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House Study Bill 602 - IntroducedA Bill ForAn Act 1relating to alcoholic beverage control and matters
2under the purview of the alcoholic beverages division of
3the department of commerce and including effective date
4provisions.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2ALCOHOLIC BEVERAGE CONTROL
3 Section 1. Section 123.46A, subsection 3, paragraph f, Code
42022, is amended to read as follows:
5f. Deliveries shall occur between 6:00 a.m.and 10:00 p.m.
6Monday throughSunday on the same day the order for alcoholic
7liquor, wine, beer, or mixed drinks or cocktails is removed
8from the licensed premises.
9 Sec. 2. Section 123.50, subsection 1, Code 2022, is amended
10to read as follows:
111. Any person who violates any of the provisions of section
12123.49, except section 123.49, subsection 2, paragraph “h”,
13or who fails to affix upon sale, defaces, or fails to record
14a keg identification sticker label or produce a record of keg
15identification stickers labels pursuant to section 123.138,
16shall be guilty of a simple misdemeanor. A person who violates
17section 123.49, subsection 2, paragraph “h”, commits a simple
18misdemeanor punishable as a scheduled violation under section
19805.8C, subsection 2.
20 Sec. 3. Section 123.138, subsection 2, paragraphs a and b,
21Code 2022, are amended to read as follows:
22a. Each class “B”, “C”, or special class “C” liquor control
23licensee and class “B” or “C” beer permittee who sells beer
24for off-premises consumption shall affix to each keg of beer
25an identification sticker label provided by the administrator.
26The sticker label provided shall allow for its full removal
27when common external keg cleaning procedures are performed.
28For the purposes of this subsection, “keg” means all durable and
29disposable containers with a liquid capacity of five gallons or
30more. Each class “B”, “C”, or special class “C” liquor control
31licensee and class “B” or “C” beer permittee shall also keep
32a record of the identification sticker label number of each
33keg of beer sold by the licensee or permittee with the name
34and address of the purchaser and the number of the purchaser’s
35driver’s license, nonoperator’s identification card, or
-1-1military identification card, if the military identification
2card contains a picture and signature. This information shall
3be retained by the licensee or permittee for a minimum of
4ninety days. The records kept pursuant to this subsection
5shall be available for inspection by any law enforcement
6officer during normal business hours.
7b. (1) The division shall provide the keg identification
8stickers labels described in paragraph “a” and shall, prior to
9utilizing a sticker label, notify licensed brewers and licensed
10beer importers of the type of sticker label to be utilized.
11Each sticker label shall contain a number and the following
12statement:
13It is unlawful to sell, give, or otherwise supply any
14alcoholic beverage, wine, or beer to any person under legal
15age. Any person who defaces this sticker label shall be guilty
16of criminal mischief punishable pursuant to section 716.6 and
17shall cause the forfeiture of any deposit, if applicable.
18(2) The identification sticker label shall be placed on
19the keg at the time of retail sale. The licensee or permittee
20shall purchase obtain the stickers labels referred to in this
21subsection from the division and shall remit to the division
22deposits forfeited pursuant to this lettered paragraph due to
23defacement. The cost of the stickers labels to licensees and
24permittees shall not exceed the division’s cost of producing
25and distributing the stickers labels. The moneys collected by
26the division relating to the sale of stickers and forfeited
27deposits labels shall be credited to the beer and liquor
28control fund.
29 Sec. 4. Section 123.138, subsection 2, paragraph d, Code
302022, is amended by striking the paragraph.
31 Sec. 5. Section 123.187, subsection 2, paragraph d, Code
322022, is amended by striking the paragraph.
33DIVISION II
34AUTOMATIC RENEWALS
35 Sec. 6. Section 123.34, subsection 1, Code 2022, is amended
-2-1by striking the subsection.
2 Sec. 7. NEW SECTION. 123.35 Expiration of licenses,
3permits, and certificates of compliance — automatic renewals.
41. Except as otherwise provided by this chapter, all
5licenses, permits, and certificates of compliance, unless
6sooner suspended or revoked, expire one year from date of
7issuance.
82. Notwithstanding section 123.31 and any other provision
9of this chapter to the contrary, a class “E” liquor control
10license shall automatically renew without the endorsement
11of a local authority or approval by the administrator upon
12collection of the annual fee by the division, provided all of
13the following conditions are met since the preceding license
14was issued:
15a. The permittee has given written consent to the division
16to have the permit automatically renewed as provided in this
17section.
18b. The license has not been suspended or revoked.
19c. A civil penalty has not been imposed against the
20licensee.
21d. An administrative proceeding is not pending against the
22licensee to suspend or revoke the license or to impose a civil
23penalty under this chapter.
24e. The licensee has not submitted payment for alcoholic
25liquor to the division that was subsequently dishonored.
26f. The licensee and all persons associated with the licensee
27as described in section 123.3, subsection 40, paragraph “e”,
28have not been convicted of a violation of this chapter.
29g. The licensed premises constitutes a safe and proper place
30or building and conforms with all applicable federal, state,
31and local laws, orders, ordinances, rules, resolutions, and
32health and fire regulations.
333. Notwithstanding sections 123.23, 123.135, 123.180,
34and any other provision of this chapter to the contrary, a
35distiller’s, brewer’s, or vintner’s certificate of compliance
-3-1shall automatically renew without approval by the administrator
2upon collection of the annual fee by the division, provided
3all of the following conditions are met since the preceding
4certificate was issued:
5a. The certificate holder has given written consent to
6the division to have the certificate automatically renewed as
7provided in this section.
8b. The certificate has not been suspended or revoked.
9c. A civil penalty has not been imposed against the
10certificate holder.
11d. An administrative proceeding is not pending against the
12certificate holder to suspend or revoke the certificate or to
13impose a civil penalty under this chapter.
14e. The certificate holder and all persons associated
15with the certificate holder as described in section 123.3,
16subsection 40, paragraph “e”, have not been convicted of a
17violation of this chapter.
184. Notwithstanding section 123.187 and any other provision
19of this chapter to the contrary, a wine direct shipper’s permit
20shall automatically renew without approval by the administrator
21upon collection of the annual fee by the division, provided all
22of the following conditions are met since the preceding permit
23was issued:
24a. The permittee has given written consent to the division
25to have the permit automatically renewed as provided in this
26section.
27b. The permit has not been suspended or revoked.
28c. A civil penalty has not been imposed against the
29permittee.
30d. An administrative proceeding is not pending against the
31permittee to suspend or revoke the permit or to impose a civil
32penalty under this chapter.
33e. The permittee has filed all required reports and remitted
34all wine gallonage tax owed pursuant to section 123.183.
35f. The permittee and all persons associated with the
-4-1permittee as described in section 123.3, subsection 40,
2paragraph “e”, have not been convicted of a violation of this
3chapter.
4 Sec. 8. EFFECTIVE DATE. This division of this Act takes
5effect January 1, 2023.
6DIVISION III
7ALCOHOLIC BEVERAGE CONTROL REVENUES
8 Sec. 9. Section 123.17, subsection 5, Code 2022, is amended
9to read as follows:
105. a. After any transfer provided for in subsection 3 is
11made, the department of commerce shall transfer into a special
12revenue account in the general fund of the state, a sum of
13money at least equal to seven percent of the gross amount of
14sales made by the division from the beer and liquor control
15fund on a monthly basis but not less than nine million dollars
16annually.
17b. Of the amounts transferred, two million dollars, plus an
18additional amount determined by the general assembly, shall be
19appropriated to the Iowa department of public health for use
20by the staff who administer the comprehensive substance abuse
21program under chapter 125 for substance abuse treatment and
22prevention programs.
23c. In addition, of the amounts transferred, one million
24dollars, plus an additional amount determined by the general
25assembly, shall be appropriated to the Iowa department of
26public health for distribution pursuant to section 125.59.
27d. Any amounts received in excess of the amounts
28appropriated to the Iowa department of public health for use
29by the staff who administer the comprehensive substance abuse
30program under chapter 125 pursuant to this subsection shall be
31considered part of the general fund balance.
