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Senate File 2374 - 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(c) The holder of a class “B” retail alcohol license may
7sell beer to class “C”, special class “C”, class “D”, and class
8“F” retail alcohol licensees for resale for consumption on
9the premises. Such beer sales shall be in quantities of not
10more than five cases of beer, high alcoholic content beer, and
11canned cocktails, but not more than one such sale shall be
12made to the same retail alcohol licensee in a twenty-four-hour
13period. A class “A” beer permittee shall be held harmless
14concerning any beer resold as authorized by this subparagraph
15division.
16(2) A special class “B” retail native wine license shall
17authorize the holder to purchase wine from a native winery
18holding a class “A” wine permit and to sell native wine only at
19retail for consumption off the licensed premises.
20b. Class “C”.
21(1) (a) A class “C” retail alcohol license may be issued to
22a commercial establishment but must be issued in the name of
23the individuals who actually own the entire business.
24(b) The holder of a class “C” retail alcohol license shall
25be authorized to purchase alcoholic beverages as follows:
26(i) Alcoholic liquors in original unopened containers from
27class “E” retail alcohol licensees only.
28(ii) Wine from class “A” wine permittees.
29(iii) Wine from class “B” retail alcohol licensees or class
30“E” retail alcohol licensees in quantities of less than one
31case of any wine brand in a twenty-four-hour period, but not
32more than one such purchase shall be made by the licensee in a
33twenty-four-hour period.
34(iv) Beer from class “A” beer permittees.
35(v) Beer from class “B” retail alcohol licensees or class
-3-1“E” retail alcohol licensees in quantities of not more than
2five cases of beer, high alcoholic content beer, and canned
3cocktails, but not more than one such purchase shall be made by
4the licensee in a twenty-four-hour period. A class “A” beer
5permittee shall be held harmless concerning any beer resold as
6authorized by this subparagraph subdivision.
7(c) The holder of a class “C” retail alcohol license
8shall be authorized to sell alcoholic beverages to patrons by
9the individual drink for consumption on the premises only.
10However, alcoholic liquor, wine, and beer in original unopened
11containers may also be sold for consumption off the premises.
12In addition, mixed drinks or cocktails may also be sold for
13consumption off the premises subject to the requirements of
14section 123.49, subsection 2, paragraph “d”.
15(d) The holder of a class “C” retail alcohol license may
16also hold a special class “A” beer permit for the premises
17licensed under a class “C” retail alcohol license for the
18purpose of operating a brewpub pursuant to this chapter.
19(2) (a) A special class “C” retail alcohol license may be
20issued to a commercial establishment.
21(b) The holder of a special class “C” retail alcohol license
22shall be authorized to purchase alcoholic beverages as follows:
23(i) Wine from class “A” wine permittees.
24(ii) Wine from class “B” retail alcohol licensees or class
25“E” retail alcohol licensees in quantities of less than one
26case of any wine brand in a twenty-four-hour period, but not
27more than one such purchase shall be made by the licensee in a
28twenty-four-hour period.
29(iii) Beer from class “A” beer permittees.
30(iv) Beer from class “B” retail alcohol licensees or class
31“E” retail alcohol licensees in quantities of not more than
32five cases of beer, high alcoholic content beer, and canned
33cocktails, but not more than one such purchase shall be made by
34the licensee in a twenty-four-hour period. A class “A” beer
35permittee shall be held harmless concerning any beer resold as
-4-1authorized by this subparagraph subdivision.
2(c) The holder of a special class “C” retail alcohol
3license shall be authorized to sell wine and beer to patrons
4by the individual drink for consumption on the premises only.
5However, wine and beer in original unopened containers may also
6be sold for consumption off the premises.
7(d) The license issued to holders of a special class “C”
8retail alcohol license shall clearly state on its face that the
9license is limited.
10c. Class “D”.
11(1) A class “D” retail alcohol license may be issued
12to a railway corporation, to an air common carrier, and to
13passenger-carrying boats or ships for hire with a capacity of
14twenty-five persons or more operating in inland or boundary
15waters, and shall authorize the holder to sell or furnish
16alcoholic beverages to passengers for consumption only on
17trains, watercraft as described in this section, or aircraft,
18respectively. Each license is valid throughout the state.
19Only one license is required for all trains, watercraft, or
20aircraft operated in the state by the licensee. However, if a
21watercraft is an excursion gambling boat licensed under chapter
2299F, the owner shall obtain a separate class “D” retail alcohol
23license for each excursion gambling boat operating in the
24waters of this state.
25(2) A class “D” retail alcohol licensee who operates a train
26or a watercraft intrastate only, or an excursion gambling boat
27licensed under chapter 99F, shall be authorized to purchase
28alcoholic beverages as follows:
29(a) Alcoholic liquors in original unopened containers from
30class “E” retail alcohol licensees only.
31(b) Wine from class “A” wine permittees.
32(c) Wine from class “B” retail alcohol licensees or class
33“E” retail alcohol licensees in quantities of less than one
34case of any wine brand in a twenty-four-hour period, but not
35more than one such purchase shall be made by the licensee in a
-5-1twenty-four-hour period.
2(d) Beer from class “A” beer permittees.
3(e) Beer from class “B” retail alcohol licensees or class
4“E” retail alcohol licensees in quantities of not more than
5five cases of beer, high alcoholic content beer, and canned
6cocktails, but not more than one such purchase shall be made by
7the licensee in a twenty-four-hour period. A class “A” beer
8permittee shall be held harmless concerning any beer resold as
9authorized by this subparagraph division.
10d. Class “E”.
11(1) A class “E” retail alcohol license may be issued and
12shall authorize the holder to purchase alcoholic liquor in
13original unopened containers from the division only, wine
14from a class “A” wine permittee only, and beer from a class
15“A” beer permittee only; to sell alcoholic liquor, wine, and
16beer in original unopened containers at retail to patrons for
17consumption off the licensed premises; and to sell alcoholic
18liquor and high alcoholic content beer at wholesale to other
19retail alcohol licensees, provided the holder has filed with
20the division a basic permit issued by the alcohol and tobacco
21tax and trade bureau of the United States department of the
22treasury.
23(2) A holder of a class “E” retail alcohol license may hold
24other retail alcohol licenses, but the premises licensed under
25a class “E” retail alcohol license shall be separate from other
26licensed premises, though the separate premises may have a
27common entrance.
28(3) The holder of a class “E” retail alcohol license may
29sell wine to class “C”, special class “C”, class “D”, and class
30“F” retail alcohol licensees for resale for consumption on
31the premises. Such wine sales shall be in quantities of less
32than one case of any wine brand but not more than one such
33sale shall be made to the same retail alcohol licensee in a
34twenty-four-hour period.
35(4) The holder of a class “E” retail alcohol license may
-6-1sell beer to class “C”, special class “C”, class “D”, and class
2“F” retail alcohol licensees for resale for consumption on
3the premises. Such beer sales shall be in quantities of not
4more than five cases of beer, high alcoholic content beer, and
5canned cocktails, but not more than one such sale shall be
6made to the same retail alcohol licensee in a twenty-four-hour
7period. A class “A” beer permittee shall be held harmless
8concerning any beer resold as authorized by this subparagraph.
9(5) The division may issue a class “E” retail alcohol
10license for premises covered by a retail alcohol license
11for on-premises consumption under any of the following
12circumstances:
13(a) If the premises are in a county having a population
14under nine thousand five hundred in which no other class “E”
15retail alcohol license has been issued by the division, and no
16other application for a class “E” retail alcohol license has
17been made within the previous twelve consecutive months.
18(b) If, notwithstanding any provision of this chapter to the
19contrary, the premises covered by a retail alcohol license is a
20grocery store that is at least five thousand square feet.
21e. Class “F”.
22(1) A class “F” retail alcohol license may be issued to a
23club and shall authorize the holder to sell alcoholic beverages
24to bona fide members and their guests by the individual drink
25for consumption on the premises only.
26(2) The holder of a class “F” retail alcohol license shall
27be authorized to purchase alcoholic beverages as follows:
28(a) Alcoholic liquors in original unopened containers from
29class “E” retail alcohol licensees only.
30(b) Wine from class “A” wine permittees.
31(c) Wine from class “B” retail alcohol licensees or class
32“E” retail alcohol licensees in quantities of less than one
33case of any wine brand in a twenty-four—hour period, but not
34more than one such purchase shall be made by the licensee in a
35twenty-four-hour period.
-7- 1(d) Beer from class “A” beer permittees.
2(e) Beer from class “B” retail alcohol licensees or class
3“E” retail alcohol licensees in quantities of not more than
4five cases of beer, high alcoholic content beer, and canned
5cocktails, but not more than one such purchase shall be made by
6the licensee in a twenty-four-hour period. A class “A” beer
7permittee shall be held harmless concerning any beer resold as
8authorized by this subparagraph division.
94. Notwithstanding any provision of this chapter to the
10contrary, a person holding a retail alcohol license to sell
11alcoholic beverages for consumption on the licensed premises
12may permit a customer to remove one unsealed bottle of wine
13for consumption off the premises if the customer has purchased
14and consumed a portion of the bottle of wine on the licensed
15premises. The licensee or the licensee’s agent shall securely
16reseal such bottle in a bag designed so that it is visibly
17apparent that the resealed bottle of wine has not been tampered
18with and provide a dated receipt for the resealed bottle of
19wine to the customer. A wine bottle resealed pursuant to the
20requirements of this subsection is subject to the requirements
21of sections 321.284 and 321.284A. A person holding a retail
22alcohol license to sell alcoholic beverages for consumption on
23the licensed premises may permit a customer to carry an open
24container of wine from the person’s licensed premises into
25another immediately adjacent licensed premises that is covered
26by a license or permit that authorizes the consumption of wine,
27a temporarily closed public right-of-way, or a private place.
