House File 2531 - IntroducedA Bill ForAn Act 1relating to alcoholic beverage control and matters
2under the purview of the alcoholic beverages division of
3the department of commerce and including effective date
4provisions.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2ALCOHOLIC BEVERAGE CONTROL
3   Section 1.  Section 123.46A, subsection 3, paragraph f, Code
42022, is amended to read as follows:
   5f.  Deliveries shall occur between 6:00 a.m.and 10:00 p.m.
6Monday throughSunday on the same day the order for alcoholic
7liquor, wine, beer, or mixed drinks or cocktails is removed
8from the licensed premises
.
9   Sec. 2.  Section 123.50, subsection 1, Code 2022, is amended
10to read as follows:
   111.  Any person who violates any of the provisions of section
12123.49, except section 123.49, subsection 2, paragraph “h”,
13or who fails to affix upon sale, defaces, or fails to record
14a keg identification sticker label or produce a record of keg
15identification stickers labels pursuant to section 123.138,
16shall be guilty of a simple misdemeanor. A person who violates
17section 123.49, subsection 2, paragraph “h”, commits a simple
18misdemeanor punishable as a scheduled violation under section
19805.8C, subsection 2.
20   Sec. 3.  Section 123.138, subsection 2, paragraphs a and b,
21Code 2022, are amended to read as follows:
   22a.  Each class “B”, “C”, or special class “C” liquor control
23licensee and class “B” or “C” beer permittee who sells beer
24for off-premises consumption shall affix to each keg of beer
25an identification sticker label provided by the administrator.
26The sticker label provided shall allow for its full removal
27when common external keg cleaning procedures are performed.
28For the purposes of this subsection, “keg” means all durable and
29disposable containers with a liquid capacity of five gallons or
30more. Each class “B”, “C”, or special class “C” liquor control
31licensee and class “B” or “C” beer permittee shall also keep
32a record of the identification sticker label number of each
33keg of beer sold by the licensee or permittee with the name
34and address of the purchaser and the number of the purchaser’s
35driver’s license, nonoperator’s identification card, or
-1-1military identification card, if the military identification
2card contains a picture and signature. This information shall
3be retained by the licensee or permittee for a minimum of
4ninety days. The records kept pursuant to this subsection
5shall be available for inspection by any law enforcement
6officer during normal business hours.
   7b.  (1)  The division shall provide the keg identification
8stickers labels described in paragraph “a” and shall, prior to
9utilizing a sticker label, notify licensed brewers and licensed
10beer importers of the type of sticker label to be utilized.
11Each sticker label shall contain a number and the following
12statement:
13It is unlawful to sell, give, or otherwise supply any
14alcoholic beverage, wine, or beer to any person under legal
15age. Any person who defaces this sticker label shall be guilty
16of criminal mischief punishable pursuant to section 716.6 and
17shall cause the forfeiture of any deposit, if applicable
.
   18(2)  The identification sticker label shall be placed on
19the keg at the time of retail sale. The licensee or permittee
20shall purchase obtain the stickers labels referred to in this
21subsection from the division and shall remit to the division
22deposits forfeited pursuant to this lettered paragraph due to
23defacement
. The cost of the stickers labels to licensees and
24permittees shall not exceed the division’s cost of producing
25and distributing the stickers labels. The moneys collected by
26the division relating to the sale of stickers and forfeited
27deposits
 labels shall be credited to the beer and liquor
28control fund.
29   Sec. 4.  Section 123.138, subsection 2, paragraph d, Code
302022, is amended by striking the paragraph.
31   Sec. 5.  Section 123.187, subsection 2, paragraph d, Code
322022, is amended by striking the paragraph.
33DIVISION II
34AUTOMATIC RENEWALS
35   Sec. 6.  Section 123.34, subsection 1, Code 2022, is amended
-2-1by striking the subsection.
2   Sec. 7.  NEW SECTION.  123.35  Expiration of licenses,
3permits, and certificates of compliance — automatic renewals.
   41.  Except as otherwise provided by this chapter, all
5licenses, permits, and certificates of compliance, unless
6sooner suspended or revoked, expire one year from date of
7issuance.
   82.  Notwithstanding section 123.31 and any other provision
9of this chapter to the contrary, a class “E” liquor control
10license shall automatically renew without the endorsement
11of a local authority or approval by the administrator upon
12collection of the annual fee by the division, provided all of
13the following conditions are met since the preceding license
14was issued:
   15a.  The licensee has given written consent to the division
16to have the license automatically renewed as provided in this
17section.
   18b.  The license has not been suspended or revoked.
   19c.  A civil penalty has not been imposed against the
20licensee.
   21d.  An administrative proceeding is not pending against the
22licensee to suspend or revoke the license or to impose a civil
23penalty under this chapter.
   24e.  The licensee has not submitted payment for alcoholic
25liquor to the division that was subsequently dishonored.
   26f.  The licensee and all persons associated with the licensee
27as described in section 123.3, subsection 40, paragraph “e”,
28have not been convicted of a violation of this chapter.