32 Sec. 10. Section 123.143, subsection 1, Code 2022, is
33amended by striking the subsection.
34 Sec. 11. Section 123.143, subsection 2, Code 2022, is
35amended to read as follows:
-5- 12. All permit fees collected by the division under this
2subchapter shall accrue to the beer and liquor control fund,
3except as otherwise provided.All permit fees and taxes
4collected by the division under this subchapter shall accrue to
5the state general fund, except as otherwise provided.
6 Sec. 12. Section 123.143, Code 2022, is amended by adding
7the following new subsection:
8 NEW SUBSECTION. 2A. All retail beer permit fees collected
9by the division shall be credited to the beer and liquor
10control fund. The division shall remit to the appropriate
11local authority a sum of money equal to the total amount of the
12fees collected for each retail beer permit covering premises
13located within the local authority’s jurisdiction.
14 Sec. 13. Section 125.59, unnumbered paragraph 1, Code 2022,
15is amended to read as follows:
16The treasurer of state, on each July 1 for that fiscal
17year, shall transfer the estimated amounts to be received
18from section 123.36, subsection 8 and section 123.143,
19subsection 1section 123.17, subsection 5, paragraph “c”, to the
20department.
21 Sec. 14. REPEAL. Section 123.97, Code 2022, is repealed.
22 Sec. 15. EFFECTIVE DATE. This division of this Act takes
23effect January 1, 2023.
24DIVISION IV
25CLASS “E” LIQUOR CONTROL LICENSES
26 Sec. 16. Section 123.30, subsection 3, paragraph e,
27subparagraph (1), Code 2022, is amended to read as follows:
28(1) A class “E” liquor control license may be issued and
29shall authorize the holder to purchase alcoholic liquor in
30original unopened containers from the division only, wine
31from a class “A” wine permittee only, and high alcoholic
32content beer from a class “A” beer permittee only; and to sell
33the alcoholic liquor, wine, and beer in original unopened
34containers and high alcoholic content beer at retail to
35patrons for consumption off the licensed premises; and to
-6-1sell alcoholic liquor and high alcoholic content beer at
2wholesale to other liquor control licensees, provided the
3holder has filed with the division a basic permit issued by the
4alcohol and tobacco tax and trade bureau of the United States
5department of the treasury. A holder of a class “E” liquor
6control license may hold other retail liquor control licenses
7or retail wine or beer permits, but the premises licensed under
8a class “E” liquor control license shall be separate from other
9licensed premises, though the separate premises may have a
10common entrance. However, the holder of a class “E” liquor
11control license may also hold a class “B” wine or class “C”
12beer permit or both for the premises licensed under a class “E”
13liquor control license.
14 Sec. 17. Section 123.36, subsection 9, Code 2022, is amended
15by striking the subsection and inserting in lieu thereof the
16following:
179. Class “E” liquor control license fees shall be determined
18as follows:
19a. For premises located within the corporate limits of a
20city with a population of one thousand five hundred or less, a
21sum determined as follows:
22(1) For a premises with a square footage of one thousand
23five hundred or less, seven hundred fifty dollars.
24(2) For a premises with a square footage of more than one
25thousand five hundred but not more than two thousand, one
26thousand five hundred dollars.
27(3) For a premises with a square footage of more than two
28thousand but not more than five thousand, two thousand five
29hundred dollars.
30(4) For a premises with a square footage over five thousand,
31three thousand five hundred dollars.
32b. For premises located within the corporate limits of a
33city with a population of more than one thousand five hundred
34but less than ten thousand, a sum determined as follows:
35(1) For a premises with a square footage of one thousand
-7-1five hundred or less, one thousand five hundred dollars.
2(2) For a premises with a square footage of more than one
3thousand five hundred but not more than two thousand, two
4thousand five hundred dollars.
5(3) For a premises with a square footage of more than two
6thousand but not more than five thousand, three thousand five
7hundred dollars.
8(4) For a premises with a square footage over five thousand,
9five thousand dollars.
10c. For premises located within the corporate limits
11of a city with a population of ten thousand or more, a sum
12determined as follows:
13(1) For a premises with a square footage of one thousand
14five hundred or less, two thousand five hundred dollars.
15(2) For a premises with a square footage of more than one
16thousand five hundred but not more than two thousand, three
17thousand five hundred dollars.
18(3) For a premises with a square footage of more than
19two thousand but not more than five thousand, five thousand
20dollars.
21(4) For a premises with a square footage over five thousand,
22seven thousand five hundred dollars.
23d. For premises located outside the corporate limits of
24any city, a sum equal to that charged to a premises with the
25same square footage in the incorporated city located nearest
26the premises to be licensed. If there is doubt as to which
27of two or more differing corporate limits is the nearest, the
28license fee which is the largest shall prevail. However, if
29the premises is located in an unincorporated town, for purposes
30of this paragraph, the unincorporated town shall be treated as
31if it is a city.
32 Sec. 18. EFFECTIVE DATE. This division of this Act takes
33effect January 1, 2023.
34DIVISION V
35SPECIAL LICENSES AND PERMITS
-8-1 Sec. 19. Section 123.32, subsection 1, paragraph b,
2subparagraph (7), Code 2022, is amended to read as follows:
3(7) A charity beer, spirits, and wine auction special event
4 permit as provided in section 123.173A.
5 Sec. 20. Section 123.32, subsection 1, paragraph b,
6subparagraph (8), Code 2022, is amended by striking the
7subparagraph.
8 Sec. 21. Section 123.34, subsection 2, Code 2022, is amended
9to read as follows:
102. a. The administrator may issue six-month or eight-month
11seasonal class “A”, class “B”, class “C”, special class “C”,
12and class “D” liquor control licenses, class “B” wine permits,
13class “B” or class “C” native wine permits, or class “B” beer
14permits.
15b. The fee for a six-month or an eight-month seasonal
16license or permit issued pursuant to this subsection shall be
17for a proportionate part fifty percent of the license or permit
18fee for that class of license or permit. However, the fee for
19a seasonal class “B” native wine permit shall be the permit fee
20provided in section 123.179, subsection 4, and the fee for a
21seasonal class “C” native wine permit shall be the permit fee
22provided in section 123.179, subsection 5.
23 Sec. 22. Section 123.39, subsection 1, paragraph a,
24subparagraph (2), Code 2022, is amended to read as follows:
25(2) The administrator may suspend a certificate
26of compliance, a class “D” liquor control license, a
27manufacturer’s license, a broker’s permit, a class “A” native
28distilled spirits license, a class “A” or special class “A”
29beer permit, a charity beer, spirits, and wine auction special
30event permit, a class “A” wine permit, a wine direct shipper’s
31permit, or a wine carrier permit for a period not to exceed one
32year, revoke the license, permit, or certificate, or impose a
33civil penalty not to exceed one thousand dollars per violation.
34 Sec. 23. Section 123.173A, Code 2022, is amended by striking
35the section and inserting in lieu thereof the following:
-9- 1123.173A Charity beer, spirits, and wine special event
2permit.
31. For purposes of this section:
4a. “Authorized nonprofit entity” includes a nonprofit
5entity which has a principal office in the state, a nonprofit
6corporation organized under chapter 504, or a foreign
7corporation as defined in section 504.141, whose income is
8exempt from federal taxation under section 501(c) of the
9Internal Revenue Code.
10b. “Charity auction” means an auction conducted by an
11authorized nonprofit entity which includes beer, spirits, and
12wine.
13c. “Charity event” means an event at which an authorized
14nonprofit entity may serve the event’s attendees beer,
15spirits, and wine for consumption on the premises of the event,
16regardless of whether the entity charges an admission fee to
17the event or otherwise collects the cost of the beer, spirits,
18and wine served from the event’s attendees.
19d. “Charity special event” means a charity auction, charity
20event, or a combined charity auction and charity event.
212. Upon application to the division and receipt of a charity
22beer, spirits, and wine special event permit, an authorized
23nonprofit entity may conduct a charity special event subject to
24the requirements of this section.
