous areas, or places susceptible of precise
16description satisfactory to the administrator where alcoholic
17beverages, wine, or beer is sold or consumed under authority
18of a liquor control license, wine permit, or beer permit.
19A single licensed premises may consist of multiple rooms,
20enclosures, areas, or places if they are wholly within the
21confines of a single building or contiguous grounds, or areas
22or places susceptible of precise description satisfactory to
23the administrator.
2427. “Local authority” means the city council or designee
25of the city council of any incorporated city in this state, or
26the county board of supervisors or designee of the county board
27of supervisors of any county in this state, which is empowered
28by this chapter to approve or deny applications for retail
29beer or wine permits and liquor control licenses; empowered to
30recommend that such permits or licenses be granted and issued
31by the division; and empowered to take other actions reserved
32to them by this chapter.
3334. “Person” means any individual, association, or
34 partnership, any corporation, limited liability company, or
35other similar legal entity, any club, hotel or motel, or any
-2-1municipal corporation owning or operating a bona fide airport,
2marina, park, coliseum, auditorium, or recreational facility in
3or at which the sale of alcoholic liquor, wine, or beer is only
4an incidental part of the ownership or operation.
548. “Wine” means any beverage containing more than five
6 six and twenty-five hundredths percent of alcohol by weight
7 volume but not more than seventeen percent of alcohol by weight
8or twenty-one and twenty-five hundredths percent of alcohol
9by volume obtained by the fermentation of the natural sugar
10contents of fruits or other agricultural products but excluding
11any product containing alcohol derived from malt or by the
12distillation process from grain, cereal, molasses, or cactus.
13 Sec. 2. Section 123.3, Code 2019, is amended by adding the
14following new subsections:
15 NEW SUBSECTION. 14A. “Completed application” means an
16application where all necessary fees have been paid in full,
17any required bonds have been submitted, the applicant has
18provided all information requested by the division, and
19the application meets the requirements of section 123.92,
20subsection 2, if applicable.
21 NEW SUBSECTION. 28A. “Mixed drink or cocktail” means an
22alcoholic beverage, composed in whole or in part of alcoholic
23liquor, that is combined with other alcoholic beverages or
24nonalcoholic beverages or ingredients including but not limited
25to ice, water, soft drinks, or flavorings.
26 NEW SUBSECTION. 28B. “Native brewery” means a business
27which manufactures beer or high alcoholic content beer and is
28operated by a person who holds a class “A” beer permit that
29authorizes the holder to manufacture and sell beer pursuant to
30this chapter.
31 NEW SUBSECTION. 36A. “Private place” means a location
32which, at the time alcoholic beverages are kept, dispensed, or
33consumed, meets all of the following criteria:
34a. The general public does not have access to the location
35and attendees are limited to bona fide social hosts and invited
-3-1guests.
2b. The location is not of a commercial nature.
3c. Goods or services are neither sold nor purchased at the
4location.
5d. The location is not a licensed premises.
6e. Admission fees or other kinds of entrance fees, fare,
7ticket, donation or charges are not made or are required of the
8invited guests to enter the location.
9 Sec. 3. Section 123.10, subsection 13, Code 2019, is amended
10to read as follows:
1113. Providing for the issuance of a waiver for an individual
12of legal age desiring to import alcoholic liquor, wine, or
13beer in excess of the amount provided in section 123.22,
14123.146123.122, or 123.171, as applicable. The waiver shall
15be limited to those individuals who were domiciled outside the
16state within one year of the request for a waiver and shall
17provide that any alcoholic liquor, wine, or beer imported
18pursuant to the waiver shall be for personal consumption only
19in a private home or other private accommodation.
20 Sec. 4. Section 123.10, Code 2019, is amended by adding the
21following new subsections:
22 NEW SUBSECTION. 14. Prescribing the uniform fee to be
23assessed against a class “B” beer permittee, class “C” native
24wine permittee, or liquor control licensee, except a class “E”
25liquor control licensee, to cover the administrative costs
26incurred by the division resulting from the failure of the
27licensee or permittee to maintain dramshop liability insurance
28coverage pursuant to section 123.92, subsection 2, paragraph
29“a”.
30 NEW SUBSECTION. 15. Prescribing the uniform fee, not to
31exceed one hundred dollars, to be assessed against a licensee
32or permittee for a contested case hearing conducted by the
33division or by an administrative law judge from the department
34of inspections and appeals which results in administrative
35action taken against the licensee or permittee by the division.
-4-1 Sec. 5. Section 123.14, Code 2019, is amended by striking
2the section and inserting in lieu thereof the following:
3123.14 Alcoholic beverage control law enforcement.
41. The department of public safety, the division, a county
5attorney, a county sheriff and the sheriff’s deputies, and the
6police department of every city shall be the alcoholic beverage
7control law enforcement authority for this state.
82. Investigators and compliance officers of the division
9shall have the powers and authority of peace officers
10when acting within the scope of their responsibilities as
11specified in section 123.4 and section 123.9, subsection 6.
12Investigators and compliance officers of the division shall not
13carry a weapon to perform responsibilities as described in this
14section.
153. Any neglect, misfeasance, or malfeasance shown by any
16peace officer included in this section shall be sufficient
17cause for the peace officer’s removal as provided by law.
18 Sec. 6. Section 123.23, subsections 1 and 4, Code 2019, are
19amended to read as follows:
201. Any manufacturer, distiller, or importer of alcoholic
21liquors shipping, selling, or having alcoholic liquors brought
22into this state for resale by the state shall, as a condition
23precedent to the privilege of so trafficking in alcoholic
24liquors in this state, annually make application for and hold
25a distiller’s certificate of compliance which shall be issued
26by the administrator for that purpose. No brand of alcoholic
27liquor shall be sold by the division in this state unless
28the manufacturer, distiller, importer, and all other persons
29participating in the distribution of that brand in this state
30have obtained a certificate. The certificate of compliance
31shall expire at the end of one year from the date of issuance
32and shall be renewed for a like period upon application to the
33administrator unless otherwise suspended or revoked for cause.
34Each completed application for a certificate of compliance
35or renewal shall be submitted electronically, or in a manner
-5-1prescribed by the administrator, and shall be accompanied by a
2fee of fifty dollars payable to the division. However, this
3subsection need not apply to a manufacturer, distiller, or
4importer who ships or sells in this state no more than eleven
5gallons or its case equivalent during any fiscal year as a
6result of “special orders” which might be placed, as defined
7and allowed by divisional rules adopted under this chapter.
84. Any violation of the requirements of this section, except
9subsection 3, chapter or rules adopted pursuant to this chapter
10 shall subject the violator holder of a distiller’s certificate
11of compliance to the general penalties provided in this chapter
12and in addition to the general penalties, is shall constitute
13 grounds for imposition of a civil penalty, suspension of the
14certificate, or revocation of the certificate of compliance,
15after notice and opportunity for a hearing before the
16administrator pursuant to section 123.39 and chapter 17A.
17Willful However, willful failure to comply with requirements
18which may be imposed under subsection 3 is grounds for
19suspension or revocation of the certificate of compliance only.
20 Sec. 7. Section 123.24, subsection 1, Code 2019, is amended
21to read as follows:
221. The division shall sell alcoholic liquor at wholesale
23only. The division shall sell alcoholic liquor to class “E”
24liquor control licensees only. The division shall offer the
25same price on alcoholic liquor to all class “E” liquor control
26licensees without regard for the quantity of purchase or the
27distance for delivery. However, the division may assess a
28split-case charge when liquor is sold in quantities which
29require a case to be split.
30 Sec. 8. Section 123.24, Code 2019, is amended by adding the
31following new subsection:
32 NEW SUBSECTION. 1A. The price of alcoholic liquor sold by
33the division shall consist of the following:
34a. The manufacturer’s price.