   29g.  The licensed premises constitutes a safe and proper place
30or building and conforms with all applicable federal, state,
31and local laws, orders, ordinances, rules, resolutions, and
32health and fire regulations.
   333.  Notwithstanding sections 123.23, 123.135, 123.180,
34and any other provision of this chapter to the contrary, a
35distiller’s, brewer’s, or vintner’s certificate of compliance
-3-1shall automatically renew without approval by the administrator
2upon collection of the annual fee by the division, provided
3all of the following conditions are met since the preceding
4certificate was issued:
   5a.  The certificate holder has given written consent to
6the division to have the certificate automatically renewed as
7provided in this section.
   8b.  The certificate has not been suspended or revoked.
   9c.  A civil penalty has not been imposed against the
10certificate holder.
   11d.  An administrative proceeding is not pending against the
12certificate holder to suspend or revoke the certificate or to
13impose a civil penalty under this chapter.
   14e.  The certificate holder and all persons associated
15with the certificate holder as described in section 123.3,
16subsection 40, paragraph “e”, have not been convicted of a
17violation of this chapter.
   184.  Notwithstanding section 123.187 and any other provision
19of this chapter to the contrary, a wine direct shipper’s permit
20shall automatically renew without approval by the administrator
21upon collection of the annual fee by the division, provided all
22of the following conditions are met since the preceding permit
23was issued:
   24a.  The permittee has given written consent to the division
25to have the permit automatically renewed as provided in this
26section.
   27b.  The permit has not been suspended or revoked.
   28c.  A civil penalty has not been imposed against the
29permittee.
   30d.  An administrative proceeding is not pending against the
31permittee to suspend or revoke the permit or to impose a civil
32penalty under this chapter.
   33e.  The permittee has filed all required reports and remitted
34all wine gallonage tax owed pursuant to section 123.183.
   35f.  The permittee and all persons associated with the
-4-1permittee as described in section 123.3, subsection 40,
2paragraph “e”, have not been convicted of a violation of this
3chapter.
4   Sec. 8.  EFFECTIVE DATE.  This division of this Act takes
5effect January 1, 2023.
6DIVISION III
7ALCOHOLIC BEVERAGE CONTROL REVENUES
8   Sec. 9.  Section 123.17, subsection 5, Code 2022, is amended
9to read as follows:
   105.  a.  After any transfer provided for in subsection 3 is
11made, the department of commerce shall transfer into a special
12revenue account in the general fund of the state, a sum of
13money at least equal to seven percent of the gross amount of
14sales made by the division from the beer and liquor control
15fund on a monthly basis but not less than nine million dollars
16annually.
   17b.  Of the amounts transferred, two million dollars, plus an
18additional amount determined by the general assembly, shall be
19appropriated to the Iowa department of public health for use
20by the staff who administer the comprehensive substance abuse
21program under chapter 125 for substance abuse treatment and
22prevention programs.
   23c.  In addition, of the amounts transferred, one million
24dollars, plus an additional amount determined by the general
25assembly, shall be appropriated to the Iowa department of
26public health for distribution pursuant to section 125.59.
   27d.  Any amounts received in excess of the amounts
28appropriated to the Iowa department of public health for use
29by the staff who administer the comprehensive substance abuse
30program under chapter 125
 pursuant to this subsection shall be
31considered part of the general fund balance.
32   Sec. 10.  Section 123.143, subsection 1, Code 2022, is
33amended by striking the subsection.
34   Sec. 11.  Section 123.143, subsection 2, Code 2022, is
35amended to read as follows:
-5-   12.   All permit fees collected by the division under this
2subchapter shall accrue to the beer and liquor control fund,
3except as otherwise provided.
All permit fees and taxes
4collected by the division under this subchapter shall accrue to
5the state general fund, except as otherwise provided.
6   Sec. 12.  Section 123.143, Code 2022, is amended by adding
7the following new subsection:
8   NEW SUBSECTION.  2A.  All retail beer permit fees collected
9by the division shall be credited to the beer and liquor
10control fund. The division shall remit to the appropriate
11local authority a sum of money equal to the total amount of the
12fees collected for each retail beer permit covering premises
13located within the local authority’s jurisdiction.
14   Sec. 13.  Section 125.59, unnumbered paragraph 1, Code 2022,
15is amended to read as follows:
   16The treasurer of state, on each July 1 for that fiscal
17year, shall transfer the estimated amounts to be received
18from section 123.36, subsection 8 and section 123.143,
19subsection 1
section 123.17, subsection 5, paragraph “c”, to the
20department.
21   Sec. 14.  REPEAL.  Section 123.97, Code 2022, is repealed.
22   Sec. 15.  EFFECTIVE DATE.  This division of this Act takes
23effect January 1, 2023.