253. A charity auction conducted by a charity beer, spirits,
26and wine special event permittee shall comply with the
27following requirements:
28a. The authorized nonprofit entity conducting the charity
29auction shall obtain the beer, spirits, and wine to be
30auctioned at the charity auction from an Iowa retail beer
31permittee, an Iowa retail liquor control licensee, or an Iowa
32retail wine permittee, or may receive donations of beer,
33spirits, or wine to be auctioned at the charity auction from
34persons who purchased the donated beer, spirits, or wine from
35an Iowa retail beer permittee, an Iowa retail liquor control
-10-1licensee, an Iowa class “A” native distilled spirits licensee,
2or an Iowa retail wine permittee and who present a receipt
3documenting the purchase at the time the beer, spirits, or wine
4is donated. The authorized nonprofit entity conducting the
5charity auction shall retain a copy of the receipt for a period
6of one year from the date of the charity beer, spirits, and
7wine auction.
8b. The beer, spirits, and wine sold at the charity auction
9shall be in original containers for consumption off of the
10premises where the charity auction is conducted. No other
11alcoholic beverage may be sold by the charity beer, spirits,
12and wine special event permittee at the charity auction. A
13purchaser of beer, spirits, or wine at a charity auction shall
14not take possession of the beer, spirits, or wine until the
15person is leaving the event. A purchaser of beer, spirits,
16or wine at a charity auction shall not open the container or
17consume or permit the consumption of the beer, spirits, or
18wine purchased on the premises where the charity auction is
19conducted. A purchaser of beer, spirits, or wine at a charity
20auction shall not resell the beer, spirits, or wine.
21c. A liquor control licensee, beer permittee, class “A”
22native distilled spirits licensee, or wine permittee shall not
23purchase beer, spirits, or wine at a charity auction. The
24charity auction may be conducted on a premises for which a
25class “B” liquor control license or class “C” liquor control
26license has been issued, provided that the liquor control
27licensee does not participate in the charity auction, supply
28beer, spirits, or wine to be auctioned at the charity auction,
29or receive any of the proceeds of the charity auction.
304. A charity event conducted by a charity beer, spirits, and
31wine special event permittee shall comply with the following
32requirements:
33a. The charity event shall be conducted on a premises
34covered by a valid liquor control license or retail wine or
35beer permit issued by the division.
-11- 1b. The authorized nonprofit entity conducting a charity
2event shall have a written agreement with the liquor control
3licensee or wine or beer permittee covering the premises where
4the charity event is to be conducted specifying that that
5licensee or permittee shall act as the agent of the authorized
6nonprofit entity for the purpose of providing and serving
7alcoholic beverages to the attendees of the charity event.
8c. The liquor control licensee or wine or beer permittee
9covering the premises where the charity event is to be
10conducted shall supply all alcoholic beverages served to the
11attendees of the charity event.
12d. Only those types of alcoholic beverages as are authorized
13to be sold by the liquor control license or wine or beer
14permit covering the premises where the charity event is to be
15conducted are to be served to the attendees of the charity
16event.
175. An application for a charity beer, spirits, and wine
18special event permit to conduct a charity special event shall
19include all of the following information:
20a. The date and time when the charity special event is to be
21conducted and the location of the premises in this state where
22the charity special event is to be physically conducted.
23b. The liquor control license or wine or beer permit number
24issued by the division for the premises where a charity event
25is to be conducted, if applicable.
26c. A certification that the objective of the charity special
27event is to raise funds solely to be used for educational,
28religious, or charitable purposes and that the entire proceeds
29from the charity special event are to be expended for any of
30the purposes described in section 423.3, subsection 78.
316. An authorized nonprofit entity shall be eligible to
32receive no more than two charity beer, spirits, and wine
33special event permits during a calendar year and each charity
34beer, spirits, and wine special event permit shall be valid for
35a period not to exceed thirty-six consecutive hours.
-12- 17. Any violation of the requirements of this chapter or
2the rules adopted pursuant to this chapter shall subject
3the charity beer, spirits, and wine special event permit
4holder to the general penalties provided in this chapter and
5shall constitute grounds for imposition of a civil penalty,
6suspension of the permit, or revocation of the permit after
7notice and opportunity for a hearing pursuant to section 123.39
8and chapter 17A.
9 Sec. 24. Section 123.179, subsection 6, Code 2022, is
10amended to read as follows:
116. The fee for a charity beer, spirits, and wine auction
12 special event permit is one hundred dollars.
13 Sec. 25. Section 123.179, subsection 7, Code 2022, is
14amended by striking the subsection.
15 Sec. 26. REPEAL. Section 123.173B, Code 2022, is repealed.
16 Sec. 27. EFFECTIVE DATE. This division of this Act takes
17effect January 1, 2023.
18DIVISION VI
19SUNDAY SALES
20 Sec. 28. Section 123.34, subsections 3 and 4, Code 2022, are
21amended to read as follows:
223. a. The administrator may issue fourteen-day class “A”,
23class “B”, class “C”, special class “C”, and class “D” liquor
24control licenses, and fourteen-day class “B” beer permits,
25class “B” native wine permits, and class “C” native wine
26permits.
27b. A fourteen-day license or permit, if granted, is valid
28for fourteen consecutive days, but the holder shall not sell on
29the two Sundays in the fourteen-day period unless the holder
30qualifies for and obtains the privilege to sell on Sundays
31contained in section 123.36, subsection 6, and section 123.134,
32subsection 4.
33c. (1) The fee for a fourteen-day liquor control license
34or beer permit is one quarter of the annual fee for that class
35of liquor control license or beer permit. The fee for the
-13-1privilege to sell on the two Sundays in the fourteen-day period
2is twenty percent of the price of the fourteen-day liquor
3control license or beer permit.
4(2) The fee for a fourteen-day class “B” native wine permit
5shall be the permit fee provided in section 123.179, subsection
64, and the fee for a fourteen-day class “C” native wine permit
7is the permit fee provided in section 123.179, subsection 5.
84. a. The administrator may issue five-day class “A”, class
9“B”, class “C”, special class “C”, and class “D” liquor control
10licenses, and five-day class “B” beer permits, class “B” native
11wine permits, and class “C” native wine permits.
12b. A five-day license or permit is valid for five
13consecutive days, but the holder shall not sell alcoholic
14beverages on Sunday in the five-day period unless the holder
15qualifies for and obtains the privilege to sell on Sunday
16pursuant to section 123.36, subsection 6, and section 123.134,
17subsection 4.
18c. (1) The fee for the five-day liquor control license
19or beer permit is one-eighth of the annual fee for that class
20of license or permit. The fee for the privilege to sell on a
21Sunday in the five-day period is ten percent of the price of
22the five-day liquor control license or beer permit.
23(2) The fee for a five-day class “B” native wine permit
24shall be the permit fee provided in section 123.179, subsection
254, and the fee for a five-day class “C” native wine permit is
26the permit fee provided in section 123.179, subsection 5.
27 Sec. 29. Section 123.36, subsection 6, Code 2022, is amended
28by striking the subsection.
29 Sec. 30. Section 123.36, subsection 8, Code 2022, is amended
30to read as follows:
318. The division shall credit all fees to the beer and liquor
32control fund. The division shall remit to the appropriate
33local authority, a sum equal to sixty-five percent of the fees
34collected for each class “A”, class “B”, or class “C” license
35except special class “C” licenses or class “E” licenses,
-14-1covering premises located within the local authority’s
2jurisdiction. The division shall remit to the appropriate
3local authority a sum equal to seventy-five percent of the fees
4collected for each special class “C” license covering premises
5located within the local authority’s jurisdiction. Those fees
6collected for the privilege authorized under subsection 6 and
7those fees collected for each class “E” liquor control license
8shall be credited to the beer and liquor control fund.
9 Sec. 31. Section 123.46A, subsection 3, paragraph b, Code
102022, is amended to read as follows:
11b. Orders for deliveries may be taken by the licensee or
12permittee between the hours of 2:00 a.m.and 6:00 a.m.