35b. A markup of up to fifty percent of the wholesale price
-6-1paid by the division for the alcoholic liquor. The division
2may increase the markup on selected kinds of alcoholic liquor
3sold by the division if the average return to the division on
4all sales of alcoholic liquor does not exceed the wholesale
5price paid by the division and the fifty percent markup.
6c. A split case charge in an amount determined by the
7division when alcoholic liquor is sold in quantities which
8require a case to be split.
9d. A bottle surcharge in an amount sufficient, when
10added to the amount not refunded to class “E” liquor control
11licensees pursuant to section 455C.2, to pay the costs incurred
12by the division for collecting and properly disposing of the
13liquor containers. The amount collected pursuant to this
14paragraph, in addition to any amounts not refunded to class “E”
15liquor control licensees pursuant to section 455C.2, shall be
16deposited in the beer and liquor control fund established under
17section 123.17.
18 Sec. 9. Section 123.24, subsections 4 and 5, Code 2019, are
19amended by striking the subsections.
20 Sec. 10. Section 123.27, subsection 3, Code 2019, is amended
21by striking the subsection.
22 Sec. 11. Section 123.28, subsection 2, Code 2019, is amended
23to read as follows:
242. The division shall deliver alcoholic liquor purchased by
25class “E” liquor control licensees. Class “E” liquor control
26licensees may deliver alcoholic liquor purchased by class “A”,
27class “B”, class “C”, class “C” native distilled spirits,
28or class “D” liquor control licensees, and class “A”, class
29 “B”, class “C”, class “C” native distilled spirits, or class
30 “D” liquor control licensees may transport alcoholic liquor
31purchased from class “E” liquor control licensees.
32 Sec. 12. Section 123.30, subsection 2, Code 2019, is amended
33to read as follows:
342. A liquor control license shall not be issued for premises
35which do not constitute a safe and proper place or building
-7-1and which do not conform to all applicable laws, ordinances,
2resolutions, and health and fire regulations. A licensee
3shall not have or maintain any interior access to residential
4or sleeping quarters unless permission is granted by the
5administrator in the form of a living quarters permit.
6 Sec. 13. Section 123.30, subsection 4, Code 2019, is amended
7to read as follows:
84. Notwithstanding any provision of this chapter to the
9contrary, a person holding a liquor control license to sell
10alcoholic beverages for consumption on the licensed premises
11may permit a customer to remove one unsealed bottle of wine
12for consumption off the premises if the customer has purchased
13and consumed a portion of the bottle of wine on the licensed
14premises. The licensee or the licensee’s agent shall securely
15reseal such bottle in a bag designed so that it is visibly
16apparent that the resealed bottle of wine has not been tampered
17with and provide a dated receipt for the resealed bottle of
18wine to the customer. A wine bottle resealed pursuant to the
19requirements of this subsection is subject to the requirements
20of sections 321.284 and 321.284A. A person holding a liquor
21control license to sell alcoholic beverages for consumption on
22the licensed premises may permit a customer to carry an open
23container of wine from their the person’s licensed premises
24into another immediately adjacent licensed premises, temporary
25 that is covered by a license or permit that authorizes the
26consumption of wine, a temporarily closed public right-of-way,
27or a private property place.
28 Sec. 14. Section 123.30, subsection 5, Code 2019, is amended
29by striking the subsection.
30 Sec. 15. Section 123.31, subsection 3, Code 2019, is amended
31to read as follows:
323. The names and addresses of all persons or, in the case of
33a corporation, limited liability company, or any other similar
34legal entity, the officers, directors, and persons owning or
35controlling ten percent or more of the capital stock thereof,
-8-1having a financial interest, by way of loan, ownership, or
2otherwise, in the business.
3 Sec. 16. Section 123.32, subsections 1, 2, 3, and 6, Code
42019, are amended to read as follows:
51. Filing of application.
6a. An A completed application for a class “A”, class “B”,
7class “C”, special class “C”, class “C” native distilled
8spirits, or class “E” liquor control license as provided in
9section 123.31, for a class “A” native distilled spirits
10license, for a retail beer permit as provided in sections
11123.128 and 123.129, or for a class “B”, class “B” native, or
12class “C” native retail wine permit as provided in section
13123.175, accompanied by the necessary fee and bond, if
14required, shall be filed with the appropriate city council or
15designee of the city council if the premises for which the
16license or permit is sought are located within the corporate
17limits of a city, or with the board of supervisors or designee
18of the board of supervisors if the premises for which the
19license or permit is sought are located outside the corporate
20limits of a city.
21b. An A completed application for a class “D” liquor control
22license and for a class “A” beer or class “A” wine permit,
23accompanied by the necessary fee and bond, if required, any
24of the following certificates, licenses, or permits shall
25be submitted to the division electronically, or in a manner
26prescribed by the administrator, which shall proceed in the
27same manner as in the case of an application approved by local
28authorities.:
29(1) A certificate of compliance as provided in sections
30123.23, 123.135, and 123.180.
31(2) A class “D” liquor control license as provided in
32section 123.31.
33(3) A manufacturer’s license as provided in section 123.41.
34(4) A broker’s permit as provided in section 123.42.
35(5) A class “A” native distilled spirits license as provided
-9-1in section 123.43.
2(6) A class “A” or special class “A” beer permit as provided
3in section 123.127.
4(7) A charity beer, spirits, and wine auction permit as
5provided in section 123.173A.
6(8) A class “A” wine permit as provided in section 123.175.
7(9) A wine direct shipper’s permit as provided in section
8123.187.
9(10) A wine carrier permit as provided in section 123.188.
102. Action by local authorities. The local authority shall
11either approve or disapprove the issuance of a liquor control
12license, a retail wine permit, or a retail beer permit, shall
13endorse its approval or disapproval on the application, and
14shall forward the application with the necessary fee and bond,
15if required, to the division. There is no limit upon the
16number of liquor control licenses, retail wine permits, or
17retail beer permits which may be approved for issuance by local
18authorities.
193. Licensed premises for local events. A local authority
20may define, by motion of the local authority, licensed premises
21which shall be used by holders of liquor control licenses, beer
22permits, and wine permits at festivals, fairs, or celebrations
23which are sponsored or authorized by the local authority. The
24licensed premises defined by motion of the local authority
25shall be used by the holders of five-day or fourteen-day class
26“A”, class “B”, class “C”, special class “C”, or class “D”
27liquor control licenses, or five-day or fourteen-day class “B”
28or class “C” native wine permits, or class “B” beer permits
29only.
306. Action by administrator.
31a. Upon receipt of an application having been disapproved
32by the local authority, the administrator shall notify the
33applicant that the applicant may appeal the disapproval of
34the application to the administrator. The applicant shall
35be notified by certified mail or personal service, and the
-10-1application, the fee, and any bond shall be returned to the
2applicant.
3b. Upon receipt of an application having been approved by
4the local authority, the division shall make an investigation
5as the administrator deems necessary to determine that
6the applicant complies with all requirements for holding a
7license or permit, and may require the applicant to appear
8to be examined under oath to demonstrate that the applicant
9complies with all of the requirements to hold a license
10or permit. If the administrator requires the applicant to
11appear and to testify under oath, a record shall be made of
12all testimony or evidence and the record shall become a part
13of the application. The administrator may appoint a member
14of the division or may request an administrative law judge
15of the department of inspections and appeals to receive the
16testimony under oath and evidence, and to issue a proposed
17decision to approve or disapprove the application for a license
18or permit. The administrator may affirm, reverse, or modify
19the proposed decision to approve or disapprove the application
20for the license or permit. If the application is approved
21by the administrator, the license or permit shall be issued.
22If the application is disapproved by the administrator, the
23applicant shall be so notified by certified mail or personal
24service and the appropriate local authority shall be notified
25electronically, or in a manner prescribed by the administrator.