24DIVISION IV
25CLASS “E” LIQUOR CONTROL LICENSES AND WINE PERMITS
26   Sec. 16.  Section 123.30, subsection 3, paragraphs a and b,
27Code 2022, are amended to read as follows:
   28a.  Class “A”.  A class “A” liquor control license may be
29issued to a club and shall authorize the holder to purchase
30alcoholic liquors in original unopened containers from class
31“E” liquor control licensees only, wine from class “A” wine
32permittees or class “B” wine permittees who also hold class
33“E” liquor control licenses licensees only as provided in
34sections 123.173 this subsection and section 123.177, and to
35sell alcoholic beverages to bona fide members and their guests
-6-1by the individual drink for consumption on the premises only.
   2b.  Class “B”.  A class “B” liquor control license may be
3issued to a hotel or motel and shall authorize the holder to
4purchase alcoholic liquors in original unopened containers from
5class “E” liquor control licensees only, wine from class “A”
6wine permittees or class “B” wine permittees who also hold
7 class “E” liquor control licenses licensees only as provided in
8sections 123.173 this subsection and section 123.177, and to
9sell alcoholic beverages to patrons by the individual drink for
10consumption on the premises only. However, beer may also be
11sold for consumption off the premises. Each license shall be
12effective throughout the premises described in the application.
13   Sec. 17.  Section 123.30, subsection 3, paragraph c,
14subparagraphs (1) and (2), Code 2022, are amended to read as
15follows:
   16(1)  A class “C” liquor control license may be issued to
17a commercial establishment but must be issued in the name of
18the individuals who actually own the entire business and shall
19authorize the holder to purchase alcoholic liquors in original
20unopened containers from class “E” liquor control licensees
21only, wine from class “A” wine permittees or class “B” wine
22permittees who also hold
class “E” liquor control licenses
23
 licensees only as provided in sections 123.173 this subsection
24 and section 123.177, and to sell alcoholic beverages to patrons
25by the individual drink for consumption on the premises only.
26However, alcoholic liquor, wine, and beer in original unopened
27containers may also be sold for consumption off the premises.
28In addition, mixed drinks or cocktails may also be sold for
29consumption off the premises subject to the requirements of
30section 123.49, subsection 2, paragraph “d”. The holder of a
31class “C” liquor control license may also hold a special class
32“A” beer permit for the premises licensed under a class “C”
33liquor control license for the purpose of operating a brewpub
34pursuant to this chapter.
   35(2)  A special class “C” liquor control license may be
-7-1issued to a commercial establishment and shall authorize the
2holder to purchase wine from class “A” wine permittees or class
3“B” wine permittees who also hold
class “E” liquor control
4licenses licensees only as provided in sections 123.173 this
5subsection
and section 123.177, and to sell wine and beer to
6patrons by the individual drink for consumption on the premises
7only. However, beer may also be sold for consumption off the
8premises. The license issued to holders of a special class “C”
9liquor control license shall clearly state on its face that the
10license is limited.
11   Sec. 18.  Section 123.30, subsection 3, paragraph d,
12subparagraph (2), Code 2022, is amended to read as follows:
   13(2)  A class “D” liquor control licensee who operates a train
14or a watercraft intrastate only, or an excursion gambling boat
15licensed under chapter 99F, shall purchase alcoholic liquor in
16original unopened containers from a class “E” liquor control
17licensee only, wine from a class “A” wine permittee or a class
18“B” wine permittee who also holds a
class “E” liquor control
19license licensee only as provided in sections 123.173 this
20subsection
and section 123.177, and beer from a class “A” beer
21permittee only.
22   Sec. 19.  Section 123.30, subsection 3, paragraph e,
23subparagraph (1), Code 2022, is amended to read as follows:
   24(1)  A class “E” liquor control license may be issued and
25shall authorize the holder to purchase alcoholic liquor in
26original unopened containers from the division only, wine
27from a class “A” wine permittee only,
and high alcoholic
28content
beer from a class “A” beer permittee only; and to sell
29the alcoholic liquor, wine, and beer in original unopened
30containers and high alcoholic content beer at retail to
31patrons for consumption off the licensed premises; and to
32sell alcoholic liquor and high alcoholic content beer
at
33wholesale to other liquor control licensees, provided the
34holder has filed with the division a basic permit issued by the
35alcohol and tobacco tax and trade bureau of the United States
-8-1department of the treasury. A holder of a class “E” liquor
2control license may hold other retail liquor control licenses
3or retail wine or beer permits, but the premises licensed under
4a class “E” liquor control license shall be separate from other
5licensed premises, though the separate premises may have a
6common entrance. However, the holder of a class “E” liquor
7control license may also hold a class “B” wine or class “C”
8beer permit or both for the premises licensed under a class “E”
9liquor control license.
A class “E” liquor control licensee
10may sell wine to class “A”, class “B”, class “C”, special
11class “C”, and class “D” liquor control licensees for resale
12for consumption on the premises. Such wine sales shall be in
13quantities of less than one case of any wine brand but not more
14than one such sale shall be made to the same liquor control
15licensee in a twenty-four-hour period.