28 Sec. 2. Section 123.31, Code 2022, is amended by striking
29the section and inserting in lieu thereof the following:
30123.31 Retail alcohol licenses — application.
311. A person applying for a retail alcohol license shall
32submit a completed application electronically, or in a manner
33prescribed by the administrator, which shall set forth under
34oath the following:
35a. The name and place of residence of the applicant.
-8- 1b. The names and addresses of all persons or, in the case of
2a corporation, limited liability company, or any other similar
3legal entity, the officers, directors, and persons owning or
4controlling ten percent or more of the capital stock thereof,
5having a financial interest, by way of loan, ownership, or
6otherwise, in the business.
7c. The location of the premises where the applicant intends
8to operate.
9d. The name of the owner of the premises and if the owner of
10the premises is not the applicant, whether the applicant is the
11actual lessee of the premises.
12e. When required by the administrator, and in such form and
13containing such information as the administrator may require,
14a description of the premises where the applicant intends to
15use the license, to include a sketch or drawing of the premises
16and, if applicable, the number of square feet of interior floor
17space which comprises the retail sales area of the premises.
18f. Whether any person specified in paragraph “b” has ever
19been convicted of any offense against the laws of the United
20States, or any state or territory thereof, or any political
21subdivision of any such state or territory.
22g. Any other information as required by the administrator.
232. The retail alcohol license shall only be issued to an
24applicant who establishes all of the following:
25a. That the applicant has submitted a completed application
26as required by subsection 1.
27b. That the applicant is a person of good moral character as
28provided in section 123.3, subsection 40.
29c. That the applicant is a citizen of the state of Iowa
30or, if a corporation, that the applicant is authorized to do
31business in the state.
32d. That the premises where the applicant intends to use the
33license conforms to all applicable laws, health regulations,
34and fire regulations, and constitutes a safe and proper place
35or building and that the applicant shall not have or maintain
-9-1any interior access to residential or sleeping quarters unless
2permission is granted by the administrator in the form of a
3living quarters permit.
4e. That the applicant gives consent to a person, pursuant
5to section 123.30, subsection 1, to enter upon the premises
6without a warrant during the business hours of the applicant
7to inspect for violations of the provisions of this chapter or
8ordinances and regulations that local authorities may adopt.
9 Sec. 3. NEW SECTION. 123.31A Authority under class “B”,
10class “C”, special class “C”, and class “E” retail alcohol
11license.
121. The holder of a class “B”, class “C”, special class “C”,
13or class “E” retail alcohol license shall be allowed to sell
14beer and wine to consumers at retail for consumption off the
15premises. The sales made pursuant to this section shall be
16made in original containers except as provided in subsection 3.
172. Every person holding a class “B”, class “C”, special
18class “C”, or class “E” retail alcohol license having more
19than one place of business where beer and wine is sold which
20places do not constitute a single premises within the meaning
21of section 123.3, subsection 29, shall be required to have a
22separate license for each separate place of business, except as
23otherwise provided by this chapter.
243. Subject to the rules of the division, sales made pursuant
25to this section may be made in a container other than the
26original container only if all of the following requirements
27are met:
28a. The beer or wine is transferred from the original
29container to the container to be sold on the licensed premises
30at the time of sale.
31b. The person transferring the beer or wine from the
32original container to the container to be sold shall be
33eighteen years of age or older.
34c. The container to be sold shall be no larger than
35seventy-two ounces.
-10- 1d. The container to be sold shall be securely sealed by
2a method authorized by the division that is designed so that
3if the sealed container is reopened or the seal tampered with,
4it is visibly apparent that the seal on the container of beer
5or wine has been tampered with or the sealed container has
6otherwise been reopened.
74. A container of beer or wine other than the original
8container that is sold and sealed in compliance with the
9requirements of subsection 3 and the division’s rules shall
10not be deemed an open container subject to the requirements
11of sections 321.284 and 321.284A if the sealed container is
12unopened and the seal has not been tampered with, and the
13contents of the container have not been partially removed.
145. a. The holder of a class “C” or special class “C” retail
15alcohol license, or the licensee’s agents or employees, shall
16not sell beer or wine to other retail alcohol license holders
17knowing or having reasonable cause to believe that the beer
18will be resold in another licensed establishment.
19b. A holder of any retail alcohol permit shall not sell wine
20except wine which is purchased from a person holding a class
21“A” wine permit and on which the tax imposed by section 123.183
22has been paid.
23 Sec. 4. NEW SECTION. 123.31B Authority under special class
24“B” retail native wine license.
251. A person holding a special class “B” retail native wine
26license may sell native wine only at retail for consumption off
27the premises. Native wine shall be sold for consumption off
28the premises in original containers.
292. A special class “B” retail native wine licensee having
30more than one place of business where wine is sold shall obtain
31a separate license for each place of business.
32 Sec. 5. REPEAL. Sections 123.128, 123.129, 123.131,
33123.132, 123.140, 123.178, 123.178A, and 123.178B, Code 2022,
34are repealed.
35 Sec. 6. EFFECTIVE DATE. This division of this Act takes
-11-1effect January 1, 2023.
2DIVISION II
3ALCOHOLIC BEVERAGE CONTROL FEES
4 Sec. 7. Section 123.23, subsection 1, Code 2022, is amended
5to read as follows:
61. Any manufacturer, distiller, or importer of alcoholic
7liquors shipping, selling, or having alcoholic liquors brought
8into this state for resale by the state shall, as a condition
9precedent to the privilege of so trafficking in alcoholic
10liquors in this state, annually make application for and hold
11a distiller’s certificate of compliance which shall be issued
12by the administrator for that purpose. No brand of alcoholic
13liquor shall be sold by the division in this state unless
14the manufacturer, distiller, importer, and all other persons
15participating in the distribution of that brand in this state
16have obtained a certificate. The certificate of compliance
17shall expire at the end of one year from the date of issuance
18and shall be renewed for a like period upon application to the
19administrator unless otherwise suspended or revoked for cause.
20Each completed application for a certificate of compliance
21or renewal shall be submitted electronically, or in a manner
22prescribed by the administrator, and shall be accompanied by
23a fee of fifty two hundred dollars payable to the division.
24However, this subsection need not apply to a manufacturer,
25distiller, or importer who ships or sells in this state no more
26than eleven gallons or its case equivalent during any fiscal
27year as a result of “special orders” which might be placed,
28as defined and allowed by divisional rules adopted under this
29chapter.
30 Sec. 8. Section 123.36, Code 2022, is amended by striking
31the section and inserting in lieu thereof the following:
32123.36 Retail alcohol license fees.
331. The following fees shall be paid to the division annually
34for retail alcohol licenses issued under section 123.30:
35a. Class “B” retail alcohol license fees shall be determined
-12-1as follows:
2(1) For premises located within the corporate limits of a
3city with a population of two thousand five hundred or less, a
4fee determined as follows:
5(a) For a premises with a square footage of one thousand
6five hundred or less, seventy-five dollars.
7(b) For a premises with a square footage of more than one
8thousand five hundred but not more than two thousand, one
9hundred fifty dollars.
10(c) For a premises with a square footage of more than two
11thousand but not more than five thousand, two hundred fifty
12dollars.
13(d) For a premises with a square footage over five thousand,
14three hundred fifty dollars.
15(2) For premises located within the corporate limits of a
16city with a population of more than two thousand five hundred
17but less than fifteen thousand, a fee determined as follows:
18(a) For a premises with a square footage of one thousand
19five hundred or less, one hundred fifty dollars.
20(b) For a premises with a square footage of more than one
21thousand five hundred but not more than two thousand, two
22hundred fifty dollars.
23(c) For a premises with a square footage of more than two
24thousand but not more than five thousand, three hundred fifty
25dollars.
26(d) For a premises with a square footage over five thousand,
27five hundred dollars.
28(3) For premises located within the corporate limits of
29a city with a population of fifteen thousand or more, a fee
30determined as follows:
31(a) For a premises with a square footage of one thousand
32five hundred or less, two hundred fifty dollars.
33(b) For a premises with a square footage of more than one
34thousand five hundred but not more than two thousand, three
35hundred fifty dollars.
-13- 1(c) For a premises with a square footage of more than two
2thousand but not more than five thousand, five hundred dollars.
3(d) For a premises with a square footage over five thousand,
4seven hundred fifty dollars.
5(4) For premises located outside the corporate limits of
6any city, a fee equal to that charged to a premises with the
7same square footage in the incorporated city located nearest
8the premises to be licensed. If there is doubt as to which
9of two or more differing corporate limits is the nearest, the
10license fee which is the largest shall prevail. However, if
11the premises is located in an unincorporated town, for purposes
12of this paragraph, the unincorporated town shall be treated as
13if it is a city.
14b. Special class “B” retail native wine license fees shall
15be one hundred twenty-five dollars.
16c. Class “C” retail alcohol license fees shall be determined
17as follows:
18(1) Commercial establishments located within the corporate
19limits of cities of two thousand five hundred population or
20less, five hundred fifty dollars.
21(2) Commercial establishments located within the corporate
22limits of cities of over two thousand five hundred and less
23than fifteen thousand population, nine hundred dollars.