13on a day other than Sunday, and orders for deliveries may
14be taken between the hours of 2:00 a.m.and 6:00 a.m.on a
15Sunday provided the licensee or permittee has been granted
16the privilege of selling alcoholic liquor, wine, beer, or
17mixed drinks or cocktails on Sunday on any day of the week,
18notwithstanding any provision of section 123.49, subsection 2,
19paragraph “b”, to the contrary.
20 Sec. 32. Section 123.49, subsection 2, paragraph b, Code
212022, is amended to read as follows:
22b. Sell or dispense any alcoholic beverage on the premises
23covered by the license or permit, or permit its consumption
24thereon between the hours of 2:00 a.m.and 6:00 a.m.on a
25weekday, and between the hours of 2:00 a.m.on Sunday and 6:00
26a.m.on the following Monday, however, a holder of a liquor
27control license or retail wine or beer permit granted the
28privilege of selling alcoholic liquor, wine, or beer on Sunday
29may sell or dispense alcoholic liquor, wine, or beer between
30the hours of 6:00 a.m.on Sunday and 2:00 a.m.on the following
31Monday any day of the week.
32 Sec. 33. Section 123.49, subsection 4, Code 2022, is amended
33by striking the subsection.
34 Sec. 34. Section 123.134, subsection 4, Code 2022, is
35amended by striking the subsection.
-15-1 Sec. 35. REPEAL. Section 123.150, Code 2022, is repealed.
2 Sec. 36. EFFECTIVE DATE. This division of this Act takes
3effect January 1, 2023.
4EXPLANATION
5The inclusion of this explanation does not constitute agreement with
6the explanation’s substance by the members of the general assembly.
7This bill relates to alcoholic beverage control and matters
8under the purview of the alcoholic beverages division.
9Division I of the bill relates to keg identification
10stickers, deliveries of alcoholic beverages, and the wine
11direct shipper permit.
12Code section 123.46A, concerning delivery of alcoholic
13beverages by retailers, is amended to provide that deliveries
14shall occur on the same day the order for delivery of alcoholic
15beverages is removed from the licensed premises of the
16retailer.
17Code section 123.138, concerning keg identification
18stickers, is amended to provide for a keg identification label
19instead of a sticker. In addition, the bill strikes provisions
20concerning the forfeiture and remittance of deposits relating
21to defacing the keg identification label.
22Code section 123.187, concerning the wine direct shipper
23permit, is amended to remove the requirement that an
24application for the permit be accompanied by a bond if not
25otherwise required to submit a bond as a wine manufacturer.
26Division II of the bill relates to the renewal of certain
27licenses, permits, and certificates of compliance.
28Code section 123.34, subsection 1, providing generally
29for the expiration of licenses, permits, and certificates of
30compliance one year from the date of issuance, and including a
31notification requirement by the administrator of the alcoholic
32beverage division prior to expiration, is stricken.
33New Code section 123.35 includes the provision from
34current Code section 123.34 providing for the expiration of
35licenses, permits, and certificates of compliance without
-16-1the notification requirement. The new Code section further
2provides, notwithstanding any provision of Code chapter 123
3to the contrary, for the automatic renewal of a class “E”
4liquor control license, a distiller’s, vintner’s, or brewer’s
5certificate of compliance, and a wine direct shipper’s
6permit. The bill allows the renewal of the applicable license,
7certificate, or permit without approval by the administrator
8of the alcoholic beverages division or endorsement of any
9applicable local authority upon collection of the annual fee
10for that license, certificate, or permit by the alcoholic
11beverages division, provided certain conditions are met since
12the preceding license, certificate, or permit was issued. The
13bill provides that the license, certificate, or permit can be
14automatically renewed if, in the preceding year, the license,
15certificate, or permit has not been suspended or revoked,
16a civil penalty has not been imposed, an administrative
17proceeding is not pending to suspend or revoke the license,
18certificate, or permit or to impose a civil penalty, all
19required payments to the division have been made, and the
20licensee, certificate holder, or permittee, and all persons
21associated with the licensee, certificate holder, or permittee
22as described in Code section 123.3, subsection 40, paragraph
23“e”, have not been convicted of a violation of Code chapter
24123. In addition, for renewal of a class “E” liquor control
25license, the licensed premises shall constitute a safe and
26proper place and building that complies with all applicable
27building-related regulations.
28This division of the bill takes effect January 1, 2023.
29Division III of the bill relates to the distribution of
30certain alcoholic beverage control revenues.
31Code section 123.17, concerning transfers from the beer
32and liquor control fund, is amended. The bill provides that
33of the moneys transferred to a special revenue account in the
34general fund of the state from the beer and liquor control
35fund, $1 million, plus any additional amount as determined by
-17-1the general assembly, shall be appropriated to the department
2of public health to be distributed as provided in Code section
3125.59 as grants to counties, persons, or nonprofit entities
4for substance abuse and prevention programs. Code section
5125.59 is amended to reflect that only this new appropriation
6shall be transferred to the department of public health for the
7purposes of Code section 125.59.
8Code section 123.143, concerning distribution of certain
9beer permit fees, is amended. The bill provides that all
10beer-related permit fees collected by the alcoholic beverages
11division shall accrue to the beer and liquor control fund
12except as otherwise provided. The bill also provides that
13of the retail beer permit fees collected by the alcoholic
14beverages division, the division shall remit to the applicable
15local authority a sum of money equal to the retail beer permit
16fees collected by the division covering premises covered by the
17local authority’s jurisdiction. The bill further eliminates
18the requirement that retail beer permit fees collected by the
19local authority be transferred as provided in Code section
20125.59.
21Code section 123.97, providing that most revenues arising
22under the operation of Code chapter 123 become part of the
23general fund of the state, is repealed as inconsistent with the
24provisions of current Code section 123.17.
25This division of the bill takes effect January 1, 2023.
26Division IV of the bill relates to class “E” liquor control
27licenses.
28Code section 123.30, concerning liquor control licenses, is
29amended. The bill provides that a class “E” liquor control
30licensee can purchase wine and beer from a class “A” wine
31or beer permittee only, respectively. The bill specifically
32allows the class “E” licensee to sell wine and beer in unopened
33containers at retail, and to sell alcoholic liquor and high
34alcoholic content beer at wholesale. The bill strikes a
35provision allowing the holder of a class “E” liquor control
-18-1license to also hold a class “B” wine or class “C” beer permit
2for the premises licensed under the class “E” license.
3Code section 123.36, concerning class “E” liquor control
4license fees, is amended. The bill establishes license fees
5based on the population of the city where the premises is
6located as well as the square footage of the licensed premises.
7Current law bases the fees only on the population of the city
8where the premises is located.
9This division of the bill takes effect January 1, 2023.
10Division V of the bill relates to certain special licenses
11and permits.
12Code section 123.34, concerning seasonal licenses and
13permits, is amended. The bill eliminates the six-month
14seasonal license or permit and provides that the fee for an
15eight-month seasonal license or permit shall be 50 percent of
16the license or permit fee for that class of license or permit
17instead of a proportional share of that fee.
18Code section 123.173A, providing for a charity beer,
19spirits, and wine auction permit, and Code section 123.173B,
20providing for a charity beer, spirits, and wine event permit,
21are stricken and replaced with a combined charity beer,
22spirits, and wine special event permit, allowing the permit
23holder to conduct a charity auction, charity event, or a
24combined charity auction and charity event in a similar manner
25as is allowed under current law for the two separate permits.
26The bill only allows one charity auction, charity event, or
27combined charity auction and charity event, to be conducted
28during the period of the permit and limits a person to no more
29than two special event permits in a calendar year.
30This division of the bill takes effect January 1, 2023.
31Division VI of the bill concerns Sunday sales of alcoholic
32beverages. The bill eliminates the requirement to obtain a
33special privilege to sell alcoholic beverages on Sunday and
34provides that sales or other activities relating to alcoholic
35beverages on Sunday will be allowed to the same extent as they
-19-1are allowed on any other day.