16   Sec. 20.  Section 123.36, subsection 9, Code 2022, is amended
17by striking the subsection and inserting in lieu thereof the
18following:
   199.  Class “E” liquor control license fees shall be determined
20as follows:
   21a.  For premises located within the corporate limits of a
22city with a population of one thousand five hundred or less, a
23sum determined as follows:
   24(1)  For a premises with a square footage of one thousand
25five hundred or less, seven hundred fifty dollars.
   26(2)  For a premises with a square footage of more than one
27thousand five hundred but not more than two thousand, one
28thousand five hundred dollars.
   29(3)  For a premises with a square footage of more than two
30thousand but not more than five thousand, two thousand five
31hundred dollars.
   32(4)  For a premises with a square footage over five thousand,
33three thousand five hundred dollars.
   34b.  For premises located within the corporate limits of a
35city with a population of more than one thousand five hundred
-9-1but less than ten thousand, a sum determined as follows:
   2(1)  For a premises with a square footage of one thousand
3five hundred or less, one thousand five hundred dollars.
   4(2)  For a premises with a square footage of more than one
5thousand five hundred but not more than two thousand, two
6thousand five hundred dollars.
   7(3)  For a premises with a square footage of more than two
8thousand but not more than five thousand, three thousand five
9hundred dollars.
   10(4)  For a premises with a square footage over five thousand,
11five thousand dollars.
   12c.  For premises located within the corporate limits
13of a city with a population of ten thousand or more, a sum
14determined as follows:
   15(1)  For a premises with a square footage of one thousand
16five hundred or less, two thousand five hundred dollars.
   17(2)  For a premises with a square footage of more than one
18thousand five hundred but not more than two thousand, three
19thousand five hundred dollars.
   20(3)  For a premises with a square footage of more than
21two thousand but not more than five thousand, five thousand
22dollars.
   23(4)  For a premises with a square footage over five thousand,
24seven thousand five hundred dollars.
   25d.  For premises located outside the corporate limits of
26any city, a sum equal to that charged to a premises with the
27same square footage in the incorporated city located nearest
28the premises to be licensed. If there is doubt as to which
29of two or more differing corporate limits is the nearest, the
30license fee which is the largest shall prevail. However, if
31the premises is located in an unincorporated town, for purposes
32of this paragraph, the unincorporated town shall be treated as
33if it is a city.
34   Sec. 21.  Section 123.173, subsections 2 and 3, Code 2022,
35are amended to read as follows:
-10-   12.  A class “A” wine permit allows the holder to manufacture
2and sell, or sell at wholesale, in this state, wine. The
3holder of a class “A” wine permit may manufacture in this state
4wine having an alcoholic content greater than seventeen percent
5by weight or twenty-one and twenty-five hundredths percent of
6alcohol by volume for shipment outside this state. All class
7“A” premises shall be located within the state. A class “B” or
8class “B” native wine permit allows the holder to sell wine at
9retail for consumption off the premises. A class “B” or class
10“B” native wine permittee who also holds a class “E” liquor
11control license may sell wine to class “A”, class “B”, class
12“C”, special class “C”, and class “D” liquor control licensees
13for resale for consumption on the premises. Such wine sales
14shall be in quantities of less than one case of any wine brand
15but not more than one such sale shall be made to the same liquor
16control licensee in a twenty-four-hour period.
A class “B” or
17class “B” native wine permittee shall not sell wine to other
18class “B” or class “B” native wine permittees. A class “C”
19native wine permit allows the holder to sell native wine for
20consumption on or off the premises.
   213.  A class “A” wine permittee shall be required to deliver
22wine to a retail wine permittee, and a retail wine permittee
23shall be required to accept delivery of wine from a class
24“A” wine permittee, only at the licensed premises of the
25retail wine permittee. Except as specifically permitted by
26the division upon good cause shown, delivery or transfer
27of wine from an unlicensed premises to a licensed retail
28wine permittee’s premises, or from one licensed retail
29wine permittee’s premises to another licensed retail wine
30permittee’s premises, even if there is common ownership of all
31of the premises by one retail permittee, is prohibited. A
32class “B” or class “B” native wine permittee who also holds
33a class “E” liquor control license shall keep and maintain
34records for each sale of wine to liquor control licensees
35showing the name of the establishment to which wine was sold,
-11-1the date of sale, and the brands and number of bottles sold to
2the liquor control licensee.

3   Sec. 22.  Section 123.173, subsection 4, Code 2022, is
4amended by striking the subsection.
5   Sec. 23.  EFFECTIVE DATE.  This division of this Act takes
6effect January 1, 2023.
7DIVISION V
8SPECIAL LICENSES AND PERMITS
9   Sec. 24.  Section 123.32, subsection 1, paragraph b,
10subparagraph (7), Code 2022, is amended to read as follows:
   11(7)  A charity beer, spirits, and wine auction special event
12 permit as provided in section 123.173A.