26 Sec. 17. Section 123.34, Code 2019, is amended to read as
27follows:
28123.34 Expiration of licenses, and permits, and certificates
29of compliance — seasonal, five-day, and fourteen-day, and
30five-day licenses and permits — fees.
311. Liquor control All licenses, wine permits, and beer
32 permits, and certificates of compliance, unless sooner
33suspended or revoked, expire one year from date of issuance.
34The administrator shall notify a license, or permit, or
35certificate holder electronically, or in a manner prescribed by
-11-1the administrator, sixty days prior to the expiration of each
2license, or permit, or certificate.
32. a. However, the The administrator may issue six-month or
4eight-month seasonal class “A”, class “B”, class “C”, special
5class “C”, and class “D” liquor control licenses, class “B”
6wine permits, class “B” or class “C” native wine permits,
7 or class “B” beer permits for a proportionate part of the
8license or permit fee or may issue fourteen-day liquor control
9licenses, native wine permits, or beer permits as provided in
10subsection 2.
11b. No refund shall be made for seasonal licenses or
12permits or for fourteen-day liquor control licenses, native
13wine permits, or beer permits. No seasonal license or permit
14shall be renewed. However, after a period of two months the
15applicant may apply for a new seasonal license or permit for
16the same location. The fee for a six-month or eight-month
17seasonal license or permit issued pursuant to this subsection
18shall be for a proportionate part of the license or permit fee
19for that class of license or permit. However, the fee for a
20seasonal class “B” native wine permit shall be the permit fee
21provided in section 123.179, subsection 3, and the fee for a
22seasonal class “C” native wine permit shall be the permit fee
23provided in section 123.179, subsection 4.
242. 3. a. The administrator may issue fourteen-day class
25“A”, class “B”, class “C”, special class “C”, and class “D”
26liquor control licenses, and fourteen-day class “B” beer
27permits, class “B” native wine permits, and class “C” native
28wine permits.
29b. A fourteen-day license or permit, if granted, is valid
30for fourteen consecutive days, but the holder shall not sell on
31the two Sundays in the fourteen-day period unless the holder
32qualifies for and obtains the privilege to sell on Sundays
33contained in section 123.36, subsection 6, and section 123.134,
34subsection 4.
353. c. (1) The fee for a fourteen-day liquor control
-12-1license or beer permit is one quarter of the annual fee for
2that class of liquor control license or beer permit. The
3fee for the privilege to sell on the two Sundays in the
4fourteen-day period is twenty percent of the price of the
5fourteen-day liquor control license or beer permit.
6(2) The fee for a fourteen-day class “B” native wine permit
7shall be the permit fee provided in section 123.179, subsection
83, and the fee for a fourteen-day class “C” native wine permit
9is the permit fee provided in section 123.179, subsection 4.
104. a. The administrator may issue five-day class “A”, class
11“B”, class “C”, special class “C”, and class “D” liquor control
12licenses, and five-day class “B” beer permits, class “B” native
13wine permits, and class “C” native wine permits.
14b. A five-day license or permit is valid for five
15consecutive days, but the holder shall not sell alcoholic
16beverages on Sunday in the five-day period unless the holder
17qualifies for and obtains the privilege to sell on Sunday
18pursuant to sections section 123.36, subsection 6, and section
19 123.134, subsection 4.
205. c. (1) The fee for the five-day liquor control license
21or beer permit is one-eighth of the annual fee for that class
22of license or permit. The fee for the privilege to sell on a
23Sunday in the five-day period is ten percent of the price of
24the five-day liquor control license or beer permit.
25(2) The fee for a five-day class “B” native wine permit
26shall be the permit fee provided in section 123.179, subsection
273, and the fee for a five-day class “C” native wine permit is
28the permit fee provided in section 123.179, subsection 4.
295. A refund of fees paid shall not be made for seasonal
30licenses or permits, or for fourteen-day or five-day liquor
31control licenses, native wine permits, or beer permits. In
32addition, a seasonal, fourteen-day, or five-day license or
33permit shall not be renewed.
34 Sec. 18. Section 123.36, subsection 5, paragraph c, Code
352019, is amended to read as follows:
-13- 1c. For air common carriers, each company shall pay a
2base annual fee of five hundred dollars and, in addition,
3shall quarterly remit to the division an amount equal to
4seven dollars for each gallon of alcoholic liquor sold, given
5away, or dispensed in or over this state during the preceding
6calendar quarter. The class “D” license fee and tax for air
7common carriers is in lieu of any other fee or tax collected
8from the carriers in this state for the possession and sale of
9alcoholic liquor, wine, and beer.
10 Sec. 19. Section 123.36, subsection 6, Code 2019, is amended
11to read as follows:
126. Any club, hotel, motel, native distillery,
13passenger-carrying boat or ship, railway corporation, air
14common carrier, or commercial establishment holding a liquor
15control license, subject to section 123.49, subsection 2,
16paragraph “b”, may apply for and receive permission to sell and
17dispense alcoholic beverages as authorized by section 123.30 to
18patrons between the hours of 8:00 a.m.on Sunday and 2:00 a.m.
19on the following Monday. A class “D” liquor control licensee
20may apply for and receive permission to sell and dispense
21alcoholic beverages to patrons for consumption on the premises
22only between the hours of 8:00 a.m.on Sunday and 2:00 a.m.
23on the following Monday. For the privilege of selling beer,
24wine, and alcoholic liquor on the premises on Sunday the liquor
25control license fee of the applicant shall be increased by
26twenty percent of the regular fee prescribed for the license
27pursuant to this section, and the privilege shall be noted on
28the liquor control license.
29 Sec. 20. Section 123.36, subsection 10, Code 2019, is
30amended to read as follows:
3110. There is imposed a surcharge on the fee for each class
32“A”, class “B”, class “C”, class “C” native distilled spirits,
33 or special class “C” liquor control license equal to thirty
34percent of the scheduled license fee. The surcharges collected
35under this subsection shall be deposited in the beer and liquor
-14-1control fund, and notwithstanding subsection 8, no portion
2of the surcharges collected under this subsection shall be
3remitted to the local authority.
4 Sec. 21. NEW SECTION. 123.38A Confidential investigative
5records.
6In order to assure a free flow of information for
7accomplishing the purposes of section 123.4 and section
8123.9, subsection 6, all complaint information, investigation
9files, audit files, and inspection files, other investigation
10reports, and other investigative information in the possession
11of the division or employees acting under the authority of
12the administrator are privileged and confidential, and are
13not subject to discovery, subpoena, or other means of legal
14compulsion for their release before administrative or criminal
15charges are filed. However, investigative information in
16the possession of division employees may be disclosed to the
17licensing authorities of a city or county within this state,
18in another state, the District of Columbia, or territory
19or county in which the licensee or permittee is licensed
20or permitted or has applied for a license or permit. In
21addition, the investigative information can be shared with
22any law enforcement agency or other state agency that also
23has regulatory or enforcement jurisdiction authorized by law.
24Records received by the division from other agencies which
25would be confidential if created by the division are considered
26confidential.
27 Sec. 22. Section 123.39, subsection 1, Code 2019, is amended
28to read as follows:
291. a. (1) The administrator or the local authority
30may suspend a license or permit issued pursuant to this
31chapterclass “A”, class “B”, class “C”, special class “C”,
32class “C” native distilled spirits, or class “E” liquor
33control license or retail wine or beer permit for a period
34not to exceed one year, revoke the license or permit, or
35impose a civil penalty not to exceed one thousand dollars
-15-1per violation. Before suspension, revocation, or imposition
2of a civil penalty, the license or permit holder shall be
3given written notice and an opportunity for a hearing. The
4administrator may appoint a member of the division or may
5request an administrative law judge from the department of
6inspections and appeals to conduct the hearing and issue a
7proposed decision. Upon the motion of a party to the hearing
8or upon the administrator’s own motion, the administrator may
9review the proposed decision in accordance with chapter 17A.