24(3) Commercial establishments located within the corporate
25limits of cities of fifteen thousand population and over, one
26thousand two hundred fifty dollars.
27(4) Commercial establishments located outside the corporate
28limits of any city, a fee equal to that charged in the
29incorporated city located nearest the premises to be licensed,
30and in case there is doubt as to which of two or more differing
31corporate limits is the nearest, the license fee which is the
32largest shall prevail. However, if a commercial establishment
33is located in an unincorporated town, for purposes of this
34paragraph, the unincorporated town shall be treated as if it
35is a city.
-14- 1d. Special class “C” retail alcohol license fees shall be
2determined as follows:
3(1) Commercial establishments located within the corporate
4limits of cities of two thousand five hundred population or
5less, one hundred fifty dollars.
6(2) Commercial establishments located within the corporate
7limits of cities of over two thousand five hundred and less
8than fifteen thousand population, three hundred dollars.
9(3) Commercial establishments located within the corporate
10limits of cities of fifteen thousand population and over, four
11hundred fifty dollars.
12(4) Commercial establishments located outside the corporate
13limits of any city, a fee equal to that charged in the
14incorporated city located nearest the premises to be licensed,
15and in case there is doubt as to which of two or more differing
16corporate limits is the nearest, the license fee which is the
17largest shall prevail. However, if a commercial establishment
18is located in an unincorporated town, for purposes of this
19paragraph, the unincorporated town shall be treated as if it
20is a city.
21e. Class “D” retail alcohol license fees shall be determined
22as follows:
23(1) For watercraft, one hundred fifty dollars.
24(2) For trains, five hundred dollars.
25(3) For air common carriers, each company shall pay five
26hundred dollars.
27f. Class “E” retail alcohol license fees shall be determined
28as follows:
29(1) For premises located within the corporate limits of a
30city with a population of two thousand five hundred or less, a
31fee determined as follows:
32(a) For a premises with a square footage of one thousand
33five hundred or less, seven hundred fifty dollars.
34(b) For a premises with a square footage of more than one
35thousand five hundred but not more than two thousand, one
-15-1thousand five hundred dollars.
2(c) For a premises with a square footage of more than two
3thousand but not more than five thousand, two thousand five
4hundred dollars.
5(d) For a premises with a square footage over five thousand,
6three thousand five hundred dollars.
7(2) For premises located within the corporate limits of a
8city with a population of more than two thousand five hundred
9but less than fifteen thousand, a fee determined as follows:
10(a) For a premises with a square footage of one thousand
11five hundred or less, one thousand five hundred dollars.
12(b) For a premises with a square footage of more than one
13thousand five hundred but not more than two thousand, two
14thousand five hundred dollars.
15(c) For a premises with a square footage of more than two
16thousand but not more than five thousand, three thousand five
17hundred dollars.
18(d) For a premises with a square footage over five thousand,
19five thousand dollars.
20(3) For premises located within the corporate limits of
21a city with a population of fifteen thousand or more, a fee
22determined as follows:
23(a) For a premises with a square footage of one thousand
24five hundred or less, two thousand five hundred dollars.
25(b) For a premises with a square footage of more than one
26thousand five hundred but not more than two thousand, three
27thousand five hundred dollars.
28(c) For a premises with a square footage of more than
29two thousand but not more than five thousand, five thousand
30dollars.
31(d) For a premises with a square footage over five thousand,
32seven thousand five hundred 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
-16-1the 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.
7g. Class “F” retail alcohol license fees shall be six
8hundred dollars, except that for class “F” licenses in cities
9of less than two thousand population, and for clubs of less
10than two hundred fifty members, the license fee shall be four
11hundred dollars; however, the fee shall be two hundred dollars
12for any club which is a post, branch, or chapter of a veterans
13organization chartered by the Congress of the United States, if
14the club does not sell or permit the consumption of alcoholic
15beverages on the premises more than one day in any week or
16more than a total of fifty-two days in a year, and if the
17application for a license states that the club does not and
18will not sell or permit the consumption of alcoholic beverages
19on the premises more than one day in any week or more than a
20total of fifty-two days in a year.
212. The division shall credit all fees to the beer and liquor
22control fund. The division shall remit to the appropriate
23local authority a sum equal to sixty-five percent of the fees
24collected for each class “B”, class “C”, or class “F” license
25except special class “C” licenses or class “E” licenses,
26covering premises located within the local authority’s
27jurisdiction. The division shall remit to the appropriate
28local authority a sum equal to seventy-five percent of the fees
29collected for each special class “C” license covering premises
30located within the local authority’s jurisdiction. Those fees
31collected for each class “E” retail alcohol license shall be
32credited to the beer and liquor control fund.
333. There is imposed a surcharge on the fee for each class
34“C”, special class “C”, or class “F” retail alcohol license
35equal to thirty percent of the scheduled license fee. The
-17-1surcharges collected under this subsection shall be deposited
2in the beer and liquor control fund, and notwithstanding
3subsection 2, no portion of the surcharges collected under this
4subsection shall be remitted to the local authority.
5 Sec. 9. Section 123.41, subsection 1, Code 2022, is amended
6to read as follows:
71. Each completed application to obtain or renew a
8manufacturer’s license shall be submitted to the division
9electronically, or in a manner prescribed by the administrator,
10and shall be accompanied by a fee of three hundred fifty
11 dollars payable to the division. The administrator may in
12accordance with this chapter grant and issue to a manufacturer
13a manufacturer’s license, valid for a one-year period after
14date of issuance, which shall allow the manufacture, storage,
15and wholesale disposition and sale of alcoholic liquors to the
16division and to customers outside of the state.
17 Sec. 10. Section 123.43, subsection 3, Code 2022, is amended
18to read as follows:
193. A class “A” native distilled spirits license for a native
20distillery shall be issued and renewed annually upon payment of
21a fee of five three hundred dollars.
22 Sec. 11. Section 123.134, Code 2022, is amended by striking
23the section and inserting in lieu thereof the following:
24123.134 Beer permit fees.
251. The annual permit fee for a class “A” beer permit is
26seven hundred fifty dollars.
272. The annual permit fee for a class “A” beer permit for a
28native brewery is three hundred dollars.
293. The annual permit fee for a special class “A” beer permit
30is three hundred dollars.
31 Sec. 12. Section 123.135, subsection 1, Code 2022, is
32amended to read as follows:
331. A manufacturer, brewer, bottler, importer, or vendor of
34beer, or any agent thereof, desiring to ship or sell beer, or
35have beer brought into this state for resale by a class “A”
-18-1beer permittee, shall first make application for and be issued
2a brewer’s certificate of compliance by the administrator for
3that purpose. The certificate of compliance expires at the
4end of one year from the date of issuance and shall be renewed
5for a like period upon application to the administrator unless
6otherwise revoked for cause. Each completed application for
7a certificate of compliance or renewal of a certificate shall
8be submitted electronically, or in a manner prescribed by the
9administrator, and shall be accompanied by a fee of five two
10 hundred dollars payable to the division. Each holder of a
11certificate of compliance shall furnish the information in a
12manner the administrator requires.
13 Sec. 13. Section 123.179, Code 2022, is amended by striking
14the section and inserting in lieu thereof the following:
15123.179 Wine permit and license fees.
161. The annual permit fee for a class “A” wine permit that
17is not issued to a native wine manufacturer is seven hundred
18fifty dollars.
192. The annual permit fee for a class “A” wine permit issued
20to a native wine manufacturer is one hundred dollars.
213. The fee for a charity beer, spirits, and wine special
22event license is one hundred dollars.
23 Sec. 14. Section 123.180, subsection 1, Code 2022, is
24amended to read as follows:
251. A manufacturer, vintner, bottler, importer, or vendor of
26wine, or an agent thereof, desiring to ship, sell, or have wine
27brought into this state for sale at wholesale by a class “A”
28permittee shall first make application for and shall be issued
29a vintner’s certificate of compliance by the administrator
30for that purpose. The vintner’s certificate of compliance
31shall expire at the end of one year from the date of issuance
32and shall be renewed for a like period upon application to
33the administrator unless otherwise revoked for cause. Each
34completed application for a vintner’s certificate of compliance
35or renewal of a certificate shall be submitted electronically,
-19-1or in a manner prescribed by the administrator, and shall be
2accompanied by a fee of one two hundred dollars payable to the
3division. Each holder of a vintner’s certificate of compliance
4shall furnish the information required by the administrator in
5the form the administrator requires. A vintner or wine bottler
6whose plant is located in Iowa and who otherwise holds a class
7“A” wine permit to sell wine at wholesale is exempt from the
8fee, but not the other terms and conditions. The holder of a
9vintner’s certificate of compliance may also hold a class “A”
10wine permit.
11 Sec. 15. EFFECTIVE DATE. This division of this Act takes
12effect January 1, 2023.
13DIVISION III
14ALCOHOLIC BEVERAGE CONTROL
15 Sec. 16. Section 123.3, subsections 9, 22, 29, and 30, Code
162022, are amended to read as follows:
179. “Brewpub” means a commercial establishment authorized to
18sell beer at retail for consumption on or off the premises that
19is operated by a person who holds a class “C” liquor control or
20special class “C” retail alcohol license or a class “B” beer
21permit and who also holds a special class “A” beer permit that
22authorizes the holder to manufacture and sell beer pursuant to
23this chapter.