2This division of the bill takes effect January 1, 2023.
-20-ec/rn
2under the purview of the alcoholic beverages division of
3the department of commerce and including effective date
4provisions.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2ALCOHOLIC BEVERAGE CONTROL
3 Section 1. Section 123.46A, subsection 3, paragraph f, Code
42022, is amended to read as follows:
5f. Deliveries shall occur between 6:00 a.m.and 10:00 p.m.
6Monday throughSunday on the same day the order for alcoholic
7liquor, wine, beer, or mixed drinks or cocktails is removed
8from the licensed premises.
9 Sec. 2. Section 123.50, subsection 1, Code 2022, is amended
10to read as follows:
111. Any person who violates any of the provisions of section
12123.49, except section 123.49, subsection 2, paragraph “h”,
13or who fails to affix upon sale, defaces, or fails to record
14a keg identification sticker label or produce a record of keg
15identification stickers labels pursuant to section 123.138,
16shall be guilty of a simple misdemeanor. A person who violates
17section 123.49, subsection 2, paragraph “h”, commits a simple
18misdemeanor punishable as a scheduled violation under section
19805.8C, subsection 2.
20 Sec. 3. Section 123.138, subsection 2, paragraphs a and b,
21Code 2022, are amended to read as follows:
22a. Each class “B”, “C”, or special class “C” liquor control
23licensee and class “B” or “C” beer permittee who sells beer
24for off-premises consumption shall affix to each keg of beer
25an identification sticker label provided by the administrator.
26The sticker label provided shall allow for its full removal
27when common external keg cleaning procedures are performed.
28For the purposes of this subsection, “keg” means all durable and
29disposable containers with a liquid capacity of five gallons or
30more. Each class “B”, “C”, or special class “C” liquor control
31licensee and class “B” or “C” beer permittee shall also keep
32a record of the identification sticker label number of each
33keg of beer sold by the licensee or permittee with the name
34and address of the purchaser and the number of the purchaser’s
35driver’s license, nonoperator’s identification card, or
-1-1military identification card, if the military identification
2card contains a picture and signature. This information shall
3be retained by the licensee or permittee for a minimum of
4ninety days. The records kept pursuant to this subsection
5shall be available for inspection by any law enforcement
6officer during normal business hours.
7b. (1) The division shall provide the keg identification
8stickers labels described in paragraph “a” and shall, prior to
9utilizing a sticker label, notify licensed brewers and licensed
10beer importers of the type of sticker label to be utilized.
11Each sticker label shall contain a number and the following
12statement:
13It is unlawful to sell, give, or otherwise supply any
14alcoholic beverage, wine, or beer to any person under legal
15age. Any person who defaces this sticker label shall be guilty
16of criminal mischief punishable pursuant to section 716.6 and
17shall cause the forfeiture of any deposit, if applicable.
18(2) The identification sticker label shall be placed on
19the keg at the time of retail sale. The licensee or permittee
20shall purchase obtain the stickers labels referred to in this
21subsection from the division and shall remit to the division
22deposits forfeited pursuant to this lettered paragraph due to
23defacement. The cost of the stickers labels to licensees and
24permittees shall not exceed the division’s cost of producing
25and distributing the stickers labels. The moneys collected by
26the division relating to the sale of stickers and forfeited
27deposits labels shall be credited to the beer and liquor
28control fund.
29 Sec. 4. Section 123.138, subsection 2, paragraph d, Code
302022, is amended by striking the paragraph.
31 Sec. 5. Section 123.187, subsection 2, paragraph d, Code
322022, is amended by striking the paragraph.
33DIVISION II
34AUTOMATIC RENEWALS
35 Sec. 6. Section 123.34, subsection 1, Code 2022, is amended
-2-1by striking the subsection.
2 Sec. 7. NEW SECTION. 123.35 Expiration of licenses,
3permits, and certificates of compliance — automatic renewals.
41. Except as otherwise provided by this chapter, all
5licenses, permits, and certificates of compliance, unless
6sooner suspended or revoked, expire one year from date of
7issuance.
82. Notwithstanding section 123.31 and any other provision
9of this chapter to the contrary, a class “E” liquor control
10license shall automatically renew without the endorsement
11of a local authority or approval by the administrator upon
12collection of the annual fee by the division, provided all of
13the following conditions are met since the preceding license
14was issued:
15a. The permittee has given written consent to the division
16to have the permit automatically renewed as provided in this
17section.
18b. The license has not been suspended or revoked.
19c. A civil penalty has not been imposed against the
20licensee.
21d. An administrative proceeding is not pending against the
22licensee to suspend or revoke the license or to impose a civil
23penalty under this chapter.
24e. The licensee has not submitted payment for alcoholic
25liquor to the division that was subsequently dishonored.
26f. The licensee and all persons associated with the licensee
27as described in section 123.3, subsection 40, paragraph “e”,
28have not been convicted of a violation of this chapter.
29g. The licensed premises constitutes a safe and proper place
30or building and conforms with all applicable federal, state,
31and local laws, orders, ordinances, rules, resolutions, and
32health and fire regulations.
333. Notwithstanding sections 123.23, 123.135, 123.180,
34and any other provision of this chapter to the contrary, a
35distiller’s, brewer’s, or vintner’s certificate of compliance
-3-1shall automatically renew without approval by the administrator
2upon collection of the annual fee by the division, provided
3all of the following conditions are met since the preceding
4certificate was issued:
5a. The certificate holder has given written consent to
6the division to have the certificate automatically renewed as
7provided in this section.
8b. The certificate has not been suspended or revoked.
9c. A civil penalty has not been imposed against the
10certificate holder.
11d. An administrative proceeding is not pending against the
12certificate holder to suspend or revoke the certificate or to
13impose a civil penalty under this chapter.
14e. The certificate holder and all persons associated
15with the certificate holder as described in section 123.3,
16subsection 40, paragraph “e”, have not been convicted of a
17violation of this chapter.
184. Notwithstanding section 123.187 and any other provision
19of this chapter to the contrary, a wine direct shipper’s permit
20shall automatically renew without approval by the administrator
21upon collection of the annual fee by the division, provided all
22of the following conditions are met since the preceding permit
23was issued:
24a. The permittee has given written consent to the division
25to have the permit automatically renewed as provided in this
26section.
27b. The permit has not been suspended or revoked.
28c. A civil penalty has not been imposed against the
29permittee.
30d. An administrative proceeding is not pending against the
31permittee to suspend or revoke the permit or to impose a civil
32penalty under this chapter.
33e. The permittee has filed all required reports and remitted
34all wine gallonage tax owed pursuant to section 123.183.
35f. The permittee and all persons associated with the
-4-1permittee as described in section 123.3, subsection 40,
2paragraph “e”, have not been convicted of a violation of this
3chapter.
4 Sec. 8. EFFECTIVE DATE. This division of this Act takes
5effect January 1, 2023.
6DIVISION III
7ALCOHOLIC BEVERAGE CONTROL REVENUES
8 Sec. 9. Section 123.17, subsection 5, Code 2022, is amended
9to read as follows:
105. a. After any transfer provided for in subsection 3 is
11made, the department of commerce shall transfer into a special
12revenue account in the general fund of the state, a sum of
13money at least equal to seven percent of the gross amount of
14sales made by the division from the beer and liquor control
15fund on a monthly basis but not less than nine million dollars
16annually.
17b. Of the amounts transferred, two million dollars, plus an
18additional amount determined by the general assembly, shall be
19appropriated to the Iowa department of public health for use
20by the staff who administer the comprehensive substance abuse
21program under chapter 125 for substance abuse treatment and
22prevention programs.
23c. In addition, of the amounts transferred, one million
24dollars, plus an additional amount determined by the general
25assembly, shall be appropriated to the Iowa department of
26public health for distribution pursuant to section 125.59.
27d. Any amounts received in excess of the amounts
28appropriated to the Iowa department of public health for use
29by the staff who administer the comprehensive substance abuse
30program under chapter 125 pursuant to this subsection shall be
31considered part of the general fund balance.