10Upon review of the proposed decision, the administrator may
11affirm, reverse, or modify the proposed decision. A licensee
12or permittee aggrieved by a decision of the administrator
13may seek judicial review of the administrator’s decision in
14accordance with chapter 17A.
15(2) The administrator may suspend a certificate
16of compliance, a class “D” liquor control license, a
17manufacturer’s license, a broker’s permit, a class “A” native
18distilled spirits license, a class “A” or special class “A”
19beer permit, a charity beer, spirits, and wine auction permit,
20a class “A” wine permit, a wine direct shipper’s permit, or a
21wine carrier permit for a period not to exceed one year, revoke
22the license, permit, or certificate, or impose a civil penalty
23not to exceed one thousand dollars per violation.
24b. A license, or permit, or certificate of compliance issued
25under this chapter may be suspended or revoked, or a civil
26penalty may be imposed on the license or permit holder by the
27local authority or the administrator for any of the following
28causes:
29(1) Misrepresentation of any material fact in the
30application for the license, or permit, or certificate.
31(2) Violation of any of the provisions of this chapter.
32(3) Any change in the ownership or interest in the business
33operated under a liquor control license, or any wine or beer
34permit, which change was not previously reported in a manner
35prescribed by the administrator within thirty days of the
-16-1change and subsequently approved by the local authority, when
2applicable, and the division.
3(4) An event which would have resulted in disqualification
4from receiving the license, or permit, or certificate when
5originally issued.
6(5) Any sale, hypothecation, or transfer of the license, or
7 permit, or certificate.
8(6) The failure or refusal on the part of any licensee or
9permittee license, permit, or certificate holder to render any
10report or remit any taxes to the division under this chapter
11when due.
12c. A criminal conviction is not a prerequisite to
13suspension, revocation, or imposition of a civil penalty
14pursuant to this section.
15d. A local authority which acts pursuant to this section,
16section 123.32, or section 123.50 shall notify the division
17in writing of the action taken, and shall notify the licensee
18 license or permit holder of the right to appeal a suspension,
19revocation, or imposition of a civil penalty to the division.
20e. Before suspension, revocation, or imposition of a
21civil penalty by the administrator, the license, permit,
22or certificate holder shall be given written notice and an
23opportunity for a hearing. The administrator may appoint
24a member of the division or may request an administrative
25law judge from the department of inspections and appeals to
26conduct the hearing and issue a proposed decision. Upon the
27motion of a party to the hearing or upon the administrator’s
28own motion, the administrator may review the proposed decision
29in accordance with chapter 17A. Upon review of the proposed
30decision, the administrator may affirm, reverse, or modify the
31proposed decision. A license, permit, or certificate holder
32aggrieved by a decision of the administrator may seek judicial
33review of the administrator’s decision in accordance with
34chapter 17A.
35f. Civil penalties imposed and collected by the local
-17-1authority under this section shall be retained by the local
2authority. Civil penalties imposed and collected by the
3division under this section shall be retained by the division
4 credited to the general fund of the state pursuant to section
5123.17, subsection 7.
6 Sec. 23. Section 123.39, subsection 4, Code 2019, is amended
7to read as follows:
84. If the cause for suspension is a first offense
9violation of section 123.49, subsection 2, paragraph “h”, the
10administrator or local authority shall impose a civil penalty
11in the amount of five hundred dollars in lieu of suspension of
12the license or permit. Local authorities shall retain civil
13penalties collected under this paragraph if the proceeding to
14impose the penalty is conducted by the local authority. The
15division shall retain civil penalties collected under this
16paragraph if the proceeding to impose the penalty is conducted
17by the administrator of the division.
18 Sec. 24. Section 123.41, subsection 1, Code 2019, is amended
19to read as follows:
201. Each completed application to obtain or renew a
21manufacturer’s license shall be submitted to the division
22electronically, or in a manner prescribed by the administrator,
23and shall be accompanied by a fee of three hundred fifty
24dollars payable to the division. The administrator may in
25accordance with this chapter grant and issue to a manufacturer
26a manufacturer’s license, valid for a one-year period after
27date of issuance, which shall allow the manufacture, storage,
28and wholesale disposition and sale of alcoholic liquors to the
29division and to customers outside of the state.
30 Sec. 25. Section 123.41, Code 2019, is amended by adding the
31following new subsection:
32 NEW SUBSECTION. 3A. A person who holds a manufacturer’s
33license shall file with the division, on or before the
34fifteenth day of each calendar month, all documents filed
35by the manufacturer with the alcohol and tobacco tax and
-18-1trade bureau of the United States department of the treasury,
2including all production, storage, and processing reports.
3 Sec. 26. Section 123.41, subsection 4, Code 2019, is amended
4to read as follows:
54. A Any violation of the requirements of this section
6 chapter or rules adopted pursuant to this chapter shall subject
7the licensee license holder to the general penalties provided
8in this chapter and shall constitute grounds for imposition of
9a civil penalty, or suspension of the license, or revocation of
10the license after notice and opportunity for a hearing pursuant
11to section 123.39 and chapter 17A.
12 Sec. 27. Section 123.42, subsection 1, Code 2019, is amended
13to read as follows:
141. Prior to representing or promoting alcoholic liquor
15products in the state, the broker shall submit an a completed
16 application to the division electronically, or in a manner
17prescribed by the administrator, for a broker’s permit. The
18administrator may in accordance with this chapter issue a
19broker’s permit which shall be valid for one year from the date
20of issuance unless it is sooner suspended or revoked for a
21violation of this chapter.
22 Sec. 28. Section 123.42, Code 2019, is amended by adding the
23following new subsection:
24 NEW SUBSECTION. 7. Any violation of the requirements of
25this chapter or the rules adopted pursuant to this chapter
26shall subject the permit holder to the general penalties
27provided in this chapter and shall constitute grounds for
28imposition of a civil penalty, suspension of the permit, or
29revocation of the permit after notice and opportunity for a
30hearing pursuant to section 123.39 and chapter 17A.
31 Sec. 29. Section 123.43, subsection 1, paragraph b, Code
322019, is amended to read as follows:
33b. The names and addresses of all persons or, in the case of
34a corporation, limited liability company, or any other similar
35legal entity, the officers, directors, and persons owning or
-19-1controlling ten percent or more of the capital stock thereof,
2having a financial interest, by way of loan, ownership, or
3otherwise, in the business.
4 Sec. 30. Section 123.43A, subsection 5, Code 2019, is
5amended to read as follows:
65. The division shall issue no more than three class “A”
7native distilled spirits licenses to a person. In addition,
8a A native distillery issued a class “A” native distilled
9spirits license shall file with the division, on or before the
10fifteenth day of each calendar month, all documents filed by
11the native distillery with the alcohol and tobacco tax and
12trade bureau of the United States department of the treasury,
13including all production, storage, and processing reports.
14 Sec. 31. Section 123.46A, subsection 2, paragraph a, Code
152019, is amended to read as follows:
16a. Payment for the alcoholic liquor, wine, or beer shall be
17received on the licensed premises by the licensee or permittee
18 at the time of order.
19 Sec. 32. Section 123.49, subsection 2, unnumbered paragraph
201, Code 2019, is amended to read as follows:
21A person or club holding a liquor control license or retail
22wine or beer permit under this chapter, and the person’s or
23club’s agents or employees, shall not do any of the following:
24 Sec. 33. Section 123.49, subsection 2, paragraph d,
25subparagraph (1), Code 2019, is amended to read as follows:
26(1) Keep on premises covered by a liquor control license
27any alcoholic liquor in any container except the original
28package purchased from the division, and except mixed drinks
29or cocktails mixed on the premises for immediate consumption
30on the licensed premises or as otherwise provided by this
31paragraph “d”. This prohibition does not apply to common
32carriers holding holders of a class “D” liquor control license.