2422. “High alcoholic content beer” means beer which contains
25more than six and twenty-five hundredths percent of alcohol by
26volume, but not more than fifteen nineteen percent of alcohol
27by volume, that is made by the fermentation of an infusion
28in potable water of barley, malt, and hops, with or without
29unmalted grains or decorticated and degerminated grains. Not
30more than one and five-tenths percent of the volume of a “high
31alcoholic content beer” may consist of alcohol derived from
32added flavors and other nonbeverage ingredients containing
33alcohol. The added flavors and other nonbeverage ingredients
34may not include added caffeine or other added stimulants
35including but not limited to guarana, ginseng, and taurine.
-20- 129. “Licensed premises” or “premises” means all rooms,
2enclosures, contiguous areas, or places susceptible of precise
3description satisfactory to the administrator where alcoholic
4beverages, wine, or beer is sold or consumed under authority of
5a liquor control retail alcohol license, wine permit, or beer
6permit. A single licensed premises may consist of multiple
7rooms, enclosures, areas, or places if they are wholly within
8the confines of a single building or contiguous grounds.
930. “Local authority” means the city council of any
10incorporated city in this state, or the county board of
11supervisors of any county in this state, which is empowered by
12this chapter to approve or deny applications for retail beer or
13wine permits and liquor control alcohol licenses; empowered to
14recommend that such permits or licenses be granted and issued
15by the division; and empowered to take other actions reserved
16to them by this chapter.
17 Sec. 17. Section 123.3, subsection 40, paragraph b, Code
182022, is amended to read as follows:
19b. The person is not prohibited by section 123.40 from
20obtaining a liquor control retail alcohol license or a wine or
21beer permit.
22 Sec. 18. Section 123.3, subsection 45, Code 2022, is amended
23by striking the subsection and inserting in lieu thereof the
24following:
2545. “Retail alcohol license” means a class “B”, class “C”,
26special class “C”, class “D”, class “E”, or class “F” retail
27alcohol license, or a special class “B” retail native wine
28license issued under this chapter.
29 Sec. 19. Section 123.3, subsection 46, Code 2022, is amended
30by striking the subsection.
31 Sec. 20. Section 123.9, subsections 5 and 7, Code 2022, are
32amended to read as follows:
335. To grant and issue beer permits, wine permits, liquor
34control retail alcohol licenses, and other licenses; and to
35suspend or revoke all such permits and licenses for cause under
-21-1this chapter.
27. To accept alcoholic liquors ordered delivered to the
3alcoholic beverages division pursuant to chapter 809A, and
4offer for sale and deliver the alcoholic liquors to class
5“E” liquor control retail alcohol licensees, unless the
6administrator determines that the alcoholic liquors may be
7adulterated or contaminated. If the administrator determines
8that the alcoholic liquors may be adulterated or contaminated,
9the administrator shall order their destruction.
10 Sec. 21. Section 123.10, subsections 3, 6, and 14, Code
112022, are amended to read as follows:
123. Regulating the purchase of alcoholic liquor generally
13and the furnishing of the liquor to class “E” liquor control
14 retail alcohol licensees under this chapter, and determining
15the classes, varieties, and brands of alcoholic liquors to be
16kept in state warehouses.
176. Providing for the issuance and electronic distribution
18of price lists which show the price to be paid by class “E”
19liquor control retail alcohol licensees for each brand,
20class, or variety of liquor kept for sale by the division,
21providing for the filing or posting of prices charged in sales
22between class “A” beer and class “A” wine permit holders and
23retailers, as provided in this chapter, and establishing or
24controlling the prices based on minimum standards of fill,
25quantity, or alcoholic content for each individual sale of
26alcoholic beverages as deemed necessary for retail or consumer
27protection. However, the division shall not regulate markups,
28prices, discounts, allowances, or other terms of sale at which
29alcoholic liquor may be purchased by the retail public or
30liquor control retail alcohol licensees from class “E” liquor
31control retail alcohol licensees or at which wine may be
32purchased and sold by class “A” and retail wine permittees, or
33change, nullify, or vary the terms of an agreement between a
34holder of a vintner certificate of compliance and a class “A”
35wine permittee.
-22- 114. Prescribing the uniform fee to be assessed against
2a class “B” beer permittee, class “C” native wine permittee,
3or liquor control retail alcohol licensee, except a class
4“B”, special class “B”, or class “E” liquor control retail
5alcohol licensee, to cover the administrative costs incurred
6by the division resulting from the failure of the licensee or
7permittee to maintain dramshop liability insurance coverage
8pursuant to section 123.92, subsection 2, paragraph “a”.
9 Sec. 22. Section 123.15, Code 2022, is amended to read as
10follows:
11123.15 Favors from licensee or permittee.
12A person responsible for the administration or enforcement
13of this chapter shall not accept or solicit donations,
14gratuities, political advertising, gifts, or other favors,
15directly or indirectly, from any liquor control retail alcohol
16 licensee, wine permittee, or beer permittee.
17 Sec. 23. Section 123.16, subsections 6 and 7, Code 2022, are
18amended to read as follows:
196. The number of liquor control retail alcohol licenses,
20wine permits, and beer permits issued, by class, the number in
21effect on the last day included in the report, and the number
22which have been suspended or revoked during the period covered
23by the report.
247. Amount of fees paid to the division from liquor control
25 retail alcohol licenses, wine permits, and beer permits, in
26gross, and the amount of liquor control retail alcohol license
27fees returned to local subdivisions of government as provided
28under this chapter.
29 Sec. 24. Section 123.22, subsection 1, Code 2022, is amended
30to read as follows:
311. The division has the exclusive right of importation
32into the state of all forms of alcoholic liquor, except as
33otherwise provided in this chapter, and a person shall not
34import alcoholic liquor, except that an individual of legal age
35may import and have in the individual’s possession an amount of
-23-1alcoholic liquor not exceeding nine liters per calendar month
2that the individual personally obtained outside the state.
3Alcoholic liquor imported by an individual pursuant to this
4subsection shall be for personal consumption only in a private
5home or other private accommodation. A distillery shall not
6sell alcoholic liquor within the state to any person but only
7to the division, except as otherwise provided in this chapter.
8This section vests in the division exclusive control within the
9state as purchaser of all alcoholic liquor sold by distilleries
10within the state or imported, except beer and wine, and except
11as otherwise provided in this chapter. The division shall
12receive alcoholic liquor on a bailment system for resale by the
13division in the manner set forth in this chapter. The division
14shall act as the sole wholesaler of alcoholic liquor to class
15“E” liquor control retail alcohol licensees.
16 Sec. 25. Section 123.24, Code 2022, is amended to read as
17follows:
18123.24 Alcoholic liquor sales by the division — dishonored
19payments — liquor prices.
201. The division shall sell alcoholic liquor at wholesale
21only. The division shall sell alcoholic liquor to class “E”
22liquor control retail alcohol licensees only. The division
23shall offer the same price on alcoholic liquor to all class “E”
24liquor control retail alcohol licensees without regard for the
25quantity of purchase or the distance for delivery.
262. The price of alcoholic liquor sold by the division shall
27consist of the following:
28a. The manufacturer’s price.
29b. A markup of up to fifty percent of the wholesale price
30paid by the division for the alcoholic liquor. The division
31may increase the markup on selected kinds of alcoholic liquor
32sold by the division if the average return to the division on
33all sales of alcoholic liquor does not exceed the wholesale
34price paid by the division and the fifty percent markup.
35c. A split case charge in an amount determined by the
-24-1division when alcoholic liquor is sold in quantities which
2require a case to be split.
3d. A bottle surcharge in an amount sufficient, when added
4to the amount not refunded to class “E” liquor control retail
5alcohol licensees pursuant to section 455C.2, to pay the costs
6incurred by the division for collecting and properly disposing
7of the liquor containers. The amount collected pursuant to
8this paragraph, in addition to any amounts not refunded to
9class “E” liquor control retail alcohol licensees pursuant
10to section 455C.2, shall be deposited in the beer and liquor
11control fund established under section 123.17.
123. a. The division may accept from a class “E” liquor
13control retail alcohol licensee electronic funds transferred
14by automated clearing house, wire transfer, or another method
15deemed acceptable by the administrator, in payment of alcoholic
16liquor. If a payment is subsequently dishonored, the division
17shall cause a notice of nonpayment and penalty to be served
18upon the class “E” liquor control retail alcohol licensee or
19upon any person in charge of the licensed premises. The notice
20shall state that if payment or satisfaction for the dishonored
21payment is not made within ten days of the service of notice,
22the licensee’s liquor control retail alcohol license may be
23suspended under section 123.39. The notice of nonpayment and
24penalty shall be in a form prescribed by the administrator, and
25shall be sent by certified mail.
26b. If upon notice and hearing under section 123.39 and
27pursuant to the provisions of chapter 17A concerning a
28contested case hearing, the administrator determines that the
29class “E” liquor control retail alcohol licensee failed to
30satisfy the obligation for which the payment was issued within
31ten days after the notice of nonpayment and penalty was served
32on the licensee as provided in paragraph “a” of this subsection,
33the administrator may suspend the licensee’s class “E” liquor
34control retail alcohol license for a period not to exceed ten
35days.
-25- 14. The administrator may refuse to sell alcoholic liquor
2to a class “E” liquor control retail alcohol licensee who
3tenders a payment which is subsequently dishonored until the
4outstanding obligation is satisfied.