32 Sec. 10. Section 123.143, subsection 1, Code 2022, is
33amended by striking the subsection.
34 Sec. 11. Section 123.143, subsection 2, Code 2022, is
35amended to read as follows:
-5- 12. All permit fees collected by the division under this
2subchapter shall accrue to the beer and liquor control fund,
3except as otherwise provided.All permit fees and taxes
4collected by the division under this subchapter shall accrue to
5the state general fund, except as otherwise provided.
6 Sec. 12. Section 123.143, Code 2022, is amended by adding
7the following new subsection:
8 NEW SUBSECTION. 2A. All retail beer permit fees collected
9by the division shall be credited to the beer and liquor
10control fund. The division shall remit to the appropriate
11local authority a sum of money equal to the total amount of the
12fees collected for each retail beer permit covering premises
13located within the local authority’s jurisdiction.
14 Sec. 13. Section 125.59, unnumbered paragraph 1, Code 2022,
15is amended to read as follows:
16The treasurer of state, on each July 1 for that fiscal
17year, shall transfer the estimated amounts to be received
18from section 123.36, subsection 8 and section 123.143,
19subsection 1section 123.17, subsection 5, paragraph “c”, to the
20department.
21 Sec. 14. REPEAL. Section 123.97, Code 2022, is repealed.
22 Sec. 15. EFFECTIVE DATE. This division of this Act takes
23effect January 1, 2023.
24DIVISION IV
25CLASS “E” LIQUOR CONTROL LICENSES
26 Sec. 16. Section 123.30, subsection 3, paragraph e,
27subparagraph (1), Code 2022, is amended to read as follows:
28(1) A class “E” liquor control license may be issued and
29shall authorize the holder to purchase alcoholic liquor in
30original unopened containers from the division only, wine
31from a class “A” wine permittee only, and high alcoholic
32content beer from a class “A” beer permittee only; and to sell
33the alcoholic liquor, wine, and beer in original unopened
34containers and high alcoholic content beer at retail to
35patrons for consumption off the licensed premises; and to
-6-1sell alcoholic liquor and high alcoholic content beer at
2wholesale to other liquor control licensees, provided the
3holder has filed with the division a basic permit issued by the
4alcohol and tobacco tax and trade bureau of the United States
5department of the treasury. A holder of a class “E” liquor
6control license may hold other retail liquor control licenses
7or retail wine or beer permits, but the premises licensed under
8a class “E” liquor control license shall be separate from other
9licensed premises, though the separate premises may have a
10common entrance. However, the holder of a class “E” liquor
11control license may also hold a class “B” wine or class “C”
12beer permit or both for the premises licensed under a class “E”
13liquor control license.
14 Sec. 17. Section 123.36, subsection 9, Code 2022, is amended
15by striking the subsection and inserting in lieu thereof the
16following:
179. Class “E” liquor control license fees shall be determined
18as follows:
19a. For premises located within the corporate limits of a
20city with a population of one thousand five hundred or less, a
21sum determined as follows:
22(1) For a premises with a square footage of one thousand
23five hundred or less, seven hundred fifty dollars.
24(2) For a premises with a square footage of more than one
25thousand five hundred but not more than two thousand, one
26thousand five hundred dollars.
27(3) For a premises with a square footage of more than two
28thousand but not more than five thousand, two thousand five
29hundred dollars.
30(4) For a premises with a square footage over five thousand,
31three thousand five hundred dollars.
32b. For premises located within the corporate limits of a
33city with a population of more than one thousand five hundred
34but less than ten thousand, a sum determined as follows:
35(1) For a premises with a square footage of one thousand
-7-1five hundred or less, one thousand five hundred dollars.
2(2) For a premises with a square footage of more than one
3thousand five hundred but not more than two thousand, two
4thousand five hundred dollars.
5(3) For a premises with a square footage of more than two
6thousand but not more than five thousand, three thousand five
7hundred dollars.
8(4) For a premises with a square footage over five thousand,
9five thousand dollars.
10c. For premises located within the corporate limits
11of a city with a population of ten thousand or more, a sum
12determined as follows:
13(1) For a premises with a square footage of one thousand
14five hundred or less, two thousand five hundred dollars.
15(2) For a premises with a square footage of more than one
16thousand five hundred but not more than two thousand, three
17thousand five hundred dollars.
18(3) For a premises with a square footage of more than
19two thousand but not more than five thousand, five thousand
20dollars.
21(4) For a premises with a square footage over five thousand,
22seven thousand five hundred dollars.
23d. For premises located outside the corporate limits of
24any city, a sum equal to that charged to a premises with the
25same square footage in the incorporated city located nearest
26the premises to be licensed. If there is doubt as to which
27of two or more differing corporate limits is the nearest, the
28license fee which is the largest shall prevail. However, if
29the premises is located in an unincorporated town, for purposes
30of this paragraph, the unincorporated town shall be treated as
31if it is a city.
32 Sec. 18. EFFECTIVE DATE. This division of this Act takes
33effect January 1, 2023.
34DIVISION V
35SPECIAL LICENSES AND PERMITS
-8-1 Sec. 19. Section 123.32, subsection 1, paragraph b,
2subparagraph (7), Code 2022, is amended to read as follows:
3(7) A charity beer, spirits, and wine auction special event
4 permit as provided in section 123.173A.
5 Sec. 20. Section 123.32, subsection 1, paragraph b,
6subparagraph (8), Code 2022, is amended by striking the
7subparagraph.
8 Sec. 21. Section 123.34, subsection 2, Code 2022, is amended
9to read as follows:
102. a. The administrator may issue six-month or eight-month
11seasonal class “A”, class “B”, class “C”, special class “C”,
12and class “D” liquor control licenses, class “B” wine permits,
13class “B” or class “C” native wine permits, or class “B” beer
14permits.
15b. The fee for a six-month or an eight-month seasonal
16license or permit issued pursuant to this subsection shall be
17for a proportionate part fifty percent of the license or permit
18fee for that class of license or permit. However, the fee for
19a seasonal class “B” native wine permit shall be the permit fee
20provided in section 123.179, subsection 4, and the fee for a
21seasonal class “C” native wine permit shall be the permit fee
22provided in section 123.179, subsection 5.
23 Sec. 22. Section 123.39, subsection 1, paragraph a,
24subparagraph (2), Code 2022, is amended to read as follows:
25(2) The administrator may suspend a certificate
26of compliance, a class “D” liquor control license, a
27manufacturer’s license, a broker’s permit, a class “A” native
28distilled spirits license, a class “A” or special class “A”
29beer permit, a charity beer, spirits, and wine auction special
30event permit, a class “A” wine permit, a wine direct shipper’s
31permit, or a wine carrier permit for a period not to exceed one
32year, revoke the license, permit, or certificate, or impose a
33civil penalty not to exceed one thousand dollars per violation.
34 Sec. 23. Section 123.173A, Code 2022, is amended by striking
35the section and inserting in lieu thereof the following:
-9- 1123.173A Charity beer, spirits, and wine special event
2permit.
31. For purposes of this section:
4a. “Authorized nonprofit entity” includes a nonprofit
5entity which has a principal office in the state, a nonprofit
6corporation organized under chapter 504, or a foreign
7corporation as defined in section 504.141, whose income is
8exempt from federal taxation under section 501(c) of the
9Internal Revenue Code.
10b. “Charity auction” means an auction conducted by an
11authorized nonprofit entity which includes beer, spirits, and
12wine.
13c. “Charity event” means an event at which an authorized
14nonprofit entity may serve the event’s attendees beer,
15spirits, and wine for consumption on the premises of the event,
16regardless of whether the entity charges an admission fee to
17the event or otherwise collects the cost of the beer, spirits,
18and wine served from the event’s attendees.
19d. “Charity special event” means a charity auction, charity
20event, or a combined charity auction and charity event.
212. Upon application to the division and receipt of a charity
22beer, spirits, and wine special event permit, an authorized
23nonprofit entity may conduct a charity special event subject to
24the requirements of this section.