33 Sec. 34. Section 123.49, subsection 2, paragraph g, Code
342019, is amended to read as follows:
35g. Allow any person other than the licensee, permittee,
-20-1or employees of the licensee or permittee, to use or keep
2on the licensed premises any alcoholic liquor in any bottle
3or other container which is designed for the transporting of
4such beverages, except as permitted in section 123.95. This
5paragraph does not apply to the lodging quarters of a class “B”
6liquor control licensee or wine or beer permittee, or to common
7carriers holding holders of a class “D” liquor control license.
8 Sec. 35. Section 123.56, subsection 1, Code 2019, is amended
9to read as follows:
101. Subject to rules of the division, manufacturers of
11native wines from grapes, cherries, other fruits or other fruit
12juices, vegetables, vegetable juices, dandelions, clover,
13honey, or any combination of these ingredients, holding a class
14“A” wine permit as required by this chapter, may sell, keep, or
15offer for sale and deliver the wine. Notwithstanding section
16123.24, subsection 4 1A, paragraph “b”, or any other provision
17of this chapter, manufacturers of native wine may obtain and
18possess grape brandy from the division for the sole purpose of
19manufacturing wine.
20 Sec. 36. Section 123.56, subsection 4, Code 2019, is amended
21to read as follows:
224. Notwithstanding section 123.179, subsection 1, a A
23 class “A” wine permit issued for a native wine manufacturer
24shall be issued and renewed annually upon payment of a fee of
25twenty-five dollars which shall be in lieu of any other license
26fee required by this chapter. The class “A” permit shall only
27allow the native wine manufacturer to sell, keep, or offer for
28sale and deliver the manufacturer’s native wines as provided
29under this section.
30 Sec. 37. Section 123.56, Code 2019, is amended by adding the
31following new subsection:
32 NEW SUBSECTION. 7A. A manufacturer of native wines shall
33file with the division, on or before the fifteenth day of
34each calendar month, all documents filed with the alcohol and
35tobacco tax and trade bureau of the United States department of
-21-1the treasury, including all wine premises operations and excise
2tax return reports.
3 Sec. 38. Section 123.95, subsections 1 and 2, Code 2019, are
4amended to read as follows:
51. A person shall not allow the dispensing or consumption of
6alcoholic liquor, except wines and beer, in any establishment
7unless the establishment is licensed under this chapter or
8except as otherwise provided in this section.
92. a. The holder of an annual class “B” liquor control
10license or an annual class “C” liquor control license may
11act as the agent of a private social host for the purpose
12of providing and serving alcoholic liquor, wine, and beer
13 beverages as part of a food catering service for a private
14social gathering in a private place, provided the licensee
15has applied for and been granted a catering privilege by the
16division. The holder of an annual special class “C” liquor
17control license shall not act as the agent of a private social
18host for the purpose of providing and serving wine and beer as
19part of a food catering service for a private social gathering
20in a private place. An applicant for a class “B” or class “C”
21liquor control license shall state on the application for the
22license that the licensee intends to engage in catering food
23and alcoholic beverages for private social gatherings and the
24catering privilege shall be noted on the license.
25b. The private social host or the licensee shall not solicit
26donations in payment of any kind, including donations, for the
27food or alcoholic beverages from the guests, and the alcoholic
28beverages and food shall be served without cost to the guests.
29c. Section 123.92 does not apply to a liquor control
30licensee who acts in accordance with this section when the
31liquor control licensee is providing and serving food and
32alcoholic beverages as an agent of a private social host at a
33private social gathering in a private place which is not on the
34licensed premises.
352. An applicant for a class “B” liquor control license or
-22-1class “C” liquor control license shall state on the application
2for the license that the licensee intends to engage in catering
3food and alcoholic beverages for private social gatherings and
4the catering privilege shall be noted on the license or permit.
5d. A licensee who engages in catering food and alcoholic
6beverages for private social gatherings shall maintain a record
7on the licensed premises which includes the name and address
8of the host of the private social gathering, and the date for
9which catering was provided. The record maintained pursuant to
10this section shall be open to inspection pursuant to section
11123.30, subsection 1, during normal business hours of the
12licensee.
13 Sec. 39. Section 123.122, Code 2019, is amended by striking
14the section and inserting in lieu thereof the following:
15123.122 Beer certificate, permit, or license required —
16exception for personal use.
171. A person shall not cause the manufacture, importation,
18or sale of beer in this state unless a certificate or permit
19as provided in this subchapter, or a liquor control license as
20provided in subchapter 1 of this chapter, is first obtained
21which authorizes that manufacture, importation, or sale.
222. Any person of legal age may manufacture beer for
23personal use without a class “A” beer permit, subject to the
24requirements of this subsection. Such beer may be consumed
25on the premises or removed from the premises where it was
26manufactured only if the beer is not sold, exchanged, bartered,
27dispensed, or given in consideration of purchase for any
28property or services or in evasion of the requirements of this
29chapter.
303. Except as otherwise provided in this chapter, a person
31shall not import beer. However, an individual of legal age
32may import beer into the state without a certificate, permit,
33or license an amount of beer not to exceed four and one-half
34gallons per calendar month that the individual personally
35obtained outside the state or, in the case of beer personally
-23-1obtained outside the United States, a quantity which does
2not exceed the amount allowed by federal law governing the
3importation of alcoholic beverages into the United States
4for personal consumption. Beer imported pursuant to this
5section shall be for personal consumption in a private home or
6other private accommodation and only if the beer is not sold,
7exchanged, bartered, dispensed, or given in consideration of
8purchase for any property or services or in evasion of the
9requirements of this chapter.
10 Sec. 40. Section 123.127, subsection 1, unnumbered
11paragraph 1, Code 2019, is amended to read as follows:
12A person applying for a class “A” or special class “A” beer
13permit shall submit an a completed application electronically,
14or in a manner prescribed by the administrator, which shall set
15forth under oath the following:
16 Sec. 41. Section 123.127, subsection 1, paragraph b, Code
172019, is amended to read as follows:
18b. The names and addresses of all persons or, in the case of
19a corporation, limited liability company, or any other similar
20legal entity, the officers, directors, and persons owning or
21controlling ten percent or more of the capital stock thereof,
22having a financial interest, by way of loan, ownership, or
23otherwise, in the business.
24 Sec. 42. Section 123.130, subsection 1, Code 2019, is
25amended to read as follows:
261. Any person holding a class “A” beer permit issued by the
27division shall be authorized to manufacture and sell, or sell
28at wholesale, beer for consumption off the premises, such sales
29within the state to be made only to persons holding subsisting
30class “A”, “B”, or “C” beer permits, both a class “C” native
31wine permit and a class “A” wine permit pursuant to section
32123.178B, subsection 4, or liquor control licenses issued in
33accordance with the provisions of this chapter. A person
34holding a class “A” beer permit may sell beer to distributors
35outside of the state that are authorized by the laws of that
-24-1jurisdiction to sell beer at wholesale. A class “A” or special
2class “A” beer permit does not grant authority to manufacture
3wine as defined in section 123.3, subsection 48.
4 Sec. 43. Section 123.130, Code 2019, is amended by adding
5the following new subsection:
6 NEW SUBSECTION. 1A. Pursuant to section 123.45, subsection
72, a native brewery may be granted not more than one class “B”
8beer permit as defined in section 123.124 for the purpose of
9selling beer at retail for consumption on or off the premises
10of the manufacturing facility.
