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Senate File 2350 - IntroducedA Bill ForAn Act 1relating to alcoholic beverage control and licensing,
2providing for fees, and including effective date provisions.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2RETAIL ALCOHOL LICENSES
3 Section 1. Section 123.30, Code 2022, is amended by striking
4the section and inserting in lieu thereof the following:
5123.30 Retail alcohol licenses — classes.
61. a. A retail alcohol license may be issued to any person
7who is of good moral character as defined by this chapter.
8b. As a condition for issuance of a retail alcohol license
9or wine or beer permit, the applicant must give consent
10to members of the fire, police, and health departments and
11the building inspector of cities; the county sheriff or
12deputy sheriff; members of the department of public safety;
13representatives of the division and of the department of
14inspections and appeals; certified police officers; and
15any official county health officer to enter upon areas of
16the premises where alcoholic beverages are stored, served,
17or sold, without a warrant during business hours of the
18licensee or permittee to inspect for violations of this
19chapter or ordinances and regulations that cities and boards
20of supervisors may adopt. However, a subpoena issued under
21section 421.17 or a warrant is required for inspection of
22private records, a private business office, or attached living
23quarters. Persons who are not certified peace officers shall
24limit the scope of their inspections of licensed premises
25to the regulatory authority under which the inspection is
26conducted. All persons who enter upon a licensed premises to
27conduct an inspection shall present appropriate identification
28to the owner of the establishment or the person who appears
29to be in charge of the establishment prior to commencing
30an inspection; however, this provision does not apply to
31undercover criminal investigations conducted by peace officers.
32c. As a further condition for the issuance of a class “E”
33retail alcohol license, the applicant shall post a bond in
34a sum of not less than five thousand nor more than fifteen
35thousand dollars as determined on a sliding scale established
-1-1by the division; however, a bond shall not be required if all
2purchases of alcoholic liquor from the division by the licensee
3are made by means that ensure that the division will receive
4full payment in advance of delivery of the alcoholic liquor.
5d. A class “E” retail alcohol license may be issued to a
6city council for premises located within the limits of the city
7if there are no class “E” retail alcohol licensees operating
8within the limits of the city and no other applications for a
9class “E” license for premises located within the limits of
10the city at the time the city council’s application is filed.
11If a class “E” retail alcohol license is subsequently issued
12to a private person for premises located within the limits of
13the city, the city council shall surrender its license to the
14division within one year of the date that the class “E” retail
15alcohol licensee begins operating, liquidate any remaining
16assets connected with the liquor store, and cease operating the
17liquor store.
182. A retail alcohol license shall not be issued for premises
19which do not constitute a safe and proper place or building
20and which do not conform to all applicable laws, ordinances,
21resolutions, and health and fire regulations. A licensee
22shall not have or maintain any interior access to residential
23or sleeping quarters unless permission is granted by the
24administrator in the form of a living quarters permit.
253. Retail alcohol licenses issued under this chapter shall
26be of the following classes:
27a. Class “B”.
28(1) (a) A class “B” retail alcohol license may be
29issued and shall authorize the holder to purchase wine from
30a class “A” wine permittee only and beer from a class “A”
31beer permittee only, and to sell wine and beer in original
32unopened containers at retail to patrons for consumption off
33the licensed premises.
34(b) The holder of a class “B” retail alcohol license may
35sell wine to class “C”, special class “C”, class “D”, and class
-2-1“F” retail alcohol licensees for resale for consumption on
2the premises. Such wine sales shall be in quantities of less
3than one case of any wine brand but not more than one such
4sale shall be made to the same retail alcohol licensee in a
5twenty-four-hour period.
6(2) A special class “B” retail native wine license shall
7authorize the holder to purchase wine from a native winery
8holding a class “A” wine permit and to sell native wine only at
9retail for consumption off the licensed premises.
10b. Class “C”.
11(1) A class “C” retail alcohol license may be issued to
12a commercial establishment but must be issued in the name of
13the individuals who actually own the entire business and shall
14authorize the holder to purchase alcoholic liquors in original
15unopened containers from class “E” retail alcohol licensees
16only, wine from class “A” wine permittees, class “B” retail
17alcohol licensees, or class “E” retail alcohol licensees only
18as provided in this section and section 123.177, and to sell
19alcoholic beverages to patrons by the individual drink for
20consumption on the premises only. However, alcoholic liquor,
21wine, and beer in original unopened containers may also be sold
22for consumption off the premises. In addition, mixed drinks
23or cocktails may also be sold for consumption off the premises
24subject to the requirements of section 123.49, subsection 2,
25paragraph “d”. The holder of a class “C” retail alcohol license
26may also hold a special class “A” beer permit for the premises
27licensed under a class “C” retail alcohol license for the
28purpose of operating a brewpub pursuant to this chapter.
29(2) A special class “C” retail alcohol license may be issued
30to a commercial establishment and shall authorize the holder
31to purchase wine from class “A” wine permittees, class “B”
32retail alcohol licensees, or class “E” retail alcohol licensees
33only as provided in this section and section 123.177, and to
34sell wine and beer to patrons by the individual drink for
35consumption on the premises only. However, wine and beer in
-3-1original unopened containers may also be sold for consumption
2off the premises. The license issued to holders of a special
3class “C” retail alcohol license shall clearly state on its
4face that the license is limited.
5c. Class “D”.
6(1) A class “D” retail alcohol license may be issued
7to a railway corporation, to an air common carrier, and to
8passenger-carrying boats or ships for hire with a capacity of
9twenty-five persons or more operating in inland or boundary
10waters, and shall authorize the holder to sell or furnish
11alcoholic beverages to passengers for consumption only on
12trains, watercraft as described in this section, or aircraft,
13respectively. Each license is valid throughout the state.
14Only one license is required for all trains, watercraft, or
15aircraft operated in the state by the licensee. However, if a
16watercraft is an excursion gambling boat licensed under chapter
1799F, the owner shall obtain a separate class “D” retail alcohol
18license for each excursion gambling boat operating in the
19waters of this state.
20(2) A class “D” retail alcohol licensee who operates a train
21or a watercraft intrastate only, or an excursion gambling boat
22licensed under chapter 99F, shall purchase alcoholic liquor in
23original unopened containers from a class “E” retail alcohol
24licensee only, wine from a class “A” wine permittee, class “B”
25retail alcohol licensees, or class “E” retail alcohol licensee
26only as provided in this section and section 123.177, and beer
27from a class “A” beer permittee only.
28d. Class “E”.
29(1) A class “E” retail alcohol license may be issued and
30shall authorize the holder to purchase alcoholic liquor in
31original unopened containers from the division only, wine
32from a class “A” wine permittee only, and beer from a class
33“A” beer permittee only; to sell alcoholic liquor, wine, and
34beer in original unopened containers at retail to patrons for
35consumption off the licensed premises; and to sell alcoholic
-4-1liquor and high alcoholic content beer at wholesale to other
2retail alcohol licensees, provided the holder has filed with
3the division a basic permit issued by the alcohol and tobacco
4tax and trade bureau of the United States department of the
5treasury.
6(2) A holder of a class “E” retail alcohol license may hold
7other retail alcohol licenses, but the premises licensed under
8a class “E” retail alcohol license shall be separate from other
9licensed premises, though the separate premises may have a
10common entrance.
11(3) The holder of a class “E” retail alcohol license may
12sell wine to class “C”, special class “C”, class “D”, and class
13“F” retail alcohol licensees for resale for consumption on
14the premises. Such wine sales shall be in quantities of less
15than one case of any wine brand but not more than one such
16sale shall be made to the same retail alcohol licensee in a
17twenty-four-hour period.
18(4) The division may issue a class “E” retail alcohol
19license for premises covered by a retail alcohol license
20for on-premises consumption under any of the following
21circumstances:
22(a) If the premises are in a county having a population
23under nine thousand five hundred in which no other class “E”
24retail alcohol license has been issued by the division, and no
25other application for a class “E” retail alcohol license has
26been made within the previous twelve consecutive months.
27(b) If, notwithstanding any provision of this chapter to the
28contrary, the premises covered by a retail alcohol license is a
29grocery store that is at least five thousand square feet.
30e. Class “F”. A class “F” retail alcohol license may be
31issued to a club and shall authorize the holder to purchase
32alcoholic liquors in original unopened containers from class
33“E” retail alcohol licensees only, beer from class “A” beer
34permittees only, wine from class “A” wine permittees, class “B”
35retail alcohol licensees, or class “B” retail alcohol licensees
-5-1only as provided in this section and section 123.177, and to
2sell alcoholic beverages to bona fide members and their guests
3by the individual drink for consumption on the premises only.
44. Notwithstanding any provision of this chapter to the
5contrary, a person holding a retail alcohol license to sell
6alcoholic beverages for consumption on the licensed premises
7may permit a customer to remove one unsealed bottle of wine
8for consumption off the premises if the customer has purchased
9and consumed a portion of the bottle of wine on the licensed
10premises. The licensee or the licensee’s agent shall securely
11reseal such bottle in a bag designed so that it is visibly
12apparent that the resealed bottle of wine has not been tampered
13with and provide a dated receipt for the resealed bottle of
14wine to the customer. A wine bottle resealed pursuant to the
15requirements of this subsection is subject to the requirements
16of sections 321.284 and 321.284A. A person holding a retail
17alcohol license to sell alcoholic beverages for consumption on
18the licensed premises may permit a customer to carry an open
19container of wine from the person’s licensed premises into
20another immediately adjacent licensed premises that is covered
21by a license or permit that authorizes the consumption of wine,
22a temporarily closed public right-of-way, or a private place.
23 Sec. 2. Section 123.31, Code 2022, is amended by striking
24the section and inserting in lieu thereof the following:
25123.31 Retail alcohol licenses — application.
261. A person applying for a retail alcohol license shall
27submit a completed application electronically, or in a manner
28prescribed by the administrator, which shall set forth under
29oath the following:
30a. The name and place of residence of the applicant.
31b. The names and addresses of all persons or, in the case of
32a corporation, limited liability company, or any other similar
33legal entity, the officers, directors, and persons owning or
34controlling ten percent or more of the capital stock thereof,
35having a financial interest, by way of loan, ownership, or
-6-1otherwise, in the business.
2c. The location of the premises where the applicant intends
3to operate.
4d. The name of the owner of the premises and if the owner of
5the premises is not the applicant, whether the applicant is the
6actual lessee of the premises.
7e. When required by the administrator, and in such form and
8containing such information as the administrator may require,
9a description of the premises where the applicant intends to
10use the license, to include a sketch or drawing of the premises
11and, if applicable, the number of square feet of interior floor
12space which comprises the retail sales area of the premises.
13f. Whether any person specified in paragraph “b” has ever
14been convicted of any offense against the laws of the United
15States, or any state or territory thereof, or any political
16subdivision of any such state or territory.
17g. Any other information as required by the administrator.
182. The retail alcohol license shall only be issued to an
19applicant who establishes all of the following:
20a. That the applicant has submitted a completed application
21as required by subsection 1.
22b. That the applicant is a person of good moral character as
23provided in section 123.3, subsection 40.
24c. That the applicant is a citizen of the state of Iowa
25or, if a corporation, that the applicant is authorized to do
26business in the state.
27d. That the premises where the applicant intends to use the
28license conforms to all applicable laws, health regulations,
29and fire regulations, and constitutes a safe and proper place
30or building and that the applicant shall not have or maintain
31any interior access to residential or sleeping quarters unless
32permission is granted by the administrator in the form of a
33living quarters permit.
34e. That the applicant gives consent to a person, pursuant
35to section 123.30, subsection 1, to enter upon the premises
-7-1without a warrant during the business hours of the applicant
2to inspect for violations of the provisions of this chapter or
3ordinances and regulations that local authorities may adopt.
4 Sec. 3. NEW SECTION. 123.31A Authority under class “B”,
5class “C”, special class “C”, and class “E” retail alcohol
6license.
71. The holder of a class “B”, class “C”, special class “C”,
8or class “E” retail alcohol license shall be allowed to sell
9beer and wine to consumers at retail for consumption off the
10premises. The sales made pursuant to this section shall be
11made in original containers except as provided in subsection 3.
122. Every person holding a class “B”, class “C”, special
13class “C”, or class “E” retail alcohol license having more
14than one place of business where beer and wine is sold which
15places do not constitute a single premises within the meaning
16of section 123.3, subsection 29, shall be required to have a
17separate license for each separate place of business, except as
18otherwise provided by this chapter.
193. Subject to the rules of the division, sales made pursuant
20to this section may be made in a container other than the
21original container only if all of the following requirements
22are met:
23a. The beer or wine is transferred from the original
24container to the container to be sold on the licensed premises
25at the time of sale.
26b. The person transferring the beer or wine from the
27original container to the container to be sold shall be
28eighteen years of age or older.
29c. The container to be sold shall be no larger than
30seventy-two ounces.
31d. The container to be sold shall be securely sealed by
32a method authorized by the division that is designed so that
33if the sealed container is reopened or the seal tampered with,
34it is visibly apparent that the seal on the container of beer
35or wine has been tampered with or the sealed container has
-8-1otherwise been reopened.
24. A container of beer or wine other than the original
3container that is sold and sealed in compliance with the
4requirements of subsection 3 and the division’s rules shall
5not be deemed an open container subject to the requirements
6of sections 321.284 and 321.284A if the sealed container is
7unopened and the seal has not been tampered with, and the
8contents of the container have not been partially removed.
95. a. The holder of a class “C” or special class “C” retail
10alcohol license, or the licensee’s agents or employees, shall
11not sell beer or wine to other retail alcohol license holders
12knowing or having reasonable cause to believe that the beer
13will be resold in another licensed establishment.
14b. A holder of any retail alcohol permit shall not sell wine
15except wine which is purchased from a person holding a class
16“A” wine permit and on which the tax imposed by section 123.183
17has been paid.
18 Sec. 4. NEW SECTION. 123.31B Authority under special class
19“B” retail native wine license.
201. A person holding a special class “B” retail native wine
21license may sell native wine only at retail for consumption off
22the premises. Native wine shall be sold for consumption off
23the premises in original containers.
242. A special class “B” retail native wine licensee having
25more than one place of business where wine is sold shall obtain
26a separate license for each place of business.
27 Sec. 5. REPEAL. Sections 123.128, 123.129, 123.131,
28123.132, 123.140, 123.178, 123.178A, and 123.178B, Code 2022,
29are repealed.
30DIVISION II
31ALCOHOLIC BEVERAGE CONTROL FEES
32 Sec. 6. Section 123.23, subsection 1, Code 2022, is amended
33to read as follows:
341. Any manufacturer, distiller, or importer of alcoholic
35liquors shipping, selling, or having alcoholic liquors brought
-9-1into this state for resale by the state shall, as a condition
2precedent to the privilege of so trafficking in alcoholic
3liquors in this state, annually make application for and hold
4a distiller’s certificate of compliance which shall be issued
5by the administrator for that purpose. No brand of alcoholic
6liquor shall be sold by the division in this state unless
7the manufacturer, distiller, importer, and all other persons
8participating in the distribution of that brand in this state
9have obtained a certificate. The certificate of compliance
10shall expire at the end of one year from the date of issuance
11and shall be renewed for a like period upon application to the
12administrator unless otherwise suspended or revoked for cause.
13Each completed application for a certificate of compliance
14or renewal shall be submitted electronically, or in a manner
15prescribed by the administrator, and shall be accompanied by
16a fee of fifty two hundred dollars payable to the division.
17However, this subsection need not apply to a manufacturer,
18distiller, or importer who ships or sells in this state no more
19than eleven gallons or its case equivalent during any fiscal
20year as a result of “special orders” which might be placed,
21as defined and allowed by divisional rules adopted under this
22chapter.
23 Sec. 7. Section 123.36, Code 2022, is amended by striking
24the section and inserting in lieu thereof the following:
25123.36 Retail alcohol license fees.
261. The following fees shall be paid to the division annually
27for retail alcohol licenses issued under section 123.30:
28a. Class “B” retail alcohol license fees shall be determined
29as follows:
30(1) For premises located within the corporate limits of a
31city with a population of two thousand five hundred or less, a
32fee determined as follows:
33(a) For a premises with a square footage of one thousand
34five hundred or less, seventy-five dollars.
35(b) For a premises with a square footage of more than one
-10-1thousand five hundred but not more than two thousand, one
2hundred fifty dollars.
3(c) For a premises with a square footage of more than two
4thousand but not more than five thousand, two hundred fifty
5dollars.
6(d) For a premises with a square footage over five thousand,
7three hundred fifty dollars.
8(2) For premises located within the corporate limits of a
9city with a population of more than two thousand five hundred
10but less than fifteen thousand, a fee determined as follows:
11(a) For a premises with a square footage of one thousand
12five hundred or less, one hundred fifty dollars.
13(b) For a premises with a square footage of more than one
14thousand five hundred but not more than two thousand, two
15hundred fifty dollars.
16(c) For a premises with a square footage of more than two
17thousand but not more than five thousand, three hundred fifty
18dollars.
19(d) For a premises with a square footage over five thousand,
20five hundred dollars.
21(3) For premises located within the corporate limits of
22a city with a population of fifteen thousand or more, a fee
23determined as follows:
24(a) For a premises with a square footage of one thousand
25five hundred or less, two hundred fifty dollars.
26(b) For a premises with a square footage of more than one
27thousand five hundred but not more than two thousand, three
28hundred fifty dollars.
29(c) For a premises with a square footage of more than two
30thousand but not more than five thousand, five hundred dollars.
31(d) For a premises with a square footage over five thousand,
32seven hundred fifty dollars.
33(4) For premises located outside the corporate limits of
34any city, a fee equal to that charged to a premises with the
35same square footage in the incorporated city located nearest
-11-1the premises to be licensed. If there is doubt as to which
2of two or more differing corporate limits is the nearest, the
3license fee which is the largest shall prevail. However, if
4the premises is located in an unincorporated town, for purposes
5of this paragraph, the unincorporated town shall be treated as
6if it is a city.
7b. Special class “B” retail native wine license fees shall
8be one hundred twenty-five dollars.
9c. Class “C” retail alcohol license fees shall be determined
10as follows:
11(1) Commercial establishments located within the corporate
12limits of cities of two thousand five hundred population or
13less, five hundred fifty dollars.
14(2) Commercial establishments located within the corporate
15limits of cities of over two thousand five hundred and less
16than fifteen thousand population, nine hundred dollars.
17(3) Commercial establishments located within the corporate
18limits of cities of fifteen thousand population and over, one
19thousand two hundred fifty dollars.
20(4) Commercial establishments located outside the corporate
21limits of any city, a fee equal to that charged in the
22incorporated city located nearest the premises to be licensed,
23and in case there is doubt as to which of two or more differing
24corporate limits is the nearest, the license fee which is the
25largest shall prevail. However, if a commercial establishment
26is located in an unincorporated town, for purposes of this
27paragraph, the unincorporated town shall be treated as if it
28is a city.
29d. Special class “C” retail alcohol license fees shall be
30determined as follows:
31(1) Commercial establishments located within the corporate
32limits of cities of two thousand five hundred population or
33less, one hundred fifty dollars.
34(2) Commercial establishments located within the corporate
35limits of cities of over two thousand five hundred and less
-12-1than fifteen thousand population, three hundred dollars.
2(3) Commercial establishments located within the corporate
3limits of cities of fifteen thousand population and over, four
4hundred fifty dollars.
5(4) Commercial establishments located outside the corporate
6limits of any city, a fee equal to that charged in the
7incorporated city located nearest the premises to be licensed,
8and in case there is doubt as to which of two or more differing
9corporate limits is the nearest, the license fee which is the
10largest shall prevail. However, if a commercial establishment
11is located in an unincorporated town, for purposes of this
12paragraph, the unincorporated town shall be treated as if it
13is a city.
14e. Class “D” retail alcohol license fees shall be determined
15as follows:
16(1) For watercraft, one hundred fifty dollars.
17(2) For trains, five hundred dollars.
18(3) For air common carriers, each company shall pay five
19hundred dollars.
20f. Class “E” retail alcohol license fees shall be determined
21as follows:
22(1) For premises located within the corporate limits of a
23city with a population of two thousand five hundred or less, a
24fee determined as follows:
25(a) For a premises with a square footage of one thousand
26five hundred or less, seven hundred fifty dollars.
27(b) For a premises with a square footage of more than one
28thousand five hundred but not more than two thousand, one
29thousand five hundred dollars.
30(c) For a premises with a square footage of more than two
31thousand but not more than five thousand, two thousand five
32hundred dollars.
33(d) For a premises with a square footage over five thousand,
34three thousand five hundred dollars.
35(2) For premises located within the corporate limits of a
-13-1city with a population of more than two thousand five hundred
2but less than fifteen thousand, a fee determined as follows:
3(a) For a premises with a square footage of one thousand
4five hundred or less, one thousand five hundred dollars.
5(b) For a premises with a square footage of more than one
6thousand five hundred but not more than two thousand, two
7thousand five hundred dollars.
8(c) For a premises with a square footage of more than two
9thousand but not more than five thousand, three thousand five
10hundred dollars.
11(d) For a premises with a square footage over five thousand,
12five thousand dollars.
13(3) For premises located within the corporate limits of
14a city with a population of fifteen thousand or more, a fee
15determined as follows:
16(a) For a premises with a square footage of one thousand
17five hundred or less, two thousand five hundred dollars.
18(b) For a premises with a square footage of more than one
19thousand five hundred but not more than two thousand, three
20thousand five hundred dollars.
21(c) For a premises with a square footage of more than
22two thousand but not more than five thousand, five thousand
23dollars.
24(d) For a premises with a square footage over five thousand,
25seven thousand five hundred dollars.
26(4) For premises located outside the corporate limits of
27any city, a fee equal to that charged to a premises with the
28same square footage in the incorporated city located nearest
29the premises to be licensed. If there is doubt as to which
30of two or more differing corporate limits is the nearest, the
31license fee which is the largest shall prevail. However, if
32the premises is located in an unincorporated town, for purposes
33of this paragraph, the unincorporated town shall be treated as
34if it is a city.
35g. Class “F” retail alcohol license fees shall be six
-14-1hundred dollars, except that for class “F” licenses in cities
2of less than two thousand population, and for clubs of less
3than two hundred fifty members, the license fee shall be four
4hundred dollars; however, the fee shall be two hundred dollars
5for any club which is a post, branch, or chapter of a veterans
6organization chartered by the Congress of the United States, if
7the club does not sell or permit the consumption of alcoholic
8beverages on the premises more than one day in any week or
9more than a total of fifty-two days in a year, and if the
10application for a license states that the club does not and
11will not sell or permit the consumption of alcoholic beverages
12on the premises more than one day in any week or more than a
13total of fifty-two days in a year.
142. The division shall credit all fees to the beer and liquor
15control fund. The division shall remit to the appropriate
16local authority a sum equal to sixty-five percent of the fees
17collected for each class “B”, class “C”, or class “F” license
18except special class “C” licenses or class “E” licenses,
19covering premises located within the local authority’s
20jurisdiction. The division shall remit to the appropriate
21local authority a sum equal to seventy-five percent of the fees
22collected for each special class “C” license covering premises
23located within the local authority’s jurisdiction. Those fees
24collected for each class “E” retail alcohol license shall be
25credited to the beer and liquor control fund.
263. There is imposed a surcharge on the fee for each class
27“C”, special class “C”, or class “F” retail alcohol license
28equal to thirty percent of the scheduled license fee. The
29surcharges collected under this subsection shall be deposited
30in the beer and liquor control fund, and notwithstanding
31subsection 2, no portion of the surcharges collected under this
32subsection shall be remitted to the local authority.
33 Sec. 8. Section 123.41, subsection 1, Code 2022, is amended
34to read as follows:
351. Each completed application to obtain or renew a
-15-1manufacturer’s license shall be submitted to the division
2electronically, or in a manner prescribed by the administrator,
3and shall be accompanied by a fee of three hundred fifty
4 dollars payable to the division. The administrator may in
5accordance with this chapter grant and issue to a manufacturer
6a manufacturer’s license, valid for a one-year period after
7date of issuance, which shall allow the manufacture, storage,
8and wholesale disposition and sale of alcoholic liquors to the
9division and to customers outside of the state.
10 Sec. 9. Section 123.43, subsection 3, Code 2022, is amended
11to read as follows:
123. A class “A” native distilled spirits license for a native
13distillery shall be issued and renewed annually upon payment of
14a fee of five three hundred dollars.
15 Sec. 10. Section 123.134, Code 2022, is amended by striking
16the section and inserting in lieu thereof the following:
17123.134 Beer permit fees.
181. The annual permit fee for a class “A” beer permit is
19seven hundred fifty dollars.
202. The annual permit fee for a class “A” beer permit for a
21native brewery is three hundred dollars.
223. The annual permit fee for a special class “A” beer permit
23is three hundred dollars.
24 Sec. 11. Section 123.135, subsection 1, Code 2022, is
25amended to read as follows:
261. A manufacturer, brewer, bottler, importer, or vendor of
27beer, or any agent thereof, desiring to ship or sell beer, or
28have beer brought into this state for resale by a class “A”
29beer permittee, shall first make application for and be issued
30a brewer’s certificate of compliance by the administrator for
31that purpose. The certificate of compliance expires at the
32end of one year from the date of issuance and shall be renewed
33for a like period upon application to the administrator unless
34otherwise revoked for cause. Each completed application for
35a certificate of compliance or renewal of a certificate shall
-16-1be submitted electronically, or in a manner prescribed by the
2administrator, and shall be accompanied by a fee of five two
3 hundred dollars payable to the division. Each holder of a
4certificate of compliance shall furnish the information in a
5manner the administrator requires.
6 Sec. 12. Section 123.179, Code 2022, is amended by striking
7the section and inserting in lieu thereof the following:
8123.179 Wine permit and license fees.
91. The annual permit fee for a class “A” wine permit that
10is not issued to a native wine manufacturer is seven hundred
11fifty dollars.
122. The annual permit fee for a class “A” wine permit issued
13to a native wine manufacturer is one hundred dollars.
143. The fee for a charity beer, spirits, and wine special
15event license is one hundred dollars.
16 Sec. 13. Section 123.180, subsection 1, Code 2022, is
17amended to read as follows:
181. A manufacturer, vintner, bottler, importer, or vendor of
19wine, or an agent thereof, desiring to ship, sell, or have wine
20brought into this state for sale at wholesale by a class “A”
21permittee shall first make application for and shall be issued
22a vintner’s certificate of compliance by the administrator
23for that purpose. The vintner’s certificate of compliance
24shall expire at the end of one year from the date of issuance
25and shall be renewed for a like period upon application to
26the administrator unless otherwise revoked for cause. Each
27completed application for a vintner’s certificate of compliance
28or renewal of a certificate shall be submitted electronically,
29or in a manner prescribed by the administrator, and shall be
30accompanied by a fee of one two hundred dollars payable to the
31division. Each holder of a vintner’s certificate of compliance
32shall furnish the information required by the administrator in
33the form the administrator requires. A vintner or wine bottler
34whose plant is located in Iowa and who otherwise holds a class
35“A” wine permit to sell wine at wholesale is exempt from the
-17-1fee, but not the other terms and conditions. The holder of a
2vintner’s certificate of compliance may also hold a class “A”
3wine permit.
4DIVISION III
5ALCOHOLIC BEVERAGE CONTROL
6 Sec. 14. Section 123.3, subsections 9, 22, 29, and 30, Code
72022, are amended to read as follows:
89. “Brewpub” means a commercial establishment authorized to
9sell beer at retail for consumption on or off the premises that
10is operated by a person who holds a class “C” liquor control or
11special class “C” retail alcohol license or a class “B” beer
12permit and who also holds a special class “A” beer permit that
13authorizes the holder to manufacture and sell beer pursuant to
14this chapter.
1522. “High alcoholic content beer” means beer which contains
16more than six and twenty-five hundredths percent of alcohol by
17volume, but not more than fifteen nineteen percent of alcohol
18by volume, that is made by the fermentation of an infusion
19in potable water of barley, malt, and hops, with or without
20unmalted grains or decorticated and degerminated grains. Not
21more than one and five-tenths percent of the volume of a “high
22alcoholic content beer” may consist of alcohol derived from
23added flavors and other nonbeverage ingredients containing
24alcohol. The added flavors and other nonbeverage ingredients
25may not include added caffeine or other added stimulants
26including but not limited to guarana, ginseng, and taurine.
2729. “Licensed premises” or “premises” means all rooms,
28enclosures, contiguous areas, or places susceptible of precise
29description satisfactory to the administrator where alcoholic
30beverages, wine, or beer is sold or consumed under authority of
31a liquor control retail alcohol license, wine permit, or beer
32permit. A single licensed premises may consist of multiple
33rooms, enclosures, areas, or places if they are wholly within
34the confines of a single building or contiguous grounds.
3530. “Local authority” means the city council of any
-18-1incorporated city in this state, or the county board of
2supervisors of any county in this state, which is empowered by
3this chapter to approve or deny applications for retail beer or
4wine permits and liquor control alcohol licenses; empowered to
5recommend that such permits or licenses be granted and issued
6by the division; and empowered to take other actions reserved
7to them by this chapter.
8 Sec. 15. Section 123.3, subsection 40, paragraph b, Code
92022, is amended to read as follows:
10b. The person is not prohibited by section 123.40 from
11obtaining a liquor control retail alcohol license or a wine or
12beer permit.
13 Sec. 16. Section 123.3, subsection 45, Code 2022, is amended
14by striking the subsection and inserting in lieu thereof the
15following:
1645. “Retail alcohol license” means a class “B”, class “C”,
17special class “C”, class “D”, class “E”, or class “F” retail
18alcohol license, or a special class “B” retail native wine
19license issued under this chapter.
20 Sec. 17. Section 123.3, subsection 46, Code 2022, is amended
21by striking the subsection.
22 Sec. 18. Section 123.9, subsections 5 and 7, Code 2022, are
23amended to read as follows:
245. To grant and issue beer permits, wine permits, liquor
25control retail alcohol licenses, and other licenses; and to
26suspend or revoke all such permits and licenses for cause under
27this chapter.
287. To accept alcoholic liquors ordered delivered to the
29alcoholic beverages division pursuant to chapter 809A, and
30offer for sale and deliver the alcoholic liquors to class
31“E” liquor control retail alcohol licensees, unless the
32administrator determines that the alcoholic liquors may be
33adulterated or contaminated. If the administrator determines
34that the alcoholic liquors may be adulterated or contaminated,
35the administrator shall order their destruction.
-19-1 Sec. 19. Section 123.10, subsections 3, 6, and 14, Code
22022, are amended to read as follows:
33. Regulating the purchase of alcoholic liquor generally
4and the furnishing of the liquor to class “E” liquor control
5 retail alcohol licensees under this chapter, and determining
6the classes, varieties, and brands of alcoholic liquors to be
7kept in state warehouses.
86. Providing for the issuance and electronic distribution
9of price lists which show the price to be paid by class “E”
10liquor control retail alcohol licensees for each brand,
11class, or variety of liquor kept for sale by the division,
12providing for the filing or posting of prices charged in sales
13between class “A” beer and class “A” wine permit holders and
14retailers, as provided in this chapter, and establishing or
15controlling the prices based on minimum standards of fill,
16quantity, or alcoholic content for each individual sale of
17alcoholic beverages as deemed necessary for retail or consumer
18protection. However, the division shall not regulate markups,
19prices, discounts, allowances, or other terms of sale at which
20alcoholic liquor may be purchased by the retail public or
21liquor control retail alcohol licensees from class “E” liquor
22control retail alcohol licensees or at which wine may be
23purchased and sold by class “A” and retail wine permittees, or
24change, nullify, or vary the terms of an agreement between a
25holder of a vintner certificate of compliance and a class “A”
26wine permittee.