253. A charity auction conducted by a charity beer, spirits,
26and wine special event permittee shall comply with the
27following requirements:
28a. The authorized nonprofit entity conducting the charity
29auction shall obtain the beer, spirits, and wine to be
30auctioned at the charity auction from an Iowa retail beer
31permittee, an Iowa retail liquor control licensee, or an Iowa
32retail wine permittee, or may receive donations of beer,
33spirits, or wine to be auctioned at the charity auction from
34persons who purchased the donated beer, spirits, or wine from
35an Iowa retail beer permittee, an Iowa retail liquor control
-10-1licensee, an Iowa class “A” native distilled spirits licensee,
2or an Iowa retail wine permittee and who present a receipt
3documenting the purchase at the time the beer, spirits, or wine
4is donated. The authorized nonprofit entity conducting the
5charity auction shall retain a copy of the receipt for a period
6of one year from the date of the charity beer, spirits, and
7wine auction.
8b. The beer, spirits, and wine sold at the charity auction
9shall be in original containers for consumption off of the
10premises where the charity auction is conducted. No other
11alcoholic beverage may be sold by the charity beer, spirits,
12and wine special event permittee at the charity auction. A
13purchaser of beer, spirits, or wine at a charity auction shall
14not take possession of the beer, spirits, or wine until the
15person is leaving the event. A purchaser of beer, spirits,
16or wine at a charity auction shall not open the container or
17consume or permit the consumption of the beer, spirits, or
18wine purchased on the premises where the charity auction is
19conducted. A purchaser of beer, spirits, or wine at a charity
20auction shall not resell the beer, spirits, or wine.
21c. A liquor control licensee, beer permittee, class “A”
22native distilled spirits licensee, or wine permittee shall not
23purchase beer, spirits, or wine at a charity auction. The
24charity auction may be conducted on a premises for which a
25class “B” liquor control license or class “C” liquor control
26license has been issued, provided that the liquor control
27licensee does not participate in the charity auction, supply
28beer, spirits, or wine to be auctioned at the charity auction,
29or receive any of the proceeds of the charity auction.
304. A charity event conducted by a charity beer, spirits, and
31wine special event permittee shall comply with the following
32requirements:
33a. The charity event shall be conducted on a premises
34covered by a valid liquor control license or retail wine or
35beer permit issued by the division.
-11- 1b. The authorized nonprofit entity conducting a charity
2event shall have a written agreement with the liquor control
3licensee or wine or beer permittee covering the premises where
4the charity event is to be conducted specifying that that
5licensee or permittee shall act as the agent of the authorized
6nonprofit entity for the purpose of providing and serving
7alcoholic beverages to the attendees of the charity event.
8c. The liquor control licensee or wine or beer permittee
9covering the premises where the charity event is to be
10conducted shall supply all alcoholic beverages served to the
11attendees of the charity event.
12d. Only those types of alcoholic beverages as are authorized
13to be sold by the liquor control license or wine or beer
14permit covering the premises where the charity event is to be
15conducted are to be served to the attendees of the charity
16event.
175. An application for a charity beer, spirits, and wine
18special event permit to conduct a charity special event shall
19include all of the following information:
20a. The date and time when the charity special event is to be
21conducted and the location of the premises in this state where
22the charity special event is to be physically conducted.
23b. The liquor control license or wine or beer permit number
24issued by the division for the premises where a charity event
25is to be conducted, if applicable.
26c. A certification that the objective of the charity special
27event is to raise funds solely to be used for educational,
28religious, or charitable purposes and that the entire proceeds
29from the charity special event are to be expended for any of
30the purposes described in section 423.3, subsection 78.
316. An authorized nonprofit entity shall be eligible to
32receive no more than two charity beer, spirits, and wine
33special event permits during a calendar year and each charity
34beer, spirits, and wine special event permit shall be valid for
35a period not to exceed thirty-six consecutive hours.
-12- 17. Any violation of the requirements of this chapter or
2the rules adopted pursuant to this chapter shall subject
3the charity beer, spirits, and wine special event permit
4holder to the general penalties provided in this chapter and
5shall constitute grounds for imposition of a civil penalty,
6suspension of the permit, or revocation of the permit after
7notice and opportunity for a hearing pursuant to section 123.39
8and chapter 17A.
9 Sec. 24. Section 123.179, subsection 6, Code 2022, is
10amended to read as follows:
116. The fee for a charity beer, spirits, and wine auction
12 special event permit is one hundred dollars.
13 Sec. 25. Section 123.179, subsection 7, Code 2022, is
14amended by striking the subsection.
15 Sec. 26. REPEAL. Section 123.173B, Code 2022, is repealed.
16 Sec. 27. EFFECTIVE DATE. This division of this Act takes
17effect January 1, 2023.
18DIVISION VI
19SUNDAY SALES
20 Sec. 28. Section 123.34, subsections 3 and 4, Code 2022, are
21amended to read as follows:
223. a. The administrator may issue fourteen-day class “A”,
23class “B”, class “C”, special class “C”, and class “D” liquor
24control licenses, and fourteen-day class “B” beer permits,
25class “B” native wine permits, and class “C” native wine
26permits.
27b. A fourteen-day license or permit, if granted, is valid
28for fourteen consecutive days, but the holder shall not sell on
29the two Sundays in the fourteen-day period unless the holder
30qualifies for and obtains the privilege to sell on Sundays
31contained in section 123.36, subsection 6, and section 123.134,
32subsection 4.
33c. (1) The fee for a fourteen-day liquor control license
34or beer permit is one quarter of the annual fee for that class
35of liquor control license or beer permit. The fee for the
-13-1privilege to sell on the two Sundays in the fourteen-day period
2is twenty percent of the price of the fourteen-day liquor
3control license or beer permit.
4(2) The fee for a fourteen-day class “B” native wine permit
5shall be the permit fee provided in section 123.179, subsection
64, and the fee for a fourteen-day class “C” native wine permit
7is the permit fee provided in section 123.179, subsection 5.
84. a. The administrator may issue five-day class “A”, class
9“B”, class “C”, special class “C”, and class “D” liquor control
10licenses, and five-day class “B” beer permits, class “B” native
11wine permits, and class “C” native wine permits.
12b. A five-day license or permit is valid for five
13consecutive days, but the holder shall not sell alcoholic
14beverages on Sunday in the five-day period unless the holder
15qualifies for and obtains the privilege to sell on Sunday
16pursuant to section 123.36, subsection 6, and section 123.134,
17subsection 4.
18c. (1) The fee for the five-day liquor control license
19or beer permit is one-eighth of the annual fee for that class
20of license or permit. The fee for the privilege to sell on a
21Sunday in the five-day period is ten percent of the price of
22the five-day liquor control license or beer permit.
23(2) The fee for a five-day class “B” native wine permit
24shall be the permit fee provided in section 123.179, subsection
254, and the fee for a five-day class “C” native wine permit is
26the permit fee provided in section 123.179, subsection 5.
27 Sec. 29. Section 123.36, subsection 6, Code 2022, is amended
28by striking the subsection.
29 Sec. 30. Section 123.36, subsection 8, Code 2022, is amended
30to read as follows:
318. The division shall credit all fees to the beer and liquor
32control fund. The division shall remit to the appropriate
33local authority, a sum equal to sixty-five percent of the fees
34collected for each class “A”, class “B”, or class “C” license
35except special class “C” licenses or class “E” licenses,
-14-1covering premises located within the local authority’s
2jurisdiction. The division shall remit to the appropriate
3local authority a sum equal to seventy-five percent of the fees
4collected for each special class “C” license covering premises
5located within the local authority’s jurisdiction. Those fees
6collected for the privilege authorized under subsection 6 and
7those fees collected for each class “E” liquor control license
8shall be credited to the beer and liquor control fund.
9 Sec. 31. Section 123.46A, subsection 3, paragraph b, Code
102022, is amended to read as follows:
11b. Orders for deliveries may be taken by the licensee or
12permittee between the hours of 2:00 a.m.and 6:00 a.m.