13   Sec. 25.  Section 123.32, subsection 1, paragraph b,
14subparagraph (8), Code 2022, is amended by striking the
15subparagraph.
16   Sec. 26.  Section 123.34, subsection 2, Code 2022, is amended
17to read as follows:
   182.  a.  The administrator may issue six-month or eight-month
19seasonal class “A”, class “B”, class “C”, special class “C”,
20and class “D” liquor control licenses, class “B” wine permits,
21class “B” or class “C” native wine permits, or class “B” beer
22permits.
   23b.  The fee for a six-month or an eight-month seasonal
24license or permit issued pursuant to this subsection shall be
25for a proportionate part fifty percent of the license or permit
26fee for that class of license or permit. However, the fee for
27a seasonal class “B” native wine permit shall be the permit fee
28provided in section 123.179, subsection 4, and the fee for a
29seasonal class “C” native wine permit shall be the permit fee
30provided in section 123.179, subsection 5.
31   Sec. 27.  Section 123.39, subsection 1, paragraph a,
32subparagraph (2), Code 2022, is amended to read as follows:
   33(2)  The administrator may suspend a certificate
34of compliance, a class “D” liquor control license, a
35manufacturer’s license, a broker’s permit, a class “A” native
-12-1distilled spirits license, a class “A” or special class “A”
2beer permit, a charity beer, spirits, and wine auction special
3event
permit, a class “A” wine permit, a wine direct shipper’s
4permit, or a wine carrier permit for a period not to exceed one
5year, revoke the license, permit, or certificate, or impose a
6civil penalty not to exceed one thousand dollars per violation.
7   Sec. 28.  Section 123.173A, Code 2022, is amended by striking
8the section and inserting in lieu thereof the following:
   9123.173A  Charity beer, spirits, and wine special event
10permit.
   111.  For purposes of this section:
   12a.  “Authorized nonprofit entity” includes a nonprofit
13entity which has a principal office in the state, a nonprofit
14corporation organized under chapter 504, or a foreign
15corporation as defined in section 504.141, whose income is
16exempt from federal taxation under section 501(c) of the
17Internal Revenue Code.
   18b.  “Charity auction” means an auction conducted by an
19authorized nonprofit entity which includes beer, spirits, and
20wine.
   21c.  “Charity event” means an event at which an authorized
22nonprofit entity may serve the event’s attendees beer,
23spirits, and wine for consumption on the premises of the event,
24regardless of whether the entity charges an admission fee to
25the event or otherwise collects the cost of the beer, spirits,
26and wine served from the event’s attendees.
   27d.  “Charity special event” means a charity auction, charity
28event, or a combined charity auction and charity event.
   292.  Upon application to the division and receipt of a charity
30beer, spirits, and wine special event permit, an authorized
31nonprofit entity may conduct a charity special event subject to
32the requirements of this section.
   333.  A charity auction conducted by a charity beer, spirits,
34and wine special event permittee shall comply with the
35following requirements:
-13-
   1a.  The authorized nonprofit entity conducting the charity
2auction shall obtain the beer, spirits, and wine to be
3auctioned at the charity auction from an Iowa retail beer
4permittee, an Iowa retail liquor control licensee, or an Iowa
5retail wine permittee, or may receive donations of beer,
6spirits, or wine to be auctioned at the charity auction from
7persons who purchased the donated beer, spirits, or wine from
8an Iowa retail beer permittee, an Iowa retail liquor control
9licensee, an Iowa class “A” native distilled spirits licensee,
10or an Iowa retail wine permittee and who present a receipt
11documenting the purchase at the time the beer, spirits, or wine
12is donated. The authorized nonprofit entity conducting the
13charity auction shall retain a copy of the receipt for a period
14of one year from the date of the charity beer, spirits, and
15wine auction.
   16b.  The beer, spirits, and wine sold at the charity auction
17shall be in original containers for consumption off of the
18premises where the charity auction is conducted. No other
19alcoholic beverage may be sold by the charity beer, spirits,
20and wine special event permittee at the charity auction. A
21purchaser of beer, spirits, or wine at a charity auction shall
22not take possession of the beer, spirits, or wine until the
23person is leaving the event. A purchaser of beer, spirits,
24or wine at a charity auction shall not open the container or
25consume or permit the consumption of the beer, spirits, or
26wine purchased on the premises where the charity auction is
27conducted. A purchaser of beer, spirits, or wine at a charity
28auction shall not resell the beer, spirits, or wine.
   29c.  A liquor control licensee, beer permittee, class “A”
30native distilled spirits licensee, or wine permittee shall not
31purchase beer, spirits, or wine at a charity auction. The
32charity auction may be conducted on a premises for which a
33class “B” liquor control license or class “C” liquor control
34license has been issued, provided that the liquor control
35licensee does not participate in the charity auction, supply
-14-1beer, spirits, or wine to be auctioned at the charity auction,
2or receive any of the proceeds of the charity auction.