11 Sec. 44. Section 123.130, Code 2019, is amended by adding
12the following new subsection:
13 NEW SUBSECTION. 4. A manufacturer of beer issued a class
14“A” or special class “A” beer permit shall file with the
15division, on or before the fifteenth day of each calendar
16month, all documents filed with the alcohol and tobacco tax and
17trade bureau of the United States department of the treasury,
18including all brewer’s operation and excise tax return reports.
19 Sec. 45. Section 123.131, subsection 2, unnumbered
20paragraph 1, Code 2019, is amended to read as follows:
21Subject to the rules of the division, sales of beer for
22consumption off the premises made pursuant to this section
23may be made in a container other than the original container
24only if the container is carried into an immediately adjacent
25licensed or permitted premises covered by a license or permit
26that authorizes the consumption of beer, temporary temporarily
27 closed public right-of-way, or a private property place, or if
28all of the following requirements are met:
29 Sec. 46. Section 123.135, subsection 1, Code 2019, is
30amended to read as follows:
311. A manufacturer, brewer, bottler, importer, or vendor of
32beer, or any agent thereof, desiring to ship or sell beer, or
33have beer brought into this state for resale by a class “A”
34beer permittee, shall first make application for and be issued
35a brewer’s certificate of compliance by the administrator for
-25-1that purpose. The certificate of compliance expires at the
2end of one year from the date of issuance and shall be renewed
3for a like period upon application to the administrator unless
4otherwise revoked for cause. Each completed application for
5a certificate of compliance or renewal of a certificate shall
6be submitted electronically, or in a manner prescribed by
7the administrator, and shall be accompanied by a fee of five
8hundred dollars payable to the division. Each holder of a
9certificate of compliance shall furnish the information in a
10manner the administrator requires.
11 Sec. 47. Section 123.135, subsection 5, Code 2019, is
12amended by striking the subsection and inserting in lieu
13thereof the following:
145. Any violation of the requirements of this chapter or
15the rules adopted pursuant to this chapter shall subject the
16holder of a brewer’s certificate of compliance or a class “A”
17beer permit holder to the general penalties provided in this
18chapter and shall constitute grounds for imposition of a civil
19penalty, suspension of the certificate or permit, or revocation
20of the certificate or permit after notice and opportunity for a
21hearing pursuant to section 123.39 and chapter 17A.
22 Sec. 48. Section 123.136, subsection 1, Code 2019, is
23amended to read as follows:
241. In addition to the annual permit fee to be paid by
25all class “A” beer permittees under this chapter there shall
26be levied and collected from the permittees on all beer
27manufactured for sale or sold in this state at wholesale and
28on all beer imported into this state for sale at wholesale and
29sold in this state at wholesale, and from special class “A”
30beer permittees on all beer manufactured for consumption on the
31premises and on all beer sold at retail at the manufacturing
32premises for consumption off the premises pursuant to section
33123.130, subsection 3, a tax of five and eighty-nine hundredths
34dollars for every barrel containing thirty-one gallons, and at
35a like rate for any other quantity or for the fractional part
-26-1of a barrel. However, no tax shall be levied or collected on
2beer shipped outside this state by a class “A” beer permittee
3or special class “A” beer permittee or on beer sold to a class
4“A” beer permittee by one a special class “A” beer permittee to
5 or another class “A” beer permittee.
6 Sec. 49. Section 123.143, subsection 3, Code 2019, is
7amended to read as follows:
83. Barrel tax revenues collected on beer manufactured in
9this state from a class “A” beer permittee which owns and
10operates a native brewery located in Iowa shall be credited
11to the barrel tax fund hereby created in the office of the
12treasurer of state. Moneys deposited in the barrel tax fund
13shall not revert to the general fund of the state without a
14specific appropriation by the general assembly. Moneys in the
15barrel tax fund are appropriated to the economic development
16authority for purposes of section 15E.117.
17 Sec. 50. Section 123.173A, subsection 2, Code 2019, is
18amended to read as follows:
192. An authorized nonprofit entity may, upon application
20to the division and receipt of a charity beer, spirits, and
21wine auction permit from the division, conduct a charity
22auction which includes beer, spirits, and wine. The completed
23 application shall specify the date and time when the charity
24beer, spirits, and wine auction is to be conducted and the
25premises in this state where the charity beer, spirits, and
26wine auction is to be physically conducted. The applicant
27shall certify that the objective of the charity beer, spirits,
28and wine auction is to raise funds solely to be used for
29educational, religious, or charitable purposes and that the
30entire proceeds from the charity beer, spirits, and wine
31auction are to be expended for any of the purposes described in
32section 423.3, subsection 78.
33 Sec. 51. Section 123.173A, Code 2019, is amended by adding
34the following new subsection:
35 NEW SUBSECTION. 8. Any violation of the requirements of
-27-1this chapter or the rules adopted pursuant to this chapter
2shall subject the permit holder to the general penalties
3provided in this chapter and shall constitute grounds for
4imposition of a civil penalty, suspension of the permit, or
5revocation of the permit after notice and opportunity for a
6hearing pursuant to section 123.39 and chapter 17A.
7 Sec. 52. Section 123.175, subsection 1, unnumbered
8paragraph 1, Code 2019, is amended to read as follows:
9A person applying for a class “A” or retail wine permit
10shall submit an a completed application electronically, or in a
11manner prescribed by the administrator, which shall set forth
12under oath the following:
13 Sec. 53. Section 123.175, subsection 1, paragraph b, Code
142019, is amended to read as follows:
15b. The names and addresses of all persons or, in the case of
16a corporation, limited liability company, or any other similar
17legal entity, the officers, directors, and persons owning or
18controlling ten percent or more of the capital stock thereof,
19having a financial interest, by way of loan, ownership, or
20otherwise, in the business.
21 Sec. 54. Section 123.177, subsection 1, Code 2019, is
22amended to read as follows:
231. A person holding a class “A” wine permit may manufacture
24and sell, or sell at wholesale, wine for consumption off the
25premises. Sales within the state may be made only to persons
26holding a class “A” or “B” wine permit and to persons holding a
27retail liquor control license. However, if the person holding
28the class “A” permit is a manufacturer of native wine, the
29person may sell only native wine to a person holding a retail
30wine permit or a retail liquor control license. A person
31holding a class “A” wine permit may sell wine to distributors
32outside of the state that are authorized by the laws of that
33jurisdiction to sell wine at wholesale. A class “A” wine
34permittee having more than one place of business shall obtain a
35separate permit for each place of business where wine is to be
-28-1manufactured, stored, warehoused, or sold.
2 Sec. 55. Section 123.179, subsection 1, Code 2019, is
3amended to read as follows:
41. The annual permit fee for a class “A” wine permit that
5is not issued to a native wine manufacturer is seven hundred
6fifty dollars.
7 Sec. 56. Section 123.179, Code 2019, is amended by adding
8the following new subsection:
9 NEW SUBSECTION. 1A. The annual permit fee for a class “A”
10wine permit issued to a native wine manufacturer is twenty-five
11dollars.
12 Sec. 57. Section 123.180, subsection 1, Code 2019, is
13amended to read as follows:
141. A manufacturer, vintner, bottler, importer, or vendor of
15wine, or an agent thereof, desiring to ship, sell, or have wine
16brought into this state for sale at wholesale by a class “A”
17permittee shall first make application for and shall be issued
18a vintner’s certificate of compliance by the administrator
19for that purpose. The vintner’s certificate of compliance
20shall expire at the end of one year from the date of issuance
21and shall be renewed for a like period upon application to
22the administrator unless otherwise revoked for cause. Each
23completed application for a vintner’s certificate of compliance
24or renewal of a certificate shall be submitted electronically,
25or in a manner prescribed by the administrator, and shall be
26accompanied by a fee of one hundred dollars payable to the
27division. Each holder of a vintner’s certificate of compliance
28shall furnish the information required by the administrator in
29the form the administrator requires. A vintner or wine bottler
30whose plant is located in Iowa and who otherwise holds a class
31“A” wine permit to sell wine at wholesale is exempt from the
32fee, but not the other terms and conditions. The holder of a
33vintner’s certificate of compliance may also hold a class “A”
34wine permit.