13on a day other than Sunday, and orders for deliveries may
14be taken between the hours of 2:00 a.m.and 6:00 a.m.on a
15Sunday provided the licensee or permittee has been granted
16the privilege of selling alcoholic liquor, wine, beer, or
17mixed drinks or cocktails on Sunday on any day of the week,
18notwithstanding any provision of section 123.49, subsection 2,
19paragraph “b”, to the contrary.
20 Sec. 32. Section 123.49, subsection 2, paragraph b, Code
212022, is amended to read as follows:
22b. Sell or dispense any alcoholic beverage on the premises
23covered by the license or permit, or permit its consumption
24thereon between the hours of 2:00 a.m.and 6:00 a.m.on a
25weekday, and between the hours of 2:00 a.m.on Sunday and 6:00
26a.m.on the following Monday, however, a holder of a liquor
27control license or retail wine or beer permit granted the
28privilege of selling alcoholic liquor, wine, or beer on Sunday
29may sell or dispense alcoholic liquor, wine, or beer between
30the hours of 6:00 a.m.on Sunday and 2:00 a.m.on the following
31Monday any day of the week.
32 Sec. 33. Section 123.49, subsection 4, Code 2022, is amended
33by striking the subsection.
34 Sec. 34. Section 123.134, subsection 4, Code 2022, is
35amended by striking the subsection.
-15-1 Sec. 35. REPEAL. Section 123.150, Code 2022, is repealed.
2 Sec. 36. EFFECTIVE DATE. This division of this Act takes
3effect January 1, 2023.
4EXPLANATION
5The inclusion of this explanation does not constitute agreement with
6the explanation’s substance by the members of the general assembly.
7This bill relates to alcoholic beverage control and matters
8under the purview of the alcoholic beverages division.
9Division I of the bill relates to keg identification
10stickers, deliveries of alcoholic beverages, and the wine
11direct shipper permit.
12Code section 123.46A, concerning delivery of alcoholic
13beverages by retailers, is amended to provide that deliveries
14shall occur on the same day the order for delivery of alcoholic
15beverages is removed from the licensed premises of the
16retailer.
17Code section 123.138, concerning keg identification
18stickers, is amended to provide for a keg identification label
19instead of a sticker. In addition, the bill strikes provisions
20concerning the forfeiture and remittance of deposits relating
21to defacing the keg identification label.
22Code section 123.187, concerning the wine direct shipper
23permit, is amended to remove the requirement that an
24application for the permit be accompanied by a bond if not
25otherwise required to submit a bond as a wine manufacturer.
26Division II of the bill relates to the renewal of certain
27licenses, permits, and certificates of compliance.
28Code section 123.34, subsection 1, providing generally
29for the expiration of licenses, permits, and certificates of
30compliance one year from the date of issuance, and including a
31notification requirement by the administrator of the alcoholic
32beverage division prior to expiration, is stricken.
33New Code section 123.35 includes the provision from
34current Code section 123.34 providing for the expiration of
35licenses, permits, and certificates of compliance without
-16-1the notification requirement. The new Code section further
2provides, notwithstanding any provision of Code chapter 123
3to the contrary, for the automatic renewal of a class “E”
4liquor control license, a distiller’s, vintner’s, or brewer’s
5certificate of compliance, and a wine direct shipper’s
6permit. The bill allows the renewal of the applicable license,
7certificate, or permit without approval by the administrator
8of the alcoholic beverages division or endorsement of any
9applicable local authority upon collection of the annual fee
10for that license, certificate, or permit by the alcoholic
11beverages division, provided certain conditions are met since
12the preceding license, certificate, or permit was issued. The
13bill provides that the license, certificate, or permit can be
14automatically renewed if, in the preceding year, the license,
15certificate, or permit has not been suspended or revoked,
16a civil penalty has not been imposed, an administrative
17proceeding is not pending to suspend or revoke the license,
18certificate, or permit or to impose a civil penalty, all
19required payments to the division have been made, and the
20licensee, certificate holder, or permittee, and all persons
21associated with the licensee, certificate holder, or permittee
22as described in Code section 123.3, subsection 40, paragraph
23“e”, have not been convicted of a violation of Code chapter
24123. In addition, for renewal of a class “E” liquor control
25license, the licensed premises shall constitute a safe and
26proper place and building that complies with all applicable
27building-related regulations.
28This division of the bill takes effect January 1, 2023.
29Division III of the bill relates to the distribution of
30certain alcoholic beverage control revenues.
31Code section 123.17, concerning transfers from the beer
32and liquor control fund, is amended. The bill provides that
33of the moneys transferred to a special revenue account in the
34general fund of the state from the beer and liquor control
35fund, $1 million, plus any additional amount as determined by
-17-1the general assembly, shall be appropriated to the department
2of public health to be distributed as provided in Code section
3125.59 as grants to counties, persons, or nonprofit entities
4for substance abuse and prevention programs. Code section
5125.59 is amended to reflect that only this new appropriation
6shall be transferred to the department of public health for the
7purposes of Code section 125.59.
8Code section 123.143, concerning distribution of certain
9beer permit fees, is amended. The bill provides that all
10beer-related permit fees collected by the alcoholic beverages
11division shall accrue to the beer and liquor control fund
12except as otherwise provided. The bill also provides that
13of the retail beer permit fees collected by the alcoholic
14beverages division, the division shall remit to the applicable
15local authority a sum of money equal to the retail beer permit
16fees collected by the division covering premises covered by the
17local authority’s jurisdiction. The bill further eliminates
18the requirement that retail beer permit fees collected by the
19local authority be transferred as provided in Code section
20125.59.
21Code section 123.97, providing that most revenues arising
22under the operation of Code chapter 123 become part of the
23general fund of the state, is repealed as inconsistent with the
24provisions of current Code section 123.17.
25This division of the bill takes effect January 1, 2023.
26Division IV of the bill relates to class “E” liquor control
27licenses.
28Code section 123.30, concerning liquor control licenses, is
29amended. The bill provides that a class “E” liquor control
30licensee can purchase wine and beer from a class “A” wine
31or beer permittee only, respectively. The bill specifically
32allows the class “E” licensee to sell wine and beer in unopened
33containers at retail, and to sell alcoholic liquor and high
34alcoholic content beer at wholesale. The bill strikes a
35provision allowing the holder of a class “E” liquor control
-18-1license to also hold a class “B” wine or class “C” beer permit
2for the premises licensed under the class “E” license.
3Code section 123.36, concerning class “E” liquor control
4license fees, is amended. The bill establishes license fees
5based on the population of the city where the premises is
6located as well as the square footage of the licensed premises.
7Current law bases the fees only on the population of the city
8where the premises is located.
9This division of the bill takes effect January 1, 2023.
10Division V of the bill relates to certain special licenses
11and permits.
12Code section 123.34, concerning seasonal licenses and
13permits, is amended. The bill eliminates the six-month
14seasonal license or permit and provides that the fee for an
15eight-month seasonal license or permit shall be 50 percent of
16the license or permit fee for that class of license or permit
17instead of a proportional share of that fee.
18Code section 123.173A, providing for a charity beer,
19spirits, and wine auction permit, and Code section 123.173B,
20providing for a charity beer, spirits, and wine event permit,
21are stricken and replaced with a combined charity beer,
22spirits, and wine special event permit, allowing the permit
23holder to conduct a charity auction, charity event, or a
24combined charity auction and charity event in a similar manner
25as is allowed under current law for the two separate permits.
26The bill only allows one charity auction, charity event, or
27combined charity auction and charity event, to be conducted
28during the period of the permit and limits a person to no more
29than two special event permits in a calendar year.
30This division of the bill takes effect January 1, 2023.
31Division VI of the bill concerns Sunday sales of alcoholic
32beverages. The bill eliminates the requirement to obtain a
33special privilege to sell alcoholic beverages on Sunday and
34provides that sales or other activities relating to alcoholic
35beverages on Sunday will be allowed to the same extent as they
-19-1are allowed on any other day.
2This division of the bill takes effect January 1, 2023.
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