2714. Prescribing the uniform fee to be assessed against
28a class “B” beer permittee, class “C” native wine permittee,
29or liquor control retail alcohol licensee, except a class
30“B”, special class “B”, or class “E” liquor control retail
31alcohol licensee, to cover the administrative costs incurred
32by the division resulting from the failure of the licensee or
33permittee to maintain dramshop liability insurance coverage
34pursuant to section 123.92, subsection 2, paragraph “a”.
35 Sec. 20. Section 123.15, Code 2022, is amended to read as
-20-1follows:
2123.15 Favors from licensee or permittee.
3A person responsible for the administration or enforcement
4of this chapter shall not accept or solicit donations,
5gratuities, political advertising, gifts, or other favors,
6directly or indirectly, from any liquor control retail alcohol
7 licensee, wine permittee, or beer permittee.
8 Sec. 21. Section 123.16, subsections 6 and 7, Code 2022, are
9amended to read as follows:
106. The number of liquor control retail alcohol licenses,
11wine permits, and beer permits issued, by class, the number in
12effect on the last day included in the report, and the number
13which have been suspended or revoked during the period covered
14by the report.
157. Amount of fees paid to the division from liquor control
16 retail alcohol licenses, wine permits, and beer permits, in
17gross, and the amount of liquor control retail alcohol license
18fees returned to local subdivisions of government as provided
19under this chapter.
20 Sec. 22. Section 123.22, subsection 1, Code 2022, is amended
21to read as follows:
221. The division has the exclusive right of importation
23into the state of all forms of alcoholic liquor, except as
24otherwise provided in this chapter, and a person shall not
25import alcoholic liquor, except that an individual of legal age
26may import and have in the individual’s possession an amount of
27alcoholic liquor not exceeding nine liters per calendar month
28that the individual personally obtained outside the state.
29Alcoholic liquor imported by an individual pursuant to this
30subsection shall be for personal consumption only in a private
31home or other private accommodation. A distillery shall not
32sell alcoholic liquor within the state to any person but only
33to the division, except as otherwise provided in this chapter.
34This section vests in the division exclusive control within the
35state as purchaser of all alcoholic liquor sold by distilleries
-21-1within the state or imported, except beer and wine, and except
2as otherwise provided in this chapter. The division shall
3receive alcoholic liquor on a bailment system for resale by the
4division in the manner set forth in this chapter. The division
5shall act as the sole wholesaler of alcoholic liquor to class
6“E” liquor control retail alcohol licensees.
7 Sec. 23. Section 123.24, Code 2022, is amended to read as
8follows:
9123.24 Alcoholic liquor sales by the division — dishonored
10payments — liquor prices.
111. The division shall sell alcoholic liquor at wholesale
12only. The division shall sell alcoholic liquor to class “E”
13liquor control retail alcohol licensees only. The division
14shall offer the same price on alcoholic liquor to all class “E”
15liquor control retail alcohol licensees without regard for the
16quantity of purchase or the distance for delivery.
172. The price of alcoholic liquor sold by the division shall
18consist of the following:
19a. The manufacturer’s price.
20b. A markup of up to fifty percent of the wholesale price
21paid by the division for the alcoholic liquor. The division
22may increase the markup on selected kinds of alcoholic liquor
23sold by the division if the average return to the division on
24all sales of alcoholic liquor does not exceed the wholesale
25price paid by the division and the fifty percent markup.
26c. A split case charge in an amount determined by the
27division when alcoholic liquor is sold in quantities which
28require a case to be split.
29d. A bottle surcharge in an amount sufficient, when added
30to the amount not refunded to class “E” liquor control retail
31alcohol licensees pursuant to section 455C.2, to pay the costs
32incurred by the division for collecting and properly disposing
33of the liquor containers. The amount collected pursuant to
34this paragraph, in addition to any amounts not refunded to
35class “E” liquor control retail alcohol licensees pursuant
-22-1to section 455C.2, shall be deposited in the beer and liquor
2control fund established under section 123.17.
33. a. The division may accept from a class “E” liquor
4control retail alcohol licensee electronic funds transferred
5by automated clearing house, wire transfer, or another method
6deemed acceptable by the administrator, in payment of alcoholic
7liquor. If a payment is subsequently dishonored, the division
8shall cause a notice of nonpayment and penalty to be served
9upon the class “E” liquor control retail alcohol licensee or
10upon any person in charge of the licensed premises. The notice
11shall state that if payment or satisfaction for the dishonored
12payment is not made within ten days of the service of notice,
13the licensee’s liquor control retail alcohol license may be
14suspended under section 123.39. The notice of nonpayment and
15penalty shall be in a form prescribed by the administrator, and
16shall be sent by certified mail.
17b. If upon notice and hearing under section 123.39 and
18pursuant to the provisions of chapter 17A concerning a
19contested case hearing, the administrator determines that the
20class “E” liquor control retail alcohol licensee failed to
21satisfy the obligation for which the payment was issued within
22ten days after the notice of nonpayment and penalty was served
23on the licensee as provided in paragraph “a” of this subsection,
24the administrator may suspend the licensee’s class “E” liquor
25control retail alcohol license for a period not to exceed ten
26days.
274. The administrator may refuse to sell alcoholic liquor
28to a class “E” liquor control retail alcohol licensee who
29tenders a payment which is subsequently dishonored until the
30outstanding obligation is satisfied.
31 Sec. 24. Section 123.26, Code 2022, is amended to read as
32follows:
33123.26 Restrictions on sales — seals — labeling.
34Alcoholic liquor shall not be sold by a class “E” liquor
35control retail alcohol licensee except in a sealed container
-23-1with identifying markers as prescribed by the administrator
2and affixed in the manner prescribed by the administrator, and
3no such container shall be opened upon the premises of a state
4warehouse. The division shall cooperate with the department
5of natural resources so that only one identifying marker or
6mark is needed to satisfy the requirements of this section and
7section 455C.5, subsection 1. Possession of alcoholic liquors
8which do not carry the prescribed identifying markers is a
9violation of this chapter except as provided in section 123.22.
10 Sec. 25. Section 123.28, subsections 2 and 5, Code 2022, are
11amended to read as follows:
122. The division shall deliver alcoholic liquor purchased by
13class “E” liquor control retail alcohol licensees. Class “E”
14liquor control retail alcohol licensees may deliver alcoholic
15liquor purchased by class “A”, class “B”, class “C”, class “C”
16native distilled spirits, or class “D” liquor control, or class
17“F” retail alcohol licensees, and class “A”, class “B”, class
18“C”, class “C” native distilled spirits, or class “D” liquor
19control, or class “F” retail alcohol licensees may transport
20alcoholic liquor purchased from class “E” liquor control retail
21alcohol licensees.
225. This section does not affect the right of a liquor
23control retail alcohol license holder to purchase, possess, or
24transport alcoholic liquors subject to this chapter.
25 Sec. 26. Section 123.32, Code 2022, is amended to read as
26follows:
27123.32 Action by local authorities and division on
28applications for liquor control retail alcohol licenses, native
29distilled spirits licenses, and wine and beer permits.
301. Filing of application.
31a. A completed application for a class “A”, class “B”, class
32“C”, special class “C”, class “C” native distilled spirits, or
33class “E” liquor control retail alcohol license as provided
34in section 123.31, for a retail beer permit as provided in
35sections 123.128 and 123.129, or for a class “B”, class “B”
-24-1native, or class “C” native retail wine permit as provided in
2section 123.175 except a class “D” retail alcohol license,
3shall be filed with the appropriate city council if the
4premises for which the license or permit is sought are located
5within the corporate limits of a city, or with the board of
6supervisors if the premises for which the license or permit is
7sought are located outside the corporate limits of a city.
8b. A completed application for a class “D” liquor
9control retail alcohol license and for any of the following
10certificates, licenses, or permits shall be submitted to the
11division electronically, or in a manner prescribed by the
12administrator, which shall proceed in the same manner as in the
13case of an application approved by local authorities:
14(1) A certificate of compliance as provided in sections
15123.23, 123.135, and 123.180.
16(2) A class “D” liquor control retail alcohol license as
17provided in section 123.31.
18(3) A manufacturer’s license as provided in section 123.41.
19(4) A broker’s permit as provided in section 123.42.
20(5) A class “A” native distilled spirits license as provided
21in section 123.43.
22(6) A class “A” or special class “A” beer permit as provided
23in section 123.127.
24(7) A charity beer, spirits, and wine auction permit special
25event license as provided in section 123.173A.
26(8) A charity beer, spirits, and wine event permit as
27provided in section 123.173B.
28(9) (8) A class “A” wine permit as provided in section
29123.175.
30(10) (9) A wine direct shipper’s permit as provided in
31section 123.187.
32(11) (10) A wine carrier permit as provided in section
33123.188.
342. Action by local authorities. The local authority shall
35either approve or disapprove the issuance of a liquor control
-25-1 retail alcohol license, a retail wine permit, or a retail
2beer permit, shall endorse its approval or disapproval on
3the application, and shall forward the application with the
4necessary fee and bond, if required, to the division. There
5is no limit upon the number of liquor control retail alcohol
6 licenses, retail wine permits, or retail beer permits which may
7be approved for issuance by local authorities.
83. Licensed premises for local events. A local authority
9may define, by motion of the local authority, licensed premises
10which shall be used by holders of liquor control retail alcohol
11 licenses, beer permits, and wine permits at festivals, fairs,
12or celebrations which are sponsored or authorized by the local
13authority. The licensed premises defined by motion of the
14local authority shall be used by the holders of five-day or
15fourteen-day class “A”, class “B”, class “C”, special class
16“C”, or class “D” liquor control, or class “F” retail alcohol
17 licenses, or five-day or fourteen-day class “B” or class “C”
18native wine permits, or class “B” beer permits only.
194. Security employee training. A local authority, as a
20condition of obtaining and holding a license or permit for
21on-premises consumption, may require a designated security
22employee as defined in section 123.3 to be trained and
23certified in security methods. The training shall include but
24is not limited to de-escalation techniques, anger management
25techniques, civil rights or unfair practices awareness as
26provided in section 216.7, recognition of fake or altered
27identification, information on laws applicable to the serving
28of alcohol at a licensed premises, use of force and techniques
29for safely removing patrons, and instruction on the proper
30physical restraint methods used against a person who has become
31combative.
325. Occupancy rates. A local authority located in a county
33with a population that exceeds three hundred thousand persons,
34as a condition of obtaining and holding a license or permit
35 for on-premises consumption, shall require the applicant, or
-26-1 licensee, or permittee to provide, and update if necessary, the
2occupancy rate of the licensed premises.
36. Action by administrator.
4a. Upon receipt of an application having been disapproved
5by the local authority, the administrator shall notify the
6applicant that the applicant may appeal the disapproval of
7the application to the administrator. The applicant shall
8be notified by certified mail or personal service, and the
9application, the fee, and any bond shall be returned to the
10applicant.
11b. Upon receipt of an application having been approved by
12the local authority, the division shall make an investigation
13as the administrator deems necessary to determine that
14the applicant complies with all requirements for holding a
15license or permit, and may require the applicant to appear
16to be examined under oath to demonstrate that the applicant
17complies with all of the requirements to hold a license
18or permit. If the administrator requires the applicant to
19appear and to testify under oath, a record shall be made of
20all testimony or evidence and the record shall become a part
21of the application. The administrator may appoint a member
22of the division or may request an administrative law judge
23of the department of inspections and appeals to receive the
24testimony under oath and evidence, and to issue a proposed
25decision to approve or disapprove the application for a license
26or permit. The administrator may affirm, reverse, or modify
27the proposed decision to approve or disapprove the application
28for the license or permit. If the application is approved
29by the administrator, the license or permit shall be issued.
30If the application is disapproved by the administrator, the
31applicant shall be so notified by certified mail or personal
32service and the appropriate local authority shall be notified
33electronically, or in a manner prescribed by the administrator.
347. Appeal to administrator. An applicant for a liquor
35control retail alcohol license, wine permit, or beer permit may
-27-1appeal from the local authority’s disapproval of an application
2for a license or permit to the administrator. In the appeal
3the applicant shall be allowed the opportunity to demonstrate
4in an evidentiary hearing conducted pursuant to chapter 17A
5that the applicant complies with all of the requirements for
6holding the license or permit. The administrator may appoint
7a member of the division or may request an administrative law
8judge from the department of inspections and appeals to conduct
9the evidentiary hearing and to render a proposed decision to
10approve or disapprove the issuance of the license or permit.
11The administrator may affirm, reverse, or modify the proposed
12decision. If the administrator determines that the applicant
13complies with all of the requirements for holding a license
14or permit, the administrator shall order the issuance of the
15license or permit. If the administrator determines that the
16applicant does not comply with the requirements for holding
17a license or permit, the administrator shall disapprove the
18issuance of the license or permit.
198. Judicial review. The applicant or the local authority
20may seek judicial review of the action of the administrator
21in accordance with the terms of the Iowa administrative
22procedure Act, chapter 17A. Notwithstanding the terms of the
23Iowa administrative procedure Act, chapter 17A, petitions
24for judicial review may be filed in the district court of
25the county where the premises covered by the application are
26situated.
279. Suspension by local authority. A liquor control retail
28alcohol licensee or a wine or beer permittee whose license
29or permit has been suspended or revoked or a civil penalty
30imposed by a local authority for a violation of this chapter
31or suspended by a local authority for violation of a local
32ordinance may appeal the suspension, revocation, or civil
33penalty to the administrator. The administrator may appoint
34a member of the division or may request an administrative law
35judge from the department of inspections and appeals to hear
-28-1the appeal which shall be conducted in accordance with chapter
217A and to issue a proposed decision. The administrator may
3review the proposed decision upon the motion of a party to the
4appeal or upon the administrator’s own motion in accordance
5with chapter 17A. Upon review of the proposed decision, the
6administrator may affirm, reverse, or modify the proposed
7decision. A liquor control retail alcohol licensee, wine or
8beer permittee, or a local authority aggrieved by a decision
9of the administrator may seek judicial review of the decision
10pursuant to chapter 17A.
11 Sec. 27. Section 123.34, Code 2022, is amended to read as
12follows:
13123.34 Expiration of licenses, permits, and certificates
14of compliance — seasonal Seasonal, fourteen-day, and five-day
15licenses and permits — fees.
161. All licenses, permits, and certificates of compliance,
17unless sooner suspended or revoked, expire one year from date
18of issuance. The administrator shall notify a license, permit,
19or certificate holder electronically, or in a manner prescribed
20by the administrator, sixty days prior to the expiration of
21each license, permit, or certificate.
222. 1. a. The administrator may issue six-month or
23 eight-month seasonal class “A”, class “B”, class “C”, special
24class “C”, and class “D” liquor control and class “F” retail
25alcohol licenses, class “B” wine permits, class “B” or class
26“C” native wine permits, or class “B” beer permits.
27b. The fee for a six-month or an eight-month seasonal
28license or permit issued pursuant to this subsection shall be
29for a proportionate part fifty percent of the license or permit
30 fee for that class of license or permit. However, the fee for
31a seasonal class “B” native wine permit shall be the permit fee
32provided in section 123.179, subsection 4, and the fee for a
33seasonal class “C” native wine permit shall be the permit fee
34provided in section 123.179, subsection 5.
353. 2. a. The administrator may issue fourteen-day class
-29-1“A”, class “B”, class “C”, special class “C”, and class “D”
2liquor control and class “F” retail alcohol licenses, and
3fourteen-day class “B” beer permits, class “B” native wine
4permits, and class “C” native wine permits.
5b. A fourteen-day retail alcohol license or permit, if
6granted, is valid for fourteen consecutive days, but the holder
7shall not sell on the two Sundays in the fourteen-day period
8unless the holder qualifies for and obtains the privilege to
9sell on Sundays contained in section 123.36, subsection 6, and
10section 123.134, subsection 4.
11c. (1) The fee for a fourteen-day liquor control retail
12alcohol license or beer permit is one quarter of the annual fee
13for that class of liquor control retail alcohol license or beer
14permit. The fee for the privilege to sell on the two Sundays in
15the fourteen-day period is twenty percent of the price of the
16fourteen-day liquor control license or beer permit.
17(2) The fee for a fourteen-day class “B” native wine permit
18shall be the permit fee provided in section 123.179, subsection
194, and the fee for a fourteen-day class “C” native wine permit
20is the permit fee provided in section 123.179, subsection 5.
214. 3. a. The administrator may issue five-day class “A”,
22class “B”, class “C”, special class “C”, and class “D” liquor
23control, and class “F” retail alcohol licenses, and five-day
24class “B” beer permits, class “B” native wine permits, and
25class “C” native wine permits.
26b. A five-day retail alcohol license or permit is valid for
27five consecutive days, but the holder shall not sell alcoholic
28beverages on Sunday in the five-day period unless the holder
29qualifies for and obtains the privilege to sell on Sunday
30pursuant to section 123.36, subsection 6, and section 123.134,
31subsection 4.
32c. (1) The fee for the five-day liquor control retail
33alcohol license or beer permit is one-eighth of the annual fee
34for that class of license or permit. The fee for the privilege
35to sell on a Sunday in the five-day period is ten percent of the
-30-1price of the five-day liquor control license or beer permit.
2(2) The fee for a five-day class “B” native wine permit
3shall be the permit fee provided in section 123.179, subsection
44, and the fee for a five-day class “C” native wine permit is
5the permit fee provided in section 123.179, subsection 5.
65. 4. A refund of fees paid shall not be made for seasonal
7licenses or permits, or for fourteen-day or five-day liquor
8control retail alcohol licenses, native wine permits, or beer
9permits. In addition, a seasonal, fourteen-day, or five-day
10license or permit shall not be renewed.
11 Sec. 28. NEW SECTION. 123.35 Expiration of licenses,
12permits, and certificates of compliance — automatic renewals.
131. Except as otherwise provided by this chapter, all
14licenses, permits, and certificates of compliance, unless
15sooner suspended or revoked, expire one year from date of
16issuance.
172. Notwithstanding section 123.31 and any other provision
18of this chapter to the contrary, a class “E” retail alcohol
19license shall automatically renew without the endorsement
20of a local authority or approval by the administrator upon
21collection of the annual fee by the division, provided all of
22the following conditions are met since the preceding license
23was issued:
24a. The licensee has given written consent to the division
25to have the license automatically renewed as provided in this
26section.
27b. The license has not been suspended or revoked.
28c. A civil penalty has not been imposed against the
29licensee.
30d. An administrative proceeding is not pending against the
31licensee to suspend or revoke the license or to impose a civil
32penalty under this chapter.
33e. The licensee has not submitted payment for alcoholic
34liquor to the division that was subsequently dishonored.
35f. The licensee and all persons associated with the licensee
-31-1as described in section 123.3, subsection 40, paragraph “e”,
2have not been convicted of a violation of this chapter.
3g. The licensed premises constitutes a safe and proper place
4or building and conforms with all applicable federal, state,
5and local laws, orders, ordinances, rules, resolutions, and
6health and fire regulations.
73. Notwithstanding sections 123.23, 123.135, 123.180,
8and any other provision of this chapter to the contrary, a
9distiller’s, brewer’s, or vintner’s certificate of compliance
10shall automatically renew without approval by the administrator
11upon collection of the annual fee by the division, provided
12all of the following conditions are met since the preceding
13certificate was issued:
14a. The certificate holder has given written consent to
15the division to have the certificate automatically renewed as
16provided in this section.
17b. The certificate has not been suspended or revoked.
18c. A civil penalty has not been imposed against the
19certificate holder.
20d. An administrative proceeding is not pending against the
21certificate holder to suspend or revoke the certificate or to
22impose a civil penalty under this chapter.
23e. The certificate holder and all persons associated
24with the certificate holder as described in section 123.3,
25subsection 40, paragraph “e”, have not been convicted of a
26violation of this chapter.
274. Notwithstanding section 123.187 and any other provision
28of this chapter to the contrary, a wine direct shipper’s permit
29shall automatically renew without approval by the administrator
30upon collection of the annual fee by the division, provided all
31of the following conditions are met since the preceding permit
32was issued:
33a. The permittee has given written consent to the division
34to have the permit automatically renewed as provided in this
35section.
-32- 1b. The permit has not been suspended or revoked.
2c. A civil penalty has not been imposed against the
3permittee.
4d. An administrative proceeding is not pending against the
5permittee to suspend or revoke the permit or to impose a civil
6penalty under this chapter.
7e. The permittee has filed all required reports and remitted
8all wine gallonage tax owed pursuant to section 123.183.
9f. The permittee and all persons associated with the
10permittee as described in section 123.3, subsection 40,
11paragraph “e”, have not been convicted of a violation of this
12chapter.
13 Sec. 29. Section 123.38, subsection 1, Code 2022, is amended
14to read as follows:
151. A liquor control retail alcohol license, wine permit,
16or beer permit is a personal privilege and is revocable for
17cause. It is not property nor is it subject to attachment
18and execution nor alienable nor assignable, and it shall
19cease upon the death of the permittee or licensee. However,
20the administrator of the division may in the administrator’s
21discretion allow the executor or administrator of the estate of
22a permittee or licensee to operate the business of the decedent
23for a reasonable time not to exceed the expiration date of the
24permit or license. Every permit or license shall be issued in
25the name of the applicant and no person holding a permit or
26license shall allow any other person to use it.
27 Sec. 30. Section 123.38, subsection 2, paragraph a,
28subparagraph (4), Code 2022, is amended to read as follows:
29(4) No refund shall be made for any liquor control retail
30alcohol license, wine permit, or beer permit surrendered more
31than nine months after issuance.
32 Sec. 31. Section 123.39, subsection 1, paragraph a, Code
332022, is amended to read as follows:
34a. (1) The administrator or the local authority may suspend
35a class “A”, class “B”, special class “B” native wine, class
-33-1“C”, special class “C”, class “C” native distilled spirits, or
2 class “E” liquor control, or class “F” retail alcohol license,
3 or retail wine or beer permit charity beer, spirits, and wine
4special event license for a period not to exceed one year,
5revoke the license or permit, or impose a civil penalty not to
6exceed one thousand dollars per violation.
7(2) The administrator may suspend a certificate of
8compliance, a class “D” liquor control retail alcohol license,
9a manufacturer’s license, a broker’s permit, a class “A” native
10distilled spirits license, a class “A” or special class “A”
11beer permit, a charity beer, spirits, and wine auction permit,
12 a class “A” wine permit, a wine direct shipper’s permit, or a
13wine carrier permit for a period not to exceed one year, revoke
14the license, permit, or certificate, or impose a civil penalty
15not to exceed one thousand dollars per violation.
16 Sec. 32. Section 123.39, subsection 1, paragraph b,
17subparagraph (3), Code 2022, is amended to read as follows:
18(3) Any change in the ownership or interest in the business
19operated under a liquor control retail alcohol license, or any
20wine or beer permit, which change was not previously reported
21in a manner prescribed by the administrator within thirty days
22of the change and subsequently approved by the local authority,
23when applicable, and the division.
24 Sec. 33. Section 123.39, subsections 2 and 3, Code 2022, are
25amended to read as follows:
262. Local authorities may suspend any liquor control retail
27alcohol license or retail wine or beer permit for a violation
28of any ordinance or regulation adopted by the local authority.
29Local authorities may adopt ordinances or regulations for the
30location of the premises of liquor control retail alcohol
31 licensed and retail wine or beer permitted establishments
32and local authorities may adopt ordinances, not in conflict
33with this chapter and that do not diminish the hours during
34which alcoholic beverages may be sold or consumed at retail,
35governing any other activities or matters which may affect the
-34-1retail sale and consumption of alcoholic beverages and the
2health, welfare and morals of the community involved.
33. When a liquor control retail alcohol license or retail
4wine or beer permit is suspended after a hearing as a result
5of violations of this chapter by the licensee, permittee
6 or the licensee’s or permittee’s agents or employees, the
7premises which were licensed by the license or permit shall
8not be relicensed for a new applicant until the suspension
9has terminated or time of suspension has elapsed, or ninety
10days have elapsed since the commencement of the suspension,
11whichever occurs first. However, this section does not
12prohibit the premises from being relicensed to a new applicant
13before the suspension has terminated or before the time of
14suspension has elapsed or before ninety days have elapsed from
15the commencement of the suspension, if the premises prior to
16the time of the suspension had been purchased under contract,
17and the vendor under that contract had exercised the person’s
18rights under chapter 656 and sold the property to a different
19person who is not related to the previous licensee or permittee
20by marriage or within the third degree of consanguinity or
21affinity and if the previous licensee or permittee does not
22have a financial interest in the business of the new applicant.
23 Sec. 34. Section 123.40, Code 2022, is amended to read as
24follows:
25123.40 Effect of revocation.
26Any liquor control retail alcohol licensee, wine permittee,
27or beer permittee whose license or permit is revoked under this
28chapter shall not thereafter be permitted to hold a liquor
29control retail alcohol license, wine permit, or beer permit in
30the state of Iowa for a period of two years from the date of
31revocation. A spouse or business associate holding ten percent
32or more of the capital stock or ownership interest in the
33business of a person whose license or permit has been revoked
34shall not be issued a liquor control retail alcohol license,
35wine permit, or beer permit, and no liquor control retail
-35-1alcohol license, wine permit, or beer permit shall be issued
2which covers any business in which such person has a financial
3interest for a period of two years from the date of revocation.
4If a license or permit is revoked, the premises which had been
5covered by the license or permit shall not be relicensed for
6one year.
7 Sec. 35. Section 123.43A, subsection 6, Code 2022, is
8amended to read as follows:
96. Notwithstanding any provision of this chapter to the
10contrary or the fact that a person is the holder of a class
11“A” native distilled spirits license, a native distillery
12which, combining all production facilities of the business,
13produces and manufactures not more than one hundred thousand
14proof gallons of native distilled spirits on an annual basis
15may sell those native distilled spirits manufactured on the
16premises of the native distillery for consumption on the
17premises by applying for a class “C” native distilled spirits
18liquor control retail alcohol license as provided in section
19123.30. A native distillery may be granted not more than
20two class “C” native distilled spirits liquor control retail
21alcohol licenses. All native distilled spirits sold by a
22native distillery for on-premises consumption and mixed drinks
23or cocktails sold for consumption off the premises shall be
24purchased from a class “E” liquor control retail alcohol
25 licensee. A manufacturer of native distilled spirits may be
26issued a class “C” native distilled spirits liquor control
27 retail alcohol license regardless of whether the manufacturer
28is also a manufacturer of beer pursuant to a class “A” beer
29permit or a manufacturer of native wine pursuant to a class “A”
30wine permit.
31 Sec. 36. Section 123.45, subsection 1, paragraph d, Code
322022, is amended to read as follows:
33d. Hold a retail liquor control alcohol license or retail
34wine or beer permit, unless the licensee or permittee holding a
35retail liquor control alcohol license or retail wine or beer
-36-1permit does not purchase or sell the alcoholic beverages of
2the person engaged in the business of manufacturing, bottling,
3or wholesaling alcoholic beverages. However, a person engaged
4in the business of manufacturing wine that is not native wine
5may purchase and sell the person’s wine under the authority
6of a special class “C” liquor control retail alcohol license
7and a class “B” wine permit retail alcohol license provided
8the licensed premises is the principal office, as defined in
9section 490.140, of the person.
10 Sec. 37. Section 123.45, subsection 3, Code 2022, is amended
11to read as follows:
123. A person engaged in the wholesaling of beer or wine
13may sell only disposable glassware, which is constructed of
14paper, paper laminated, or plastic materials and designed
15primarily for personal consumption on a one-time usage
16basis, to retailers for use within the premises of licensed
17establishments, for an amount which is greater than or equal
18to an amount which represents the greater of either the amount
19paid for the disposable glassware by the supplier or the amount
20paid for the disposable glassware by the wholesaler. Also, a
21person engaged in the business of manufacturing beer may sell
22beer at retail for consumption on or off the premises of the
23manufacturing facility and, notwithstanding any other provision
24of this chapter or the fact that a person is the holder of
25a class “A” beer permit, may be granted not more than two
26class “B” beer permits “C” or special class “C” retail alcohol
27licenses as defined in section 123.124 123.30 for that purpose
28regardless of whether that person is also a manufacturer
29of native distilled spirits pursuant to a class “A” native
30distilled spirits license or a manufacturer of native wine
31pursuant to a class “A” wine permit.
32 Sec. 38. Section 123.46, subsection 2, Code 2022, is amended
33to read as follows:
342. A person shall not use or consume alcoholic liquor, wine,
35or beer upon the public streets or highways. A person shall
-37-1not use or consume alcoholic liquor in any public place except
2premises covered by a liquor control retail alcohol license.
3A person shall not possess or consume alcoholic liquors,
4wine, or beer on public school property or while attending a
5public or private school-related function. A person shall not
6be intoxicated in a public place. A person violating this
7subsection is guilty of a simple misdemeanor.
8 Sec. 39. Section 123.46A, Code 2022, is amended to read as
9follows:
10123.46A Delivery of alcoholic beverages by retailers.
111. Licensees and permittees authorized to sell alcoholic
12liquor, wine, or beer in original unopened containers for
13consumption off the licensed premises may deliver alcoholic
14liquor, wine, or beer to a home, another licensed premises if
15there is identical ownership of the premises by the licensee
16or permittee, or other designated location in this state.
17Deliveries shall be limited to alcoholic beverages authorized
18by the licensee’s or permittee’s license or permit. Orders
19delivered to another licensed premises shall contain only
20those alcoholic beverages authorized for sale by the liquor
21control retail alcohol license or retail wine or beer permit
22 covering the premises to which the alcoholic beverages will
23be delivered. Orders delivered to another licensed premises
24shall be fulfilled using the alcoholic beverages inventory
25owned by the licensee or permittee who will receive the order
26for delivery. If the recipient refuses or fails to pick up
27the delivery, or is ineligible to receive the delivery, the
28alcoholic beverages shall be returned to the licensee or
29permittee who fulfilled the order.
302. Licensees and permittees authorized to sell wine, beer,
31or mixed drinks or cocktails for consumption off the licensed
32premises in a container other than the original container may
33deliver the wine, beer, or mixed drinks or cocktails to a
34home or other designated location in this state only if the
35container other than the original container has been sold and
-38-1securely sealed in compliance with this chapter or the rules
2of the division. Deliveries shall be limited to alcoholic
3beverages authorized by the licensee’s or permittee’s license
4or permit.
53. All deliveries of alcoholic liquor, wine, beer, or
6mixed drinks or cocktails shall be subject to the following
7requirements and restrictions:
8a. Payment for the alcoholic liquor, wine, beer, or mixed
9drinks or cocktails shall be received by the licensee or
10permittee at the time of order.
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.
20c. Alcoholic liquor, wine, beer, or mixed drinks or
21cocktails delivered to a person shall be for personal use and
22not for resale.
23d. Deliveries shall only be made to persons in this state
24who are twenty-one years of age or older.
25e. Deliveries shall not be made to a person who is
26intoxicated or is simulating intoxication.
27f. Deliveries shall occur between 6:00 a.m.and 10:00 p.m.
28Monday throughSunday on the same day the order for alcoholic
29liquor, wine, beer, or mixed drinks or cocktails is removed
30from the licensed premises.
31g. Delivery of alcoholic liquor, wine, beer, or mixed drinks
32or cocktails shall be made by the licensee or permittee, the
33licensee’s or permittee’s employee, or a third party, provided
34the licensee or permittee has entered into a written agreement
35with the third party that authorizes the third party to act
-39-1as an agent of the licensee or permittee for the purpose of
2delivering alcoholic liquor, wine, beer, or mixed drinks or
3cocktails. Each licensee or permittee shall submit to the
4division electronically, or in a manner prescribed by the
5administrator, a list of names and addresses of all third
6parties it has authorized to act as its agent for the purpose
7of delivering alcoholic liquor, wine, beer, or mixed drinks
8or cocktails. The licensee or permittee shall provide the
9division with amendments to the list as necessary to ensure the
10division possesses an accurate, current list.