5 Sec. 26. Section 123.26, Code 2022, is amended to read as
6follows:
7123.26 Restrictions on sales — seals — labeling.
8Alcoholic liquor shall not be sold by a class “E” liquor
9control retail alcohol licensee except in a sealed container
10with identifying markers as prescribed by the administrator
11and affixed in the manner prescribed by the administrator, and
12no such container shall be opened upon the premises of a state
13warehouse. The division shall cooperate with the department
14of natural resources so that only one identifying marker or
15mark is needed to satisfy the requirements of this section and
16section 455C.5, subsection 1. Possession of alcoholic liquors
17which do not carry the prescribed identifying markers is a
18violation of this chapter except as provided in section 123.22.
19 Sec. 27. Section 123.28, subsections 2 and 5, Code 2022, are
20amended to read as follows:
212. The division shall deliver alcoholic liquor purchased by
22class “E” liquor control retail alcohol licensees. Class “E”
23liquor control retail alcohol licensees may deliver alcoholic
24liquor purchased by class “A”, class “B”, class “C”, class “C”
25native distilled spirits, or class “D” liquor control, or class
26“F” retail alcohol licensees, and class “A”, class “B”, class
27“C”, class “C” native distilled spirits, or class “D” liquor
28control, or class “F” retail alcohol licensees may transport
29alcoholic liquor purchased from class “E” liquor control retail
30alcohol licensees.
315. This section does not affect the right of a liquor
32control retail alcohol license holder to purchase, possess, or
33transport alcoholic liquors subject to this chapter.
34 Sec. 28. Section 123.32, Code 2022, is amended to read as
35follows:
-26- 1123.32 Action by local authorities and division on
2applications for liquor control retail alcohol licenses, native
3distilled spirits licenses, and wine and beer permits.
41. Filing of application.
5a. A completed application for a class “A”, class “B”, class
6“C”, special class “C”, class “C” native distilled spirits, or
7class “E” liquor control retail alcohol license as provided
8in section 123.31, for a retail beer permit as provided in
9sections 123.128 and 123.129, or for a class “B”, class “B”
10native, or class “C” native retail wine permit as provided in
11section 123.175 except a class “D” retail alcohol license,
12shall be filed with the appropriate city council if the
13premises for which the license or permit is sought are located
14within the corporate limits of a city, or with the board of
15supervisors if the premises for which the license or permit is
16sought are located outside the corporate limits of a city.
17b. A completed application for a class “D” liquor
18control retail alcohol license and for any of the following
19certificates, licenses, or permits shall be submitted to the
20division electronically, or in a manner prescribed by the
21administrator, which shall proceed in the same manner as in the
22case of an application approved by local authorities:
23(1) A certificate of compliance as provided in sections
24123.23, 123.135, and 123.180.
25(2) A class “D” liquor control retail alcohol license as
26provided in section 123.31.
27(3) A manufacturer’s license as provided in section 123.41.
28(4) A broker’s permit as provided in section 123.42.
29(5) A class “A” native distilled spirits license as provided
30in section 123.43.
31(6) A class “A” or special class “A” beer permit as provided
32in section 123.127.
33(7) A charity beer, spirits, and wine auction permit special
34event license as provided in section 123.173A.
35(8) A charity beer, spirits, and wine event permit as
-27-1provided in section 123.173B.
2(9) (8) A class “A” wine permit as provided in section
3123.175.
4(10) (9) A wine direct shipper’s permit as provided in
5section 123.187.
6(11) (10) A wine carrier permit as provided in section
7123.188.
82. Action by local authorities. The local authority shall
9either approve or disapprove the issuance of a liquor control
10 retail alcohol license, a retail wine permit, or a retail
11beer permit, shall endorse its approval or disapproval on
12the application, and shall forward the application with the
13necessary fee and bond, if required, to the division. There
14is no limit upon the number of liquor control retail alcohol
15 licenses, retail wine permits, or retail beer permits which may
16be approved for issuance by local authorities.
173. Licensed premises for local events. A local authority
18may define, by motion of the local authority, licensed premises
19which shall be used by holders of liquor control retail alcohol
20 licenses, beer permits, and wine permits at festivals, fairs,
21or celebrations which are sponsored or authorized by the local
22authority. The licensed premises defined by motion of the
23local authority shall be used by the holders of five-day or
24fourteen-day class “A”, class “B”, class “C”, special class
25“C”, or class “D” liquor control, or class “F” retail alcohol
26 licenses, or five-day or fourteen-day class “B” or class “C”
27native wine permits, or class “B” beer permits only.
284. Security employee training. A local authority, as a
29condition of obtaining and holding a license or permit for
30on-premises consumption, may require a designated security
31employee as defined in section 123.3 to be trained and
32certified in security methods. The training shall include but
33is not limited to de-escalation techniques, anger management
34techniques, civil rights or unfair practices awareness as
35provided in section 216.7, recognition of fake or altered
-28-1identification, information on laws applicable to the serving
2of alcohol at a licensed premises, use of force and techniques
3for safely removing patrons, and instruction on the proper
4physical restraint methods used against a person who has become
5combative.
65. Occupancy rates. A local authority located in a county
7with a population that exceeds three hundred thousand persons,
8as a condition of obtaining and holding a license or permit
9 for on-premises consumption, shall require the applicant, or
10 licensee, or permittee to provide, and update if necessary, the
11occupancy rate of the licensed premises.
126. Action by administrator.
13a. Upon receipt of an application having been disapproved
14by the local authority, the administrator shall notify the
15applicant that the applicant may appeal the disapproval of
16the application to the administrator. The applicant shall
17be notified by certified mail or personal service, and the
18application, the fee, and any bond shall be returned to the
19applicant.
20b. Upon receipt of an application having been approved by
21the local authority, the division shall make an investigation
22as the administrator deems necessary to determine that
23the applicant complies with all requirements for holding a
24license or permit, and may require the applicant to appear
25to be examined under oath to demonstrate that the applicant
26complies with all of the requirements to hold a license
27or permit. If the administrator requires the applicant to
28appear and to testify under oath, a record shall be made of
29all testimony or evidence and the record shall become a part
30of the application. The administrator may appoint a member
31of the division or may request an administrative law judge
32of the department of inspections and appeals to receive the
33testimony under oath and evidence, and to issue a proposed
34decision to approve or disapprove the application for a license
35or permit. The administrator may affirm, reverse, or modify
-29-1the proposed decision to approve or disapprove the application
2for the license or permit. If the application is approved
3by the administrator, the license or permit shall be issued.
4If the application is disapproved by the administrator, the
5applicant shall be so notified by certified mail or personal
6service and the appropriate local authority shall be notified
7electronically, or in a manner prescribed by the administrator.
87. Appeal to administrator. An applicant for a liquor
9control retail alcohol license, wine permit, or beer permit may
10appeal from the local authority’s disapproval of an application
11for a license or permit to the administrator. In the appeal
12the applicant shall be allowed the opportunity to demonstrate
13in an evidentiary hearing conducted pursuant to chapter 17A
14that the applicant complies with all of the requirements for
15holding the license or permit. The administrator may appoint
16a member of the division or may request an administrative law
17judge from the department of inspections and appeals to conduct
18the evidentiary hearing and to render a proposed decision to
19approve or disapprove the issuance of the license or permit.
20The administrator may affirm, reverse, or modify the proposed
21decision. If the administrator determines that the applicant
22complies with all of the requirements for holding a license
23or permit, the administrator shall order the issuance of the
24license or permit. If the administrator determines that the
25applicant does not comply with the requirements for holding
26a license or permit, the administrator shall disapprove the
27issuance of the license or permit.
288. Judicial review. The applicant or the local authority
29may seek judicial review of the action of the administrator
30in accordance with the terms of the Iowa administrative
31procedure Act, chapter 17A. Notwithstanding the terms of the
32Iowa administrative procedure Act, chapter 17A, petitions
33for judicial review may be filed in the district court of
34the county where the premises covered by the application are
35situated.
-30- 19. Suspension by local authority. A liquor control retail
2alcohol licensee or a wine or beer permittee whose license
3or permit has been suspended or revoked or a civil penalty
4imposed by a local authority for a violation of this chapter
5or suspended by a local authority for violation of a local
6ordinance may appeal the suspension, revocation, or civil
7penalty to the administrator. The administrator may appoint
8a member of the division or may request an administrative law
9judge from the department of inspections and appeals to hear
10the appeal which shall be conducted in accordance with chapter
1117A and to issue a proposed decision. The administrator may
12review the proposed decision upon the motion of a party to the
13appeal or upon the administrator’s own motion in accordance
14with chapter 17A. Upon review of the proposed decision, the
15administrator may affirm, reverse, or modify the proposed
16decision. A liquor control retail alcohol licensee, wine or
17beer permittee, or a local authority aggrieved by a decision
18of the administrator may seek judicial review of the decision
19pursuant to chapter 17A.
20 Sec. 29. Section 123.34, Code 2022, is amended to read as
21follows:
22123.34 Expiration of licenses, permits, and certificates
23of compliance — seasonal Seasonal, fourteen-day, and five-day
24licenses and permits — fees.
251. All licenses, permits, and certificates of compliance,
26unless sooner suspended or revoked, expire one year from date
27of issuance. The administrator shall notify a license, permit,
28or certificate holder electronically, or in a manner prescribed
29by the administrator, sixty days prior to the expiration of
30each license, permit, or certificate.
312. 1. a. The administrator may issue six-month or
32 eight-month seasonal class “A”, class “B”, class “C”, special
33class “C”, and class “D” liquor control and class “F” retail
34alcohol licenses, class “B” wine permits, class “B” or class
35“C” native wine permits, or class “B” beer permits.