35 Sec. 58. Section 123.180, subsection 6, Code 2019, is
-29-1amended by striking the subsection and inserting in lieu
2thereof the following:
36. Any violation of the requirements of this chapter or
4the rules adopted pursuant to this chapter shall subject the
5holder of a vintner’s certificate of compliance or a class “A”
6wine permit holder to the general penalties provided in this
7chapter and shall constitute grounds for imposition of a civil
8penalty, suspension of the certificate or permit, or revocation
9of the certificate or permit after notice and opportunity for a
10hearing pursuant to section 123.39 and chapter 17A.
11 Sec. 59. Section 123.183, subsection 1, Code 2019, is
12amended to read as follows:
131. In addition to the annual permit fee to be paid by each
14class “A” wine permittee, a wine gallonage tax shall be levied
15and collected from each class “A” wine permittee on all wine
16manufactured for sale and sold in this state at wholesale and
17on all wine imported into this state for sale at wholesale and
18sold in this state at wholesale. A wine gallonage tax shall
19also be levied and collected on the direct shipment of wine
20pursuant to section 123.187. The rate of the wine gallonage
21tax is one dollar and seventy-five cents for each wine gallon.
22The same rate shall apply for the fractional parts of a
23wine gallon. The wine gallonage tax shall not be levied or
24collected on wine sold by one class “A” wine permittee to
25another class “A” wine permittee or on wine that is sold by a
26class “A” wine permittee to a distributor outside of the state.
27 Sec. 60. Section 123.186, subsection 1, Code 2019, is
28amended to read as follows:
291. The division shall adopt as rules the substance of the
30federal regulations 27 C.F.R. pt.6, 27 C.F.R. pt.8, 27 C.F.R.
31pt.10, and 27 C.F.R. pt.11 as they relate to transactions
32between wholesalers and retailers.
33 Sec. 61. Section 123.187, subsection 3, paragraph d, Code
342019, is amended to read as follows:
35d. All containers of wine shipped directly to a resident
-30-1of this state shall be shipped by a holder of a wine carrier
2permit as provided in subsection 6 section 123.188.
3 Sec. 62. Section 123.187, subsection 6, Code 2019, is
4amended by striking the subsection.
5 Sec. 63. NEW SECTION. 123.188 Wine carrier — permit and
6requirements.
71. A person desiring to deliver wine subject to direct
8shipment within this state pursuant to section 123.187 shall
9submit an application for a wine carrier permit electronically,
10or in a manner prescribed by the administrator, and shall be
11accompanied by a fee in the amount of one hundred dollars.
122. The administrator may in accordance with this chapter
13issue a wine carrier permit which shall be valid for one year
14from the date of issuance unless it is sooner suspended or
15revoked for a violation of this chapter.
163. A permit issued pursuant to this section may be
17renewed annually by submitting a renewal application with the
18administrator in a manner prescribed by the administrator,
19accompanied by the one hundred dollar permit fee.
204. The delivery of wine pursuant to this section shall be
21subject to the following requirements and restrictions:
22a. A wine carrier permittee shall not deliver wine to
23any person under twenty-one years of age, or to any person
24who either is or appears to be in an intoxicated state or
25condition.
26b. A wine carrier permittee shall obtain valid proof of
27identity and age prior to delivery, and shall obtain the
28signature of an adult as a condition of delivery.
29c. A wine carrier permittee shall maintain records of wine
30shipped which include the permit number and name of the wine
31manufacturer, quantity of wine shipped, recipient’s name and
32address, and an electronic or paper form of signature from
33the recipient of the wine. Records shall be submitted to
34the division on a monthly basis in a form and manner to be
35determined by the division.
-31- 15. A violation of this section shall subject the permittee
2to the general penalties provided in this chapter and shall
3constitute grounds for imposition of a civil penalty or
4suspension or revocation of the permit pursuant to section
5123.39.
6 Sec. 64. CODE EDITOR DIRECTIVE.
71. The Code editor is directed to make the following
8transfer:
9Section 123.56 to section 123.176.
102. The Code editor is directed to correct internal
11references in the Code as necessary due to enactment of this
12section.
13 Sec. 65. REPEAL. Sections 123.144 and 123.146, Code 2019,
14are repealed.
15EXPLANATION
16The inclusion of this explanation does not constitute agreement with
17the explanation’s substance by the members of the general assembly.
18This bill concerns alcoholic beverage control and matters
19under the purview of the alcoholic beverages division of the
20department of commerce.
21Code section 123.3, providing definitions, is amended.
22The bill amends the definitions for “alcoholic liquor”,
23“beer”, “high alcoholic content beer”, and “wine”, by removing
24references to a percent of alcohol by weight and, if not
25already included in the definition, providing for the percent
26of alcohol by volume for each definition. In addition, the
27bill strikes the exclusion of mixed drinks or cocktails mixed
28on the premises from the definition of “beer”. The definition
29of “application” is amended by adding certificate. The
30definition of “licensed premises” is amended by striking areas
31susceptible of precise definition from what may constitute a
32single licensed premises. The definition of “local authority”
33is amended to include a designee of a city council or county
34board of supervisors. The definition of “person” is also
35amended to add limited liability companies and to add, in
-32-1relation to corporations and limited liability companies, other
2similar legal entities. The bill also adds definitions for
3“completed application”, “mixed drink or cocktail”, “native
4brewery”, and “private place”. “Completed application” is
5defined as an application for a license, permit, or certificate
6where all necessary fees or bonds have been paid or submitted
7and the applicant has provided all information to the alcoholic
8beverages division. The bill makes corresponding changes
9in Code chapter 123 referencing the requirement to file
10a completed application for a particular license, permit,
11or certificate. “Mixed drink or cocktail” is defined as
12an alcoholic beverage, consisting in whole or in part of
13alcoholic liquors, that is combined with other alcoholic or
14nonalcoholic beverages. “Native brewery” is defined as a
15business that manufactures beer or high alcoholic content beer
16by a person holding a class “A” beer permit that authorizes
17the manufacture. “Private place” is defined as a location
18which, at the time alcoholic beverages are kept, dispensed, or
19consumed, does not provide access to the general public, limits
20access to bona fide social hosts and invited guests, is not of
21a commercial nature, does not provide for the sale and purchase
22of goods and services, is not a licensed premises, and does not
23charge admission.
24Code section 123.10, concerning rules, is amended to
25authorize the alcoholic beverages division to prescribe a
26uniform fee to be assessed against certain licensees and
27permittees to recover administrative costs incurred relating
28to the failure of a licensee or permittee to maintain
29dramshop liability insurance coverage and for contested case
30proceedings.
31Code section 123.14, concerning alcoholic beverage control
32law enforcement, is rewritten to provide that the alcoholic
33beverage control law enforcement authority of the state
34shall include the department of public safety, the alcoholic
35beverages division, county attorneys and sheriffs and deputy
-33-1sheriffs, and city police departments. The rewritten section
2also provides that investigators and compliance officers of
3the alcoholic beverages division shall have the power and
4authority of peace officers as it relates to alcoholic beverage
5control. The rewritten section also strikes a provision
6relating to access to certain records within the alcoholic
7beverages division by the department of public safety. The
8bill establishes new Code section 123.38A to provide access to
9law enforcement for certain confidential investigative records.
10Code section 123.23, concerning distiller’s certificate of
11compliance, is amended to specifically provide that the general
12penalty provisions of the Code chapter apply to any violation
13of the Code chapter or rules adopted pursuant to the Code
14chapter by a holder of a distiller’s certificate of compliance.