11h. Delivery personnel shall be twenty-one years of age or
12older.
13i. Valid proof of the recipient’s identity and age shall
14be obtained at the time of delivery, and the signature of a
15person twenty-one years of age or older shall be obtained as a
16condition of delivery.
17j. Licensees and permittees shall maintain records
18of deliveries which include the quantity delivered, the
19recipient’s name and address, and the signature of the
20recipient of the alcoholic liquor, wine, beer, or mixed drinks
21or cocktails. The records shall be maintained on the licensed
22premises for a period of three years.
234. A violation of this section or any other provision
24of this chapter shall subject the licensee or permittee to
25the penalty provisions of section 123.39. If the licensee
26or permittee, an employee of the licensee or permittee, or
27a person delivering alcoholic liquor, wine, beer, or mixed
28drinks or cocktails for a third party acting on behalf of the
29licensee or permittee pursuant to a written agreement violates
30this section, the licensee or permittee shall not be assessed
31a penalty under section 123.39 if the licensee or permittee
32 establishes all of the following:
33a. The violation was committed off of the licensee’s
34or permittee’s premises after the liquor, wine, beer, or
35mixed drinks or cocktails was removed from the licensee’s or
-40-1permittee’s premises in fulfillment of a delivery order.
2b. (1) If the person who committed the violation is an
3employee of the licensee or permittee, that no other violation
4of this section was committed by any employee of the licensee
5or permittee within the two-year period immediately preceding
6the date of violation.
7(2) If the person who committed the violation is a person
8delivering for a third party acting on behalf of the licensee
9or permittee, that no other violation of this section was
10committed by any person delivering for the same third party
11while the third party was acting on behalf of the licensee or
12permittee within the two-year period immediately preceding the
13date of violation.
145. Nothing in this section shall impact the direct shipment
15of wine as regulated by section 123.187.
16 Sec. 40. Section 123.47, subsection 3, Code 2022, is amended
17to read as follows:
183. A person or persons under legal age shall not purchase
19or attempt to purchase, consume, or individually or jointly
20have alcoholic beverages in their possession or control; except
21in the case of any alcoholic beverage given or dispensed to
22a person under legal age within a private home and with the
23knowledge, presence, and consent of the parent or guardian, for
24beverage or medicinal purposes or as administered to the person
25by either a physician or dentist for medicinal purposes and
26except to the extent that a person under legal age may handle
27alcoholic beverages during the regular course of the person’s
28employment by a liquor control retail alcohol licensee, or wine
29or beer permittee under this chapter.
30 Sec. 41. Section 123.48, subsections 1 and 3, Code 2022, are
31amended to read as follows:
321. If a liquor control retail alcohol licensee or wine or
33beer permittee or an employee of the licensee or permittee
34 has a reasonable belief based on factual evidence that a
35driver’s license as defined in section 321.1, subsection
-41-120A, or nonoperator’s identification card issued pursuant to
2section 321.190 offered by a person who wishes to purchase
3an alcoholic beverage at the licensed premises is altered
4or falsified or belongs to another person, the licensee,
5permittee, or employee may retain the driver’s license or
6nonoperator’s identification card. Within twenty-four hours,
7the license or card shall be delivered to the appropriate
8city or county law enforcement agency of the jurisdiction in
9which the licensed premises is located. When the license or
10card is delivered to the appropriate law enforcement agency,
11the licensee shall file a written report of the circumstances
12under which the license or card was retained. The local law
13enforcement agency may investigate whether a violation of
14section 321.216, 321.216A, or 321.216B has occurred. If an
15investigation is not initiated or a probable cause is not
16established by the local law enforcement agency, the driver’s
17license or nonoperator’s identification card shall be delivered
18to the person to whom it was issued. The local law enforcement
19agency may forward the license or card with the report to the
20department of transportation for investigation, in which case,
21the department may investigate whether a violation of section
22321.216, 321.216A, or 321.216B has occurred. The department of
23transportation shall return the license or card to the person
24to whom it was issued if an investigation is not initiated or a
25probable cause is not established.
263. A liquor control retail alcohol licensee or wine or
27beer permittee or an employee of the licensee or permittee
28 is not subject to criminal prosecution for, or to civil
29liability for damages alleged to have resulted from, the
30retention and delivery of a driver’s license or a nonoperator’s
31identification card which is taken pursuant to subsections
321 and 2. This section shall not be construed to relieve a
33licensee, permittee, or employee of the licensee or permittee
34 from civil liability for damages resulting from the use of
35unreasonable force in obtaining the altered or falsified
-42-1driver’s license or nonoperator’s identification card or the
2driver’s license or nonoperator’s identification card believed
3to belong to another person.
4 Sec. 42. Section 123.49, subsection 2, unnumbered paragraph
51, Code 2022, is amended to read as follows:
6A person holding a liquor control retail alcohol license or
7retail wine or beer permit under this chapter, and the person’s
8agents or employees, shall not do any of the following:
9 Sec. 43. Section 123.49, subsection 2, paragraph b, Code
102022, is amended to read as follows:
11b. Sell or dispense any alcoholic beverage on the premises
12covered by the license or permit, or permit its consumption
13thereon between the hours of 2:00 a.m.and 6:00 a.m.on a
14weekday, and between the hours of 2:00 a.m.on Sunday and 6:00
15a.m.on the following Monday, however, a holder of a liquor
16control license or retail wine or beer permit granted the
17privilege of selling alcoholic liquor, wine, or beer on Sunday
18may sell or dispense alcoholic liquor, wine, or beer between
19the hours of 6:00 a.m.on Sunday and 2:00 a.m.on the following
20Monday any day of the week.
21 Sec. 44. Section 123.49, subsection 2, paragraph d,
22subparagraphs (1) and (3), Code 2022, are amended to read as
23follows:
24(1) Keep on premises covered by a liquor control retail
25alcohol license any alcoholic liquor in any container except
26the original package purchased from the division, and except
27mixed drinks or cocktails mixed on the premises for immediate
28consumption on the licensed premises or as otherwise provided
29by this paragraph “d”. This prohibition does not apply to
30holders of a class “D” liquor control retail alcohol license
31or to alcoholic liquor delivered in accordance with section
32123.46A.
33(3) Mixed drinks or cocktails mixed on premises covered by
34a class “C” liquor control retail alcohol license or a class
35“C” native distilled spirits liquor control retail alcohol
-43-1 license for consumption off the licensed premises may be
2sold if the mixed drink or cocktail is immediately filled in
3a sealed container and is promptly taken from the licensed
4premises prior to consumption of the mixed drink or cocktail.
5A mixed drink or cocktail that is sold in a sealed container in
6compliance with the requirements of this subparagraph and rules
7adopted by the division shall not be deemed an open container
8subject to the requirements of sections 321.284 and 321.284A
9if the sealed container is unopened and the seal has not been
10tampered with, and the contents of the container have not been
11partially removed.
12 Sec. 45. Section 123.49, subsection 2, paragraphs g and j,
13Code 2022, are amended to read as follows:
14g. Allow any person other than the licensee, permittee,
15 or employees of the licensee or permittee, to use or keep
16on the licensed premises any alcoholic liquor in any bottle
17or other container which is designed for the transporting of
18such beverages, except as permitted in section 123.95. This
19paragraph does not apply to the lodging quarters of a class
20“B” liquor control licensee or wine or beer permittee hotel
21or motel holding a retail alcohol license, or to holders of a
22class “D” liquor control retail alcohol license.
23j. Knowingly permit or engage in any criminal activity
24on the premises covered by the license or permit. However,
25the absence of security personnel on the licensed premises
26is insufficient, without additional evidence, to prove that
27criminal activity occurring on the licensed premises was
28knowingly permitted in violation of this paragraph “j”. For
29purposes of this paragraph “j”, “premises” includes parking lots
30and areas adjacent to the premises of a liquor control retail
31alcohol licensee or wine or beer permittee authorized to sell
32alcoholic beverages for consumption on the licensed premises
33and used by patrons of the liquor control retail alcohol
34 licensee or wine or beer permittee.
35 Sec. 46. Section 123.49, subsection 3, Code 2022, is amended
-44-1to read as follows:
23. A person under legal age shall not misrepresent the
3person’s age for the purpose of purchasing or attempting
4to purchase any alcoholic beverage from any liquor control
5 retail alcohol licensee or wine or beer permittee. If any
6person under legal age misrepresents the person’s age, and
7the licensee or permittee establishes that the licensee or
8permittee made reasonable inquiry to determine whether the
9prospective purchaser was over legal age, the licensee or
10permittee is not guilty of selling alcoholic beverages to a
11person under legal age.
12 Sec. 47. Section 123.49, subsection 4, Code 2022, is amended
13by striking the subsection.
14 Sec. 48. Section 123.50, subsections 1, 2, 4, and 5, Code
152022, are amended to read as follows:
161. Any person who violates any of the provisions of section
17123.49, except section 123.49, subsection 2, paragraph “h”,
18or who fails to affix upon sale, defaces, or fails to record
19a keg identification sticker label or produce a record of keg
20identification stickers labels pursuant to section 123.138,
21shall be guilty of a simple misdemeanor. A person who violates
22section 123.49, subsection 2, paragraph “h”, commits a simple
23misdemeanor punishable as a scheduled violation under section
24805.8C, subsection 2.
252. The conviction of any liquor control retail alcohol
26 licensee or wine or beer permittee for a violation of any of
27the provisions of section 123.49, subject to subsection 3 of
28this section, is grounds for the suspension or revocation of
29the license or permit by the division or the local authority.
30However, if any liquor control retail alcohol licensee is
31convicted of any violation of section 123.49, subsection 2,
32paragraph “a”, “d”, or “e”, or any wine or beer permittee retail
33alcohol licensee, excluding a special class “B” or class “D”
34retail alcohol licensee, is convicted of a violation of section
35123.49, subsection 2, paragraph “a” or “e” “d”, the liquor
-45-1control retail alcohol license or wine or beer permit shall be
2revoked and shall immediately be surrendered by the holder,
3and the bond, if any, of the license or permit holder shall be
4forfeited to the division. However, the division shall retain
5only that portion of the bond equal to the amount the division
6determines the license or permit holder owes the division.
74. In addition to any other penalties imposed under this
8chapter, the division shall assess a civil penalty up to
9the amount of five thousand dollars upon a class “E” liquor
10control retail alcohol licensee when the class “E” liquor
11 retail alcohol license is revoked for a violation of section
12123.59. Failure to pay the civil penalty as required under
13this subsection shall result in forfeiture of the bond to the
14division. However, the division shall retain only that portion
15of the bond equal to the amount the division determines the
16license or permit holder owes the division.
175. If an employee of a liquor control retail alcohol
18 licensee or wine or beer permittee violates section 123.49,
19subsection 2, paragraph “h”, the licensee or permittee shall
20not be assessed a penalty under subsection 3, and the violation
21shall be deemed not to be a violation of section 123.49,
22subsection 2, paragraph “h”, for the purpose of determining
23the number of violations for which a penalty may be assessed
24pursuant to subsection 3, if the employee holds a valid
25certificate of completion of the alcohol compliance employee
26training program pursuant to section 123.50A at the time of the
27violation, and if the violation involves selling, giving, or
28otherwise supplying any alcoholic beverage to a person between
29the ages of eighteen and twenty years of age. A violation
30involving a person under the age of eighteen years of age
31shall not qualify for the bar against assessment of a penalty
32pursuant to subsection 3, for a violation of section 123.49,
33subsection 2, paragraph “h”. A licensee or permittee may assert
34only once in a four-year period the bar under this subsection
35against assessment of a penalty pursuant to subsection 3, for a
-46-1violation of section 123.49, subsection 2, paragraph “h”, that
2takes place at the same place of business location.
3 Sec. 49. Section 123.50, subsection 3, unnumbered paragraph
41, Code 2022, is amended to read as follows:
5If any liquor control retail alcohol licensee, wine or
6beer permittee, or employee of a licensee or permittee is
7convicted or found in violation of section 123.49, subsection
82, paragraph “h”, the administrator or local authority shall,
9in addition to criminal penalties fixed for violations by this
10section, assess a civil penalty as follows:
11 Sec. 50. Section 123.92, subsection 2, paragraphs a and c,
12Code 2022, are amended to read as follows:
13a. Every liquor control retail alcohol licensee, class “B”
14beer permittee, and class “C” native wine permittee, except
15a class “B”, special class “B”, or class “E” liquor control
16 retail alcohol licensee, shall furnish proof of financial
17responsibility by the existence of a liability insurance
18policy in an amount determined by the division. If an insurer
19provides dramshop liability insurance at a new location to
20a licensee or permittee who has a positive loss experience
21at other locations for which such insurance is provided by
22the insurer, and the insurer bases premium rates at the new
23location on the negative loss history of the previous licensee
24or permittee at that location, the insurer shall examine and
25consider adjusting the premium for the new location not less
26than thirty months after the insurance is issued, based on the
27loss experience of the licensee or permittee at that location
28during that thirty-month period of time.
29c. The purpose of dramshop liability insurance is to provide
30protection for members of the public who experience damages
31as a result of licensees or permittees serving patrons any
32alcoholic beverage to a point that reaches or exceeds the
33standard set forth in law for liability. Minimum coverage
34requirements for such insurance are not for the purpose of
35making the insurance affordable for all licensees or permittees
-47-1 regardless of claims experience. A dramshop liability
2insurance policy obtained by a licensee or permittee shall meet
3the minimum insurance coverage requirements as determined by
4the division and is a mandatory condition for holding a license
5or permit.
6 Sec. 51. Section 123.92, subsection 3, paragraphs a and b,
7Code 2022, are amended to read as follows:
8a. Notwithstanding section 123.49, subsection 1, any
9person who is injured in person or property or means of
10support by an intoxicated person who is under legal age or
11resulting from the intoxication of a person who is under
12legal age, has a right of action for all damages actually
13sustained, severally or jointly, against a person who is
14not a licensee or permittee and who dispensed or gave any
15alcoholic beverage to the intoxicated underage person when the
16nonlicensee or nonpermittee who dispensed or gave the alcoholic
17beverage to the underage person knew or should have known the
18underage person was intoxicated, or who dispensed or gave any
19alcoholic beverage to the underage person to a point where the
20nonlicensee or nonpermittee knew or should have known that the
21underage person would become intoxicated.
22b. If the injury was caused by an intoxicated person who is
23under legal age, a person who is not a licensee or permittee
24 and who dispensed or gave the alcoholic beverage to the
25underage person may establish as an affirmative defense that
26the intoxication did not contribute to the injurious action of
27the underage person.
28 Sec. 52. Section 123.95, subsection 2, paragraphs a and c,
29Code 2022, are amended to read as follows:
30a. The holder of an annual class “B” liquor control license
31or an annual class “C” liquor control retail alcohol license
32may act as the agent of a private social host for the purpose
33of providing and serving alcoholic beverages as part of a food
34catering service for a private social gathering in a private
35place, provided the licensee has applied for and been granted a
-48-1catering privilege by the division. The holder of an annual
2special class “C” liquor control retail alcohol license shall
3not act as the agent of a private social host for the purpose of
4providing and serving wine and beer as part of a food catering
5service for a private social gathering in a private place.
6An applicant for a class “B” or class “C” liquor control
7 retail alcohol license shall state on the application for the
8license that the licensee intends to engage in catering food
9and alcoholic beverages for private social gatherings and the
10catering privilege shall be noted on the license.
11c. Section 123.92 does not apply to a liquor control retail
12alcohol licensee who acts in accordance with this section when
13the liquor control retail alcohol licensee is providing and
14serving food and alcoholic beverages as an agent of a private
15social host at a private social gathering in a private place
16which is not on the licensed premises.
17 Sec. 53. Section 123.122, subsection 1, Code 2022, is
18amended to read as follows:
191. A person shall not cause the manufacture, importation,
20or sale of beer in this state unless a certificate or permit as
21provided in this subchapter, or a liquor control retail alcohol
22 license as provided in subchapter I of this chapter, is first
23obtained which authorizes that manufacture, importation, or
24sale.
25 Sec. 54. Section 123.124, Code 2022, is amended to read as
26follows:
27123.124 Beer permits — classes.
28Permits for the manufacture and sale, or sale, of beer shall
29be divided into four classes, known as class “A”, and special
30class “A”, class “B”, or class “C” beer permits. A holder of
31a class “A” or special class “A” beer permit shall have the
32authority as provided in section 123.130. A holder of a class
33“B” beer permit shall have the authority as provided in section
34123.131, and a holder of a class “C” beer permit shall have the
35authority as provided in section 123.132.
-49-1 Sec. 55. Section 123.125, Code 2022, is amended to read as
2follows:
3123.125 Issuance of beer permits.
4The administrator shall issue class “A”, and special class
5“A”, class “B”, and class “C” beer permits and may suspend or
6revoke permits for cause as provided in this chapter.
7 Sec. 56. Section 123.127, subsection 2, paragraph h, Code
82022, is amended to read as follows:
9h. If the person is applying for a special class “A” beer
10permit, that the applicant holds or has applied for a class “C”
11liquor control retail alcohol license or class “B” beer permit.
12 Sec. 57. Section 123.130, subsection 1, paragraph a, Code
132022, is amended to read as follows:
14a. Any person holding a class “A” beer permit issued by
15the division shall be authorized to manufacture and sell, or
16sell at wholesale, beer for consumption off the premises, such
17sales within the state to be made only to persons holding a
18 subsisting class “A”, “B”, or “C” beer permits permit, both
19a class “C” native wine permit and a class “A” wine permit
20pursuant to section 123.178B, subsection 4, or liquor control
21 retail alcohol licenses, excluding a special class “B” retail
22native wine license, issued in accordance with the provisions
23of this chapter. However, a person holding a class “A” beer
24permit issued by the division who also holds a brewer’s notice
25issued by the alcohol and tobacco tax and trade bureau of the
26United States department of the treasury shall be authorized
27to sell, at wholesale, no more than thirty thousand barrels of
28beer on an annual basis for consumption off the premises to a
29licensee or permittee authorized under this chapter to sell
30beer at retail.
31 Sec. 58. Section 123.130, subsections 2 and 4, Code 2022,
32are amended to read as follows:
332. Pursuant to section 123.45, subsection 3, a native
34brewery may be granted not more than two class “B” beer permits
35as defined in section 123.124 for the purpose of selling
-50-1beer at retail for consumption on or off the premises of the
2manufacturing facility class “C” or special class “C” retail
3alcohol permits.
44. All special class “A” premises shall be located within
5the state. A person who holds a special class “A” beer
6permit for the same location at which the person holds a
7class “C” liquor control retail alcohol license or class “B”
8beer permit for the purpose of operating as a brewpub may
9manufacture and sell beer to be consumed on the premises,
10may sell beer at retail at the manufacturing premises for
11consumption off the premises beer that is transferred at the
12time of sale to another container subject to the requirements
13of section 123.131, subsection 2, may sell beer to a class
14“A” beer permittee for resale purposes, and may sell beer to
15distributors outside of the state that are authorized by the
16laws of that jurisdiction to sell beer at wholesale. The
17permit issued to holders of a special class “A” beer permit
18shall clearly state on its face that the permit is limited.
19 Sec. 59. Section 123.135, subsection 4, Code 2022, is
20amended to read as follows:
214. It shall be unlawful for any holder of a certificate
22of compliance or the holder’s agent, or any class “A” beer
23permit holder or the beer permit holder’s agent, to grant to
24any retail beer permit alcohol license holder, directly or
25indirectly, any rebates, free goods, or quantity discounts on
26beer which are not uniformly offered to all retail permittees
27 alcohol licensees.
28 Sec. 60. Section 123.138, subsection 1, Code 2022, is
29amended to read as follows:
301. Each class “A” or special class “A” beer permittee
31shall keep proper records showing the amount of beer sold
32by the permittee, and these records shall be at all times
33open to inspection by the administrator and to other persons
34pursuant to section 123.30, subsection 1. Each class “B”
35beer permittee, class “C” beer permittee, or retail liquor
-51-1control alcohol licensee as described in section 123.30 shall
2keep proper records showing each purchase of beer made by the
3permittee or licensee, and the date and the amount of each
4purchase and the name of the person from whom each purchase
5was made, which records shall be open to inspection pursuant
6to section 123.30, subsection 1, during normal business hours
7of the permittee or licensee.
8 Sec. 61. Section 123.138, subsection 2, paragraph a, Code
92022, is amended to read as follows:
10a. Each class “B”, “C”, or special class “C” liquor control
11 retail alcohol licensee and class “B” or “C” beer permittee who
12sells beer for off-premises consumption shall affix to each
13keg of beer an identification sticker label provided by the
14administrator. The sticker label provided shall allow for its
15full removal when common external keg cleaning procedures are
16performed. For the purposes of this subsection, “keg” means
17all durable and disposable containers with a liquid capacity
18of five gallons or more. Each class “B”, “C”, or special class
19“C” liquor control retail alcohol licensee and class “B” or “C”
20beer permittee shall also keep a record of the identification
21sticker label number of each keg of beer sold by the licensee
22or permittee with the name and address of the purchaser and
23the number of the purchaser’s driver’s license, nonoperator’s
24identification card, or military identification card, if the
25military identification card contains a picture and signature.
26This information shall be retained by the licensee or permittee
27 for a minimum of ninety days. The records kept pursuant to
28this subsection shall be available for inspection by any law
29enforcement officer during normal business hours.
30 Sec. 62. Section 123.138, subsection 2, paragraph b, Code
312022, is amended to read as follows:
32b. (1) The division shall provide the keg identification
33stickers labels described in paragraph “a” and shall, prior to
34utilizing a sticker label, notify licensed brewers and licensed
35beer importers of the type of sticker label to be utilized.
-52-1Each sticker label shall contain a number and the following
2statement:
3It is unlawful to sell, give, or otherwise supply any
4alcoholic beverage, wine, or beer to any person under legal
5age. Any person who defaces this sticker label shall be guilty
6of criminal mischief punishable pursuant to section 716.6 and
7shall cause the forfeiture of any deposit, if applicable.
8(2) The identification sticker label shall be placed on
9the keg at the time of retail sale. The licensee or permittee
10 shall purchase obtain the stickers labels referred to in this
11subsection from the division and shall remit to the division
12deposits forfeited pursuant to this lettered paragraph due to
13defacement. The cost of the stickers labels to licensees and
14permittees shall not exceed the division’s cost of producing
15and distributing the stickers labels. The moneys collected by
16the division relating to the sale of stickers and forfeited
17deposits shall be credited to the beer and liquor control fund.
18 Sec. 63. Section 123.138, subsection 2, paragraph d, Code
192022, is amended by striking the paragraph.
20 Sec. 64. Section 123.141, Code 2022, is amended to read as
21follows:
22123.141 Keeping liquor where beer is sold.
23No alcoholic liquor for beverage purposes shall be used,
24or kept for any purpose in the place of business of a special
25 class “B” beer permittees “C” retail alcohol licensee, or on
26the premises of such special class “B” beer permittees “C”
27retail alcohol licensee, at any time. A violation of any
28provision of this section shall be grounds for suspension or
29revocation of the beer permit pursuant to section 123.50,
30subsection 3. This section shall not apply in any manner or
31in any way to the premises of any hotel or motel for which a
32special class “B” beer permit “C” retail alcohol license has
33been issued, other than that part of such premises regularly
34used by the hotel or motel for the principal purpose of selling
35beer or food to the general public, to a premises for which
-53-1both a special class “B” beer permit “C” retail alcohol license
2 and a class “A” native distilled spirits license have been
3issued, or to keep a pharmacy from having alcohol in stock for
4medicinal and compounding purposes.
5 Sec. 65. Section 123.142, subsection 1, Code 2022, is
6amended to read as follows:
71. It is unlawful for the holder of a class “B” or class “C”
8beer permit retail alcohol license issued under this chapter
9to sell beer, except beer brewed on the premises covered by a
10special class “A” beer permit or beer purchased from a person
11holding a class “A” beer permit issued in accordance with this
12chapter, and on which the tax provided in section 123.136 has
13been paid. However, this section does not apply to class “D”
14liquor control retail alcohol licensees as provided in this
15chapter.
16 Sec. 66. Section 123.143, subsection 1, Code 2022, is
17amended by striking the subsection.
18 Sec. 67. Section 123.171, subsection 1, Code 2022, is
19amended to read as follows:
201. A person shall not cause the manufacture, importation,
21or sale of wine in this state unless a certificate or permit as
22provided in this subchapter, or a liquor control retail alcohol
23 license as provided in subchapter I of this chapter, is first
24obtained which authorizes that manufacture, importation, or
25sale.
26 Sec. 68. Section 123.173, Code 2022, is amended to read as
27follows:
28123.173 Wine permits permit — classes class “A” —
29authority.
301. Except as provided in section 123.187, permits a permit
31 exclusively for the sale or manufacture and sale of wine shall
32be divided into four classes, and shall be known as a class
33“A”, “B”, “B” native, or “C” native wine permits permit.
342. A class “A” wine permit allows the holder to manufacture
35and sell, or sell at wholesale, in this state, wine. The
-54-1holder of a class “A” wine permit may manufacture in this state
2wine having an alcoholic content greater than seventeen percent
3by weight or twenty-one and twenty-five hundredths percent of
4alcohol by volume for shipment outside this state. All class
5“A” premises shall be located within the state. A class “B” or
6class “B” native wine permit allows the holder to sell wine at
7retail for consumption off the premises. A class “B” or class
8“B” native wine permittee who also holds a class “E” liquor
9control license may sell wine to class “A”, class “B”, class
10“C”, special class “C”, and class “D” liquor control licensees
11for resale for consumption on the premises. Such wine sales
12shall be in quantities of less than one case of any wine brand
13but not more than one such sale shall be made to the same liquor
14control licensee in a twenty-four-hour period. A class “B” or
15class “B” native wine permittee shall not sell wine to other
16class “B” or class “B” native wine permittees. A class “C”
17native wine permit allows the holder to sell native wine for
18consumption on or off the premises.
193. A class “A” wine permittee shall be required to deliver
20wine to a retail wine permittee alcohol licensee, and a retail
21wine permittee alcohol licensee shall be required to accept
22delivery of wine from a class “A” wine permittee, only at
23the licensed premises of the retail wine permittee alcohol
24licensee. Except as specifically permitted by the division
25upon good cause shown, delivery or transfer of wine from an
26unlicensed premises to a licensed retail wine permittee’s
27 alcohol licensee’s premises, or from one licensed retail wine
28permittee’s alcohol licensee’s premises to another licensed
29retail wine permittee’s alcohol licensee’s premises, even if
30there is common ownership of all of the premises by one retail
31permittee, is prohibited. A class “B” or class “B” native wine
32permittee who also holds a class “E” liquor control license
33shall keep and maintain records for each sale of wine to liquor
34control licensees showing the name of the establishment to
35which wine was sold, the date of sale, and the brands and
-55-1number of bottles sold to the liquor control licensee.
24. When a class “B” or class “B” native wine permittee who
3also holds a class “E” liquor control license sells wine to a
4liquor control licensee, the liquor control licensee shall sign
5a report attesting to the purchase. The class “B” or class “B”
6native wine permittee who also holds a class “E” liquor control
7license shall submit a report to the division electronically,
8or in a manner prescribed by the administrator, not later than
9the tenth of each month stating each sale of wine to liquor
10control licensees during the preceding month, the date of each
11sale, and the brands and numbers of bottles with each sale.
12A class “B” permittee who holds a class “E” liquor control
13license may sell to class “A”, class “B”, or class “C” liquor
14control licensees only if the licensed premises of the liquor
15control licensee is located within the geographic territory of
16the class “A” wine permittee from which the wine was originally
17purchased by the class “B” or class “B” native wine permittee.
18 Sec. 69. Section 123.173A, Code 2022, is amended by striking
19the section and inserting in lieu thereof the following:
20123.173A Charity beer, spirits, and wine special event
21license.
221. For purposes of this section:
23a. “Authorized nonprofit entity” includes a nonprofit
24entity which has a principal office in the state, a nonprofit
25corporation organized under chapter 504, or a foreign
26corporation as defined in section 504.141, whose income is
27exempt from federal taxation under section 501(c) of the
28Internal Revenue Code.
29b. “Charity auction” means an auction conducted by an
30authorized nonprofit entity which includes beer, spirits, and
31wine.
32c. “Charity event” means an event at which an authorized
33nonprofit entity may serve the event’s attendees beer,
34spirits, and wine for consumption on the premises of the event,
35regardless of whether the entity charges an admission fee to
-56-1the event or otherwise collects the cost of the beer, spirits,
2and wine served from the event’s attendees.
3d. “Charity special event” means a charity auction, charity
4event, or a combined charity auction and charity event.
52. Upon application to the division and receipt of a charity
6beer, spirits, and wine special event license, an authorized
7nonprofit entity may conduct a charity special event subject to
8the requirements of this section.
93. A charity auction conducted by a charity beer, spirits,
10and wine special event licensee shall comply with the following
11requirements:
12a. The authorized nonprofit entity conducting the charity
13auction shall obtain the beer, spirits, and wine to be
14auctioned at the charity auction from an Iowa retail alcohol
15licensee, or may receive donations of beer, spirits, or wine to
16be auctioned at the charity auction from persons who purchased
17the donated beer, spirits, or wine from an Iowa retail alcohol
18licensee or an Iowa class “A” native distilled spirits licensee
19and who present a receipt documenting the purchase at the
20time the beer, spirits, or wine is donated. The authorized
21nonprofit entity conducting the charity auction shall retain a
22copy of the receipt for a period of one year from the date of
23the charity beer, spirits, and wine auction.
24b. The beer, spirits, and wine sold at the charity auction
25shall be in original containers for consumption off of the
26premises where the charity auction is conducted. No other
27alcoholic beverage may be sold by the charity beer, spirits,
28and wine special event licensee at the charity auction. A
29purchaser of beer, spirits, or wine at a charity auction shall
30not take possession of the beer, spirits, or wine until the
31person is leaving the event. A purchaser of beer, spirits,
32or wine at a charity auction shall not open the container or
33consume or permit the consumption of the beer, spirits, or
34wine purchased on the premises where the charity auction is
35conducted. A purchaser of beer, spirits, or wine at a charity
-57-1auction shall not resell the beer, spirits, or wine.
2c. A retail alcohol licensee or class “A” native distilled
3spirits licensee shall not purchase beer, spirits, or wine at
4a charity auction. The charity auction may be conducted on
5a premises for which a class “B” or class “C” retail alcohol
6license has been issued, provided that the retail alcohol
7licensee does not participate in the charity auction, supply
8beer, spirits, or wine to be auctioned at the charity auction,
9or receive any of the proceeds of the charity auction.
104. A charity event conducted by a charity beer, spirits,
11and wine special event licensee shall comply with the following
12requirements:
13a. The charity event shall be conducted on a premises
14covered by a valid retail alcohol license issued by the
15division.
16b. The authorized nonprofit entity conducting a charity
17event shall have a written agreement with the retail alcohol
18licensee covering the premises where the charity event is to be
19conducted specifying that that licensee shall act as the agent
20of the authorized nonprofit entity for the purpose of providing
21and serving alcoholic beverages to the attendees of the charity
22event.
23c. The retail alcohol licensee covering the premises where
24the charity event is to be conducted shall supply all alcoholic
25beverages served to the attendees of the charity event.
26d. Only those types of alcoholic beverages as are authorized
27to be sold by the retail alcohol license covering the premises
28where the charity event is to be conducted are to be served to
29the attendees of the charity event.