   34.  A charity event conducted by a charity beer, spirits, and
4wine special event permittee shall comply with the following
5requirements:
   6a.  The charity event shall be conducted on a premises
7covered by a valid liquor control license or retail wine or
8beer permit issued by the division.
   9b.  The authorized nonprofit entity conducting a charity
10event shall have a written agreement with the liquor control
11licensee or wine or beer permittee covering the premises where
12the charity event is to be conducted specifying that that
13licensee or permittee shall act as the agent of the authorized
14nonprofit entity for the purpose of providing and serving
15alcoholic beverages to the attendees of the charity event.
   16c.  The liquor control licensee or wine or beer permittee
17covering the premises where the charity event is to be
18conducted shall supply all alcoholic beverages served to the
19attendees of the charity event.
   20d.  Only those types of alcoholic beverages as are authorized
21to be sold by the liquor control license or wine or beer
22permit covering the premises where the charity event is to be
23conducted are to be served to the attendees of the charity
24event.
   255.  An application for a charity beer, spirits, and wine
26special event permit to conduct a charity special event shall
27include all of the following information:
   28a.  The date and time when the charity special event is to be
29conducted and the location of the premises in this state where
30the charity special event is to be physically conducted.
   31b.  The liquor control license or wine or beer permit number
32issued by the division for the premises where a charity event
33is to be conducted, if applicable.
   34c.  A certification that the objective of the charity special
35event is to raise funds solely to be used for educational,
-15-1religious, or charitable purposes and that the entire proceeds
2from the charity special event are to be expended for any of
3the purposes described in section 423.3, subsection 78.
   46.  An authorized nonprofit entity shall be eligible to
5receive no more than two charity beer, spirits, and wine
6special event permits during a calendar year and each charity
7beer, spirits, and wine special event permit shall be valid for
8a period not to exceed thirty-six consecutive hours.
   97.  Any violation of the requirements of this chapter or
10the rules adopted pursuant to this chapter shall subject
11the charity beer, spirits, and wine special event permit
12holder to the general penalties provided in this chapter and
13shall constitute grounds for imposition of a civil penalty,
14suspension of the permit, or revocation of the permit after
15notice and opportunity for a hearing pursuant to section 123.39
16and chapter 17A.
17   Sec. 29.  Section 123.179, subsection 6, Code 2022, is
18amended to read as follows:
   196.  The fee for a charity beer, spirits, and wine auction
20
 special event permit is one hundred dollars.
21   Sec. 30.  Section 123.179, subsection 7, Code 2022, is
22amended by striking the subsection.
23   Sec. 31.  REPEAL.  Section 123.173B, Code 2022, is repealed.
24   Sec. 32.  EFFECTIVE DATE.  This division of this Act takes
25effect January 1, 2023.
26DIVISION VI
27SUNDAY SALES
28   Sec. 33.  Section 123.34, subsections 3 and 4, Code 2022, are
29amended to read as follows:
   303.  a.  The administrator may issue fourteen-day class “A”,
31class “B”, class “C”, special class “C”, and class “D” liquor
32control licenses, and fourteen-day class “B” beer permits,
33class “B” native wine permits, and class “C” native wine
34permits.
   35b.  A fourteen-day license or permit, if granted, is valid
-16-1for fourteen consecutive days, but the holder shall not sell on
2the two Sundays in the fourteen-day period unless the holder
3qualifies for and obtains the privilege to sell on Sundays
4contained in section 123.36, subsection 6, and section 123.134,
5subsection 4
.
   6c.  (1)  The fee for a fourteen-day liquor control license
7or beer permit is one quarter of the annual fee for that class
8of liquor control license or beer permit. The fee for the
9privilege to sell on the two Sundays in the fourteen-day period
10is twenty percent of the price of the fourteen-day liquor
11control license or beer permit.

   12(2)  The fee for a fourteen-day class “B” native wine permit
13shall be the permit fee provided in section 123.179, subsection
144, and the fee for a fourteen-day class “C” native wine permit
15is the permit fee provided in section 123.179, subsection 5.
   164.  a.  The administrator may issue five-day class “A”, class
17“B”, class “C”, special class “C”, and class “D” liquor control
18licenses, and five-day class “B” beer permits, class “B” native
19wine permits, and class “C” native wine permits.
   20b.  A five-day license or permit is valid for five
21consecutive days, but the holder shall not sell alcoholic
22beverages on Sunday in the five-day period unless the holder
23qualifies for and obtains the privilege to sell on Sunday
24pursuant to section 123.36, subsection 6, and section 123.134,
25subsection 4
.
   26c.  (1)  The fee for the five-day liquor control license
27or beer permit is one-eighth of the annual fee for that class
28of license or permit. The fee for the privilege to sell on a
29Sunday in the five-day period is ten percent of the price of
30the five-day liquor control license or beer permit.

   31(2)  The fee for a five-day class “B” native wine permit
32shall be the permit fee provided in section 123.179, subsection
334, and the fee for a five-day class “C” native wine permit is
34the permit fee provided in section 123.179, subsection 5.