15Code section 123.24, relating to liquor prices, is amended
16to contain all current provisions of the Code section relating
17to establishing liquor prices sold by the alcoholic beverages
18division in a new Code subsection.
19Code section 123.27, concerning sales and deliveries of
20alcoholic liquor from the state warehouse, is amended to
21eliminate the restriction on sales and deliveries on Sunday.
22Code section 123.30, concerning liquor control licenses, is
23amended. The bill provides that a liquor control license not
24be issued for a premises that does not constitute a safe and
25proper place or building. The bill also strikes a provision
26that allowed a person holding a liquor control license to
27permit a customer to carry an open container of alcoholic
28liquor from the licensed premises to an adjacent licensed
29premises, temporary closed public right-of-way, or private
30property.
31Code section 123.31, concerning liquor control license
32applications, is amended to provide that officers, directors,
33and persons owning at least 10 percent of stock in a limited
34liability company or other similar legal entity shall be
35included on the application for a license.
-34- 1Code section 123.32, concerning action by local authorities
2and the alcoholic beverages division on applications for
3certain licenses and permits is amended. The bill provides
4that liquor control licenses and permits currently required
5to be filed with the appropriate city council or county board
6of supervisors may also be filed with a designee of the city
7or county board of supervisors. The bill adds a completed
8application for a certificate of compliance to the list of
9applications covered by the Code section and specifically
10lists all completed applications for licenses, permits,
11and certificates that shall be submitted to the alcoholic
12beverages division. The bill also allows the administrator of
13the alcoholic beverages division to notify an applicant of a
14disapproval of an application by personal service.
15Code section 123.34, concerning seasonal and shorter
16duration licenses and permits, is amended to specifically
17authorize these types of permits for class “B” and class “C”
18native wine permits and to provide for the appropriate fee for
19these shorter duration class “B” and class “C” native wine
20permits.
21Code section 123.36, concerning liquor control license fees,
22is amended to eliminate the additional tax imposed on an air
23common carrier for a class “D” license.
24New Code section 123.38A provides for the confidential
25treatment of investigative information in the possession of
26the alcoholic beverages division before administrative or
27criminal charges are filed. The new Code section authorizes
28the disclosure of information to other law enforcement or
29regulatory agencies, including other licensing authorities in
30other jurisdictions.
31Code section 123.39, concerning suspension or revocation
32of a license or permit, is amended to include a certificate
33of compliance and to provide that civil penalties imposed and
34collected by the alcoholic beverages division shall be credited
35and used as provided in the general provision covering civil
-35-1penalties imposed and collected by the division in Code section
2123.17, subsection 7.
3Code section 123.41, concerning manufacturer’s licenses,
4is amended to specifically provide that the general penalty
5provisions of the Code chapter apply to any violation of the
6Code chapter or rules adopted pursuant to the Code chapter by a
7holder of a manufacturer’s license.
8Code section 123.43, concerning class “A” native distilled
9spirits license applications and issuance, is amended to
10provide that officers, directors, and persons owning at least
1110 percent of stock in a limited liability company or other
12similar legal entity shall be included on the application for
13a license.
14Code section 123.43A, concerning native distilleries, is
15amended to eliminate the restriction on the number of class
16“A” native distilled spirits licenses that may be issued to a
17person.
18Code section 123.49, miscellaneous provisions, is amended
19to provide that the exception on certain prohibitions relating
20to the keeping of any alcoholic liquor in certain containers
21for common carriers holding a class “D” liquor control license
22applies to all holders of that license.
23Code section 123.56, concerning native wines, is amended.
24The bill removes the license fee for a class “A” wine permit
25for a native wine manufacturer from the Code section and adds
26the fee to Code section 123.179 providing for wine permit fees.
27The bill also requires a person who manufactures native wine
28to file with the division the records that are filed monthly
29with the alcohol and tobacco tax and trade bureau of the United
30States department of the treasury. The bill directs the Code
31editor to transfer this Code section to new Code section
32123.176.
33Code section 123.122, concerning required beer permits or
34licenses, is amended to add to the Code section provisions
35concerning exceptions for personal use relative to homemade
-36-1beer and importation of beer currently provided in Code section
2123.144, subsection 2, and Code section 123.146.
3Code section 123.127, concerning class “A” and special
4class “A” beer permit applications, is amended to provide that
5officers, directors, and persons owning at least 10 percent of
6stock in a limited liability company or other similar legal
7entity shall be included on the application for the permit.
8Code section 123.130, concerning authority under a class “A”
9and special class “A” beer permit, is amended to provide that a
10holder of a class “A” beer permit may sell beer to distributors
11outside Iowa, pursuant to the laws of that jurisdiction, to
12provide that a native brewery may be granted not more than one
13class “B” beer permit for selling beer at the manufacturing
14facility, and to require a person who manufactures beer to file
15with the alcoholic beverages division the records it files
16monthly with the alcohol and tobacco tax and trade bureau of
17the United States department of the treasury.
18Code section 123.131, concerning authority under a class “B”
19beer permit, is amended. The bill provides that sales of beer
20for consumption off the premises in a container that is not the
21original container may be carried into an immediately adjacent
22premises only if the premises is covered by a license or permit
23that allows the consumption of beer.
24Code section 123.135, concerning a brewer’s certificate of
25compliance, is amended to provide that the general penalty
26provisions of Code chapter 123 apply to any violation of the
27Code chapter or rules adopted pursuant to the Code chapter by a
28holder of a brewer’s certificate of compliance.
29Code section 123.136, concerning the barrel tax on beer, is
30amended to provide that the exceptions for tax applicable to
31class “A” beer permittees also applies to special class “A”
32beer permittees.
33Code section 123.173A, concerning a charity beer, spirits,
34and wine auction permit, is amended to provide that the general
35penalty provisions of Code chapter 123 apply to any violation
-37-1of the Code chapter or rules adopted pursuant to the Code
2chapter by a holder of an auction permit.
3Code section 123.175, concerning class “A” or retail wine
4permit applications, is amended to provide that officers,
5directors, and persons owning at least 10 percent of stock in a
6limited liability company or other similar legal entity shall
7be included on the application for the permit.
8Code section 123.177, concerning authority under a class “A”
9wine permit, is amended to provide that a holder of a class
10“A” wine permit may sell wine to distributors outside Iowa,
11pursuant to the laws of that jurisdiction.
12Code section 123.179, concerning wine permit fees, is
13amended to include the fee for a class “A” wine permit issued
14to a native wine manufacturer currently provided in Code
15section 123.56.
16Code section 123.180, concerning a vintner’s certificate
17of compliance, is amended to provide that the general penalty
18provisions of Code chapter 123 apply to any violation of the
19Code chapter or rules adopted pursuant to the Code chapter by a
20holder of a vintner’s certificate or a class “A” permit.
21Code section 123.183, concerning the wine gallonage tax, is
22amended to provide that the tax shall not be levied on wine
23sold by a class “A” wine permittee to a distributor outside of
24the state.
25Code section 123.186, concerning federal regulations adopted
26as rules, is amended to provide that the alcoholic beverages
27division adopt as rules the substance of the entirety of
28federal regulations 27 C.F.R. pt.6, 27 C.F.R. pt.8, 27 C.F.R.
29pt.10, and 27 C.F.R. pt.11, and not just those regulations as
30they relate to transactions between wholesalers and retailers.
31Code section 123.187, concerning the direct shipment of
32wine, is amended by striking provisions relating to a wine
33carrier permit. The bill relocates the stricken provisions to
34new Code section 123.188.
35Code sections 123.144, relating to bottling beer, and
-38-1123.146, relating to importation of beer for personal use, are
2repealed.
-39-ec/rn