305. An application for a charity beer, spirits, and wine
31special event license to conduct a charity special event shall
32include all of the following information:
33a. The date and time when the charity special event is to be
34conducted and the location of the premises in this state where
35the charity special event is to be physically conducted.
-58- 1b. The retail alcohol license number issued by the division
2for the premises where a charity event is to be conducted, if
3applicable.
4c. A certification that the objective of the charity special
5event is to raise funds solely to be used for educational,
6religious, or charitable purposes and that the entire proceeds
7from the charity special event are to be expended for any of
8the purposes described in section 423.3, subsection 78.
96. An authorized nonprofit entity shall be eligible to
10receive no more than two charity beer, spirits, and wine
11special event licenses during a calendar year and each charity
12beer, spirits, and wine special event license shall be valid
13for a period not to exceed thirty-six consecutive hours.
147. Any violation of the requirements of this chapter or
15the rules adopted pursuant to this chapter shall subject
16the charity beer, spirits, and wine special event license
17holder to the general penalties provided in this chapter and
18shall constitute grounds for imposition of a civil penalty,
19suspension of the license, or revocation of the permit after
20notice and opportunity for a hearing pursuant to section 123.39
21and chapter 17A.
22 Sec. 70. Section 123.175, subsection 1, unnumbered
23paragraph 1, Code 2022, is amended to read as follows:
24A person applying for a class “A” or retail wine permit shall
25submit a completed application electronically, or in a manner
26prescribed by the administrator, which shall set forth under
27oath the following:
28 Sec. 71. Section 123.175, subsection 1, paragraph e, Code
292022, is amended to read as follows:
30e. When required by the administrator, and in such form and
31containing such information as the administrator may require,
32a description of the premises where the applicant intends to
33use the permit, to include a sketch or drawing of the premises
34and, if applicable, the number of square feet of interior floor
35space which comprises the retail sales area of the premises.
-59-1 Sec. 72. Section 123.175, subsection 2, unnumbered
2paragraph 1, Code 2022, is amended to read as follows:
3The administrator shall issue a class “A” or retail wine
4permit to any applicant who establishes all of the following:
5 Sec. 73. Section 123.175, subsection 2, paragraphs d and g,
6Code 2022, are amended to read as follows:
7d. That, in the case of a class “A” wine permit, the
8applicant has filed with the division a basic permit issued
9by the alcohol and tobacco tax and trade bureau of the United
10States department of the treasury, and that the applicant will
11faithfully observe and comply with all the laws, rules, and
12regulations governing the manufacture and sale of wine.
13g. That the applicant has submitted, in the case of a class
14“A” wine permit, a bond in the amount of five thousand dollars
15in a manner prescribed by the administrator with good and
16sufficient sureties to be approved by the division conditioned
17upon compliance with this chapter.
18 Sec. 74. Section 123.176, subsections 2, 5, and 7, Code
192022, are amended to read as follows:
202. Native wine may be sold at retail for off-premises
21consumption when sold on the premises of the manufacturer, or
22in a retail establishment operated by the manufacturer. Sales
23may also be made to class “A” or retail wine permittees or
24liquor control alcohol licensees as authorized by sections
25123.173 123.30 and 123.177. A manufacturer of native wines
26shall not sell the wines other than as permitted in this
27chapter and shall not allow wine sold to be consumed upon the
28premises of the manufacturer. However, prior to sale, native
29wines may be tasted pursuant to the rules of the division
30on the premises where made, when no charge is made for the
31tasting.
325. Notwithstanding any other provision of this chapter, a
33person engaged in the business of manufacturing native wine may
34sell native wine at retail for consumption on the premises of
35the manufacturing facility by applying for a class “C” native
-60-1wine permit retail alcohol license as provided in section
2123.178B 123.31. A manufacturer of native wine may be granted
3not more than two class “C” native wine permits retail alcohol
4licenses. A manufacturer of native wine may be issued a class
5“C” native wine permit retail alcohol license regardless
6of whether the manufacturer is also a manufacturer of beer
7pursuant to a class “A” beer permit or a manufacturer of native
8distilled spirits pursuant to a class “A” native distilled
9spirits license.
107. A manufacturer may use the space and equipment of another
11manufacturer for the purpose of manufacturing native wine,
12provided that such an alternating proprietorship arrangement
13is approved by the alcohol and tobacco tax and trade bureau
14of the United States department of the treasury. A separate
15class “A” wine permit shall be issued to each manufacturer,
16and each manufacturer shall be subject to the provisions of
17this chapter and the rules of the division. Notwithstanding
18subsection 5, not more than one class “C” native wine permit
19 retail alcohol license shall be issued to a premises with
20alternating proprietorships.
21 Sec. 75. Section 123.177, subsection 1, Code 2022, 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 alcohol license. However, if the person
28holding the class “A” permit is a manufacturer of native wine,
29the person may sell only native wine to a person holding a
30retail wine permit or a retail liquor control alcohol license.
31A person holding a class “A” wine permit may sell wine to
32distributors outside of the state that are authorized by the
33laws of that jurisdiction to sell wine at wholesale. A class
34“A” wine permittee having more than one place of business shall
35obtain a separate permit for each place of business where wine
-61-1is to be manufactured, stored, warehoused, or sold.
2 Sec. 76. Section 123.177, subsection 3, Code 2022, is
3amended by striking the subsection.
4 Sec. 77. Section 123.180, subsection 4, Code 2022, is
5amended to read as follows:
64. It is unlawful for a holder of a vintner’s certificate
7of compliance or the holder’s agent, or any class “A” wine
8permittee or the permittee’s agent, to discriminate between
9class “B” wine permittees retail alcohol licensees authorized
10to sell wine at retail.
11 Sec. 78. Section 123.181, subsection 1, Code 2022, is
12amended by striking the subsection.
13 Sec. 79. Section 123.181, subsection 2, Code 2022, is
14amended to read as follows:
152. A class “A” wine permittee shall not sell wine on
16credit to a retail alcohol licensee or permittee for a period
17exceeding thirty days from date of delivery.
18 Sec. 80. Section 123.187, subsection 2, paragraph a, Code
192022, is amended to read as follows:
20a. Only a wine manufacturer that holds a wine direct shipper
21permit issued pursuant to this section shall sell wine at
22retail for direct shipment to any person within this state.
23This section shall not prohibit an authorized retail licensee
24or permittee from delivering wine pursuant to section 123.46A.
25 Sec. 81. Section 123.187, subsection 2, paragraph d, Code
262022, is amended by striking the paragraph.
27 Sec. 82. Section 125.59, unnumbered paragraph 1, Code 2022,
28is amended to read as follows:
29The treasurer of state, on each July 1 for that fiscal
30year, shall transfer the estimated amounts to be received from
31section 123.36, subsection 8 and section 123.143, subsection 1
32for purposes of this section to the department.
33 Sec. 83. REPEAL. Sections 123.97, 123.123, 123.150,
34123.172, 123.173B, and 123.185, Code 2022, are repealed.
35DIVISION IV
-62-1CONFORMING CHANGES
2 Sec. 84. Section 7D.16, Code 2022, is amended to read as
3follows:
47D.16 Alcoholic beverages in state capitol or on complex
5grounds.
6Notwithstanding any contrary provision of law prohibiting
7the use and consumption of alcoholic beverages in a public
8place, the executive council may authorize, by resolution,
9the temporary use and consumption of alcoholic beverages,
10as defined in section 123.3, in the state capitol or on the
11state capitol complex grounds, as if the state capitol or
12state capitol complex grounds were a private place. The
13authorization by resolution shall be limited to the use and
14consumption of alcoholic beverages as an accompaniment to food
15at a single award ceremony, social event, or other occasion
16deemed appropriate by the executive council. The authorization
17shall require that the person providing the food and alcoholic
18beverages possess an appropriate liquor control retail alcohol
19 license in accordance with section 123.95. The secretary
20of the executive council shall inform the secretary of the
21legislative council and the director of the department of
22administrative services of the approval of any such resolution.
23 Sec. 85. Section 12.43, subsection 5, paragraph e, Code
242022, is amended to read as follows:
25e. Liquor, beer, and wine sales must not exceed twenty
26percent of annual sales for establishments holding a class
27“C” liquor retail alcohol license issued pursuant to section
28123.30.
29 Sec. 86. Section 99B.3, subsection 2, Code 2022, is amended
30to read as follows:
312. A person whose license is revoked under this section
32who is a person for whom a class “A”, class “B”, class “C”, or
33class “D” liquor control retail alcohol license has been issued
34pursuant to chapter 123 shall have the person’s liquor control
35 retail alcohol license suspended for a period of fourteen days
-63-1in the same manner as provided in section 123.50, subsection
23, paragraph “a”.
3 Sec. 87. Section 99B.3, subsection 3, Code 2022, is amended
4by striking the subsection.
5 Sec. 88. Section 99B.43, subsection 1, unnumbered paragraph
61, Code 2022, is amended to read as follows:
7Social gambling is lawful on the premises of an
8establishment for which a class “A”, class “B”, class “C”,
9special class “C”, or class “D” liquor control, class “E”, or
10class “F” retail alcohol license, or class “B” beer permit
11 has been issued pursuant to chapter 123 when, subject to the
12provisions of section 99B.42, all of the following requirements
13are met:
14 Sec. 89. Section 99B.43, subsection 1, paragraph a, Code
152022, is amended to read as follows:
16a. The liquor control retail alcohol licensee or beer
17permittee has submitted an application for a social gambling
18license and a license fee of one hundred fifty dollars to the
19department, and a license has been issued.
20 Sec. 90. Section 99B.43, subsection 2, unnumbered paragraph
211, Code 2022, is amended to read as follows:
22A liquor control retail alcohol licensee or beer permittee
23 with a social gambling license issued pursuant to this section
24may conduct a sports betting pool if all of the requirements of
25this subsection are met.
26 Sec. 91. Section 99B.43, subsection 3, Code 2022, is amended
27to read as follows:
283. An establishment issued a social gambling license under
29this section that is required to obtain a new liquor retail
30alcohol license or permit under chapter 123 due to a change in
31ownership shall be required to obtain a new social gambling
32license under this section to conduct social gambling.
33 Sec. 92. Section 99B.53, subsections 2, 3, 4, and 13, Code
342022, are amended to read as follows:
352. Except as provided in subsection 3, an electrical or
-64-1mechanical amusement device requiring registration may be
2located on premises for which a class “A”, class “B”, class
3“C”, special class “C”, or class “D” liquor control, class “E”,
4or class “F” retail alcohol license has been issued pursuant
5to chapter 123.
63. a. An electrical or mechanical amusement device
7requiring registration may be located on premises for which a
8class “B” or class “C” beer permit “E” retail alcohol license
9 has been issued pursuant to chapter 123, but the department
10shall not initially register an electrical or mechanical
11amusement device to an owner or distributor for a location for
12which a class “B” or class “C” beer permit “E” retail alcohol
13license has been issued pursuant to chapter 123 on or after
14April 28, 2004.
15b. A distributor that owns an amusement device at a location
16for which only a class “B” or class “C” beer permit “E” retail
17alcohol license has been issued pursuant to chapter 123 shall
18not relocate an amusement device registered as provided in
19this section to a location other than a location for which a
20class “A”, class “B”, class “C”, special class “C”, or class
21“D” liquor, class “E”, or class “F” retail alcohol license has
22been issued and shall not transfer, assign, sell, or lease an
23amusement device registered as provided in this section to
24another person for which only a class “B” or class “C” beer
25permit “E” retail alcohol license has been issued pursuant to
26chapter 123 after April 28, 2004.
27c. If ownership of the location changes, the class “B”
28or class “C” beer permit “E” retail alcohol license does not
29lapse, and the device is not removed from the location, the
30device may remain at the location.
314. An electrical or mechanical amusement device required
32to be registered and at a location for which only a class “B”
33or class “C” beer permit “E” retail alcohol license has been
34issued pursuant to chapter 123 shall include on the device
35a security mechanism which prevents the device from being
-65-1operated by a person until action is taken by the owner or
2owner’s designee to allow the person to operate the device.
313. A person owning or leasing an electrical or mechanical
4amusement device required to be registered by this section
5shall not relocate and place into operation an amusement
6device in any location other than a location which has been
7issued an appropriate liquor control retail alcohol license in
8good standing and to which the device has been appropriately
9registered with the department.
10 Sec. 93. Section 99B.55, subsection 2, Code 2022, is amended
11to read as follows:
122. a. A person who commits an offense of awarding a cash
13prize of fifty dollars or less in violation of section 99B.52,
14subsection 3, pursuant to rules adopted by the department,
15shall be subject to a civil penalty in the amount of two
16hundred fifty dollars. Additional sanctions beyond the civil
17penalty prescribed by this paragraph, including but not limited
18to the suspension or revocation of any liquor control retail
19alcohol license issued pursuant to chapter 123 or registration
20issued pursuant to section 99B.53 or 99B.56, shall not be
21applicable.
22b. A person who commits, within two years, a second offense
23of awarding a cash prize of fifty dollars or less in violation
24of section 99B.52, subsection 3, or a person who commits an
25offense of awarding a cash prize of more than fifty dollars in
26violation of section 99B.52, subsection 3, pursuant to rules
27adopted by the department, shall be subject to revocation of
28the person’s registration and the following:
29(1) If the person whose registration is revoked under this
30paragraph “b” is a person for which a class “A”, class “B”,
31 class “C”, special class “C”, or class “D” liquor control,
32class “E”, or class “F” retail alcohol license has been
33issued pursuant to chapter 123, the person’s liquor control
34 retail alcohol license shall be suspended for a period of
35fourteen days in the same manner as provided in section 123.50,
-66-1subsection 3, paragraph “a”.
2(2) If the person whose registration is revoked under this
3paragraph “b” is a person for which only a class “B” or class
4“C” beer permit “E” retail alcohol license has been issued
5pursuant to chapter 123, the person’s class “B” or class “C”
6beer permit “E” retail alcohol license shall be suspended for
7a period of fourteen days in the same manner as provided in
8section 123.50, subsection 3, paragraph “a”.
9(3) If a person owning or employed by an establishment
10having a class “A”, class “B”, class “C”, special class “C”,
11or class “D” liquor control, class “E”, or class “F” retail
12alcohol license issued pursuant to chapter 123 commits an
13offense as provided in this paragraph “b”, the liquor control
14 retail alcohol license of the establishment shall be suspended
15for a period of fourteen days in the same manner as provided in
16section 123.50, subsection 3, paragraph “a”.
17(4) If a person owning or employed by an establishment
18having a class “B” or class “C” beer permit “E” retail alcohol
19license issued pursuant to chapter 123 commits an offense as
20provided in this paragraph “b”, the beer permit retail alcohol
21license of the establishment shall be suspended for a period of
22fourteen days in the same manner as provided in section 123.50,
23subsection 3, paragraph “a”.
24 Sec. 94. Section 137F.1, subsection 9, paragraph c, Code
252022, is amended to read as follows:
26c. A premises covered by a class “A” wine permit or a class
27“B” wine permit as provided in chapter 123.
28 Sec. 95. Section 331.303, subsection 4, Code 2022, is
29amended to read as follows:
304. Act upon applications for liquor control retail alcohol
31 licenses and retail beer permits in accordance with section
32123.32.
33 Sec. 96. Section 455C.4, subsection 4, Code 2022, is amended
34to read as follows:
354. A class “E” liquor control retail alcohol licensee
-67-1may refuse to accept and to pay the refund value on an empty
2alcoholic liquor container from a dealer or a redemption center
3or from a person acting on behalf of or who has received empty
4alcoholic liquor containers from a dealer or a redemption
5center.
6DIVISION V
7TRANSITION PROVISIONS — EFFECTIVE DATE
8 Sec. 97. TRANSITION PROVISIONS. Any license or permit
9issued by the alcoholic beverages division of the department
10of commerce that is repealed, merged, or altered in this Act,
11and in effect on the effective date of this Act, shall continue
12in full force and effect with the authority granted by that
13license or permit until expiration or renewal.
14 Sec. 98. EFFECTIVE DATE. This Act takes effect January 1,
152023.
16EXPLANATION
17The inclusion of this explanation does not constitute agreement with
18the explanation’s substance by the members of the general assembly.
19This bill relates to alcoholic beverage control. The bill is
20organized by divisions.
21DIVISION I — RETAIL ALCOHOL LICENSES. Code section 123.30,
22establishing liquor control licenses, is stricken and rewritten
23by the bill. The bill replaces liquor control licenses with
24retail alcohol licenses and modifies the classes within the
25new category of retail alcohol licenses. The current class
26“A” liquor control license and class “D” liquor control
27license are renamed a class “F” and a class “D” retail alcohol
28license, respectively. The current class “B” liquor control
29license that may be issued to a hotel or motel is eliminated.
30Instead, the bill establishes a new class “B” retail alcohol
31license and special class “B” retail alcohol license. The
32new class “B” retail alcohol license allows the holder to
33purchase wine from a class “A” wine permittee and beer from a
34class “A” beer permittee and to sell wine and beer in original
35unopened containers at retail to patrons for consumption off
-68-1the licensed premises. The bill also allows a holder of the
2new class “B” retail alcohol license to sell wine in limited
3quantities to class “C”, special class “C”, class “D”, and
4class “F” retail alcohol licensees for resale for consumption
5on the premises. This new license combines, in part, the
6authority granted under the current class “C” beer permit for
7beer and the class “B” wine permit for wine. The new special
8class “B” retail native wine license authorizes the holder to
9purchase wine from a native winery holding a class “A” wine
10permit and to sell native wine only at retail for consumption
11off the licensed premises. The authority under this new
12special class “B” retail alcohol license is similar to the
13authority granted a holder of a current class “B” native wine
14permit. The current class “C” and special class “C” liquor
15control licenses are renamed as class “C” and special class “C”
16retail alcohol licenses. The current special class “C” native
17distilled spirits liquor control license is repealed. Finally,
18the current class “E” liquor control license is renamed a class
19“E” retail alcohol license. In addition, the bill provides
20that a class “E” retail alcohol licensee can purchase wine and
21beer from a class “A” wine or beer permittee, respectively.
22The bill specifically allows the class “E” licensee to sell
23wine and beer in unopened containers at retail, and to sell
24alcoholic liquor and high alcoholic content beer at wholesale.
25Code section 123.131, providing for liquor control license
26applications, is stricken and rewritten by the bill. Existing
27application requirements for liquor control licenses are made
28applicable to retail alcohol licenses established by the bill.
29In addition, requirements for issuance of a current class “B”
30beer permit, class “C” beer permit, and retail wine permit
31are generally made applicable to issuance of a retail alcohol
32license.
33New Code section 123.31A establishes the authority granted
34a holder of a new class “B”, class “C”, special class “C”,
35and class “E” retail alcohol license. The authority granted
-69-1a holder of these licenses as to both wine and beer is similar
2to the authority granted current holders of a class “B” beer
3permit, class “C” beer permit, and class “B” wine permit,
4to include sales of beer or wine in other than the original
5container. The new Code section provides that a holder of
6a new class “C” or special class “C” retail alcohol license
7cannot sell beer or wine to other retail alcohol license
8holders. The bill also provides, similarly to current Code
9section 123.181(1), that a holder of any retail alcohol permit
10shall not sell wine except wine purchased from a person holding
11a class “A” permit or native wine manufacturer.
12New Code section 123.31B establishes the authority granted a
13holder of a new special class “B” retail native wine license.
14The authority granted a holder of this new license is similar
15to the authority granted a holder of a current class “B” native
16wine permit.
17With the authority granted retail alcohol licensees
18regarding beer, the current class “B” and class “C” beer
19permits are repealed. As a result, the division repeals, as
20to beer permits, Code section 123.138, providing for class
21“B” beer permit applications, Code section 123.129, providing
22for class “C” beer permit applications, Code section 123.131,
23concerning authority under a class “B” beer permit, Code
24section 123.132, concerning authority under a class “C” beer
25permit, and Code section 123.140, concerning separate locations
26for class “B” or class “C” beer permits. In addition, based
27on the authority granted the new retail licenses regarding
28wine, the current class “B” wine, class “B” native wine, and
29class “C” native wine permits are repealed. As a result, the
30division repeals, as to wine permits, Code section 123.178,
31concerning authority under a class “B” wine permit, Code
32section 123.178A, concerning authority under a class “B” native
33wine permit, and Code section 123.178B, concerning authority
34under a class “C” native wine permit.
35DIVISION II — ALCOHOLIC BEVERAGE CONTROL FEES. This
-70-1division concerns fees for the new retail alcohol licenses as
2well as changes to fees for other licenses and permits in Code
3chapter 123.
4Code section 123.23, concerning the distiller’s certificate
5of compliance, is amended to increase the annual fee for the
6certificate from $50 to $200.
7Code section 123.36, concerning liquor control license
8fees, is stricken and rewritten and made applicable to the new
9retail alcohol licenses. The current fees for a class “A”
10liquor control licensee are made applicable to the new class
11“F” retail alcohol license. The current fees for a class
12“B” liquor control license are repealed. Instead, the bill
13establishes fees for the new class “B” retail alcohol license
14based on the population of the city where the premises is
15located as well as the square footage of the licensed premises.
16The fee for the new special class “B” native wine license is
17$125, an increase from the fee for a current class “B” native
18wine permit of $25. The fees for the new class “C” and special
19class “C” retail alcohol license are modified from the current
20fees for class “C” liquor control licenses. The new fees
21increase the population thresholds for increased fees for both
22the new class “C” and special class “C” licenses and reduce the
23fees for the class “C” retail alcohol license by $50 over the
24current fees for a class “C” liquor control license. The new
25class “D” retail alcohol license fees remain the same as the
26fees for the current class “D” liquor control license. The
27bill establishes fees for the new class “E” retail alcohol
28license based on the population of the city where the premises
29is located as well as the square footage of the licensed
30premises. Current fees for the class “E” liquor control
31license are based only on the population of the city where
32the premises is located. Current provisions in Code section
33123.36 governing crediting of liquor control license fees to
34the beer and liquor control fund are made applicable to the new
35retail alcohol license fees, excluding the new special class
-71-1“B” retail alcohol licenses. Current provisions imposing fee
2surcharges are also made applicable to the new retail alcohol
3license fees, excluding the new class “B” and special class “B”
4retail alcohol licenses.
5Code section 123.41, concerning the manufacturer’s license,
6is amended to decrease the annual fee for the license from $350
7to $300.
8Code section 123.43(3), concerning a class “A” native
9distilled spirits license, is amended to decrease the annual
10fee for the license from $500 to $300.
11Code section 123.134, concerning beer permit fees, is
12stricken and rewritten. The bill keeps the annual permit fee
13for a class “A” beer permit at $750, reduces the annual permit
14fee for a special class “A” beer permit from $750 to $300, and
15provides that the annual fee for a class “A” beer permit for a
16native brewery is $300. Fees for class “B” and class “C” beer
17permits are repealed as those permits are repealed by the bill.
18Code section 123.135, concerning the brewer’s certificate
19of compliance, is amended to reduce the annual fee for the
20certificate from $500 to $200.
21Code section 123.179, concerning wine permit fees, is
22stricken and rewritten by the bill. The bill keeps the annual
23permit fee for a class “A” wine permit that is not issued
24to a native wine manufacturer at $750, increases the annual
25permit fee for a class “A” wine permit issued to a native wine
26manufacturer from $25 to $100, and provides that the annual fee
27for a charity beer, spirits, and wine special event license
28created in the bill is $100. Fees for class “B” wine permits
29and class “B” and class “C” native wine permits are stricken
30as those permits are repealed by the bill. The current fees
31for charity wine auctions and charity wine event permits are
32stricken as those permits are repealed by the bill and combined
33in the new charity beer, spirits, and wine special event
34license created by the bill.
35Code section 123.180, concerning the vintner’s certificate
-72-1of compliance, is amended to increase the annual fee for the
2certificate from $150 to $200.
3DIVISION III — ALCOHOLIC BEVERAGE CONTROL. This division
4makes changes to Code chapter 123 relative to alcoholic
5beverage control, to include making conforming changes relative
6to the creation of the new retail alcohol licenses and the
7elimination of certain native distilled spirits, beer, and wine
8permits in the bill. The bill also eliminates the requirement
9to obtain a special privilege to sell alcoholic beverages on
10Sunday and provides that sales or other activities relating
11to alcoholic beverages on Sunday will be allowed to the same
12extent as they are allowed on any other day.
13Code section 123.3, definitions, is amended to reflect the
14new retail alcohol licenses. The bill strikes definitions for
15“retail beer permit” and “retail wine permit” as those permits
16are repealed by the bill and creates a new “retail alcohol
17license” definition reflecting the classes of licenses included
18within this new license. The definition of “high alcoholic
19content beer” is also amended to provide that high alcoholic
20content beer may contain up to 19 percent of alcohol by volume
21instead of the current 15 percent.
22Code section 123.34, concerning seasonal licenses and
23permits, is amended. The bill amends the Code section to
24reflect the new retail alcohol licenses and allows seasonal
25and shortened licenses for new class “C”, special class
26“C”, class “D”, and class “F” retail alcohol licensees. The
27bill eliminates the six-month seasonal license or permit and
28provides that the fee for an eight-month seasonal license shall
29be 50 percent of the license fee for that class of license
30instead of a proportional share of that fee.
31New Code section 123.35 includes the provision from
32current Code section 123.34 providing for the expiration of
33licenses, permits, and certificates of compliance without
34the notification requirement. The new Code section further
35provides, notwithstanding any provision of Code chapter 123
-73-1to the contrary, for the automatic renewal of a class “E”
2retail alcohol license, a distiller’s, vintner’s, or brewer’s
3certificate of compliance, and a wine direct shipper’s
4permit. The bill allows the renewal of the applicable license,
5certificate, or permit without approval by the administrator
6of the alcoholic beverages division or endorsement of any
7applicable local authority upon collection of the annual fee
8for that license, certificate, or permit by the alcoholic
9beverages division, provided certain conditions are met since
10the preceding license, certificate, or permit was issued. The
11bill provides that the license, certificate, or permit can be
12automatically renewed if, in the preceding year, the license,
13certificate, or permit has not been suspended or revoked,
14a civil penalty has not been imposed, an administrative
15proceeding is not pending to suspend or revoke the license,
16certificate, or permit or to impose a civil penalty, all
17required payments to the division have been made, and the
18licensee, certificate holder, or permittee, and all persons
19associated with the licensee, certificate holder, or permittee
20as described in Code section 123.3(40)(e), have not been
21convicted of a violation of Code chapter 123. In addition, for
22renewal of a class “E” retail alcohol license, the licensed
23premises shall constitute a safe and proper place and building
24that complies with all applicable building-related regulations.
25Code section 123.43A, concerning native distilleries, is
26amended to reflect the new retail alcohol licenses in the bill.
27The bill also provides that a distillery that produces no more
28than 100,000 proof gallons of native distilled spirits annually
29may be granted not more than two class “C” retail alcohol
30licenses instead of two class “C” native distilled spirits
31liquor control licenses as those licenses are repealed by the
32bill. A holder of a class “C” retail alcohol license under
33the bill is granted the authority to sell alcoholic liquor,
34wine, and beer while a holder of the current class “C” native
35distilled spirits liquor control licenses has the authority
-74-1to only sell native distilled spirits and mixed drinks or
2cocktails.
3Code section 123.46A, concerning delivery of alcoholic
4beverages by retailers, is amended to reflect that the new
5retail alcohol licenses in the bill are licenses, not permits.
6The bill also provides that deliveries shall occur on the same
7day the order for delivery of alcoholic beverages is removed
8from the licensed premises of the retailer.
9Code sections 123.49 and 123.50, concerning prohibitions
10and criminal and civil penalties, are amended to reflect the
11new retail alcohol licenses created in the bill and the fact
12that the authority to sell at retail is granted only to retail
13alcohol licensees and not permittees.
14Code section 123.92, the dramshop Act, is amended to
15provide that every retail alcohol licensee, except a class
16“B”, special class “B”, or class “E” retail alcohol licensee,
17shall furnish proof of financial responsibility by the
18existence of a liability insurance policy. Under current law,
19every liquor control licensee, class “B” beer permittee, and
20class “C” native wine permittee, except a class “E” liquor
21control licensee, is required to furnish proof of financial
22responsibility.
23Code section 123.97, providing that most revenues arising
24under the operation of Code chapter 123 become part of the
25general fund of the state, is repealed as inconsistent with the
26provisions of current Code section 123.17.
27Code section 123.123, concerning the applicability of
28provisions relating to class “B” beer permits to liquor control
29licensees, is repealed as class “B” beer permits are repealed
30in the bill.
31Code section 123.130, concerning authority under class “A”
32beer permits, is amended to reflect the new retail alcohol
33licenses in the bill. The bill also provides that a native
34brewery may be granted not more than two class “C” or special
35class “C” retail alcohol licenses instead of two class “B”
-75-1permits which permits are repealed by the bill.
2Code section 123.138, concerning keg identification
3stickers, is amended to reflect the new retail alcohol licenses
4and provides for a keg identification label instead of a
5sticker. In addition, the bill strikes provisions concerning
6the forfeiture and remittance of deposits relating to defacing
7the keg identification label.
8Code section 123.143, concerning distribution of funds, is
9amended to strike the provision directing where retail beer
10permit fees shall be distributed. The bill repeals all retail
11beer permit fees and the distribution of funds from retail
12alcohol licenses is governed by Code section 123.36 as amended
13by the bill.
14Code section 123.172, concerning the applicability of
15provisions relating to class “B” wine permits to liquor control
16licensees, is repealed as class “B” wine permits are repealed
17in the bill.
18Code section 123.173, concerning classes of wine permits, is
19amended by striking provisions relating to class “B”, class “B”
20native wine, and class “C” native wine permits as those permits
21are repealed by the bill.
22Code section 123.173A, providing for a charity beer,
23spirits, and wine auction permit, and Code section 123.173B,
24providing for a charity beer, spirits, and wine event permit,
25are stricken and replaced with a combined charity beer,
26spirits, and wine special event license, allowing the license
27holder to conduct a charity auction, charity event, or a
28combined charity auction and charity event in a similar manner
29as is allowed under current law for the two separate permits.
30The bill only allows one charity auction, charity event, or
31combined charity auction and charity event to be conducted
32during the period of the license and limits a person to no more
33than two special event licenses in a calendar year.
34Code section 123.176, concerning native wines, is amended
35to reflect the new retail alcohol licenses in the bill. The
-76-1bill also provides that a manufacturer of native wines may be
2granted not more than two class “C” retail alcohol licenses
3instead of two class “C” native wine permits which permits are
4repealed by the bill. A holder of a class “C” retail alcohol
5license under the bill is granted the authority to sell wine
6and beer.
7Code section 123.187, concerning the wine direct shipper
8permit, is amended to remove the requirement that an
9application for the permit be accompanied by a bond if not
10otherwise required to submit a bond as a wine manufacturer.
11Code section 125.59 is amended to reflect that current
12provisions providing for transfer of certain revenues to the
13department of public health are stricken by the bill.
14DIVISION IV — CONFORMING CHANGES. This division makes
15conforming changes to Code chapters 7D, 12, and 99B, relative
16to the creation of the new retail alcohol licenses and the
17elimination of certain native distilled spirits, beer, and wine
18permits in the bill.
19Code section 137F.1, defining food establishments for
20purposes of licensure, is amended to provide that a food
21establishment does not include only a premises covered by a
22class “A” wine permit. Under current law, a food establishment
23also does not include a premises covered by a class “B” wine
24permit which is stricken by the bill.
25DIVISION V — TRANSITION PROVISIONS — EFFECTIVE DATE.
26 This division provides that any license or permit issued by
27the alcoholic beverages division that is repealed, merged, or
28altered in the bill and in effect on the effective date of the
29bill shall continue in full force and effect with the authority
30granted by that license or permit until expiration or renewal.