35   Sec. 34.  Section 123.36, subsection 6, Code 2022, is amended
-17-1by striking the subsection.
2   Sec. 35.  Section 123.36, subsection 8, Code 2022, is amended
3to read as follows:
   48.  The division shall credit all fees to the beer and liquor
5control fund. The division shall remit to the appropriate
6local authority, a sum equal to sixty-five percent of the fees
7collected for each class “A”, class “B”, or class “C” license
8except special class “C” licenses or class “E” licenses,
9covering premises located within the local authority’s
10jurisdiction. The division shall remit to the appropriate
11local authority a sum equal to seventy-five percent of the fees
12collected for each special class “C” license covering premises
13located within the local authority’s jurisdiction. Those fees
14collected for the privilege authorized under subsection 6 and
15those fees
collected for each class “E” liquor control license
16shall be credited to the beer and liquor control fund.
17   Sec. 36.  Section 123.46A, subsection 3, paragraph b, Code
182022, is amended to read as follows:
   19b.  Orders for deliveries may be taken by the licensee or
20permittee between the hours of 2:00 a.m.and 6:00 a.m.
21on a day other than Sunday, and orders for deliveries may
22be taken between the hours of 2:00 a.m.and 6:00 a.m.on a
23Sunday provided the licensee or permittee has been granted
24the privilege of selling alcoholic liquor, wine, beer, or
25mixed drinks or cocktails on Sunday
 on any day of the week,
26notwithstanding any provision of section 123.49, subsection 2,
27paragraph “b”, to the contrary.
28   Sec. 37.  Section 123.49, subsection 2, paragraph b, Code
292022, is amended to read as follows:
   30b.  Sell or dispense any alcoholic beverage on the premises
31covered by the license or permit, or permit its consumption
32thereon between the hours of 2:00 a.m.and 6:00 a.m.on a
33weekday, and between the hours of 2:00 a.m.on Sunday and 6:00
34a.m.on the following Monday, however, a holder of a liquor
35control license or retail wine or beer permit granted the
-18-1privilege of selling alcoholic liquor, wine, or beer on Sunday
2may sell or dispense alcoholic liquor, wine, or beer between
3the hours of 6:00 a.m.on Sunday and 2:00 a.m.on the following
4Monday
 any day of the week.
5   Sec. 38.  Section 123.49, subsection 4, Code 2022, is amended
6by striking the subsection.
7   Sec. 39.  Section 123.134, subsection 4, Code 2022, is
8amended by striking the subsection.
9   Sec. 40.  REPEAL.  Section 123.150, Code 2022, is repealed.
10   Sec. 41.  EFFECTIVE DATE.  This division of this Act takes
11effect January 1, 2023.
12EXPLANATION
13The inclusion of this explanation does not constitute agreement with
14the explanation’s substance by the members of the general assembly.
   15This bill relates to alcoholic beverage control and matters
16under the purview of the alcoholic beverages division.
   17Division I of the bill relates to keg identification
18stickers, deliveries of alcoholic beverages, and the wine
19direct shipper permit.
   20Code section 123.46A, concerning delivery of alcoholic
21beverages by retailers, is amended to provide that deliveries
22shall occur on the same day the order for delivery of alcoholic
23beverages is removed from the licensed premises of the
24retailer.
   25Code section 123.138, concerning keg identification
26stickers, is amended to provide for a keg identification label
27instead of a sticker. In addition, the bill strikes provisions
28concerning the forfeiture and remittance of deposits relating
29to defacing the keg identification label.
   30Code section 123.187, concerning the wine direct shipper
31permit, is amended to remove the requirement that an
32application for the permit be accompanied by a bond if not
33otherwise required to submit a bond as a wine manufacturer.
   34Division II of the bill relates to the renewal of certain
35licenses, permits, and certificates of compliance.
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   1Code section 123.34, subsection 1, providing generally
2for the expiration of licenses, permits, and certificates of
3compliance one year from the date of issuance, and including a
4notification requirement by the administrator of the alcoholic
5beverage division prior to expiration, is stricken.
   6New Code section 123.35 includes the provision from
7current Code section 123.34 providing for the expiration of
8licenses, permits, and certificates of compliance without
9the notification requirement. The new Code section further
10provides, notwithstanding any provision of Code chapter 123
11to the contrary, for the automatic renewal of a class “E”
12liquor control license, a distiller’s, vintner’s, or brewer’s
13certificate of compliance, and a wine direct shipper’s
14permit. The bill allows the renewal of the applicable license,
15certificate, or permit without approval by the administrator
16of the alcoholic beverages division or endorsement of any
17applicable local authority upon collection of the annual fee
18for that license, certificate, or permit by the alcoholic
19beverages division, provided certain conditions are met since
20the preceding license, certificate, or permit was issued. The
21bill provides that the license, certificate, or permit can be
22automatically renewed if, in the preceding year, the license,
23certificate, or permit has not been suspended or revoked,
24a civil penalty has not been imposed, an administrative
25proceeding is not pending to suspend or revoke the license,
26certificate, or permit or to impose a civil penalty, all
27required payments to the division have been made, and the
28licensee, certificate holder, or permittee, and all persons
29associated with the licensee, certificate holder, or permittee
30as described in Code section 123.3, subsection 40, paragraph
31“e”, have not been convicted of a violation of Code chapter
32123. In addition, for renewal of a class “E” liquor control
33license, the licensed premises shall constitute a safe and
34proper place and building that complies with all applicable
35building-related regulations.