-31- 1b. The fee for a six-month or an eight-month seasonal
2license or permit issued pursuant to this subsection shall be
3for a proportionate part fifty percent of the license or permit
4 fee for that class of license or permit. However, the fee for
5a seasonal class “B” native wine permit shall be the permit fee
6provided in section 123.179, subsection 4, and the fee for a
7seasonal class “C” native wine permit shall be the permit fee
8provided in section 123.179, subsection 5.
93. 2. a. The administrator may issue fourteen-day class
10“A”, class “B”, class “C”, special class “C”, and class “D”
11liquor control and class “F” retail alcohol licenses, and
12fourteen-day class “B” beer permits, class “B” native wine
13permits, and class “C” native wine permits.
14b. A fourteen-day retail alcohol license or permit, if
15granted, is valid for fourteen consecutive days, but the holder
16shall not sell on the two Sundays in the fourteen-day period
17unless the holder qualifies for and obtains the privilege to
18sell on Sundays contained in section 123.36, subsection 6, and
19section 123.134, subsection 4.
20c. (1) The fee for a fourteen-day liquor control retail
21alcohol license or beer permit is one quarter of the annual fee
22for that class of liquor control retail alcohol license or beer
23permit. The fee for the privilege to sell on the two Sundays in
24the fourteen-day period is twenty percent of the price of the
25fourteen-day liquor control license or beer permit.
26(2) The fee for a fourteen-day class “B” native wine permit
27shall be the permit fee provided in section 123.179, subsection
284, and the fee for a fourteen-day class “C” native wine permit
29is the permit fee provided in section 123.179, subsection 5.
304. 3. a. The administrator may issue five-day class “A”,
31class “B”, class “C”, special class “C”, and class “D” liquor
32control, and class “F” retail alcohol licenses, and five-day
33class “B” beer permits, class “B” native wine permits, and
34class “C” native wine permits.
35b. A five-day retail alcohol license or permit is valid for
-32-1five consecutive days, but the holder shall not sell alcoholic
2beverages on Sunday in the five-day period unless the holder
3qualifies for and obtains the privilege to sell on Sunday
4pursuant to section 123.36, subsection 6, and section 123.134,
5subsection 4.
6c. (1) The fee for the five-day liquor control retail
7alcohol license or beer permit is one-eighth of the annual fee
8for that class of license or permit. The fee for the privilege
9to sell on a Sunday in the five-day period is ten percent of the
10price of the five-day liquor control license or beer permit.
11(2) The fee for a five-day class “B” native wine permit
12shall be the permit fee provided in section 123.179, subsection
134, and the fee for a five-day class “C” native wine permit is
14the permit fee provided in section 123.179, subsection 5.
155. 4. A refund of fees paid shall not be made for seasonal
16licenses or permits, or for fourteen-day or five-day liquor
17control retail alcohol licenses, native wine permits, or beer
18permits. In addition, a seasonal, fourteen-day, or five-day
19license or permit shall not be renewed.
20 Sec. 30. NEW SECTION. 123.35 Expiration of licenses,
21permits, and certificates of compliance — automatic renewals.
221. Except as otherwise provided by this chapter, all
23licenses, permits, and certificates of compliance, unless
24sooner suspended or revoked, expire one year from date of
25issuance.
262. Notwithstanding section 123.31 and any other provision
27of this chapter to the contrary, a class “E” retail alcohol
28license shall automatically renew without the endorsement
29of a local authority or approval by the administrator upon
30collection of the annual fee by the division, provided all of
31the following conditions are met since the preceding license
32was issued:
33a. The licensee has given written consent to the division
34to have the license automatically renewed as provided in this
35section.
-33- 1b. The license has not been suspended or revoked.
2c. A civil penalty has not been imposed against the
3licensee.
4d. An administrative proceeding is not pending against the
5licensee to suspend or revoke the license or to impose a civil
6penalty under this chapter.
7e. The licensee has not submitted payment for alcoholic
8liquor to the division that was subsequently dishonored.
9f. The licensee and all persons associated with the licensee
10as described in section 123.3, subsection 40, paragraph “e”,
11have not been convicted of a violation of this chapter.
12g. The licensed premises constitutes a safe and proper place
13or building and conforms with all applicable federal, state,
14and local laws, orders, ordinances, rules, resolutions, and
15health and fire regulations.
16h. A local authority has not notified the division, in
17a manner established by the division and made available to
18local authorities, that automatic renewal should not occur and
19that further review of the licensee by the division and the
20applicable local authority is warranted.
213. Notwithstanding sections 123.23, 123.135, 123.180,
22and any other provision of this chapter to the contrary, a
23distiller’s, brewer’s, or vintner’s certificate of compliance
24shall automatically renew without approval by the administrator
25upon collection of the annual fee by the division, provided
26all of the following conditions are met since the preceding
27certificate was issued:
28a. The certificate holder has given written consent to
29the division to have the certificate automatically renewed as
30provided in this section.
31b. The certificate has not been suspended or revoked.
32c. A civil penalty has not been imposed against the
33certificate holder.
34d. An administrative proceeding is not pending against the
35certificate holder to suspend or revoke the certificate or to
-34-1impose a civil penalty under this chapter.
2e. The certificate holder and all persons associated
3with the certificate holder as described in section 123.3,
4subsection 40, paragraph “e”, have not been convicted of a
5violation of this chapter.
64. Notwithstanding section 123.187 and any other provision
7of this chapter to the contrary, a wine direct shipper’s permit
8shall automatically renew without approval by the administrator
9upon collection of the annual fee by the division, provided all
10of the following conditions are met since the preceding permit
11was issued:
12a. The permittee has given written consent to the division
13to have the permit automatically renewed as provided in this
14section.
15b. The permit has not been suspended or revoked.
16c. A civil penalty has not been imposed against the
17permittee.
18d. An administrative proceeding is not pending against the
19permittee to suspend or revoke the permit or to impose a civil
20penalty under this chapter.
21e. The permittee has filed all required reports and remitted
22all wine gallonage tax owed pursuant to section 123.183.
23f. The permittee and all persons associated with the
24permittee as described in section 123.3, subsection 40,
25paragraph “e”, have not been convicted of a violation of this
26chapter.
27 Sec. 31. Section 123.38, subsection 1, Code 2022, is amended
28to read as follows:
291. A liquor control retail alcohol license, wine permit,
30or beer permit is a personal privilege and is revocable for
31cause. It is not property nor is it subject to attachment
32and execution nor alienable nor assignable, and it shall
33cease upon the death of the permittee or licensee. However,
34the administrator of the division may in the administrator’s
35discretion allow the executor or administrator of the estate of
-35-1a permittee or licensee to operate the business of the decedent
2for a reasonable time not to exceed the expiration date of the
3permit or license. Every permit or license shall be issued in
4the name of the applicant and no person holding a permit or
5license shall allow any other person to use it.
6 Sec. 32. Section 123.38, subsection 2, paragraph a,
7subparagraph (4), Code 2022, is amended to read as follows:
8(4) No refund shall be made for any liquor control retail
9alcohol license, wine permit, or beer permit surrendered more
10than nine months after issuance.
11 Sec. 33. Section 123.39, subsection 1, paragraph a, Code
122022, is amended to read as follows:
13a. (1) The administrator or the local authority may suspend
14a class “A”, class “B”, special class “B” native wine, class
15“C”, special class “C”, class “C” native distilled spirits, or
16 class “E” liquor control, or class “F” retail alcohol license,
17 or retail wine or beer permit charity beer, spirits, and wine
18special event license for a period not to exceed one year,
19revoke the license or permit, or impose a civil penalty not to
20exceed one thousand dollars per violation.
21(2) The administrator may suspend a certificate of
22compliance, a class “D” liquor control retail alcohol license,
23a manufacturer’s license, a broker’s permit, a class “A” native
24distilled spirits license, a class “A” or special class “A”
25beer permit, a charity beer, spirits, and wine auction permit,
26 a class “A” wine permit, a wine direct shipper’s permit, or a
27wine carrier permit for a period not to exceed one year, revoke
28the license, permit, or certificate, or impose a civil penalty
29not to exceed one thousand dollars per violation.
30 Sec. 34. Section 123.39, subsection 1, paragraph b,
31subparagraph (3), Code 2022, is amended to read as follows:
32(3) Any change in the ownership or interest in the business
33operated under a liquor control retail alcohol license, or any
34wine or beer permit, which change was not previously reported
35in a manner prescribed by the administrator within thirty days
-36-1of the change and subsequently approved by the local authority,
2when applicable, and the division.
3 Sec. 35. Section 123.39, subsections 2 and 3, Code 2022, are
4amended to read as follows:
52. Local authorities may suspend any liquor control retail
6alcohol license or retail wine or beer permit for a violation
7of any ordinance or regulation adopted by the local authority.
8Local authorities may adopt ordinances or regulations for the
9location of the premises of liquor control retail alcohol
10 licensed and retail wine or beer permitted establishments
11and local authorities may adopt ordinances, not in conflict
12with this chapter and that do not diminish the hours during
13which alcoholic beverages may be sold or consumed at retail,
14governing any other activities or matters which may affect the
15retail sale and consumption of alcoholic beverages and the
16health, welfare and morals of the community involved.