31The division also provides that the bill takes effect January
321, 2023.
-77-ec/rn
2providing for fees, and including effective date provisions.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2RETAIL ALCOHOL LICENSES
3 Section 1. Section 123.30, Code 2022, is amended by striking
4the section and inserting in lieu thereof the following:
5123.30 Retail alcohol licenses — classes.
61. a. A retail alcohol license may be issued to any person
7who is of good moral character as defined by this chapter.
8b. As a condition for issuance of a retail alcohol license
9or wine or beer permit, the applicant must give consent
10to members of the fire, police, and health departments and
11the building inspector of cities; the county sheriff or
12deputy sheriff; members of the department of public safety;
13representatives of the division and of the department of
14inspections and appeals; certified police officers; and
15any official county health officer to enter upon areas of
16the premises where alcoholic beverages are stored, served,
17or sold, without a warrant during business hours of the
18licensee or permittee to inspect for violations of this
19chapter or ordinances and regulations that cities and boards
20of supervisors may adopt. However, a subpoena issued under
21section 421.17 or a warrant is required for inspection of
22private records, a private business office, or attached living
23quarters. Persons who are not certified peace officers shall
24limit the scope of their inspections of licensed premises
25to the regulatory authority under which the inspection is
26conducted. All persons who enter upon a licensed premises to
27conduct an inspection shall present appropriate identification
28to the owner of the establishment or the person who appears
29to be in charge of the establishment prior to commencing
30an inspection; however, this provision does not apply to
31undercover criminal investigations conducted by peace officers.
32c. As a further condition for the issuance of a class “E”
33retail alcohol license, the applicant shall post a bond in
34a sum of not less than five thousand nor more than fifteen
35thousand dollars as determined on a sliding scale established
-1-1by the division; however, a bond shall not be required if all
2purchases of alcoholic liquor from the division by the licensee
3are made by means that ensure that the division will receive
4full payment in advance of delivery of the alcoholic liquor.
5d. A class “E” retail alcohol license may be issued to a
6city council for premises located within the limits of the city
7if there are no class “E” retail alcohol licensees operating
8within the limits of the city and no other applications for a
9class “E” license for premises located within the limits of
10the city at the time the city council’s application is filed.
11If a class “E” retail alcohol license is subsequently issued
12to a private person for premises located within the limits of
13the city, the city council shall surrender its license to the
14division within one year of the date that the class “E” retail
15alcohol licensee begins operating, liquidate any remaining
16assets connected with the liquor store, and cease operating the
17liquor store.
182. A retail alcohol license shall not be issued for premises
19which do not constitute a safe and proper place or building
20and which do not conform to all applicable laws, ordinances,
21resolutions, and health and fire regulations. A licensee
22shall not have or maintain any interior access to residential
23or sleeping quarters unless permission is granted by the
24administrator in the form of a living quarters permit.
253. Retail alcohol licenses issued under this chapter shall
26be of the following classes:
27a. Class “B”.
28(1) (a) A class “B” retail alcohol license may be
29issued and shall authorize the holder to purchase wine from
30a class “A” wine permittee only and beer from a class “A”
31beer permittee only, and to sell wine and beer in original
32unopened containers at retail to patrons for consumption off
33the licensed premises.
34(b) The holder of a class “B” retail alcohol license may
35sell wine to class “C”, special class “C”, class “D”, and class
-2-1“F” retail alcohol licensees for resale for consumption on
2the premises. Such wine sales shall be in quantities of less
3than one case of any wine brand but not more than one such
4sale shall be made to the same retail alcohol licensee in a
5twenty-four-hour period.
6(2) A special class “B” retail native wine license shall
7authorize the holder to purchase wine from a native winery
8holding a class “A” wine permit and to sell native wine only at
9retail for consumption off the licensed premises.
10b. Class “C”.
11(1) A class “C” retail alcohol license may be issued to
12a commercial establishment but must be issued in the name of
13the individuals who actually own the entire business and shall
14authorize the holder to purchase alcoholic liquors in original
15unopened containers from class “E” retail alcohol licensees
16only, wine from class “A” wine permittees, class “B” retail
17alcohol licensees, or class “E” retail alcohol licensees only
18as provided in this section and section 123.177, and to sell
19alcoholic beverages to patrons by the individual drink for
20consumption on the premises only. However, alcoholic liquor,
21wine, and beer in original unopened containers may also be sold
22for consumption off the premises. In addition, mixed drinks
23or cocktails may also be sold for consumption off the premises
24subject to the requirements of section 123.49, subsection 2,
25paragraph “d”. The holder of a class “C” retail alcohol license
26may also hold a special class “A” beer permit for the premises
27licensed under a class “C” retail alcohol license for the
28purpose of operating a brewpub pursuant to this chapter.
29(2) A special class “C” retail alcohol license may be issued
30to a commercial establishment and shall authorize the holder
31to purchase wine from class “A” wine permittees, class “B”
32retail alcohol licensees, or class “E” retail alcohol licensees
33only as provided in this section and section 123.177, and to
34sell wine and beer to patrons by the individual drink for
35consumption on the premises only. However, wine and beer in
-3-1original unopened containers may also be sold for consumption
2off the premises. The license issued to holders of a special
3class “C” retail alcohol license shall clearly state on its
4face that the license is limited.
5c. Class “D”.
6(1) A class “D” retail alcohol license may be issued
7to a railway corporation, to an air common carrier, and to
8passenger-carrying boats or ships for hire with a capacity of
9twenty-five persons or more operating in inland or boundary
10waters, and shall authorize the holder to sell or furnish
11alcoholic beverages to passengers for consumption only on
12trains, watercraft as described in this section, or aircraft,
13respectively. Each license is valid throughout the state.
14Only one license is required for all trains, watercraft, or
15aircraft operated in the state by the licensee. However, if a
16watercraft is an excursion gambling boat licensed under chapter
1799F, the owner shall obtain a separate class “D” retail alcohol
18license for each excursion gambling boat operating in the
19waters of this state.
20(2) A class “D” retail alcohol licensee who operates a train
21or a watercraft intrastate only, or an excursion gambling boat
22licensed under chapter 99F, shall purchase alcoholic liquor in
23original unopened containers from a class “E” retail alcohol
24licensee only, wine from a class “A” wine permittee, class “B”
25retail alcohol licensees, or class “E” retail alcohol licensee
26only as provided in this section and section 123.177, and beer
27from a class “A” beer permittee only.
28d. Class “E”.
29(1) A class “E” retail alcohol license may be issued and
30shall authorize the holder to purchase alcoholic liquor in
31original unopened containers from the division only, wine
32from a class “A” wine permittee only, and beer from a class
33“A” beer permittee only; to sell alcoholic liquor, wine, and
34beer in original unopened containers at retail to patrons for
35consumption off the licensed premises; and to sell alcoholic
-4-1liquor and high alcoholic content beer at wholesale to other
2retail alcohol licensees, provided the holder has filed with
3the division a basic permit issued by the alcohol and tobacco
4tax and trade bureau of the United States department of the
5treasury.
6(2) A holder of a class “E” retail alcohol license may hold
7other retail alcohol licenses, but the premises licensed under
8a class “E” retail alcohol license shall be separate from other
9licensed premises, though the separate premises may have a
10common entrance.
11(3) The holder of a class “E” retail alcohol license may
12sell wine to class “C”, special class “C”, class “D”, and class
13“F” retail alcohol licensees for resale for consumption on
14the premises. Such wine sales shall be in quantities of less
15than one case of any wine brand but not more than one such
16sale shall be made to the same retail alcohol licensee in a
17twenty-four-hour period.
18(4) The division may issue a class “E” retail alcohol
19license for premises covered by a retail alcohol license
20for on-premises consumption under any of the following
21circumstances:
22(a) If the premises are in a county having a population
23under nine thousand five hundred in which no other class “E”
24retail alcohol license has been issued by the division, and no
25other application for a class “E” retail alcohol license has
26been made within the previous twelve consecutive months.
27(b) If, notwithstanding any provision of this chapter to the
28contrary, the premises covered by a retail alcohol license is a
29grocery store that is at least five thousand square feet.
30e. Class “F”. A class “F” retail alcohol license may be
31issued to a club and shall authorize the holder to purchase
32alcoholic liquors in original unopened containers from class
33“E” retail alcohol licensees only, beer from class “A” beer
34permittees only, wine from class “A” wine permittees, class “B”
35retail alcohol licensees, or class “B” retail alcohol licensees
-5-1only as provided in this section and section 123.177, and to
2sell alcoholic beverages to bona fide members and their guests
3by the individual drink for consumption on the premises only.
44. Notwithstanding any provision of this chapter to the
5contrary, a person holding a retail alcohol license to sell
6alcoholic beverages for consumption on the licensed premises
7may permit a customer to remove one unsealed bottle of wine
8for consumption off the premises if the customer has purchased
9and consumed a portion of the bottle of wine on the licensed
10premises. The licensee or the licensee’s agent shall securely
11reseal such bottle in a bag designed so that it is visibly
12apparent that the resealed bottle of wine has not been tampered
13with and provide a dated receipt for the resealed bottle of
14wine to the customer. A wine bottle resealed pursuant to the
15requirements of this subsection is subject to the requirements
16of sections 321.284 and 321.284A. A person holding a retail
17alcohol license to sell alcoholic beverages for consumption on
18the licensed premises may permit a customer to carry an open
19container of wine from the person’s licensed premises into
20another immediately adjacent licensed premises that is covered
21by a license or permit that authorizes the consumption of wine,
22a temporarily closed public right-of-way, or a private place.
23 Sec. 2. Section 123.31, Code 2022, is amended by striking
24the section and inserting in lieu thereof the following:
25123.31 Retail alcohol licenses — application.
261. A person applying for a retail alcohol license shall
27submit a completed application electronically, or in a manner
28prescribed by the administrator, which shall set forth under
29oath the following:
30a. The name and place of residence of the applicant.
31b. The names and addresses of all persons or, in the case of
32a corporation, limited liability company, or any other similar
33legal entity, the officers, directors, and persons owning or
34controlling ten percent or more of the capital stock thereof,
35having a financial interest, by way of loan, ownership, or
-6-1otherwise, in the business.
2c. The location of the premises where the applicant intends
3to operate.
4d. The name of the owner of the premises and if the owner of
5the premises is not the applicant, whether the applicant is the
6actual lessee of the premises.
7e. When required by the administrator, and in such form and
8containing such information as the administrator may require,
9a description of the premises where the applicant intends to
10use the license, to include a sketch or drawing of the premises
11and, if applicable, the number of square feet of interior floor
12space which comprises the retail sales area of the premises.
13f. Whether any person specified in paragraph “b” has ever
14been convicted of any offense against the laws of the United
15States, or any state or territory thereof, or any political
16subdivision of any such state or territory.
17g. Any other information as required by the administrator.
182. The retail alcohol license shall only be issued to an
19applicant who establishes all of the following:
20a. That the applicant has submitted a completed application
21as required by subsection 1.
22b. That the applicant is a person of good moral character as
23provided in section 123.3, subsection 40.
24c. That the applicant is a citizen of the state of Iowa
25or, if a corporation, that the applicant is authorized to do
26business in the state.
27d. That the premises where the applicant intends to use the
28license conforms to all applicable laws, health regulations,
29and fire regulations, and constitutes a safe and proper place
30or building and that the applicant shall not have or maintain
31any interior access to residential or sleeping quarters unless
32permission is granted by the administrator in the form of a
33living quarters permit.
34e. That the applicant gives consent to a person, pursuant
35to section 123.30, subsection 1, to enter upon the premises
-7-1without a warrant during the business hours of the applicant
2to inspect for violations of the provisions of this chapter or
3ordinances and regulations that local authorities may adopt.
4 Sec. 3. NEW SECTION. 123.31A Authority under class “B”,
5class “C”, special class “C”, and class “E” retail alcohol
6license.
71. The holder of a class “B”, class “C”, special class “C”,
8or class “E” retail alcohol license shall be allowed to sell
9beer and wine to consumers at retail for consumption off the
10premises. The sales made pursuant to this section shall be
11made in original containers except as provided in subsection 3.
122. Every person holding a class “B”, class “C”, special
13class “C”, or class “E” retail alcohol license having more
14than one place of business where beer and wine is sold which
15places do not constitute a single premises within the meaning
16of section 123.3, subsection 29, shall be required to have a
17separate license for each separate place of business, except as
18otherwise provided by this chapter.
193. Subject to the rules of the division, sales made pursuant
20to this section may be made in a container other than the
21original container only if all of the following requirements
22are met:
23a. The beer or wine is transferred from the original
24container to the container to be sold on the licensed premises
25at the time of sale.
26b. The person transferring the beer or wine from the
27original container to the container to be sold shall be
28eighteen years of age or older.
29c. The container to be sold shall be no larger than
30seventy-two ounces.
31d. The container to be sold shall be securely sealed by
32a method authorized by the division that is designed so that
33if the sealed container is reopened or the seal tampered with,
34it is visibly apparent that the seal on the container of beer
35or wine has been tampered with or the sealed container has
-8-1otherwise been reopened.
24. A container of beer or wine other than the original
3container that is sold and sealed in compliance with the
4requirements of subsection 3 and the division’s rules shall
5not be deemed an open container subject to the requirements
6of sections 321.284 and 321.284A if the sealed container is
7unopened and the seal has not been tampered with, and the
8contents of the container have not been partially removed.
95. a. The holder of a class “C” or special class “C” retail
10alcohol license, or the licensee’s agents or employees, shall
11not sell beer or wine to other retail alcohol license holders
12knowing or having reasonable cause to believe that the beer
13will be resold in another licensed establishment.
14b. A holder of any retail alcohol permit shall not sell wine
15except wine which is purchased from a person holding a class
16“A” wine permit and on which the tax imposed by section 123.183
17has been paid.
18 Sec. 4. NEW SECTION. 123.31B Authority under special class
19“B” retail native wine license.
201. A person holding a special class “B” retail native wine
21license may sell native wine only at retail for consumption off
22the premises. Native wine shall be sold for consumption off
23the premises in original containers.
242. A special class “B” retail native wine licensee having
25more than one place of business where wine is sold shall obtain
26a separate license for each place of business.
27 Sec. 5. REPEAL. Sections 123.128, 123.129, 123.131,
28123.132, 123.140, 123.178, 123.178A, and 123.178B, Code 2022,
29are repealed.
30DIVISION II
31ALCOHOLIC BEVERAGE CONTROL FEES
32 Sec. 6. Section 123.23, subsection 1, Code 2022, is amended
33to read as follows:
341. Any manufacturer, distiller, or importer of alcoholic
35liquors shipping, selling, or having alcoholic liquors brought
-9-1into this state for resale by the state shall, as a condition
2precedent to the privilege of so trafficking in alcoholic
3liquors in this state, annually make application for and hold
4a distiller’s certificate of compliance which shall be issued
5by the administrator for that purpose. No brand of alcoholic
6liquor shall be sold by the division in this state unless
7the manufacturer, distiller, importer, and all other persons
8participating in the distribution of that brand in this state
9have obtained a certificate. The certificate of compliance
10shall expire at the end of one year from the date of issuance
11and shall be renewed for a like period upon application to the
12administrator unless otherwise suspended or revoked for cause.
13Each completed application for a certificate of compliance
14or renewal shall be submitted electronically, or in a manner
15prescribed by the administrator, and shall be accompanied by
16a fee of fifty two hundred dollars payable to the division.
17However, this subsection need not apply to a manufacturer,
18distiller, or importer who ships or sells in this state no more
19than eleven gallons or its case equivalent during any fiscal
20year as a result of “special orders” which might be placed,
21as defined and allowed by divisional rules adopted under this
22chapter.
23 Sec. 7. Section 123.36, Code 2022, is amended by striking
24the section and inserting in lieu thereof the following:
25123.36 Retail alcohol license fees.
261. The following fees shall be paid to the division annually
27for retail alcohol licenses issued under section 123.30:
28a. Class “B” retail alcohol license fees shall be determined
29as follows:
30(1) For premises located within the corporate limits of a
31city with a population of two thousand five hundred or less, a
32fee determined as follows:
33(a) For a premises with a square footage of one thousand
34five hundred or less, seventy-five dollars.
35(b) For a premises with a square footage of more than one
-10-1thousand five hundred but not more than two thousand, one
2hundred fifty dollars.
3(c) For a premises with a square footage of more than two
4thousand but not more than five thousand, two hundred fifty
5dollars.
6(d) For a premises with a square footage over five thousand,
7three hundred fifty dollars.
8(2) For premises located within the corporate limits of a
9city with a population of more than two thousand five hundred
10but less than fifteen thousand, a fee determined as follows:
11(a) For a premises with a square footage of one thousand
12five hundred or less, one hundred fifty dollars.
13(b) For a premises with a square footage of more than one
14thousand five hundred but not more than two thousand, two
15hundred fifty dollars.
16(c) For a premises with a square footage of more than two
17thousand but not more than five thousand, three hundred fifty
18dollars.
19(d) For a premises with a square footage over five thousand,
20five hundred dollars.
21(3) For premises located within the corporate limits of
22a city with a population of fifteen thousand or more, a fee
23determined as follows:
24(a) For a premises with a square footage of one thousand
25five hundred or less, two hundred fifty dollars.
26(b) For a premises with a square footage of more than one
27thousand five hundred but not more than two thousand, three
28hundred fifty dollars.
29(c) For a premises with a square footage of more than two
30thousand but not more than five thousand, five hundred dollars.
31(d) For a premises with a square footage over five thousand,
32seven hundred fifty dollars.
33(4) For premises located outside the corporate limits of
34any city, a fee equal to that charged to a premises with the
35same square footage in the incorporated city located nearest
-11-1the premises to be licensed. If there is doubt as to which
2of two or more differing corporate limits is the nearest, the
3license fee which is the largest shall prevail. However, if
4the premises is located in an unincorporated town, for purposes
5of this paragraph, the unincorporated town shall be treated as
6if it is a city.
7b. Special class “B” retail native wine license fees shall
8be one hundred twenty-five dollars.
9c. Class “C” retail alcohol license fees shall be determined
10as follows:
11(1) Commercial establishments located within the corporate
12limits of cities of two thousand five hundred population or
13less, five hundred fifty dollars.
14(2) Commercial establishments located within the corporate
15limits of cities of over two thousand five hundred and less
16than fifteen thousand population, nine hundred dollars.
17(3) Commercial establishments located within the corporate
18limits of cities of fifteen thousand population and over, one
19thousand two hundred fifty dollars.
20(4) Commercial establishments located outside the corporate
21limits of any city, a fee equal to that charged in the
22incorporated city located nearest the premises to be licensed,
23and in case there is doubt as to which of two or more differing
24corporate limits is the nearest, the license fee which is the
25largest shall prevail. However, if a commercial establishment
26is located in an unincorporated town, for purposes of this
27paragraph, the unincorporated town shall be treated as if it
28is a city.
29d. Special class “C” retail alcohol license fees shall be
30determined as follows:
31(1) Commercial establishments located within the corporate
32limits of cities of two thousand five hundred population or
33less, one hundred fifty dollars.
34(2) Commercial establishments located within the corporate
35limits of cities of over two thousand five hundred and less
-12-1than fifteen thousand population, three hundred dollars.
2(3) Commercial establishments located within the corporate
3limits of cities of fifteen thousand population and over, four
4hundred fifty dollars.
5(4) Commercial establishments located outside the corporate
6limits of any city, a fee equal to that charged in the
7incorporated city located nearest the premises to be licensed,
8and in case there is doubt as to which of two or more differing
9corporate limits is the nearest, the license fee which is the
10largest shall prevail. However, if a commercial establishment
11is located in an unincorporated town, for purposes of this
12paragraph, the unincorporated town shall be treated as if it
13is a city.
14e. Class “D” retail alcohol license fees shall be determined
15as follows:
16(1) For watercraft, one hundred fifty dollars.
17(2) For trains, five hundred dollars.
18(3) For air common carriers, each company shall pay five
19hundred dollars.
20f. Class “E” retail alcohol license fees shall be determined
21as follows:
22(1) For premises located within the corporate limits of a
23city with a population of two thousand five hundred or less, a
24fee determined as follows:
25(a) For a premises with a square footage of one thousand
26five hundred or less, seven hundred fifty dollars.
27(b) For a premises with a square footage of more than one
28thousand five hundred but not more than two thousand, one
29thousand five hundred dollars.
30(c) For a premises with a square footage of more than two
31thousand but not more than five thousand, two thousand five
32hundred dollars.
33(d) For a premises with a square footage over five thousand,
34three thousand five hundred dollars.
35(2) For premises located within the corporate limits of a
-13-1city with a population of more than two thousand five hundred
2but less than fifteen thousand, a fee determined as follows:
3(a) For a premises with a square footage of one thousand
4five hundred or less, one thousand five hundred dollars.
5(b) For a premises with a square footage of more than one
6thousand five hundred but not more than two thousand, two
7thousand five hundred dollars.
8(c) For a premises with a square footage of more than two
9thousand but not more than five thousand, three thousand five
10hundred dollars.
11(d) For a premises with a square footage over five thousand,
12five thousand dollars.
13(3) For premises located within the corporate limits of
14a city with a population of fifteen thousand or more, a fee
15determined as follows:
16(a) For a premises with a square footage of one thousand
17five hundred or less, two thousand five hundred dollars.
18(b) For a premises with a square footage of more than one
19thousand five hundred but not more than two thousand, three
20thousand five hundred dollars.
21(c) For a premises with a square footage of more than
22two thousand but not more than five thousand, five thousand
23dollars.
24(d) For a premises with a square footage over five thousand,
25seven thousand five hundred dollars.
26(4) For premises located outside the corporate limits of
27any city, a fee equal to that charged to a premises with the
28same square footage in the incorporated city located nearest
29the premises to be licensed. If there is doubt as to which
30of two or more differing corporate limits is the nearest, the
31license fee which is the largest shall prevail. However, if
32the premises is located in an unincorporated town, for purposes
33of this paragraph, the unincorporated town shall be treated as
34if it is a city.
35g. Class “F” retail alcohol license fees shall be six
-14-1hundred dollars, except that for class “F” licenses in cities
2of less than two thousand population, and for clubs of less
3than two hundred fifty members, the license fee shall be four
4hundred dollars; however, the fee shall be two hundred dollars
5for any club which is a post, branch, or chapter of a veterans
6organization chartered by the Congress of the United States, if
7the club does not sell or permit the consumption of alcoholic
8beverages on the premises more than one day in any week or
9more than a total of fifty-two days in a year, and if the
10application for a license states that the club does not and
11will not sell or permit the consumption of alcoholic beverages
12on the premises more than one day in any week or more than a
13total of fifty-two days in a year.
142. The division shall credit all fees to the beer and liquor
15control fund. The division shall remit to the appropriate
16local authority a sum equal to sixty-five percent of the fees
17collected for each class “B”, class “C”, or class “F” license
18except special class “C” licenses or class “E” licenses,
19covering premises located within the local authority’s
20jurisdiction. The division shall remit to the appropriate
21local authority a sum equal to seventy-five percent of the fees
22collected for each special class “C” license covering premises
23located within the local authority’s jurisdiction. Those fees
24collected for each class “E” retail alcohol license shall be
25credited to the beer and liquor control fund.
263. There is imposed a surcharge on the fee for each class
27“C”, special class “C”, or class “F” retail alcohol license
28equal to thirty percent of the scheduled license fee. The
29surcharges collected under this subsection shall be deposited
30in the beer and liquor control fund, and notwithstanding
31subsection 2, no portion of the surcharges collected under this
32subsection shall be remitted to the local authority.
33 Sec. 8. Section 123.41, subsection 1, Code 2022, is amended
34to read as follows:
351. Each completed application to obtain or renew a
-15-1manufacturer’s license shall be submitted to the division
2electronically, or in a manner prescribed by the administrator,
3and shall be accompanied by a fee of three hundred fifty
4 dollars payable to the division. The administrator may in
5accordance with this chapter grant and issue to a manufacturer
6a manufacturer’s license, valid for a one-year period after
7date of issuance, which shall allow the manufacture, storage,
8and wholesale disposition and sale of alcoholic liquors to the
9division and to customers outside of the state.
10 Sec. 9. Section 123.43, subsection 3, Code 2022, is amended
11to read as follows:
123. A class “A” native distilled spirits license for a native
13distillery shall be issued and renewed annually upon payment of
14a fee of five three hundred dollars.
15 Sec. 10. Section 123.134, Code 2022, is amended by striking
16the section and inserting in lieu thereof the following:
17123.134 Beer permit fees.
181. The annual permit fee for a class “A” beer permit is
19seven hundred fifty dollars.
202. The annual permit fee for a class “A” beer permit for a
21native brewery is three hundred dollars.
223. The annual permit fee for a special class “A” beer permit
23is three hundred dollars.
24 Sec. 11. Section 123.135, subsection 1, Code 2022, is
25amended to read as follows:
261. A manufacturer, brewer, bottler, importer, or vendor of
27beer, or any agent thereof, desiring to ship or sell beer, or
28have beer brought into this state for resale by a class “A”
29beer permittee, shall first make application for and be issued
30a brewer’s certificate of compliance by the administrator for
31that purpose. The certificate of compliance expires at the
32end of one year from the date of issuance and shall be renewed
33for a like period upon application to the administrator unless
34otherwise revoked for cause. Each completed application for
35a certificate of compliance or renewal of a certificate shall
-16-1be submitted electronically, or in a manner prescribed by the
2administrator, and shall be accompanied by a fee of five two
3 hundred dollars payable to the division. Each holder of a
4certificate of compliance shall furnish the information in a
5manner the administrator requires.
6 Sec. 12. Section 123.179, Code 2022, is amended by striking
7the section and inserting in lieu thereof the following:
8123.179 Wine permit and license fees.
91. The annual permit fee for a class “A” wine permit that
10is not issued to a native wine manufacturer is seven hundred
11fifty dollars.
122. The annual permit fee for a class “A” wine permit issued
13to a native wine manufacturer is one hundred dollars.
143. The fee for a charity beer, spirits, and wine special
15event license is one hundred dollars.
16 Sec. 13. Section 123.180, subsection 1, Code 2022, is
17amended to read as follows:
181. A manufacturer, vintner, bottler, importer, or vendor of
19wine, or an agent thereof, desiring to ship, sell, or have wine
20brought into this state for sale at wholesale by a class “A”
21permittee shall first make application for and shall be issued
22a vintner’s certificate of compliance by the administrator
23for that purpose. The vintner’s certificate of compliance
24shall expire at the end of one year from the date of issuance
25and shall be renewed for a like period upon application to
26the administrator unless otherwise revoked for cause. Each
27completed application for a vintner’s certificate of compliance
28or renewal of a certificate shall be submitted electronically,
29or in a manner prescribed by the administrator, and shall be
30accompanied by a fee of one two hundred dollars payable to the
31division. Each holder of a vintner’s certificate of compliance
32shall furnish the information required by the administrator in
33the form the administrator requires. A vintner or wine bottler
34whose plant is located in Iowa and who otherwise holds a class
35“A” wine permit to sell wine at wholesale is exempt from the
-17-1fee, but not the other terms and conditions. The holder of a
2vintner’s certificate of compliance may also hold a class “A”
3wine permit.
4DIVISION III
5ALCOHOLIC BEVERAGE CONTROL
6 Sec. 14. Section 123.3, subsections 9, 22, 29, and 30, Code
72022, are amended to read as follows:
89. “Brewpub” means a commercial establishment authorized to
9sell beer at retail for consumption on or off the premises that
10is operated by a person who holds a class “C” liquor control or
11special class “C” retail alcohol license or a class “B” beer
12permit and who also holds a special class “A” beer permit that
13authorizes the holder to manufacture and sell beer pursuant to
14this chapter.
1522. “High alcoholic content beer” means beer which contains
16more than six and twenty-five hundredths percent of alcohol by
17volume, but not more than fifteen nineteen percent of alcohol
18by volume, that is made by the fermentation of an infusion
19in potable water of barley, malt, and hops, with or without
20unmalted grains or decorticated and degerminated grains. Not
21more than one and five-tenths percent of the volume of a “high
22alcoholic content beer” may consist of alcohol derived from
23added flavors and other nonbeverage ingredients containing
24alcohol. The added flavors and other nonbeverage ingredients
25may not include added caffeine or other added stimulants
26including but not limited to guarana, ginseng, and taurine.
2729. “Licensed premises” or “premises” means all rooms,
28enclosures, contiguous areas, or places susceptible of precise
29description satisfactory to the administrator where alcoholic
30beverages, wine, or beer is sold or consumed under authority of
31a liquor control retail alcohol license, wine permit, or beer
32permit. A single licensed premises may consist of multiple
33rooms, enclosures, areas, or places if they are wholly within
34the confines of a single building or contiguous grounds.
3530. “Local authority” means the city council of any
-18-1incorporated city in this state, or the county board of
2supervisors of any county in this state, which is empowered by
3this chapter to approve or deny applications for retail beer or
4wine permits and liquor control alcohol licenses; empowered to
5recommend that such permits or licenses be granted and issued
6by the division; and empowered to take other actions reserved
7to them by this chapter.
8 Sec. 15. Section 123.3, subsection 40, paragraph b, Code
92022, is amended to read as follows:
10b. The person is not prohibited by section 123.40 from
11obtaining a liquor control retail alcohol license or a wine or
12beer permit.
13 Sec. 16. Section 123.3, subsection 45, Code 2022, is amended
14by striking the subsection and inserting in lieu thereof the
15following:
1645. “Retail alcohol license” means a class “B”, class “C”,
17special class “C”, class “D”, class “E”, or class “F” retail
18alcohol license, or a special class “B” retail native wine
19license issued under this chapter.
20 Sec. 17. Section 123.3, subsection 46, Code 2022, is amended
21by striking the subsection.
22 Sec. 18. Section 123.9, subsections 5 and 7, Code 2022, are
23amended to read as follows:
245. To grant and issue beer permits, wine permits, liquor
25control retail alcohol licenses, and other licenses; and to
26suspend or revoke all such permits and licenses for cause under
27this chapter.
287. To accept alcoholic liquors ordered delivered to the
29alcoholic beverages division pursuant to chapter 809A, and
30offer for sale and deliver the alcoholic liquors to class
31“E” liquor control retail alcohol licensees, unless the
32administrator determines that the alcoholic liquors may be
33adulterated or contaminated. If the administrator determines
34that the alcoholic liquors may be adulterated or contaminated,
35the administrator shall order their destruction.
-19-1 Sec. 19. Section 123.10, subsections 3, 6, and 14, Code
22022, are amended to read as follows:
33. Regulating the purchase of alcoholic liquor generally
4and the furnishing of the liquor to class “E” liquor control
5 retail alcohol licensees under this chapter, and determining
6the classes, varieties, and brands of alcoholic liquors to be
7kept in state warehouses.
86. Providing for the issuance and electronic distribution
9of price lists which show the price to be paid by class “E”
10liquor control retail alcohol licensees for each brand,
11class, or variety of liquor kept for sale by the division,
12providing for the filing or posting of prices charged in sales
13between class “A” beer and class “A” wine permit holders and
14retailers, as provided in this chapter, and establishing or
15controlling the prices based on minimum standards of fill,
16quantity, or alcoholic content for each individual sale of
17alcoholic beverages as deemed necessary for retail or consumer
18protection. However, the division shall not regulate markups,
19prices, discounts, allowances, or other terms of sale at which
20alcoholic liquor may be purchased by the retail public or
21liquor control retail alcohol licensees from class “E” liquor
22control retail alcohol licensees or at which wine may be
23purchased and sold by class “A” and retail wine permittees, or
24change, nullify, or vary the terms of an agreement between a
25holder of a vintner certificate of compliance and a class “A”
26wine permittee.