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   1This division of the bill takes effect January 1, 2023.
   2Division III of the bill relates to the distribution of
3certain alcoholic beverage control revenues.
   4Code section 123.17, concerning transfers from the beer
5and liquor control fund, is amended. The bill provides that
6of the moneys transferred to a special revenue account in the
7general fund of the state from the beer and liquor control
8fund, $1 million, plus any additional amount as determined by
9the general assembly, shall be appropriated to the department
10of public health to be distributed as provided in Code section
11125.59 as grants to counties, persons, or nonprofit entities
12for substance abuse and prevention programs. Code section
13125.59 is amended to reflect that only this new appropriation
14shall be transferred to the department of public health for the
15purposes of Code section 125.59.
   16Code section 123.143, concerning distribution of certain
17beer permit fees, is amended. The bill provides that all
18beer-related permit fees collected by the alcoholic beverages
19division shall accrue to the beer and liquor control fund
20except as otherwise provided. The bill also provides that
21of the retail beer permit fees collected by the alcoholic
22beverages division, the division shall remit to the applicable
23local authority a sum of money equal to the retail beer permit
24fees collected by the division covering premises covered by the
25local authority’s jurisdiction. The bill further eliminates
26the requirement that retail beer permit fees collected by the
27local authority be transferred as provided in Code section
28125.59.
   29Code section 123.97, providing that most revenues arising
30under the operation of Code chapter 123 become part of the
31general fund of the state, is repealed as inconsistent with the
32provisions of current Code section 123.17.
   33This division of the bill takes effect January 1, 2023.
   34Division IV of the bill relates to class “E” liquor control
35licenses.
-21-
   1Code section 123.30, concerning liquor control licenses, is
2amended. The bill provides that a class “E” liquor control
3licensee can purchase wine and beer from a class “A” wine
4or beer permittee only, respectively. The bill specifically
5allows the class “E” licensee to sell wine and beer in unopened
6containers at retail, and to sell alcoholic liquor and high
7alcoholic content beer at wholesale. The bill strikes a
8provision allowing the holder of a class “E” liquor control
9license to also hold a class “B” wine or class “C” beer permit
10for the premises licensed under the class “E” license.
   11The bill allows a class “E” liquor control licensee to
12sell wine to a class “A”, class “B”, class “C”, special class
13“C”, and class “D” liquor control licensee for resale for
14consumption on the premises in limited quantities as specified
15by the bill.
   16Code section 123.36, concerning class “E” liquor control
17license fees, is amended. The bill establishes license fees
18based on the population of the city where the premises is
19located as well as the square footage of the licensed premises.
20Current law bases the fees only on the population of the city
21where the premises is located.
   22Code section 123.173, concerning wine permits, is amended to
23strike provisions granting the authority, and requiring certain
24reports, relating to a class “E” liquor control licensee that
25also holds a class “B” wine permit or class “B” native wine
26permit to sell wine in limited quantities.
   27This division of the bill takes effect January 1, 2023.
   28Division V of the bill relates to certain special licenses
29and permits.
   30Code section 123.34, concerning seasonal licenses and
31permits, is amended. The bill eliminates the six-month
32seasonal license or permit and provides that the fee for an
33eight-month seasonal license or permit shall be 50 percent of
34the license or permit fee for that class of license or permit
35instead of a proportional share of that fee.
-22-
   1Code section 123.173A, providing for a charity beer,
2spirits, and wine auction permit, and Code section 123.173B,
3providing for a charity beer, spirits, and wine event permit,
4are stricken and replaced with a combined charity beer,
5spirits, and wine special event permit, allowing the permit
6holder to conduct a charity auction, charity event, or a
7combined charity auction and charity event in a similar manner
8as is allowed under current law for the two separate permits.
9The bill only allows one charity auction, charity event, or
10combined charity auction and charity event, to be conducted
11during the period of the permit and limits a person to no more
12than two special event permits in a calendar year.
   13This division of the bill takes effect January 1, 2023.
   14Division VI of the bill concerns Sunday sales of alcoholic
15beverages. The bill eliminates the requirement to obtain a
16special privilege to sell alcoholic beverages on Sunday and
17provides that sales or other activities relating to alcoholic
18beverages on Sunday will be allowed to the same extent as they
19are allowed on any other day.
   20This division of the bill takes effect January 1, 2023.
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