173. When a liquor control retail alcohol license or retail
18wine or beer permit is suspended after a hearing as a result
19of violations of this chapter by the licensee, permittee
20 or the licensee’s or permittee’s agents or employees, the
21premises which were licensed by the license or permit shall
22not be relicensed for a new applicant until the suspension
23has terminated or time of suspension has elapsed, or ninety
24days have elapsed since the commencement of the suspension,
25whichever occurs first. However, this section does not
26prohibit the premises from being relicensed to a new applicant
27before the suspension has terminated or before the time of
28suspension has elapsed or before ninety days have elapsed from
29the commencement of the suspension, if the premises prior to
30the time of the suspension had been purchased under contract,
31and the vendor under that contract had exercised the person’s
32rights under chapter 656 and sold the property to a different
33person who is not related to the previous licensee or permittee
34by marriage or within the third degree of consanguinity or
35affinity and if the previous licensee or permittee does not
-37-1have a financial interest in the business of the new applicant.
2 Sec. 36. Section 123.40, Code 2022, is amended to read as
3follows:
4123.40 Effect of revocation.
5Any liquor control retail alcohol licensee, wine permittee,
6or beer permittee whose license or permit is revoked under this
7chapter shall not thereafter be permitted to hold a liquor
8control retail alcohol license, wine permit, or beer permit in
9the state of Iowa for a period of two years from the date of
10revocation. A spouse or business associate holding ten percent
11or more of the capital stock or ownership interest in the
12business of a person whose license or permit has been revoked
13shall not be issued a liquor control retail alcohol license,
14wine permit, or beer permit, and no liquor control retail
15alcohol license, wine permit, or beer permit shall be issued
16which covers any business in which such person has a financial
17interest for a period of two years from the date of revocation.
18If a license or permit is revoked, the premises which had been
19covered by the license or permit shall not be relicensed for
20one year.
21 Sec. 37. Section 123.43A, subsection 2, Code 2022, is
22amended to read as follows:
232. A native distillery shall not sell more than one and
24one-half nine liters per person per day, of native distilled
25spirits on the premises of the native distillery. However, a
26native distillery which, combining all production facilities
27of the business, produces and manufactures not more than one
28hundred thousand proof gallons of native distilled spirits on
29an annual basis, may sell not more than nine liters per person
30per day, of native distilled spirits. In addition, a native
31distillery shall not directly ship native distilled spirits for
32sale at retail. The native distillery shall maintain records
33of individual purchases of native distilled spirits at the
34native distillery for three years.
35 Sec. 38. Section 123.43A, subsection 6, Code 2022, is
-38-1amended to read as follows:
26. Notwithstanding any provision of this chapter to the
3contrary or the fact that a person is the holder of a class “A”
4native distilled spirits license, a native distillery which,
5combining all production facilities of the business, produces
6and manufactures not more than one hundred thousand proof
7gallons of native distilled spirits on an annual basis may sell
8those native distilled spirits manufactured on the premises
9of the native distillery for consumption on the premises by
10applying for be granted a class “C” native distilled spirits
11liquor control retail alcohol license as provided defined in
12section 123.30. A native distillery may be granted not more
13than two class “C” native distilled spirits liquor control
14 retail alcohol licenses. All native distilled spirits sold
15by a native distillery for on-premises consumption and mixed
16drinks or cocktails sold for consumption off the premises
17shall be purchased from a class “E” liquor control licensee.
18 A manufacturer of native distilled spirits may be issued a
19class “C” native distilled spirits liquor control retail
20alcohol license regardless of whether the manufacturer is also
21a manufacturer of beer pursuant to a class “A” beer permit or
22a manufacturer of native wine pursuant to a class “A” wine
23permit.
24 Sec. 39. Section 123.45, subsection 1, paragraph d, Code
252022, is amended to read as follows:
26d. Hold a retail liquor control alcohol license or retail
27wine or beer permit, unless the licensee or permittee holding a
28retail liquor control alcohol license or retail wine or beer
29permit does not purchase or sell the alcoholic beverages of
30the person engaged in the business of manufacturing, bottling,
31or wholesaling alcoholic beverages. However, a person engaged
32in the business of manufacturing wine that is not native wine
33may purchase and sell the person’s wine under the authority
34of a special class “C” liquor control retail alcohol license
35and a class “B” wine permit retail alcohol license provided
-39-1the licensed premises is the principal office, as defined in
2section 490.140, of the person.
3 Sec. 40. Section 123.45, subsection 3, Code 2022, is amended
4to read as follows:
53. A person engaged in the wholesaling of beer or wine
6may sell only disposable glassware, which is constructed of
7paper, paper laminated, or plastic materials and designed
8primarily for personal consumption on a one-time usage
9basis, to retailers for use within the premises of licensed
10establishments, for an amount which is greater than or equal
11to an amount which represents the greater of either the amount
12paid for the disposable glassware by the supplier or the amount
13paid for the disposable glassware by the wholesaler. Also, a
14person engaged in the business of manufacturing beer may sell
15beer at retail for consumption on or off the premises of the
16manufacturing facility and, notwithstanding any other provision
17of this chapter or the fact that a person is the holder of a
18class “A” beer permit, a native brewery may be granted not more
19than two class “B” beer permits “C” retail alcohol licenses as
20defined in section 123.124 for that purpose 123.30 regardless
21of whether that person is also a manufacturer of native
22distilled spirits pursuant to a class “A” native distilled
23spirits license or a manufacturer of native wine pursuant to a
24class “A” wine permit.
25 Sec. 41. Section 123.46, subsection 2, Code 2022, is amended
26to read as follows:
272. A person shall not use or consume alcoholic liquor, wine,
28or beer upon the public streets or highways. A person shall
29not use or consume alcoholic liquor in any public place except
30premises covered by a liquor control retail alcohol license.
31A person shall not possess or consume alcoholic liquors,
32wine, or beer on public school property or while attending a
33public or private school-related function. A person shall not
34be intoxicated in a public place. A person violating this
35subsection is guilty of a simple misdemeanor.
-40-1 Sec. 42. Section 123.46A, Code 2022, is amended to read as
2follows:
3123.46A Delivery of alcoholic beverages by retailers.
41. Licensees and permittees authorized to sell alcoholic
5liquor, wine, or beer in original unopened containers for
6consumption off the licensed premises may deliver alcoholic
7liquor, wine, or beer to a home, another licensed premises if
8there is identical ownership of the premises by the licensee
9or permittee, or other designated location in this state.
10Deliveries shall be limited to alcoholic beverages authorized
11by the licensee’s or permittee’s license or permit. Orders
12delivered to another licensed premises shall contain only
13those alcoholic beverages authorized for sale by the liquor
14control retail alcohol license or retail wine or beer permit
15 covering the premises to which the alcoholic beverages will
16be delivered. Orders delivered to another licensed premises
17shall be fulfilled using the alcoholic beverages inventory
18owned by the licensee or permittee who will receive the order
19for delivery. If the recipient refuses or fails to pick up
20the delivery, or is ineligible to receive the delivery, the
21alcoholic beverages shall be returned to the licensee or
22permittee who fulfilled the order.
232. Licensees and permittees authorized to sell wine, beer,
24or mixed drinks or cocktails for consumption off the licensed
25premises in a container other than the original container may
26deliver the wine, beer, or mixed drinks or cocktails to a
27home or other designated location in this state only if the
28container other than the original container has been sold and
29securely sealed in compliance with this chapter or the rules
30of the division. Deliveries shall be limited to alcoholic
31beverages authorized by the licensee’s or permittee’s license
32or permit.
333. All deliveries of alcoholic liquor, wine, beer, or
34mixed drinks or cocktails shall be subject to the following
35requirements and restrictions:
-41- 1a. Payment for the alcoholic liquor, wine, beer, or mixed
2drinks or cocktails shall be received by the licensee or
3permittee at the time of order.
4b. Orders for deliveries may be taken by the licensee or
5permittee between the hours of 2:00 a.m.and 6:00 a.m.
6on a day other than Sunday, and orders for deliveries may
7be taken between the hours of 2:00 a.m.and 6:00 a.m.on a
8Sunday provided the licensee or permittee has been granted
9the privilege of selling alcoholic liquor, wine, beer, or
10mixed drinks or cocktails on Sunday on any day of the week,
11notwithstanding any provision of section 123.49, subsection 2,
12paragraph “b”, to the contrary.
13c. Alcoholic liquor, wine, beer, or mixed drinks or
14cocktails delivered to a person shall be for personal use and
15not for resale.
16d. Deliveries shall only be made to persons in this state
17who are twenty-one years of age or older.
18e. Deliveries shall not be made to a person who is
19intoxicated or is simulating intoxication.
20f. Deliveries shall occur between 6:00 a.m.and 10:00 p.m.
21Monday throughSunday on the same day the order for alcoholic
22liquor, wine, beer, or mixed drinks or cocktails is removed
23from the licensed premises.
24g. Delivery of alcoholic liquor, wine, beer, or mixed drinks
25or cocktails shall be made by the licensee or permittee, the
26licensee’s or permittee’s employee, or a third party, provided
27the licensee or permittee has entered into a written agreement
28with the third party that authorizes the third party to act
29as an agent of the licensee or permittee for the purpose of
30delivering alcoholic liquor, wine, beer, or mixed drinks or
31cocktails. Each licensee or permittee shall submit to the
32division electronically, or in a manner prescribed by the
33administrator, a list of names and addresses of all third
34parties it has authorized to act as its agent for the purpose
35of delivering alcoholic liquor, wine, beer, or mixed drinks
-42-1or cocktails. The licensee or permittee shall provide the
2division with amendments to the list as necessary to ensure the
3division possesses an accurate, current list.