2714. Prescribing the uniform fee to be assessed against
28a class “B” beer permittee, class “C” native wine permittee,
29or liquor control retail alcohol licensee, except a class
30“B”, special class “B”, or class “E” liquor control retail
31alcohol licensee, to cover the administrative costs incurred
32by the division resulting from the failure of the licensee or
33permittee to maintain dramshop liability insurance coverage
34pursuant to section 123.92, subsection 2, paragraph “a”.
35 Sec. 20. Section 123.15, Code 2022, is amended to read as
-20-1follows:
2123.15 Favors from licensee or permittee.
3A person responsible for the administration or enforcement
4of this chapter shall not accept or solicit donations,
5gratuities, political advertising, gifts, or other favors,
6directly or indirectly, from any liquor control retail alcohol
7 licensee, wine permittee, or beer permittee.
8 Sec. 21. Section 123.16, subsections 6 and 7, Code 2022, are
9amended to read as follows:
106. The number of liquor control retail alcohol licenses,
11wine permits, and beer permits issued, by class, the number in
12effect on the last day included in the report, and the number
13which have been suspended or revoked during the period covered
14by the report.
157. Amount of fees paid to the division from liquor control
16 retail alcohol licenses, wine permits, and beer permits, in
17gross, and the amount of liquor control retail alcohol license
18fees returned to local subdivisions of government as provided
19under this chapter.
20 Sec. 22. Section 123.22, subsection 1, Code 2022, is amended
21to read as follows:
221. The division has the exclusive right of importation
23into the state of all forms of alcoholic liquor, except as
24otherwise provided in this chapter, and a person shall not
25import alcoholic liquor, except that an individual of legal age
26may import and have in the individual’s possession an amount of
27alcoholic liquor not exceeding nine liters per calendar month
28that the individual personally obtained outside the state.
29Alcoholic liquor imported by an individual pursuant to this
30subsection shall be for personal consumption only in a private
31home or other private accommodation. A distillery shall not
32sell alcoholic liquor within the state to any person but only
33to the division, except as otherwise provided in this chapter.
34This section vests in the division exclusive control within the
35state as purchaser of all alcoholic liquor sold by distilleries
-21-1within the state or imported, except beer and wine, and except
2as otherwise provided in this chapter. The division shall
3receive alcoholic liquor on a bailment system for resale by the
4division in the manner set forth in this chapter. The division
5shall act as the sole wholesaler of alcoholic liquor to class
6“E” liquor control retail alcohol licensees.
7 Sec. 23. Section 123.24, Code 2022, is amended to read as
8follows:
9123.24 Alcoholic liquor sales by the division — dishonored
10payments — liquor prices.
111. The division shall sell alcoholic liquor at wholesale
12only. The division shall sell alcoholic liquor to class “E”
13liquor control retail alcohol licensees only. The division
14shall offer the same price on alcoholic liquor to all class “E”
15liquor control retail alcohol licensees without regard for the
16quantity of purchase or the distance for delivery.
172. The price of alcoholic liquor sold by the division shall
18consist of the following:
19a. The manufacturer’s price.
20b. A markup of up to fifty percent of the wholesale price
21paid by the division for the alcoholic liquor. The division
22may increase the markup on selected kinds of alcoholic liquor
23sold by the division if the average return to the division on
24all sales of alcoholic liquor does not exceed the wholesale
25price paid by the division and the fifty percent markup.
26c. A split case charge in an amount determined by the
27division when alcoholic liquor is sold in quantities which
28require a case to be split.
29d. A bottle surcharge in an amount sufficient, when added
30to the amount not refunded to class “E” liquor control retail
31alcohol licensees pursuant to section 455C.2, to pay the costs
32incurred by the division for collecting and properly disposing
33of the liquor containers. The amount collected pursuant to
34this paragraph, in addition to any amounts not refunded to
35class “E” liquor control retail alcohol licensees pursuant
-22-1to section 455C.2, shall be deposited in the beer and liquor
2control fund established under section 123.17.
33. a. The division may accept from a class “E” liquor
4control retail alcohol licensee electronic funds transferred
5by automated clearing house, wire transfer, or another method
6deemed acceptable by the administrator, in payment of alcoholic
7liquor. If a payment is subsequently dishonored, the division
8shall cause a notice of nonpayment and penalty to be served
9upon the class “E” liquor control retail alcohol licensee or
10upon any person in charge of the licensed premises. The notice
11shall state that if payment or satisfaction for the dishonored
12payment is not made within ten days of the service of notice,
13the licensee’s liquor control retail alcohol license may be
14suspended under section 123.39. The notice of nonpayment and
15penalty shall be in a form prescribed by the administrator, and
16shall be sent by certified mail.
17b. If upon notice and hearing under section 123.39 and
18pursuant to the provisions of chapter 17A concerning a
19contested case hearing, the administrator determines that the
20class “E” liquor control retail alcohol licensee failed to
21satisfy the obligation for which the payment was issued within
22ten days after the notice of nonpayment and penalty was served
23on the licensee as provided in paragraph “a” of this subsection,
24the administrator may suspend the licensee’s class “E” liquor
25control retail alcohol license for a period not to exceed ten
26days.
274. The administrator may refuse to sell alcoholic liquor
28to a class “E” liquor control retail alcohol licensee who
29tenders a payment which is subsequently dishonored until the
30outstanding obligation is satisfied.
31 Sec. 24. Section 123.26, Code 2022, is amended to read as
32follows:
33123.26 Restrictions on sales — seals — labeling.
34Alcoholic liquor shall not be sold by a class “E” liquor
35control retail alcohol licensee except in a sealed container
-23-1with identifying markers as prescribed by the administrator
2and affixed in the manner prescribed by the administrator, and
3no such container shall be opened upon the premises of a state
4warehouse. The division shall cooperate with the department
5of natural resources so that only one identifying marker or
6mark is needed to satisfy the requirements of this section and
7section 455C.5, subsection 1. Possession of alcoholic liquors
8which do not carry the prescribed identifying markers is a
9violation of this chapter except as provided in section 123.22.
10 Sec. 25. Section 123.28, subsections 2 and 5, Code 2022, are
11amended to read as follows:
122. The division shall deliver alcoholic liquor purchased by
13class “E” liquor control retail alcohol licensees. Class “E”
14liquor control retail alcohol licensees may deliver alcoholic
15liquor purchased by class “A”, class “B”, class “C”, class “C”
16native distilled spirits, or class “D” liquor control, or class
17“F” retail alcohol licensees, and class “A”, class “B”, class
18“C”, class “C” native distilled spirits, or class “D” liquor
19control, or class “F” retail alcohol licensees may transport
20alcoholic liquor purchased from class “E” liquor control retail
21alcohol licensees.
225. This section does not affect the right of a liquor
23control retail alcohol license holder to purchase, possess, or
24transport alcoholic liquors subject to this chapter.
25 Sec. 26. Section 123.32, Code 2022, is amended to read as
26follows:
27123.32 Action by local authorities and division on
28applications for liquor control retail alcohol licenses, native
29distilled spirits licenses, and wine and beer permits.
301. Filing of application.
31a. A completed application for a class “A”, class “B”, class
32“C”, special class “C”, class “C” native distilled spirits, or
33class “E” liquor control retail alcohol license as provided
34in section 123.31, for a retail beer permit as provided in
35sections 123.128 and 123.129, or for a class “B”, class “B”
-24-1native, or class “C” native retail wine permit as provided in
2section 123.175 except a class “D” retail alcohol license,
3shall be filed with the appropriate city council if the
4premises for which the license or permit is sought are located
5within the corporate limits of a city, or with the board of
6supervisors if the premises for which the license or permit is
7sought are located outside the corporate limits of a city.
8b. A completed application for a class “D” liquor
9control retail alcohol license and for any of the following
10certificates, licenses, or permits shall be submitted to the
11division electronically, or in a manner prescribed by the
12administrator, which shall proceed in the same manner as in the
13case of an application approved by local authorities:
14(1) A certificate of compliance as provided in sections
15123.23, 123.135, and 123.180.
16(2) A class “D” liquor control retail alcohol license as
17provided in section 123.31.
18(3) A manufacturer’s license as provided in section 123.41.
19(4) A broker’s permit as provided in section 123.42.
20(5) A class “A” native distilled spirits license as provided
21in section 123.43.
22(6) A class “A” or special class “A” beer permit as provided
23in section 123.127.
24(7) A charity beer, spirits, and wine auction permit special
25event license as provided in section 123.173A.
26(8) A charity beer, spirits, and wine event permit as
27provided in section 123.173B.
28(9) (8) A class “A” wine permit as provided in section
29123.175.
30(10) (9) A wine direct shipper’s permit as provided in
31section 123.187.
32(11) (10) A wine carrier permit as provided in section
33123.188.
342. Action by local authorities. The local authority shall
35either approve or disapprove the issuance of a liquor control
-25-1 retail alcohol license, a retail wine permit, or a retail
2beer permit, shall endorse its approval or disapproval on
3the application, and shall forward the application with the
4necessary fee and bond, if required, to the division. There
5is no limit upon the number of liquor control retail alcohol
6 licenses, retail wine permits, or retail beer permits which may
7be approved for issuance by local authorities.
83. Licensed premises for local events. A local authority
9may define, by motion of the local authority, licensed premises
10which shall be used by holders of liquor control retail alcohol
11 licenses, beer permits, and wine permits at festivals, fairs,
12or celebrations which are sponsored or authorized by the local
13authority. The licensed premises defined by motion of the
14local authority shall be used by the holders of five-day or
15fourteen-day class “A”, class “B”, class “C”, special class
16“C”, or class “D” liquor control, or class “F” retail alcohol
17 licenses, or five-day or fourteen-day class “B” or class “C”
18native wine permits, or class “B” beer permits only.
194. Security employee training. A local authority, as a
20condition of obtaining and holding a license or permit for
21on-premises consumption, may require a designated security
22employee as defined in section 123.3 to be trained and
23certified in security methods. The training shall include but
24is not limited to de-escalation techniques, anger management
25techniques, civil rights or unfair practices awareness as
26provided in section 216.7, recognition of fake or altered
27identification, information on laws applicable to the serving
28of alcohol at a licensed premises, use of force and techniques
29for safely removing patrons, and instruction on the proper
30physical restraint methods used against a person who has become
31combative.
325. Occupancy rates. A local authority located in a county
33with a population that exceeds three hundred thousand persons,
34as a condition of obtaining and holding a license or permit
35 for on-premises consumption, shall require the applicant, or
-26-1 licensee, or permittee to provide, and update if necessary, the
2occupancy rate of the licensed premises.
36. Action by administrator.
4a. Upon receipt of an application having been disapproved
5by the local authority, the administrator shall notify the
6applicant that the applicant may appeal the disapproval of
7the application to the administrator. The applicant shall
8be notified by certified mail or personal service, and the
9application, the fee, and any bond shall be returned to the
10applicant.
11b. Upon receipt of an application having been approved by
12the local authority, the division shall make an investigation
13as the administrator deems necessary to determine that
14the applicant complies with all requirements for holding a
15license or permit, and may require the applicant to appear
16to be examined under oath to demonstrate that the applicant
17complies with all of the requirements to hold a license
18or permit. If the administrator requires the applicant to
19appear and to testify under oath, a record shall be made of
20all testimony or evidence and the record shall become a part
21of the application. The administrator may appoint a member
22of the division or may request an administrative law judge
23of the department of inspections and appeals to receive the
24testimony under oath and evidence, and to issue a proposed
25decision to approve or disapprove the application for a license
26or permit. The administrator may affirm, reverse, or modify
27the proposed decision to approve or disapprove the application
28for the license or permit. If the application is approved
29by the administrator, the license or permit shall be issued.
30If the application is disapproved by the administrator, the
31applicant shall be so notified by certified mail or personal
32service and the appropriate local authority shall be notified
33electronically, or in a manner prescribed by the administrator.
347. Appeal to administrator. An applicant for a liquor
35control retail alcohol license, wine permit, or beer permit may
-27-1appeal from the local authority’s disapproval of an application
2for a license or permit to the administrator. In the appeal
3the applicant shall be allowed the opportunity to demonstrate
4in an evidentiary hearing conducted pursuant to chapter 17A
5that the applicant complies with all of the requirements for
6holding the license or permit. The administrator may appoint
7a member of the division or may request an administrative law
8judge from the department of inspections and appeals to conduct
9the evidentiary hearing and to render a proposed decision to
10approve or disapprove the issuance of the license or permit.
11The administrator may affirm, reverse, or modify the proposed
12decision. If the administrator determines that the applicant
13complies with all of the requirements for holding a license
14or permit, the administrator shall order the issuance of the
15license or permit. If the administrator determines that the
16applicant does not comply with the requirements for holding
17a license or permit, the administrator shall disapprove the
18issuance of the license or permit.
198. Judicial review. The applicant or the local authority
20may seek judicial review of the action of the administrator
21in accordance with the terms of the Iowa administrative
22procedure Act, chapter 17A. Notwithstanding the terms of the
23Iowa administrative procedure Act, chapter 17A, petitions
24for judicial review may be filed in the district court of
25the county where the premises covered by the application are
26situated.
279. Suspension by local authority. A liquor control retail
28alcohol licensee or a wine or beer permittee whose license
29or permit has been suspended or revoked or a civil penalty
30imposed by a local authority for a violation of this chapter
31or suspended by a local authority for violation of a local
32ordinance may appeal the suspension, revocation, or civil
33penalty to the administrator. The administrator may appoint
34a member of the division or may request an administrative law
35judge from the department of inspections and appeals to hear
-28-1the appeal which shall be conducted in accordance with chapter
217A and to issue a proposed decision. The administrator may
3review the proposed decision upon the motion of a party to the
4appeal or upon the administrator’s own motion in accordance
5with chapter 17A. Upon review of the proposed decision, the
6administrator may affirm, reverse, or modify the proposed
7decision. A liquor control retail alcohol licensee, wine or
8beer permittee, or a local authority aggrieved by a decision
9of the administrator may seek judicial review of the decision
10pursuant to chapter 17A.
11 Sec. 27. Section 123.34, Code 2022, is amended to read as
12follows:
13123.34 Expiration of licenses, permits, and certificates
14of compliance — seasonal Seasonal, fourteen-day, and five-day
15licenses and permits — fees.
161. All licenses, permits, and certificates of compliance,
17unless sooner suspended or revoked, expire one year from date
18of issuance. The administrator shall notify a license, permit,
19or certificate holder electronically, or in a manner prescribed
20by the administrator, sixty days prior to the expiration of
21each license, permit, or certificate.
222. 1. a. The administrator may issue six-month or
23 eight-month seasonal class “A”, class “B”, class “C”, special
24class “C”, and class “D” liquor control and class “F” retail
25alcohol licenses, class “B” wine permits, class “B” or class
26“C” native wine permits, or class “B” beer permits.
27b. The fee for a six-month or an eight-month seasonal
28license or permit issued pursuant to this subsection shall be
29for a proportionate part fifty percent of the license or permit
30 fee for that class of license or permit. However, the fee for
31a seasonal class “B” native wine permit shall be the permit fee
32provided in section 123.179, subsection 4, and the fee for a
33seasonal class “C” native wine permit shall be the permit fee
34provided in section 123.179, subsection 5.
353. 2. a. The administrator may issue fourteen-day class
-29-1“A”, class “B”, class “C”, special class “C”, and class “D”
2liquor control and class “F” retail alcohol licenses, and
3fourteen-day class “B” beer permits, class “B” native wine
4permits, and class “C” native wine permits.
5b. A fourteen-day retail alcohol license or permit, if
6granted, is valid for fourteen consecutive days, but the holder
7shall not sell on the two Sundays in the fourteen-day period
8unless the holder qualifies for and obtains the privilege to
9sell on Sundays contained in section 123.36, subsection 6, and
10section 123.134, subsection 4.
11c. (1) The fee for a fourteen-day liquor control retail
12alcohol license or beer permit is one quarter of the annual fee
13for that class of liquor control retail alcohol license or beer
14permit. The fee for the privilege to sell on the two Sundays in
15the fourteen-day period is twenty percent of the price of the
16fourteen-day liquor control license or beer permit.
17(2) The fee for a fourteen-day class “B” native wine permit
18shall be the permit fee provided in section 123.179, subsection
194, and the fee for a fourteen-day class “C” native wine permit
20is the permit fee provided in section 123.179, subsection 5.
214. 3. a. The administrator may issue five-day class “A”,
22class “B”, class “C”, special class “C”, and class “D” liquor
23control, and class “F” retail alcohol licenses, and five-day
24class “B” beer permits, class “B” native wine permits, and
25class “C” native wine permits.
26b. A five-day retail alcohol license or permit is valid for
27five consecutive days, but the holder shall not sell alcoholic
28beverages on Sunday in the five-day period unless the holder
29qualifies for and obtains the privilege to sell on Sunday
30pursuant to section 123.36, subsection 6, and section 123.134,
31subsection 4.
32c. (1) The fee for the five-day liquor control retail
33alcohol license or beer permit is one-eighth of the annual fee
34for that class of license or permit. The fee for the privilege
35to sell on a Sunday in the five-day period is ten percent of the
-30-1price of the five-day liquor control license or beer permit.
2(2) The fee for a five-day class “B” native wine permit
3shall be the permit fee provided in section 123.179, subsection
44, and the fee for a five-day class “C” native wine permit is
5the permit fee provided in section 123.179, subsection 5.
65. 4. A refund of fees paid shall not be made for seasonal
7licenses or permits, or for fourteen-day or five-day liquor
8control retail alcohol licenses, native wine permits, or beer
9permits. In addition, a seasonal, fourteen-day, or five-day
10license or permit shall not be renewed.
11 Sec. 28. NEW SECTION. 123.35 Expiration of licenses,
12permits, and certificates of compliance — automatic renewals.
131. Except as otherwise provided by this chapter, all
14licenses, permits, and certificates of compliance, unless
15sooner suspended or revoked, expire one year from date of
16issuance.
172. Notwithstanding section 123.31 and any other provision
18of this chapter to the contrary, a class “E” retail alcohol
19license shall automatically renew without the endorsement
20of a local authority or approval by the administrator upon
21collection of the annual fee by the division, provided all of
22the following conditions are met since the preceding license
23was issued:
24a. The licensee has given written consent to the division
25to have the license automatically renewed as provided in this
26section.
27b. The license has not been suspended or revoked.
28c. A civil penalty has not been imposed against the
29licensee.
30d. An administrative proceeding is not pending against the
31licensee to suspend or revoke the license or to impose a civil
32penalty under this chapter.
33e. The licensee has not submitted payment for alcoholic
34liquor to the division that was subsequently dishonored.
35f. The licensee and all persons associated with the licensee
-31-1as described in section 123.3, subsection 40, paragraph “e”,
2have not been convicted of a violation of this chapter.
3g. The licensed premises constitutes a safe and proper place
4or building and conforms with all applicable federal, state,
5and local laws, orders, ordinances, rules, resolutions, and
6health and fire regulations.
73. Notwithstanding sections 123.23, 123.135, 123.180,
8and any other provision of this chapter to the contrary, a
9distiller’s, brewer’s, or vintner’s certificate of compliance
10shall automatically renew without approval by the administrator
11upon collection of the annual fee by the division, provided
12all of the following conditions are met since the preceding
13certificate was issued:
14a. The certificate holder has given written consent to
15the division to have the certificate automatically renewed as
16provided in this section.
17b. The certificate has not been suspended or revoked.
18c. A civil penalty has not been imposed against the
19certificate holder.
20d. An administrative proceeding is not pending against the
21certificate holder to suspend or revoke the certificate or to
22impose a civil penalty under this chapter.
23e. The certificate holder and all persons associated
24with the certificate holder as described in section 123.3,
25subsection 40, paragraph “e”, have not been convicted of a
26violation of this chapter.
274. Notwithstanding section 123.187 and any other provision
28of this chapter to the contrary, a wine direct shipper’s permit
29shall automatically renew without approval by the administrator
30upon collection of the annual fee by the division, provided all
31of the following conditions are met since the preceding permit
32was issued:
33a. The permittee has given written consent to the division
34to have the permit automatically renewed as provided in this
35section.
-32- 1b. The permit has not been suspended or revoked.
2c. A civil penalty has not been imposed against the
3permittee.
4d. An administrative proceeding is not pending against the
5permittee to suspend or revoke the permit or to impose a civil
6penalty under this chapter.
7e. The permittee has filed all required reports and remitted
8all wine gallonage tax owed pursuant to section 123.183.
9f. The permittee and all persons associated with the
10permittee as described in section 123.3, subsection 40,
11paragraph “e”, have not been convicted of a violation of this
12chapter.
13 Sec. 29. Section 123.38, subsection 1, Code 2022, is amended
14to read as follows:
151. A liquor control retail alcohol license, wine permit,
16or beer permit is a personal privilege and is revocable for
17cause. It is not property nor is it subject to attachment
18and execution nor alienable nor assignable, and it shall
19cease upon the death of the permittee or licensee. However,
20the administrator of the division may in the administrator’s
21discretion allow the executor or administrator of the estate of
22a permittee or licensee to operate the business of the decedent
23for a reasonable time not to exceed the expiration date of the
24permit or license. Every permit or license shall be issued in
25the name of the applicant and no person holding a permit or
26license shall allow any other person to use it.
27 Sec. 30. Section 123.38, subsection 2, paragraph a,
28subparagraph (4), Code 2022, is amended to read as follows:
29(4) No refund shall be made for any liquor control retail
30alcohol license, wine permit, or beer permit surrendered more
31than nine months after issuance.
32 Sec. 31. Section 123.39, subsection 1, paragraph a, Code
332022, is amended to read as follows:
34a. (1) The administrator or the local authority may suspend
35a class “A”, class “B”, special class “B” native wine, class
-33-1“C”, special class “C”, class “C” native distilled spirits, or
2 class “E” liquor control, or class “F” retail alcohol license,
3 or retail wine or beer permit charity beer, spirits, and wine
4special event license for a period not to exceed one year,
5revoke the license or permit, or impose a civil penalty not to
6exceed one thousand dollars per violation.
7(2) The administrator may suspend a certificate of
8compliance, a class “D” liquor control retail alcohol license,
9a manufacturer’s license, a broker’s permit, a class “A” native
10distilled spirits license, a class “A” or special class “A”
11beer permit, a charity beer, spirits, and wine auction permit,
12 a class “A” wine permit, a wine direct shipper’s permit, or a
13wine carrier permit for a period not to exceed one year, revoke
14the license, permit, or certificate, or impose a civil penalty
15not to exceed one thousand dollars per violation.
16 Sec. 32. Section 123.39, subsection 1, paragraph b,
17subparagraph (3), Code 2022, is amended to read as follows:
18(3) Any change in the ownership or interest in the business
19operated under a liquor control retail alcohol license, or any
20wine or beer permit, which change was not previously reported
21in a manner prescribed by the administrator within thirty days
22of the change and subsequently approved by the local authority,
23when applicable, and the division.
24 Sec. 33. Section 123.39, subsections 2 and 3, Code 2022, are
25amended to read as follows:
262. Local authorities may suspend any liquor control retail
27alcohol license or retail wine or beer permit for a violation
28of any ordinance or regulation adopted by the local authority.
29Local authorities may adopt ordinances or regulations for the
30location of the premises of liquor control retail alcohol
31 licensed and retail wine or beer permitted establishments
32and local authorities may adopt ordinances, not in conflict
33with this chapter and that do not diminish the hours during
34which alcoholic beverages may be sold or consumed at retail,
35governing any other activities or matters which may affect the
-34-1retail sale and consumption of alcoholic beverages and the
2health, welfare and morals of the community involved.
33. When a liquor control retail alcohol license or retail
4wine or beer permit is suspended after a hearing as a result
5of violations of this chapter by the licensee, permittee
6 or the licensee’s or permittee’s agents or employees, the
7premises which were licensed by the license or permit shall
8not be relicensed for a new applicant until the suspension
9has terminated or time of suspension has elapsed, or ninety
10days have elapsed since the commencement of the suspension,
11whichever occurs first. However, this section does not
12prohibit the premises from being relicensed to a new applicant
13before the suspension has terminated or before the time of
14suspension has elapsed or before ninety days have elapsed from
15the commencement of the suspension, if the premises prior to
16the time of the suspension had been purchased under contract,
17and the vendor under that contract had exercised the person’s
18rights under chapter 656 and sold the property to a different
19person who is not related to the previous licensee or permittee
20by marriage or within the third degree of consanguinity or
21affinity and if the previous licensee or permittee does not
22have a financial interest in the business of the new applicant.
23 Sec. 34. Section 123.40, Code 2022, is amended to read as
24follows:
25123.40 Effect of revocation.
26Any liquor control retail alcohol licensee, wine permittee,
27or beer permittee whose license or permit is revoked under this
28chapter shall not thereafter be permitted to hold a liquor
29control retail alcohol license, wine permit, or beer permit in
30the state of Iowa for a period of two years from the date of
31revocation. A spouse or business associate holding ten percent
32or more of the capital stock or ownership interest in the
33business of a person whose license or permit has been revoked
34shall not be issued a liquor control retail alcohol license,
35wine permit, or beer permit, and no liquor control retail
-35-1alcohol license, wine permit, or beer permit shall be issued
2which covers any business in which such person has a financial
3interest for a period of two years from the date of revocation.
4If a license or permit is revoked, the premises which had been
5covered by the license or permit shall not be relicensed for
6one year.
7 Sec. 35. Section 123.43A, subsection 6, Code 2022, is
8amended to read as follows:
96. Notwithstanding any provision of this chapter to the
10contrary or the fact that a person is the holder of a class
11“A” native distilled spirits license, a native distillery
12which, combining all production facilities of the business,
13produces and manufactures not more than one hundred thousand
14proof gallons of native distilled spirits on an annual basis
15may sell those native distilled spirits manufactured on the
16premises of the native distillery for consumption on the
17premises by applying for a class “C” native distilled spirits
18liquor control retail alcohol license as provided in section
19123.30. A native distillery may be granted not more than
20two class “C” native distilled spirits liquor control retail
21alcohol licenses. All native distilled spirits sold by a
22native distillery for on-premises consumption and mixed drinks
23or cocktails sold for consumption off the premises shall be
24purchased from a class “E” liquor control retail alcohol
25 licensee. A manufacturer of native distilled spirits may be
26issued a class “C” native distilled spirits liquor control
27 retail alcohol license regardless of whether the manufacturer
28is also a manufacturer of beer pursuant to a class “A” beer
29permit or a manufacturer of native wine pursuant to a class “A”
30wine permit.
31 Sec. 36. Section 123.45, subsection 1, paragraph d, Code
322022, is amended to read as follows:
33d. Hold a retail liquor control alcohol license or retail
34wine or beer permit, unless the licensee or permittee holding a
35retail liquor control alcohol license or retail wine or beer
-36-1permit does not purchase or sell the alcoholic beverages of
2the person engaged in the business of manufacturing, bottling,
3or wholesaling alcoholic beverages. However, a person engaged
4in the business of manufacturing wine that is not native wine
5may purchase and sell the person’s wine under the authority
6of a special class “C” liquor control retail alcohol license
7and a class “B” wine permit retail alcohol license provided
8the licensed premises is the principal office, as defined in
9section 490.140, of the person.
10 Sec. 37. Section 123.45, subsection 3, Code 2022, is amended
11to read as follows:
123. A person engaged in the wholesaling of beer or wine
13may sell only disposable glassware, which is constructed of
14paper, paper laminated, or plastic materials and designed
15primarily for personal consumption on a one-time usage
16basis, to retailers for use within the premises of licensed
17establishments, for an amount which is greater than or equal
18to an amount which represents the greater of either the amount
19paid for the disposable glassware by the supplier or the amount
20paid for the disposable glassware by the wholesaler. Also, a
21person engaged in the business of manufacturing beer may sell
22beer at retail for consumption on or off the premises of the
23manufacturing facility and, notwithstanding any other provision
24of this chapter or the fact that a person is the holder of
25a class “A” beer permit, may be granted not more than two
26class “B” beer permits “C” or special class “C” retail alcohol
27licenses as defined in section 123.124 123.30 for that purpose
28regardless of whether that person is also a manufacturer
29of native distilled spirits pursuant to a class “A” native
30distilled spirits license or a manufacturer of native wine
31pursuant to a class “A” wine permit.
32 Sec. 38. Section 123.46, subsection 2, Code 2022, is amended
33to read as follows:
342. A person shall not use or consume alcoholic liquor, wine,
35or beer upon the public streets or highways. A person shall
-37-1not use or consume alcoholic liquor in any public place except
2premises covered by a liquor control retail alcohol license.
3A person shall not possess or consume alcoholic liquors,
4wine, or beer on public school property or while attending a
5public or private school-related function. A person shall not
6be intoxicated in a public place. A person violating this
7subsection is guilty of a simple misdemeanor.
8 Sec. 39. Section 123.46A, Code 2022, is amended to read as
9follows:
10123.46A Delivery of alcoholic beverages by retailers.
111. Licensees and permittees authorized to sell alcoholic
12liquor, wine, or beer in original unopened containers for
13consumption off the licensed premises may deliver alcoholic
14liquor, wine, or beer to a home, another licensed premises if
15there is identical ownership of the premises by the licensee
16or permittee, or other designated location in this state.
17Deliveries shall be limited to alcoholic beverages authorized
18by the licensee’s or permittee’s license or permit. Orders
19delivered to another licensed premises shall contain only
20those alcoholic beverages authorized for sale by the liquor
21control retail alcohol license or retail wine or beer permit
22 covering the premises to which the alcoholic beverages will
23be delivered. Orders delivered to another licensed premises
24shall be fulfilled using the alcoholic beverages inventory
25owned by the licensee or permittee who will receive the order
26for delivery. If the recipient refuses or fails to pick up
27the delivery, or is ineligible to receive the delivery, the
28alcoholic beverages shall be returned to the licensee or
29permittee who fulfilled the order.
302. Licensees and permittees authorized to sell wine, beer,
31or mixed drinks or cocktails for consumption off the licensed
32premises in a container other than the original container may
33deliver the wine, beer, or mixed drinks or cocktails to a
34home or other designated location in this state only if the
35container other than the original container has been sold and
-38-1securely sealed in compliance with this chapter or the rules
2of the division. Deliveries shall be limited to alcoholic
3beverages authorized by the licensee’s or permittee’s license
4or permit.
53. All deliveries of alcoholic liquor, wine, beer, or
6mixed drinks or cocktails shall be subject to the following
7requirements and restrictions:
8a. Payment for the alcoholic liquor, wine, beer, or mixed
9drinks or cocktails shall be received by the licensee or
10permittee at the time of order.
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.
20c. Alcoholic liquor, wine, beer, or mixed drinks or
21cocktails delivered to a person shall be for personal use and
22not for resale.
23d. Deliveries shall only be made to persons in this state
24who are twenty-one years of age or older.
25e. Deliveries shall not be made to a person who is
26intoxicated or is simulating intoxication.
27f. Deliveries shall occur between 6:00 a.m.and 10:00 p.m.
28Monday throughSunday on the same day the order for alcoholic
29liquor, wine, beer, or mixed drinks or cocktails is removed
30from the licensed premises.
31g. Delivery of alcoholic liquor, wine, beer, or mixed drinks
32or cocktails shall be made by the licensee or permittee, the
33licensee’s or permittee’s employee, or a third party, provided
34the licensee or permittee has entered into a written agreement
35with the third party that authorizes the third party to act
-39-1as an agent of the licensee or permittee for the purpose of
2delivering alcoholic liquor, wine, beer, or mixed drinks or
3cocktails. Each licensee or permittee shall submit to the
4division electronically, or in a manner prescribed by the
5administrator, a list of names and addresses of all third
6parties it has authorized to act as its agent for the purpose
7of delivering alcoholic liquor, wine, beer, or mixed drinks
8or cocktails. The licensee or permittee shall provide the
9division with amendments to the list as necessary to ensure the
10division possesses an accurate, current list.
11h. Delivery personnel shall be twenty-one years of age or
12older.
13i. Valid proof of the recipient’s identity and age shall
14be obtained at the time of delivery, and the signature of a
15person twenty-one years of age or older shall be obtained as a
16condition of delivery.
17j. Licensees and permittees shall maintain records
18of deliveries which include the quantity delivered, the
19recipient’s name and address, and the signature of the
20recipient of the alcoholic liquor, wine, beer, or mixed drinks
21or cocktails. The records shall be maintained on the licensed
22premises for a period of three years.
234. A violation of this section or any other provision
24of this chapter shall subject the licensee or permittee to
25the penalty provisions of section 123.39. If the licensee
26or permittee, an employee of the licensee or permittee, or
27a person delivering alcoholic liquor, wine, beer, or mixed
28drinks or cocktails for a third party acting on behalf of the
29licensee or permittee pursuant to a written agreement violates
30this section, the licensee or permittee shall not be assessed
31a penalty under section 123.39 if the licensee or permittee
32 establishes all of the following:
33a. The violation was committed off of the licensee’s
34or permittee’s premises after the liquor, wine, beer, or
35mixed drinks or cocktails was removed from the licensee’s or
-40-1permittee’s premises in fulfillment of a delivery order.
2b. (1) If the person who committed the violation is an
3employee of the licensee or permittee, that no other violation
4of this section was committed by any employee of the licensee
5or permittee within the two-year period immediately preceding
6the date of violation.
7(2) If the person who committed the violation is a person
8delivering for a third party acting on behalf of the licensee
9or permittee, that no other violation of this section was
10committed by any person delivering for the same third party
11while the third party was acting on behalf of the licensee or
12permittee within the two-year period immediately preceding the
13date of violation.
145. Nothing in this section shall impact the direct shipment
15of wine as regulated by section 123.187.
16 Sec. 40. Section 123.47, subsection 3, Code 2022, is amended
17to read as follows:
183. A person or persons under legal age shall not purchase
19or attempt to purchase, consume, or individually or jointly
20have alcoholic beverages in their possession or control; except
21in the case of any alcoholic beverage given or dispensed to
22a person under legal age within a private home and with the
23knowledge, presence, and consent of the parent or guardian, for
24beverage or medicinal purposes or as administered to the person
25by either a physician or dentist for medicinal purposes and
26except to the extent that a person under legal age may handle
27alcoholic beverages during the regular course of the person’s
28employment by a liquor control retail alcohol licensee, or wine
29or beer permittee under this chapter.
30 Sec. 41. Section 123.48, subsections 1 and 3, Code 2022, are
31amended to read as follows:
321. If a liquor control retail alcohol licensee or wine or
33beer permittee or an employee of the licensee or permittee
34 has a reasonable belief based on factual evidence that a
35driver’s license as defined in section 321.1, subsection
-41-120A, or nonoperator’s identification card issued pursuant to
2section 321.190 offered by a person who wishes to purchase
3an alcoholic beverage at the licensed premises is altered
4or falsified or belongs to another person, the licensee,
5permittee, or employee may retain the driver’s license or
6nonoperator’s identification card. Within twenty-four hours,
7the license or card shall be delivered to the appropriate
8city or county law enforcement agency of the jurisdiction in
9which the licensed premises is located. When the license or
10card is delivered to the appropriate law enforcement agency,
11the licensee shall file a written report of the circumstances
12under which the license or card was retained. The local law
13enforcement agency may investigate whether a violation of
14section 321.216, 321.216A, or 321.216B has occurred. If an
15investigation is not initiated or a probable cause is not
16established by the local law enforcement agency, the driver’s
17license or nonoperator’s identification card shall be delivered
18to the person to whom it was issued. The local law enforcement
19agency may forward the license or card with the report to the
20department of transportation for investigation, in which case,
21the department may investigate whether a violation of section
22321.216, 321.216A, or 321.216B has occurred. The department of
23transportation shall return the license or card to the person
24to whom it was issued if an investigation is not initiated or a
25probable cause is not established.
263. A liquor control retail alcohol licensee or wine or
27beer permittee or an employee of the licensee or permittee
28 is not subject to criminal prosecution for, or to civil
29liability for damages alleged to have resulted from, the
30retention and delivery of a driver’s license or a nonoperator’s
31identification card which is taken pursuant to subsections
321 and 2. This section shall not be construed to relieve a
33licensee, permittee, or employee of the licensee or permittee
34 from civil liability for damages resulting from the use of
35unreasonable force in obtaining the altered or falsified
-42-1driver’s license or nonoperator’s identification card or the
2driver’s license or nonoperator’s identification card believed
3to belong to another person.
4 Sec. 42. Section 123.49, subsection 2, unnumbered paragraph
51, Code 2022, is amended to read as follows:
6A person holding a liquor control retail alcohol license or
7retail wine or beer permit under this chapter, and the person’s
8agents or employees, shall not do any of the following:
9 Sec. 43. Section 123.49, subsection 2, paragraph b, Code
102022, is amended to read as follows:
11b. Sell or dispense any alcoholic beverage on the premises
12covered by the license or permit, or permit its consumption
13thereon between the hours of 2:00 a.m.and 6:00 a.m.on a
14weekday, and between the hours of 2:00 a.m.on Sunday and 6:00
15a.m.on the following Monday, however, a holder of a liquor
16control license or retail wine or beer permit granted the
17privilege of selling alcoholic liquor, wine, or beer on Sunday
18may sell or dispense alcoholic liquor, wine, or beer between
19the hours of 6:00 a.m.on Sunday and 2:00 a.m.on the following
20Monday any day of the week.
21 Sec. 44. Section 123.49, subsection 2, paragraph d,
22subparagraphs (1) and (3), Code 2022, are amended to read as
23follows:
24(1) Keep on premises covered by a liquor control retail
25alcohol license any alcoholic liquor in any container except
26the original package purchased from the division, and except
27mixed drinks or cocktails mixed on the premises for immediate
28consumption on the licensed premises or as otherwise provided
29by this paragraph “d”. This prohibition does not apply to
30holders of a class “D” liquor control retail alcohol license
31or to alcoholic liquor delivered in accordance with section
32123.46A.
33(3) Mixed drinks or cocktails mixed on premises covered by
34a class “C” liquor control retail alcohol license or a class
35“C” native distilled spirits liquor control retail alcohol
-43-1 license for consumption off the licensed premises may be
2sold if the mixed drink or cocktail is immediately filled in
3a sealed container and is promptly taken from the licensed
4premises prior to consumption of the mixed drink or cocktail.
5A mixed drink or cocktail that is sold in a sealed container in
6compliance with the requirements of this subparagraph and rules
7adopted by the division shall not be deemed an open container
8subject to the requirements of sections 321.284 and 321.284A
9if the sealed container is unopened and the seal has not been
10tampered with, and the contents of the container have not been
11partially removed.
12 Sec. 45. Section 123.49, subsection 2, paragraphs g and j,
13Code 2022, are amended to read as follows:
14g. Allow any person other than the licensee, permittee,
15 or employees of the licensee or permittee, to use or keep
16on the licensed premises any alcoholic liquor in any bottle
17or other container which is designed for the transporting of
18such beverages, except as permitted in section 123.95. This
19paragraph does not apply to the lodging quarters of a class
20“B” liquor control licensee or wine or beer permittee hotel
21or motel holding a retail alcohol license, or to holders of a
22class “D” liquor control retail alcohol license.
23j. Knowingly permit or engage in any criminal activity
24on the premises covered by the license or permit. However,
25the absence of security personnel on the licensed premises
26is insufficient, without additional evidence, to prove that
27criminal activity occurring on the licensed premises was
28knowingly permitted in violation of this paragraph “j”. For
29purposes of this paragraph “j”, “premises” includes parking lots
30and areas adjacent to the premises of a liquor control retail
31alcohol licensee or wine or beer permittee authorized to sell
32alcoholic beverages for consumption on the licensed premises
33and used by patrons of the liquor control retail alcohol
34 licensee or wine or beer permittee.
35 Sec. 46. Section 123.49, subsection 3, Code 2022, is amended
-44-1to read as follows:
23. A person under legal age shall not misrepresent the
3person’s age for the purpose of purchasing or attempting
4to purchase any alcoholic beverage from any liquor control
5 retail alcohol licensee or wine or beer permittee. If any
6person under legal age misrepresents the person’s age, and
7the licensee or permittee establishes that the licensee or
8permittee made reasonable inquiry to determine whether the
9prospective purchaser was over legal age, the licensee or
10permittee is not guilty of selling alcoholic beverages to a
11person under legal age.
12 Sec. 47. Section 123.49, subsection 4, Code 2022, is amended
13by striking the subsection.
14 Sec. 48. Section 123.50, subsections 1, 2, 4, and 5, Code
152022, are amended to read as follows:
161. Any person who violates any of the provisions of section
17123.49, except section 123.49, subsection 2, paragraph “h”,
18or who fails to affix upon sale, defaces, or fails to record
19a keg identification sticker label or produce a record of keg
20identification stickers labels pursuant to section 123.138,
21shall be guilty of a simple misdemeanor. A person who violates
22section 123.49, subsection 2, paragraph “h”, commits a simple
23misdemeanor punishable as a scheduled violation under section
24805.8C, subsection 2.
252. The conviction of any liquor control retail alcohol
26 licensee or wine or beer permittee for a violation of any of
27the provisions of section 123.49, subject to subsection 3 of
28this section, is grounds for the suspension or revocation of
29the license or permit by the division or the local authority.
30However, if any liquor control retail alcohol licensee is
31convicted of any violation of section 123.49, subsection 2,
32paragraph “a”, “d”, or “e”, or any wine or beer permittee retail
33alcohol licensee, excluding a special class “B” or class “D”
34retail alcohol licensee, is convicted of a violation of section
35123.49, subsection 2, paragraph “a” or “e” “d”, the liquor
-45-1control retail alcohol license or wine or beer permit shall be
2revoked and shall immediately be surrendered by the holder,
3and the bond, if any, of the license or permit holder shall be
4forfeited to the division. However, the division shall retain
5only that portion of the bond equal to the amount the division
6determines the license or permit holder owes the division.
74. In addition to any other penalties imposed under this
8chapter, the division shall assess a civil penalty up to
9the amount of five thousand dollars upon a class “E” liquor
10control retail alcohol licensee when the class “E” liquor
11 retail alcohol license is revoked for a violation of section
12123.59. Failure to pay the civil penalty as required under
13this subsection shall result in forfeiture of the bond to the
14division. However, the division shall retain only that portion
15of the bond equal to the amount the division determines the
16license or permit holder owes the division.
175. If an employee of a liquor control retail alcohol
18 licensee or wine or beer permittee violates section 123.49,
19subsection 2, paragraph “h”, the licensee or permittee shall
20not be assessed a penalty under subsection 3, and the violation
21shall be deemed not to be a violation of section 123.49,
22subsection 2, paragraph “h”, for the purpose of determining
23the number of violations for which a penalty may be assessed
24pursuant to subsection 3, if the employee holds a valid
25certificate of completion of the alcohol compliance employee
26training program pursuant to section 123.50A at the time of the
27violation, and if the violation involves selling, giving, or
28otherwise supplying any alcoholic beverage to a person between
29the ages of eighteen and twenty years of age. A violation
30involving a person under the age of eighteen years of age
31shall not qualify for the bar against assessment of a penalty
32pursuant to subsection 3, for a violation of section 123.49,
33subsection 2, paragraph “h”. A licensee or permittee may assert
34only once in a four-year period the bar under this subsection
35against assessment of a penalty pursuant to subsection 3, for a
-46-1violation of section 123.49, subsection 2, paragraph “h”, that
2takes place at the same place of business location.
3 Sec. 49. Section 123.50, subsection 3, unnumbered paragraph
41, Code 2022, is amended to read as follows:
5If any liquor control retail alcohol licensee, wine or
6beer permittee, or employee of a licensee or permittee is
7convicted or found in violation of section 123.49, subsection
82, paragraph “h”, the administrator or local authority shall,
9in addition to criminal penalties fixed for violations by this
10section, assess a civil penalty as follows:
11 Sec. 50. Section 123.92, subsection 2, paragraphs a and c,
12Code 2022, are amended to read as follows:
13a. Every liquor control retail alcohol licensee, class “B”
14beer permittee, and class “C” native wine permittee, except
15a class “B”, special class “B”, or class “E” liquor control
16 retail alcohol licensee, shall furnish proof of financial
17responsibility by the existence of a liability insurance
18policy in an amount determined by the division. If an insurer
19provides dramshop liability insurance at a new location to
20a licensee or permittee who has a positive loss experience
21at other locations for which such insurance is provided by
22the insurer, and the insurer bases premium rates at the new
23location on the negative loss history of the previous licensee
24or permittee at that location, the insurer shall examine and
25consider adjusting the premium for the new location not less
26than thirty months after the insurance is issued, based on the
27loss experience of the licensee or permittee at that location
28during that thirty-month period of time.
29c. The purpose of dramshop liability insurance is to provide
30protection for members of the public who experience damages
31as a result of licensees or permittees serving patrons any
32alcoholic beverage to a point that reaches or exceeds the
33standard set forth in law for liability. Minimum coverage
34requirements for such insurance are not for the purpose of
35making the insurance affordable for all licensees or permittees
-47-1 regardless of claims experience. A dramshop liability
2insurance policy obtained by a licensee or permittee shall meet
3the minimum insurance coverage requirements as determined by
4the division and is a mandatory condition for holding a license
5or permit.
6 Sec. 51. Section 123.92, subsection 3, paragraphs a and b,
7Code 2022, are amended to read as follows:
8a. Notwithstanding section 123.49, subsection 1, any
9person who is injured in person or property or means of
10support by an intoxicated person who is under legal age or
11resulting from the intoxication of a person who is under
12legal age, has a right of action for all damages actually
13sustained, severally or jointly, against a person who is
14not a licensee or permittee and who dispensed or gave any
15alcoholic beverage to the intoxicated underage person when the
16nonlicensee or nonpermittee who dispensed or gave the alcoholic
17beverage to the underage person knew or should have known the
18underage person was intoxicated, or who dispensed or gave any
19alcoholic beverage to the underage person to a point where the
20nonlicensee or nonpermittee knew or should have known that the
21underage person would become intoxicated.
22b. If the injury was caused by an intoxicated person who is
23under legal age, a person who is not a licensee or permittee
24 and who dispensed or gave the alcoholic beverage to the
25underage person may establish as an affirmative defense that
26the intoxication did not contribute to the injurious action of
27the underage person.
28 Sec. 52. Section 123.95, subsection 2, paragraphs a and c,
29Code 2022, are amended to read as follows:
30a. The holder of an annual class “B” liquor control license
31or an annual class “C” liquor control retail alcohol license
32may act as the agent of a private social host for the purpose
33of providing and serving alcoholic beverages as part of a food
34catering service for a private social gathering in a private
35place, provided the licensee has applied for and been granted a
-48-1catering privilege by the division. The holder of an annual
2special class “C” liquor control retail alcohol license shall
3not act as the agent of a private social host for the purpose of
4providing and serving wine and beer as part of a food catering
5service for a private social gathering in a private place.
6An applicant for a class “B” or class “C” liquor control
7 retail alcohol license shall state on the application for the
8license that the licensee intends to engage in catering food
9and alcoholic beverages for private social gatherings and the
10catering privilege shall be noted on the license.
11c. Section 123.92 does not apply to a liquor control retail
12alcohol licensee who acts in accordance with this section when
13the liquor control retail alcohol licensee is providing and
14serving food and alcoholic beverages as an agent of a private
15social host at a private social gathering in a private place
16which is not on the licensed premises.
17 Sec. 53. Section 123.122, subsection 1, Code 2022, is
18amended to read as follows:
191. A person shall not cause the manufacture, importation,
20or sale of beer in this state unless a certificate or permit as
21provided in this subchapter, or a liquor control retail alcohol
22 license as provided in subchapter I of this chapter, is first
23obtained which authorizes that manufacture, importation, or
24sale.
25 Sec. 54. Section 123.124, Code 2022, is amended to read as
26follows:
27123.124 Beer permits — classes.
28Permits for the manufacture and sale, or sale, of beer shall
29be divided into four classes, known as class “A”, and special
30class “A”, class “B”, or class “C” beer permits. A holder of
31a class “A” or special class “A” beer permit shall have the
32authority as provided in section 123.130. A holder of a class
33“B” beer permit shall have the authority as provided in section
34123.131, and a holder of a class “C” beer permit shall have the
35authority as provided in section 123.132.
-49-1 Sec. 55. Section 123.125, Code 2022, is amended to read as
2follows:
3123.125 Issuance of beer permits.
4The administrator shall issue class “A”, and special class
5“A”, class “B”, and class “C” beer permits and may suspend or
6revoke permits for cause as provided in this chapter.
7 Sec. 56. Section 123.127, subsection 2, paragraph h, Code
82022, is amended to read as follows:
9h. If the person is applying for a special class “A” beer
10permit, that the applicant holds or has applied for a class “C”
11liquor control retail alcohol license or class “B” beer permit.
12 Sec. 57. Section 123.130, subsection 1, paragraph a, Code
132022, is amended to read as follows:
14a. Any person holding a class “A” beer permit issued by
15the division shall be authorized to manufacture and sell, or
16sell at wholesale, beer for consumption off the premises, such
17sales within the state to be made only to persons holding a
18 subsisting class “A”, “B”, or “C” beer permits permit, both
19a class “C” native wine permit and a class “A” wine permit
20pursuant to section 123.178B, subsection 4, or liquor control
21 retail alcohol licenses, excluding a special class “B” retail
22native wine license, issued in accordance with the provisions
23of this chapter. However, a person holding a class “A” beer
24permit issued by the division who also holds a brewer’s notice
25issued by the alcohol and tobacco tax and trade bureau of the
26United States department of the treasury shall be authorized
27to sell, at wholesale, no more than thirty thousand barrels of
28beer on an annual basis for consumption off the premises to a
29licensee or permittee authorized under this chapter to sell
30beer at retail.
31 Sec. 58. Section 123.130, subsections 2 and 4, Code 2022,
32are amended to read as follows:
332. Pursuant to section 123.45, subsection 3, a native
34brewery may be granted not more than two class “B” beer permits
35as defined in section 123.124 for the purpose of selling
-50-1beer at retail for consumption on or off the premises of the
2manufacturing facility class “C” or special class “C” retail
3alcohol permits.
44. All special class “A” premises shall be located within
5the state. A person who holds a special class “A” beer
6permit for the same location at which the person holds a
7class “C” liquor control retail alcohol license or class “B”
8beer permit for the purpose of operating as a brewpub may
9manufacture and sell beer to be consumed on the premises,
10may sell beer at retail at the manufacturing premises for
11consumption off the premises beer that is transferred at the
12time of sale to another container subject to the requirements
13of section 123.131, subsection 2, may sell beer to a class
14“A” beer permittee for resale purposes, and may sell beer to
15distributors outside of the state that are authorized by the
16laws of that jurisdiction to sell beer at wholesale. The
17permit issued to holders of a special class “A” beer permit
18shall clearly state on its face that the permit is limited.
19 Sec. 59. Section 123.135, subsection 4, Code 2022, is
20amended to read as follows:
214. It shall be unlawful for any holder of a certificate
22of compliance or the holder’s agent, or any class “A” beer
23permit holder or the beer permit holder’s agent, to grant to
24any retail beer permit alcohol license holder, directly or
25indirectly, any rebates, free goods, or quantity discounts on
26beer which are not uniformly offered to all retail permittees
27 alcohol licensees.
28 Sec. 60. Section 123.138, subsection 1, Code 2022, is
29amended to read as follows:
301. Each class “A” or special class “A” beer permittee
31shall keep proper records showing the amount of beer sold
32by the permittee, and these records shall be at all times
33open to inspection by the administrator and to other persons
34pursuant to section 123.30, subsection 1. Each class “B”
35beer permittee, class “C” beer permittee, or retail liquor
-51-1control alcohol licensee as described in section 123.30 shall
2keep proper records showing each purchase of beer made by the
3permittee or licensee, and the date and the amount of each
4purchase and the name of the person from whom each purchase
5was made, which records shall be open to inspection pursuant
6to section 123.30, subsection 1, during normal business hours
7of the permittee or licensee.
8 Sec. 61. Section 123.138, subsection 2, paragraph a, Code
92022, is amended to read as follows:
10a. Each class “B”, “C”, or special class “C” liquor control
11 retail alcohol licensee and class “B” or “C” beer permittee who
12sells beer for off-premises consumption shall affix to each
13keg of beer an identification sticker label provided by the
14administrator. The sticker label provided shall allow for its
15full removal when common external keg cleaning procedures are
16performed. For the purposes of this subsection, “keg” means
17all durable and disposable containers with a liquid capacity
18of five gallons or more. Each class “B”, “C”, or special class
19“C” liquor control retail alcohol licensee and class “B” or “C”
20beer permittee shall also keep a record of the identification
21sticker label number of each keg of beer sold by the licensee
22or permittee with the name and address of the purchaser and
23the number of the purchaser’s driver’s license, nonoperator’s
24identification card, or military identification card, if the
25military identification card contains a picture and signature.
26This information shall be retained by the licensee or permittee
27 for a minimum of ninety days. The records kept pursuant to
28this subsection shall be available for inspection by any law
29enforcement officer during normal business hours.
30 Sec. 62. Section 123.138, subsection 2, paragraph b, Code
312022, is amended to read as follows:
32b. (1) The division shall provide the keg identification
33stickers labels described in paragraph “a” and shall, prior to
34utilizing a sticker label, notify licensed brewers and licensed
35beer importers of the type of sticker label to be utilized.
-52-1Each sticker label shall contain a number and the following
2statement:
3It is unlawful to sell, give, or otherwise supply any
4alcoholic beverage, wine, or beer to any person under legal
5age. Any person who defaces this sticker label shall be guilty
6of criminal mischief punishable pursuant to section 716.6 and
7shall cause the forfeiture of any deposit, if applicable.
8(2) The identification sticker label shall be placed on
9the keg at the time of retail sale. The licensee or permittee
10 shall purchase obtain the stickers labels referred to in this
11subsection from the division and shall remit to the division
12deposits forfeited pursuant to this lettered paragraph due to
13defacement. The cost of the stickers labels to licensees and
14permittees shall not exceed the division’s cost of producing
15and distributing the stickers labels. The moneys collected by
16the division relating to the sale of stickers and forfeited
17deposits shall be credited to the beer and liquor control fund.
18 Sec. 63. Section 123.138, subsection 2, paragraph d, Code
192022, is amended by striking the paragraph.
20 Sec. 64. Section 123.141, Code 2022, is amended to read as
21follows:
22123.141 Keeping liquor where beer is sold.
23No alcoholic liquor for beverage purposes shall be used,
24or kept for any purpose in the place of business of a special
25 class “B” beer permittees “C” retail alcohol licensee, or on
26the premises of such special class “B” beer permittees “C”
27retail alcohol licensee, at any time. A violation of any
28provision of this section shall be grounds for suspension or
29revocation of the beer permit pursuant to section 123.50,
30subsection 3. This section shall not apply in any manner or
31in any way to the premises of any hotel or motel for which a
32special class “B” beer permit “C” retail alcohol license has
33been issued, other than that part of such premises regularly
34used by the hotel or motel for the principal purpose of selling
35beer or food to the general public, to a premises for which
-53-1both a special class “B” beer permit “C” retail alcohol license
2 and a class “A” native distilled spirits license have been
3issued, or to keep a pharmacy from having alcohol in stock for
4medicinal and compounding purposes.
5 Sec. 65. Section 123.142, subsection 1, Code 2022, is
6amended to read as follows:
71. It is unlawful for the holder of a class “B” or class “C”
8beer permit retail alcohol license issued under this chapter
9to sell beer, except beer brewed on the premises covered by a
10special class “A” beer permit or beer purchased from a person
11holding a class “A” beer permit issued in accordance with this
12chapter, and on which the tax provided in section 123.136 has
13been paid. However, this section does not apply to class “D”
14liquor control retail alcohol licensees as provided in this
15chapter.
16 Sec. 66. Section 123.143, subsection 1, Code 2022, is
17amended by striking the subsection.
18 Sec. 67. Section 123.171, subsection 1, Code 2022, is
19amended to read as follows:
201. A person shall not cause the manufacture, importation,
21or sale of wine in this state unless a certificate or permit as
22provided in this subchapter, or a liquor control retail alcohol
23 license as provided in subchapter I of this chapter, is first
24obtained which authorizes that manufacture, importation, or
25sale.
26 Sec. 68. Section 123.173, Code 2022, is amended to read as
27follows:
28123.173 Wine permits permit — classes class “A” —
29authority.
301. Except as provided in section 123.187, permits a permit
31 exclusively for the sale or manufacture and sale of wine shall
32be divided into four classes, and shall be known as a class
33“A”, “B”, “B” native, or “C” native wine permits permit.
342. A class “A” wine permit allows the holder to manufacture
35and sell, or sell at wholesale, in this state, wine. The
-54-1holder of a class “A” wine permit may manufacture in this state
2wine having an alcoholic content greater than seventeen percent
3by weight or twenty-one and twenty-five hundredths percent of
4alcohol by volume for shipment outside this state. All class
5“A” premises shall be located within the state. A class “B” or
6class “B” native wine permit allows the holder to sell wine at
7retail for consumption off the premises. A class “B” or class
8“B” native wine permittee who also holds a class “E” liquor
9control license may sell wine to class “A”, class “B”, class
10“C”, special class “C”, and class “D” liquor control licensees
11for resale for consumption on the premises. Such wine sales
12shall be in quantities of less than one case of any wine brand
13but not more than one such sale shall be made to the same liquor
14control licensee in a twenty-four-hour period. A class “B” or
15class “B” native wine permittee shall not sell wine to other
16class “B” or class “B” native wine permittees. A class “C”
17native wine permit allows the holder to sell native wine for
18consumption on or off the premises.
193. A class “A” wine permittee shall be required to deliver
20wine to a retail wine permittee alcohol licensee, and a retail
21wine permittee alcohol licensee shall be required to accept
22delivery of wine from a class “A” wine permittee, only at
23the licensed premises of the retail wine permittee alcohol
24licensee. Except as specifically permitted by the division
25upon good cause shown, delivery or transfer of wine from an
26unlicensed premises to a licensed retail wine permittee’s
27 alcohol licensee’s premises, or from one licensed retail wine
28permittee’s alcohol licensee’s premises to another licensed
29retail wine permittee’s alcohol licensee’s premises, even if
30there is common ownership of all of the premises by one retail
31permittee, is prohibited. A class “B” or class “B” native wine
32permittee who also holds a class “E” liquor control license
33shall keep and maintain records for each sale of wine to liquor
34control licensees showing the name of the establishment to
35which wine was sold, the date of sale, and the brands and
-55-1number of bottles sold to the liquor control licensee.
24. When a class “B” or class “B” native wine permittee who
3also holds a class “E” liquor control license sells wine to a
4liquor control licensee, the liquor control licensee shall sign
5a report attesting to the purchase. The class “B” or class “B”
6native wine permittee who also holds a class “E” liquor control
7license shall submit a report to the division electronically,
8or in a manner prescribed by the administrator, not later than
9the tenth of each month stating each sale of wine to liquor
10control licensees during the preceding month, the date of each
11sale, and the brands and numbers of bottles with each sale.
12A class “B” permittee who holds a class “E” liquor control
13license may sell to class “A”, class “B”, or class “C” liquor
14control licensees only if the licensed premises of the liquor
15control licensee is located within the geographic territory of
16the class “A” wine permittee from which the wine was originally
17purchased by the class “B” or class “B” native wine permittee.
18 Sec. 69. Section 123.173A, Code 2022, is amended by striking
19the section and inserting in lieu thereof the following:
20123.173A Charity beer, spirits, and wine special event
21license.
221. For purposes of this section:
23a. “Authorized nonprofit entity” includes a nonprofit
24entity which has a principal office in the state, a nonprofit
25corporation organized under chapter 504, or a foreign
26corporation as defined in section 504.141, whose income is
27exempt from federal taxation under section 501(c) of the
28Internal Revenue Code.
29b. “Charity auction” means an auction conducted by an
30authorized nonprofit entity which includes beer, spirits, and
31wine.
32c. “Charity event” means an event at which an authorized
33nonprofit entity may serve the event’s attendees beer,
34spirits, and wine for consumption on the premises of the event,
35regardless of whether the entity charges an admission fee to
-56-1the event or otherwise collects the cost of the beer, spirits,
2and wine served from the event’s attendees.
3d. “Charity special event” means a charity auction, charity
4event, or a combined charity auction and charity event.
52. Upon application to the division and receipt of a charity
6beer, spirits, and wine special event license, an authorized
7nonprofit entity may conduct a charity special event subject to
8the requirements of this section.
93. A charity auction conducted by a charity beer, spirits,
10and wine special event licensee shall comply with the following
11requirements:
12a. The authorized nonprofit entity conducting the charity
13auction shall obtain the beer, spirits, and wine to be
14auctioned at the charity auction from an Iowa retail alcohol
15licensee, or may receive donations of beer, spirits, or wine to
16be auctioned at the charity auction from persons who purchased
17the donated beer, spirits, or wine from an Iowa retail alcohol
18licensee or an Iowa class “A” native distilled spirits licensee
19and who present a receipt documenting the purchase at the
20time the beer, spirits, or wine is donated. The authorized
21nonprofit entity conducting the charity auction shall retain a
22copy of the receipt for a period of one year from the date of
23the charity beer, spirits, and wine auction.
24b. The beer, spirits, and wine sold at the charity auction
25shall be in original containers for consumption off of the
26premises where the charity auction is conducted. No other
27alcoholic beverage may be sold by the charity beer, spirits,
28and wine special event licensee at the charity auction. A
29purchaser of beer, spirits, or wine at a charity auction shall
30not take possession of the beer, spirits, or wine until the
31person is leaving the event. A purchaser of beer, spirits,
32or wine at a charity auction shall not open the container or
33consume or permit the consumption of the beer, spirits, or
34wine purchased on the premises where the charity auction is
35conducted. A purchaser of beer, spirits, or wine at a charity
-57-1auction shall not resell the beer, spirits, or wine.
2c. A retail alcohol licensee or class “A” native distilled
3spirits licensee shall not purchase beer, spirits, or wine at
4a charity auction. The charity auction may be conducted on
5a premises for which a class “B” or class “C” retail alcohol
6license has been issued, provided that the retail alcohol
7licensee does not participate in the charity auction, supply
8beer, spirits, or wine to be auctioned at the charity auction,
9or receive any of the proceeds of the charity auction.
104. A charity event conducted by a charity beer, spirits,
11and wine special event licensee shall comply with the following
12requirements:
13a. The charity event shall be conducted on a premises
14covered by a valid retail alcohol license issued by the
15division.
16b. The authorized nonprofit entity conducting a charity
17event shall have a written agreement with the retail alcohol
18licensee covering the premises where the charity event is to be
19conducted specifying that that licensee shall act as the agent
20of the authorized nonprofit entity for the purpose of providing
21and serving alcoholic beverages to the attendees of the charity
22event.
23c. The retail alcohol licensee covering the premises where
24the charity event is to be conducted shall supply all alcoholic
25beverages served to the attendees of the charity event.
26d. Only those types of alcoholic beverages as are authorized
27to be sold by the retail alcohol license covering the premises
28where the charity event is to be conducted are to be served to
29the attendees of the charity event.
305. An application for a charity beer, spirits, and wine
31special event license to conduct a charity special event shall
32include all of the following information:
33a. The date and time when the charity special event is to be
34conducted and the location of the premises in this state where
35the charity special event is to be physically conducted.
-58- 1b. The retail alcohol license number issued by the division
2for the premises where a charity event is to be conducted, if
3applicable.
4c. A certification that the objective of the charity special
5event is to raise funds solely to be used for educational,
6religious, or charitable purposes and that the entire proceeds
7from the charity special event are to be expended for any of
8the purposes described in section 423.3, subsection 78.
96. An authorized nonprofit entity shall be eligible to
10receive no more than two charity beer, spirits, and wine
11special event licenses during a calendar year and each charity
12beer, spirits, and wine special event license shall be valid
13for a period not to exceed thirty-six consecutive hours.
147. Any violation of the requirements of this chapter or
15the rules adopted pursuant to this chapter shall subject
16the charity beer, spirits, and wine special event license
17holder to the general penalties provided in this chapter and
18shall constitute grounds for imposition of a civil penalty,
19suspension of the license, or revocation of the permit after
20notice and opportunity for a hearing pursuant to section 123.39
21and chapter 17A.
22 Sec. 70. Section 123.175, subsection 1, unnumbered
23paragraph 1, Code 2022, is amended to read as follows:
24A person applying for a class “A” or retail wine permit shall
25submit a completed application electronically, or in a manner
26prescribed by the administrator, which shall set forth under
27oath the following:
28 Sec. 71. Section 123.175, subsection 1, paragraph e, Code
292022, is amended to read as follows:
30e. When required by the administrator, and in such form and
31containing such information as the administrator may require,
32a description of the premises where the applicant intends to
33use the permit, to include a sketch or drawing of the premises
34and, if applicable, the number of square feet of interior floor
35space which comprises the retail sales area of the premises.
-59-1 Sec. 72. Section 123.175, subsection 2, unnumbered
2paragraph 1, Code 2022, is amended to read as follows:
3The administrator shall issue a class “A” or retail wine
4permit to any applicant who establishes all of the following:
5 Sec. 73. Section 123.175, subsection 2, paragraphs d and g,
6Code 2022, are amended to read as follows:
7d. That, in the case of a class “A” wine permit, the
8applicant has filed with the division a basic permit issued
9by the alcohol and tobacco tax and trade bureau of the United
10States department of the treasury, and that the applicant will
11faithfully observe and comply with all the laws, rules, and
12regulations governing the manufacture and sale of wine.
13g. That the applicant has submitted, in the case of a class
14“A” wine permit, a bond in the amount of five thousand dollars
15in a manner prescribed by the administrator with good and
16sufficient sureties to be approved by the division conditioned
17upon compliance with this chapter.
18 Sec. 74. Section 123.176, subsections 2, 5, and 7, Code
192022, are amended to read as follows:
202. Native wine may be sold at retail for off-premises
21consumption when sold on the premises of the manufacturer, or
22in a retail establishment operated by the manufacturer. Sales
23may also be made to class “A” or retail wine permittees or
24liquor control alcohol licensees as authorized by sections
25123.173 123.30 and 123.177. A manufacturer of native wines
26shall not sell the wines other than as permitted in this
27chapter and shall not allow wine sold to be consumed upon the
28premises of the manufacturer. However, prior to sale, native
29wines may be tasted pursuant to the rules of the division
30on the premises where made, when no charge is made for the
31tasting.
325. Notwithstanding any other provision of this chapter, a
33person engaged in the business of manufacturing native wine may
34sell native wine at retail for consumption on the premises of
35the manufacturing facility by applying for a class “C” native
-60-1wine permit retail alcohol license as provided in section
2123.178B 123.31. A manufacturer of native wine may be granted
3not more than two class “C” native wine permits retail alcohol
4licenses. A manufacturer of native wine may be issued a class
5“C” native wine permit retail alcohol license regardless
6of whether the manufacturer is also a manufacturer of beer
7pursuant to a class “A” beer permit or a manufacturer of native
8distilled spirits pursuant to a class “A” native distilled
9spirits license.
107. A manufacturer may use the space and equipment of another
11manufacturer for the purpose of manufacturing native wine,
12provided that such an alternating proprietorship arrangement
13is approved by the alcohol and tobacco tax and trade bureau
14of the United States department of the treasury. A separate
15class “A” wine permit shall be issued to each manufacturer,
16and each manufacturer shall be subject to the provisions of
17this chapter and the rules of the division. Notwithstanding
18subsection 5, not more than one class “C” native wine permit
19 retail alcohol license shall be issued to a premises with
20alternating proprietorships.
21 Sec. 75. Section 123.177, subsection 1, Code 2022, 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 alcohol license. However, if the person
28holding the class “A” permit is a manufacturer of native wine,
29the person may sell only native wine to a person holding a
30retail wine permit or a retail liquor control alcohol license.
31A person holding a class “A” wine permit may sell wine to
32distributors outside of the state that are authorized by the
33laws of that jurisdiction to sell wine at wholesale. A class
34“A” wine permittee having more than one place of business shall
35obtain a separate permit for each place of business where wine
-61-1is to be manufactured, stored, warehoused, or sold.
2 Sec. 76. Section 123.177, subsection 3, Code 2022, is
3amended by striking the subsection.
4 Sec. 77. Section 123.180, subsection 4, Code 2022, is
5amended to read as follows:
64. It is unlawful for a holder of a vintner’s certificate
7of compliance or the holder’s agent, or any class “A” wine
8permittee or the permittee’s agent, to discriminate between
9class “B” wine permittees retail alcohol licensees authorized
10to sell wine at retail.
11 Sec. 78. Section 123.181, subsection 1, Code 2022, is
12amended by striking the subsection.
13 Sec. 79. Section 123.181, subsection 2, Code 2022, is
14amended to read as follows:
152. A class “A” wine permittee shall not sell wine on
16credit to a retail alcohol licensee or permittee for a period
17exceeding thirty days from date of delivery.
18 Sec. 80. Section 123.187, subsection 2, paragraph a, Code
192022, is amended to read as follows:
20a. Only a wine manufacturer that holds a wine direct shipper
21permit issued pursuant to this section shall sell wine at
22retail for direct shipment to any person within this state.
23This section shall not prohibit an authorized retail licensee
24or permittee from delivering wine pursuant to section 123.46A.
25 Sec. 81. Section 123.187, subsection 2, paragraph d, Code
262022, is amended by striking the paragraph.
27 Sec. 82. Section 125.59, unnumbered paragraph 1, Code 2022,
28is amended to read as follows:
29The treasurer of state, on each July 1 for that fiscal
30year, shall transfer the estimated amounts to be received from
31section 123.36, subsection 8 and section 123.143, subsection 1
32for purposes of this section to the department.
33 Sec. 83. REPEAL. Sections 123.97, 123.123, 123.150,
34123.172, 123.173B, and 123.185, Code 2022, are repealed.
35DIVISION IV
-62-1CONFORMING CHANGES
2 Sec. 84. Section 7D.16, Code 2022, is amended to read as
3follows:
47D.16 Alcoholic beverages in state capitol or on complex
5grounds.
6Notwithstanding any contrary provision of law prohibiting
7the use and consumption of alcoholic beverages in a public
8place, the executive council may authorize, by resolution,
9the temporary use and consumption of alcoholic beverages,
10as defined in section 123.3, in the state capitol or on the
11state capitol complex grounds, as if the state capitol or
12state capitol complex grounds were a private place. The
13authorization by resolution shall be limited to the use and
14consumption of alcoholic beverages as an accompaniment to food
15at a single award ceremony, social event, or other occasion
16deemed appropriate by the executive council. The authorization
17shall require that the person providing the food and alcoholic
18beverages possess an appropriate liquor control retail alcohol
19 license in accordance with section 123.95. The secretary
20of the executive council shall inform the secretary of the
21legislative council and the director of the department of
22administrative services of the approval of any such resolution.
23 Sec. 85. Section 12.43, subsection 5, paragraph e, Code
242022, is amended to read as follows:
25e. Liquor, beer, and wine sales must not exceed twenty
26percent of annual sales for establishments holding a class
27“C” liquor retail alcohol license issued pursuant to section
28123.30.
29 Sec. 86. Section 99B.3, subsection 2, Code 2022, is amended
30to read as follows:
312. A person whose license is revoked under this section
32who is a person for whom a class “A”, class “B”, class “C”, or
33class “D” liquor control retail alcohol license has been issued
34pursuant to chapter 123 shall have the person’s liquor control
35 retail alcohol license suspended for a period of fourteen days
-63-1in the same manner as provided in section 123.50, subsection
23, paragraph “a”.
3 Sec. 87. Section 99B.3, subsection 3, Code 2022, is amended
4by striking the subsection.
5 Sec. 88. Section 99B.43, subsection 1, unnumbered paragraph
61, Code 2022, is amended to read as follows:
7Social gambling is lawful on the premises of an
8establishment for which a class “A”, class “B”, class “C”,
9special class “C”, or class “D” liquor control, class “E”, or
10class “F” retail alcohol license, or class “B” beer permit
11 has been issued pursuant to chapter 123 when, subject to the
12provisions of section 99B.42, all of the following requirements
13are met:
14 Sec. 89. Section 99B.43, subsection 1, paragraph a, Code
152022, is amended to read as follows:
16a. The liquor control retail alcohol licensee or beer
17permittee has submitted an application for a social gambling
18license and a license fee of one hundred fifty dollars to the
19department, and a license has been issued.
20 Sec. 90. Section 99B.43, subsection 2, unnumbered paragraph
211, Code 2022, is amended to read as follows:
22A liquor control retail alcohol licensee or beer permittee
23 with a social gambling license issued pursuant to this section
24may conduct a sports betting pool if all of the requirements of
25this subsection are met.
26 Sec. 91. Section 99B.43, subsection 3, Code 2022, is amended
27to read as follows:
283. An establishment issued a social gambling license under
29this section that is required to obtain a new liquor retail
30alcohol license or permit under chapter 123 due to a change in
31ownership shall be required to obtain a new social gambling
32license under this section to conduct social gambling.
33 Sec. 92. Section 99B.53, subsections 2, 3, 4, and 13, Code
342022, are amended to read as follows:
352. Except as provided in subsection 3, an electrical or
-64-1mechanical amusement device requiring registration may be
2located on premises for which a class “A”, class “B”, class
3“C”, special class “C”, or class “D” liquor control, class “E”,
4or class “F” retail alcohol license has been issued pursuant
5to chapter 123.
63. a. An electrical or mechanical amusement device
7requiring registration may be located on premises for which a
8class “B” or class “C” beer permit “E” retail alcohol license
9 has been issued pursuant to chapter 123, but the department
10shall not initially register an electrical or mechanical
11amusement device to an owner or distributor for a location for
12which a class “B” or class “C” beer permit “E” retail alcohol
13license has been issued pursuant to chapter 123 on or after
14April 28, 2004.
15b. A distributor that owns an amusement device at a location
16for which only a class “B” or class “C” beer permit “E” retail
17alcohol license has been issued pursuant to chapter 123 shall
18not relocate an amusement device registered as provided in
19this section to a location other than a location for which a
20class “A”, class “B”, class “C”, special class “C”, or class
21“D” liquor, class “E”, or class “F” retail alcohol license has
22been issued and shall not transfer, assign, sell, or lease an
23amusement device registered as provided in this section to
24another person for which only a class “B” or class “C” beer
25permit “E” retail alcohol license has been issued pursuant to
26chapter 123 after April 28, 2004.
27c. If ownership of the location changes, the class “B”
28or class “C” beer permit “E” retail alcohol license does not
29lapse, and the device is not removed from the location, the
30device may remain at the location.
314. An electrical or mechanical amusement device required
32to be registered and at a location for which only a class “B”
33or class “C” beer permit “E” retail alcohol license has been
34issued pursuant to chapter 123 shall include on the device
35a security mechanism which prevents the device from being
-65-1operated by a person until action is taken by the owner or
2owner’s designee to allow the person to operate the device.
313. A person owning or leasing an electrical or mechanical
4amusement device required to be registered by this section
5shall not relocate and place into operation an amusement
6device in any location other than a location which has been
7issued an appropriate liquor control retail alcohol license in
8good standing and to which the device has been appropriately
9registered with the department.
10 Sec. 93. Section 99B.55, subsection 2, Code 2022, is amended
11to read as follows:
122. a. A person who commits an offense of awarding a cash
13prize of fifty dollars or less in violation of section 99B.52,
14subsection 3, pursuant to rules adopted by the department,
15shall be subject to a civil penalty in the amount of two
16hundred fifty dollars. Additional sanctions beyond the civil
17penalty prescribed by this paragraph, including but not limited
18to the suspension or revocation of any liquor control retail
19alcohol license issued pursuant to chapter 123 or registration
20issued pursuant to section 99B.53 or 99B.56, shall not be
21applicable.
22b. A person who commits, within two years, a second offense
23of awarding a cash prize of fifty dollars or less in violation
24of section 99B.52, subsection 3, or a person who commits an
25offense of awarding a cash prize of more than fifty dollars in
26violation of section 99B.52, subsection 3, pursuant to rules
27adopted by the department, shall be subject to revocation of
28the person’s registration and the following:
29(1) If the person whose registration is revoked under this
30paragraph “b” is a person for which a class “A”, class “B”,
31 class “C”, special class “C”, or class “D” liquor control,
32class “E”, or class “F” retail alcohol license has been
33issued pursuant to chapter 123, the person’s liquor control
34 retail alcohol license shall be suspended for a period of
35fourteen days in the same manner as provided in section 123.50,
-66-1subsection 3, paragraph “a”.
2(2) If the person whose registration is revoked under this
3paragraph “b” is a person for which only a class “B” or class
4“C” beer permit “E” retail alcohol license has been issued
5pursuant to chapter 123, the person’s class “B” or class “C”
6beer permit “E” retail alcohol license shall be suspended for
7a period of fourteen days in the same manner as provided in
8section 123.50, subsection 3, paragraph “a”.
9(3) If a person owning or employed by an establishment
10having a class “A”, class “B”, class “C”, special class “C”,
11or class “D” liquor control, class “E”, or class “F” retail
12alcohol license issued pursuant to chapter 123 commits an
13offense as provided in this paragraph “b”, the liquor control
14 retail alcohol license of the establishment shall be suspended
15for a period of fourteen days in the same manner as provided in
16section 123.50, subsection 3, paragraph “a”.
17(4) If a person owning or employed by an establishment
18having a class “B” or class “C” beer permit “E” retail alcohol
19license issued pursuant to chapter 123 commits an offense as
20provided in this paragraph “b”, the beer permit retail alcohol
21license of the establishment shall be suspended for a period of
22fourteen days in the same manner as provided in section 123.50,
23subsection 3, paragraph “a”.
24 Sec. 94. Section 137F.1, subsection 9, paragraph c, Code
252022, is amended to read as follows:
26c. A premises covered by a class “A” wine permit or a class
27“B” wine permit as provided in chapter 123.
28 Sec. 95. Section 331.303, subsection 4, Code 2022, is
29amended to read as follows:
304. Act upon applications for liquor control retail alcohol
31 licenses and retail beer permits in accordance with section
32123.32.
33 Sec. 96. Section 455C.4, subsection 4, Code 2022, is amended
34to read as follows:
354. A class “E” liquor control retail alcohol licensee
-67-1may refuse to accept and to pay the refund value on an empty
2alcoholic liquor container from a dealer or a redemption center
3or from a person acting on behalf of or who has received empty
4alcoholic liquor containers from a dealer or a redemption
5center.
6DIVISION V
7TRANSITION PROVISIONS — EFFECTIVE DATE
8 Sec. 97. TRANSITION PROVISIONS. Any license or permit
9issued by the alcoholic beverages division of the department
10of commerce that is repealed, merged, or altered in this Act,
11and in effect on the effective date of this Act, shall continue
12in full force and effect with the authority granted by that
13license or permit until expiration or renewal.
14 Sec. 98. EFFECTIVE DATE. This Act takes effect January 1,
152023.
16EXPLANATION
17The inclusion of this explanation does not constitute agreement with
18the explanation’s substance by the members of the general assembly.
19This bill relates to alcoholic beverage control. The bill is
20organized by divisions.
21DIVISION I — RETAIL ALCOHOL LICENSES. Code section 123.30,
22establishing liquor control licenses, is stricken and rewritten
23by the bill. The bill replaces liquor control licenses with
24retail alcohol licenses and modifies the classes within the
25new category of retail alcohol licenses. The current class
26“A” liquor control license and class “D” liquor control
27license are renamed a class “F” and a class “D” retail alcohol
28license, respectively. The current class “B” liquor control
29license that may be issued to a hotel or motel is eliminated.
30Instead, the bill establishes a new class “B” retail alcohol
31license and special class “B” retail alcohol license. The
32new class “B” retail alcohol license allows the holder to
33purchase wine from a class “A” wine permittee and beer from a
34class “A” beer permittee and to sell wine and beer in original
35unopened containers at retail to patrons for consumption off
-68-1the licensed premises. The bill also allows a holder of the
2new class “B” retail alcohol license to sell wine in limited
3quantities to class “C”, special class “C”, class “D”, and
4class “F” retail alcohol licensees for resale for consumption
5on the premises. This new license combines, in part, the
6authority granted under the current class “C” beer permit for
7beer and the class “B” wine permit for wine. The new special
8class “B” retail native wine license authorizes the holder to
9purchase wine from a native winery holding a class “A” wine
10permit and to sell native wine only at retail for consumption
11off the licensed premises. The authority under this new
12special class “B” retail alcohol license is similar to the
13authority granted a holder of a current class “B” native wine
14permit. The current class “C” and special class “C” liquor
15control licenses are renamed as class “C” and special class “C”
16retail alcohol licenses. The current special class “C” native
17distilled spirits liquor control license is repealed. Finally,
18the current class “E” liquor control license is renamed a class
19“E” retail alcohol license. In addition, the bill provides
20that a class “E” retail alcohol licensee can purchase wine and
21beer from a class “A” wine or beer permittee, respectively.
22The bill specifically allows the class “E” licensee to sell
23wine and beer in unopened containers at retail, and to sell
24alcoholic liquor and high alcoholic content beer at wholesale.
25Code section 123.131, providing for liquor control license
26applications, is stricken and rewritten by the bill. Existing
27application requirements for liquor control licenses are made
28applicable to retail alcohol licenses established by the bill.
29In addition, requirements for issuance of a current class “B”
30beer permit, class “C” beer permit, and retail wine permit
31are generally made applicable to issuance of a retail alcohol
32license.
33New Code section 123.31A establishes the authority granted
34a holder of a new class “B”, class “C”, special class “C”,
35and class “E” retail alcohol license. The authority granted
-69-1a holder of these licenses as to both wine and beer is similar
2to the authority granted current holders of a class “B” beer
3permit, class “C” beer permit, and class “B” wine permit,
4to include sales of beer or wine in other than the original
5container. The new Code section provides that a holder of
6a new class “C” or special class “C” retail alcohol license
7cannot sell beer or wine to other retail alcohol license
8holders. The bill also provides, similarly to current Code
9section 123.181(1), that a holder of any retail alcohol permit
10shall not sell wine except wine purchased from a person holding
11a class “A” permit or native wine manufacturer.
12New Code section 123.31B establishes the authority granted a
13holder of a new special class “B” retail native wine license.
14The authority granted a holder of this new license is similar
15to the authority granted a holder of a current class “B” native
16wine permit.
17With the authority granted retail alcohol licensees
18regarding beer, the current class “B” and class “C” beer
19permits are repealed. As a result, the division repeals, as
20to beer permits, Code section 123.138, providing for class
21“B” beer permit applications, Code section 123.129, providing
22for class “C” beer permit applications, Code section 123.131,
23concerning authority under a class “B” beer permit, Code
24section 123.132, concerning authority under a class “C” beer
25permit, and Code section 123.140, concerning separate locations
26for class “B” or class “C” beer permits. In addition, based
27on the authority granted the new retail licenses regarding
28wine, the current class “B” wine, class “B” native wine, and
29class “C” native wine permits are repealed. As a result, the
30division repeals, as to wine permits, Code section 123.178,
31concerning authority under a class “B” wine permit, Code
32section 123.178A, concerning authority under a class “B” native
33wine permit, and Code section 123.178B, concerning authority
34under a class “C” native wine permit.
35DIVISION II — ALCOHOLIC BEVERAGE CONTROL FEES. This
-70-1division concerns fees for the new retail alcohol licenses as
2well as changes to fees for other licenses and permits in Code
3chapter 123.
4Code section 123.23, concerning the distiller’s certificate
5of compliance, is amended to increase the annual fee for the
6certificate from $50 to $200.
7Code section 123.36, concerning liquor control license
8fees, is stricken and rewritten and made applicable to the new
9retail alcohol licenses. The current fees for a class “A”
10liquor control licensee are made applicable to the new class
11“F” retail alcohol license. The current fees for a class
12“B” liquor control license are repealed. Instead, the bill
13establishes fees for the new class “B” retail alcohol license
14based on the population of the city where the premises is
15located as well as the square footage of the licensed premises.
16The fee for the new special class “B” native wine license is
17$125, an increase from the fee for a current class “B” native
18wine permit of $25. The fees for the new class “C” and special
19class “C” retail alcohol license are modified from the current
20fees for class “C” liquor control licenses. The new fees
21increase the population thresholds for increased fees for both
22the new class “C” and special class “C” licenses and reduce the
23fees for the class “C” retail alcohol license by $50 over the
24current fees for a class “C” liquor control license. The new
25class “D” retail alcohol license fees remain the same as the
26fees for the current class “D” liquor control license. The
27bill establishes fees for the new class “E” retail alcohol
28license based on the population of the city where the premises
29is located as well as the square footage of the licensed
30premises. Current fees for the class “E” liquor control
31license are based only on the population of the city where
32the premises is located. Current provisions in Code section
33123.36 governing crediting of liquor control license fees to
34the beer and liquor control fund are made applicable to the new
35retail alcohol license fees, excluding the new special class
-71-1“B” retail alcohol licenses. Current provisions imposing fee
2surcharges are also made applicable to the new retail alcohol
3license fees, excluding the new class “B” and special class “B”
4retail alcohol licenses.
5Code section 123.41, concerning the manufacturer’s license,
6is amended to decrease the annual fee for the license from $350
7to $300.
8Code section 123.43(3), concerning a class “A” native
9distilled spirits license, is amended to decrease the annual
10fee for the license from $500 to $300.
11Code section 123.134, concerning beer permit fees, is
12stricken and rewritten. The bill keeps the annual permit fee
13for a class “A” beer permit at $750, reduces the annual permit
14fee for a special class “A” beer permit from $750 to $300, and
15provides that the annual fee for a class “A” beer permit for a
16native brewery is $300. Fees for class “B” and class “C” beer
17permits are repealed as those permits are repealed by the bill.
18Code section 123.135, concerning the brewer’s certificate
19of compliance, is amended to reduce the annual fee for the
20certificate from $500 to $200.
21Code section 123.179, concerning wine permit fees, is
22stricken and rewritten by the bill. The bill keeps the annual
23permit fee for a class “A” wine permit that is not issued
24to a native wine manufacturer at $750, increases the annual
25permit fee for a class “A” wine permit issued to a native wine
26manufacturer from $25 to $100, and provides that the annual fee
27for a charity beer, spirits, and wine special event license
28created in the bill is $100. Fees for class “B” wine permits
29and class “B” and class “C” native wine permits are stricken
30as those permits are repealed by the bill. The current fees
31for charity wine auctions and charity wine event permits are
32stricken as those permits are repealed by the bill and combined
33in the new charity beer, spirits, and wine special event
34license created by the bill.
35Code section 123.180, concerning the vintner’s certificate
-72-1of compliance, is amended to increase the annual fee for the
2certificate from $150 to $200.
3DIVISION III — ALCOHOLIC BEVERAGE CONTROL. This division
4makes changes to Code chapter 123 relative to alcoholic
5beverage control, to include making conforming changes relative
6to the creation of the new retail alcohol licenses and the
7elimination of certain native distilled spirits, beer, and wine
8permits in the bill. The bill also eliminates the requirement
9to obtain a special privilege to sell alcoholic beverages on
10Sunday and provides that sales or other activities relating
11to alcoholic beverages on Sunday will be allowed to the same
12extent as they are allowed on any other day.
13Code section 123.3, definitions, is amended to reflect the
14new retail alcohol licenses. The bill strikes definitions for
15“retail beer permit” and “retail wine permit” as those permits
16are repealed by the bill and creates a new “retail alcohol
17license” definition reflecting the classes of licenses included
18within this new license. The definition of “high alcoholic
19content beer” is also amended to provide that high alcoholic
20content beer may contain up to 19 percent of alcohol by volume
21instead of the current 15 percent.
22Code section 123.34, concerning seasonal licenses and
23permits, is amended. The bill amends the Code section to
24reflect the new retail alcohol licenses and allows seasonal
25and shortened licenses for new class “C”, special class
26“C”, class “D”, and class “F” retail alcohol licensees. The
27bill eliminates the six-month seasonal license or permit and
28provides that the fee for an eight-month seasonal license shall
29be 50 percent of the license fee for that class of license
30instead of a proportional share of that fee.
31New Code section 123.35 includes the provision from
32current Code section 123.34 providing for the expiration of
33licenses, permits, and certificates of compliance without
34the notification requirement. The new Code section further
35provides, notwithstanding any provision of Code chapter 123
-73-1to the contrary, for the automatic renewal of a class “E”
2retail alcohol license, a distiller’s, vintner’s, or brewer’s
3certificate of compliance, and a wine direct shipper’s
4permit. The bill allows the renewal of the applicable license,
5certificate, or permit without approval by the administrator
6of the alcoholic beverages division or endorsement of any
7applicable local authority upon collection of the annual fee
8for that license, certificate, or permit by the alcoholic
9beverages division, provided certain conditions are met since
10the preceding license, certificate, or permit was issued. The
11bill provides that the license, certificate, or permit can be
12automatically renewed if, in the preceding year, the license,
13certificate, or permit has not been suspended or revoked,
14a civil penalty has not been imposed, an administrative
15proceeding is not pending to suspend or revoke the license,
16certificate, or permit or to impose a civil penalty, all
17required payments to the division have been made, and the
18licensee, certificate holder, or permittee, and all persons
19associated with the licensee, certificate holder, or permittee
20as described in Code section 123.3(40)(e), have not been
21convicted of a violation of Code chapter 123. In addition, for
22renewal of a class “E” retail alcohol license, the licensed
23premises shall constitute a safe and proper place and building
24that complies with all applicable building-related regulations.
25Code section 123.43A, concerning native distilleries, is
26amended to reflect the new retail alcohol licenses in the bill.
27The bill also provides that a distillery that produces no more
28than 100,000 proof gallons of native distilled spirits annually
29may be granted not more than two class “C” retail alcohol
30licenses instead of two class “C” native distilled spirits
31liquor control licenses as those licenses are repealed by the
32bill. A holder of a class “C” retail alcohol license under
33the bill is granted the authority to sell alcoholic liquor,
34wine, and beer while a holder of the current class “C” native
35distilled spirits liquor control licenses has the authority
-74-1to only sell native distilled spirits and mixed drinks or
2cocktails.
3Code section 123.46A, concerning delivery of alcoholic
4beverages by retailers, is amended to reflect that the new
5retail alcohol licenses in the bill are licenses, not permits.
6The bill also provides that deliveries shall occur on the same
7day the order for delivery of alcoholic beverages is removed
8from the licensed premises of the retailer.
9Code sections 123.49 and 123.50, concerning prohibitions
10and criminal and civil penalties, are amended to reflect the
11new retail alcohol licenses created in the bill and the fact
12that the authority to sell at retail is granted only to retail
13alcohol licensees and not permittees.
14Code section 123.92, the dramshop Act, is amended to
15provide that every retail alcohol licensee, except a class
16“B”, special class “B”, or class “E” retail alcohol licensee,
17shall furnish proof of financial responsibility by the
18existence of a liability insurance policy. Under current law,
19every liquor control licensee, class “B” beer permittee, and
20class “C” native wine permittee, except a class “E” liquor
21control licensee, is required to furnish proof of financial
22responsibility.
23Code section 123.97, providing that most revenues arising
24under the operation of Code chapter 123 become part of the
25general fund of the state, is repealed as inconsistent with the
26provisions of current Code section 123.17.
27Code section 123.123, concerning the applicability of
28provisions relating to class “B” beer permits to liquor control
29licensees, is repealed as class “B” beer permits are repealed
30in the bill.
31Code section 123.130, concerning authority under class “A”
32beer permits, is amended to reflect the new retail alcohol
33licenses in the bill. The bill also provides that a native
34brewery may be granted not more than two class “C” or special
35class “C” retail alcohol licenses instead of two class “B”
-75-1permits which permits are repealed by the bill.
2Code section 123.138, concerning keg identification
3stickers, is amended to reflect the new retail alcohol licenses
4and provides for a keg identification label instead of a
5sticker. In addition, the bill strikes provisions concerning
6the forfeiture and remittance of deposits relating to defacing
7the keg identification label.
8Code section 123.143, concerning distribution of funds, is
9amended to strike the provision directing where retail beer
10permit fees shall be distributed. The bill repeals all retail
11beer permit fees and the distribution of funds from retail
12alcohol licenses is governed by Code section 123.36 as amended
13by the bill.
14Code section 123.172, concerning the applicability of
15provisions relating to class “B” wine permits to liquor control
16licensees, is repealed as class “B” wine permits are repealed
17in the bill.
18Code section 123.173, concerning classes of wine permits, is
19amended by striking provisions relating to class “B”, class “B”
20native wine, and class “C” native wine permits as those permits
21are repealed by the bill.
22Code section 123.173A, providing for a charity beer,
23spirits, and wine auction permit, and Code section 123.173B,
24providing for a charity beer, spirits, and wine event permit,
25are stricken and replaced with a combined charity beer,
26spirits, and wine special event license, allowing the license
27holder to conduct a charity auction, charity event, or a
28combined charity auction and charity event in a similar manner
29as is allowed under current law for the two separate permits.
30The bill only allows one charity auction, charity event, or
31combined charity auction and charity event to be conducted
32during the period of the license and limits a person to no more
33than two special event licenses in a calendar year.
34Code section 123.176, concerning native wines, is amended
35to reflect the new retail alcohol licenses in the bill. The
-76-1bill also provides that a manufacturer of native wines may be
2granted not more than two class “C” retail alcohol licenses
3instead of two class “C” native wine permits which permits are
4repealed by the bill. A holder of a class “C” retail alcohol
5license under the bill is granted the authority to sell wine
6and beer.
7Code section 123.187, concerning the wine direct shipper
8permit, is amended to remove the requirement that an
9application for the permit be accompanied by a bond if not
10otherwise required to submit a bond as a wine manufacturer.
11Code section 125.59 is amended to reflect that current
12provisions providing for transfer of certain revenues to the
13department of public health are stricken by the bill.
14DIVISION IV — CONFORMING CHANGES. This division makes
15conforming changes to Code chapters 7D, 12, and 99B, relative
16to the creation of the new retail alcohol licenses and the
17elimination of certain native distilled spirits, beer, and wine
18permits in the bill.
19Code section 137F.1, defining food establishments for
20purposes of licensure, is amended to provide that a food
21establishment does not include only a premises covered by a
22class “A” wine permit. Under current law, a food establishment
23also does not include a premises covered by a class “B” wine
24permit which is stricken by the bill.
25DIVISION V — TRANSITION PROVISIONS — EFFECTIVE DATE.
26 This division provides that any license or permit issued by
27the alcoholic beverages division that is repealed, merged, or
28altered in the bill and in effect on the effective date of the
29bill shall continue in full force and effect with the authority
30granted by that license or permit until expiration or renewal.
31The division also provides that the bill takes effect January
321, 2023.
-77-ec/rn