4h. Delivery personnel shall be twenty-one years of age or
5older.
6i. Valid proof of the recipient’s identity and age shall
7be obtained at the time of delivery, and the signature of a
8person twenty-one years of age or older shall be obtained as a
9condition of delivery.
10j. Licensees and permittees shall maintain records
11of deliveries which include the quantity delivered, the
12recipient’s name and address, and the signature of the
13recipient of the alcoholic liquor, wine, beer, or mixed drinks
14or cocktails. The records shall be maintained on the licensed
15premises for a period of three years.
164. A violation of this section or any other provision
17of this chapter shall subject the licensee or permittee to
18the penalty provisions of section 123.39. If the licensee
19or permittee, an employee of the licensee or permittee, or
20a person delivering alcoholic liquor, wine, beer, or mixed
21drinks or cocktails for a third party acting on behalf of the
22licensee or permittee pursuant to a written agreement violates
23this section, the licensee or permittee shall not be assessed
24a penalty under section 123.39 if the licensee or permittee
25 establishes all of the following:
26a. The violation was committed off of the licensee’s
27or permittee’s premises after the liquor, wine, beer, or
28mixed drinks or cocktails was removed from the licensee’s or
29permittee’s premises in fulfillment of a delivery order.
30b. (1) If the person who committed the violation is an
31employee of the licensee or permittee, that no other violation
32of this section was committed by any employee of the licensee
33or permittee within the two-year period immediately preceding
34the date of violation.
35(2) If the person who committed the violation is a person
-43-1delivering for a third party acting on behalf of the licensee
2or permittee, that no other violation of this section was
3committed by any person delivering for the same third party
4while the third party was acting on behalf of the licensee or
5permittee within the two-year period immediately preceding the
6date of violation.
75. Nothing in this section shall impact the direct shipment
8of wine as regulated by section 123.187.
9 Sec. 43. Section 123.47, subsection 3, Code 2022, is amended
10to read as follows:
113. A person or persons under legal age shall not purchase
12or attempt to purchase, consume, or individually or jointly
13have alcoholic beverages in their possession or control; except
14in the case of any alcoholic beverage given or dispensed to
15a person under legal age within a private home and with the
16knowledge, presence, and consent of the parent or guardian, for
17beverage or medicinal purposes or as administered to the person
18by either a physician or dentist for medicinal purposes and
19except to the extent that a person under legal age may handle
20alcoholic beverages during the regular course of the person’s
21employment by a liquor control retail alcohol licensee, or wine
22or beer permittee under this chapter.
23 Sec. 44. Section 123.48, subsections 1 and 3, Code 2022, are
24amended to read as follows:
251. If a liquor control retail alcohol licensee or wine or
26beer permittee or an employee of the licensee or permittee
27 has a reasonable belief based on factual evidence that a
28driver’s license as defined in section 321.1, subsection
2920A, or nonoperator’s identification card issued pursuant to
30section 321.190 offered by a person who wishes to purchase
31an alcoholic beverage at the licensed premises is altered
32or falsified or belongs to another person, the licensee,
33permittee, or employee may retain the driver’s license or
34nonoperator’s identification card. Within twenty-four hours,
35the license or card shall be delivered to the appropriate
-44-1city or county law enforcement agency of the jurisdiction in
2which the licensed premises is located. When the license or
3card is delivered to the appropriate law enforcement agency,
4the licensee shall file a written report of the circumstances
5under which the license or card was retained. The local law
6enforcement agency may investigate whether a violation of
7section 321.216, 321.216A, or 321.216B has occurred. If an
8investigation is not initiated or a probable cause is not
9established by the local law enforcement agency, the driver’s
10license or nonoperator’s identification card shall be delivered
11to the person to whom it was issued. The local law enforcement
12agency may forward the license or card with the report to the
13department of transportation for investigation, in which case,
14the department may investigate whether a violation of section
15321.216, 321.216A, or 321.216B has occurred. The department of
16transportation shall return the license or card to the person
17to whom it was issued if an investigation is not initiated or a
18probable cause is not established.
193. A liquor control retail alcohol licensee or wine or
20beer permittee or an employee of the licensee or permittee
21 is not subject to criminal prosecution for, or to civil
22liability for damages alleged to have resulted from, the
23retention and delivery of a driver’s license or a nonoperator’s
24identification card which is taken pursuant to subsections
251 and 2. This section shall not be construed to relieve a
26licensee, permittee, or employee of the licensee or permittee
27 from civil liability for damages resulting from the use of
28unreasonable force in obtaining the altered or falsified
29driver’s license or nonoperator’s identification card or the
30driver’s license or nonoperator’s identification card believed
31to belong to another person.
32 Sec. 45. Section 123.49, subsection 2, unnumbered paragraph
331, Code 2022, is amended to read as follows:
34A person holding a liquor control retail alcohol license or
35retail wine or beer permit under this chapter, and the person’s
-45-1agents or employees, shall not do any of the following:
2 Sec. 46. Section 123.49, subsection 2, paragraph b, Code
32022, is amended to read as follows:
4b. Sell or dispense any alcoholic beverage on the premises
5covered by the license or permit, or permit its consumption
6thereon between the hours of 2:00 a.m.and 6:00 a.m.on a
7weekday, and between the hours of 2:00 a.m.on Sunday and 6:00
8a.m.on the following Monday, however, a holder of a liquor
9control license or retail wine or beer permit granted the
10privilege of selling alcoholic liquor, wine, or beer on Sunday
11may sell or dispense alcoholic liquor, wine, or beer between
12the hours of 6:00 a.m.on Sunday and 2:00 a.m.on the following
13Monday any day of the week.
14 Sec. 47. Section 123.49, subsection 2, paragraph d,
15subparagraphs (1) and (3), Code 2022, are amended to read as
16follows:
17(1) Keep on premises covered by a liquor control retail
18alcohol license any alcoholic liquor in any container except
19the original package purchased from the division, and except
20mixed drinks or cocktails mixed on the premises for immediate
21consumption on the licensed premises or as otherwise provided
22by this paragraph “d”. This prohibition does not apply to
23holders of a class “D” liquor control retail alcohol license
24or to alcoholic liquor delivered in accordance with section
25123.46A.
26(3) Mixed drinks or cocktails mixed on premises covered by
27a class “C” liquor control retail alcohol license or a class
28“C” native distilled spirits liquor control retail alcohol
29 license for consumption off the licensed premises may be
30sold if the mixed drink or cocktail is immediately filled in
31a sealed container and is promptly taken from the licensed
32premises prior to consumption of the mixed drink or cocktail.
33A mixed drink or cocktail that is sold in a sealed container in
34compliance with the requirements of this subparagraph and rules
35adopted by the division shall not be deemed an open container
-46-1subject to the requirements of sections 321.284 and 321.284A
2if the sealed container is unopened and the seal has not been
3tampered with, and the contents of the container have not been
4partially removed.
5 Sec. 48. Section 123.49, subsection 2, paragraphs g and j,
6Code 2022, are amended to read as follows:
7g. Allow any person other than the licensee, permittee,
8 or employees of the licensee or permittee, to use or keep
9on the licensed premises any alcoholic liquor in any bottle
10or other container which is designed for the transporting of
11such beverages, except as permitted in section 123.95. This
12paragraph does not apply to the lodging quarters of a class
13“B” liquor control licensee or wine or beer permittee hotel
14or motel holding a retail alcohol license, or to holders of a
15class “D” liquor control retail alcohol license.
16j. Knowingly permit or engage in any criminal activity
17on the premises covered by the license or permit. However,
18the absence of security personnel on the licensed premises
19is insufficient, without additional evidence, to prove that
20criminal activity occurring on the licensed premises was
21knowingly permitted in violation of this paragraph “j”. For
22purposes of this paragraph “j”, “premises” includes parking lots
23and areas adjacent to the premises of a liquor control retail
24alcohol licensee or wine or beer permittee authorized to sell
25alcoholic beverages for consumption on the licensed premises
26and used by patrons of the liquor control retail alcohol
27 licensee or wine or beer permittee.
28 Sec. 49. Section 123.49, subsection 3, Code 2022, is amended
29to read as follows:
303. A person under legal age shall not misrepresent the
31person’s age for the purpose of purchasing or attempting
32to purchase any alcoholic beverage from any liquor control
33 retail alcohol licensee or wine or beer permittee. If any
34person under legal age misrepresents the person’s age, and
35the licensee or permittee establishes that the licensee or
-47-1permittee made reasonable inquiry to determine whether the
2prospective purchaser was over legal age, the licensee or
3permittee is not guilty of selling alcoholic beverages to a
4person under legal age.
5 Sec. 50. Section 123.49, subsection 4, Code 2022, is amended
6by striking the subsection.
7 Sec. 51. Section 123.50, subsections 1, 2, 4, and 5, Code
82022, are amended to read as follows:
91. Any person who violates any of the provisions of section
10123.49, except section 123.49, subsection 2, paragraph “h”,
11or who fails to affix upon sale, defaces, or fails to record
12a keg identification sticker label or produce a record of keg
13identification stickers labels pursuant to section 123.138,
14shall be guilty of a simple misdemeanor. A person who violates
15section 123.49, subsection 2, paragraph “h”, commits a simple
16misdemeanor punishable as a scheduled violation under section
17805.8C, subsection 2.
182. The conviction of any liquor control retail alcohol
19 licensee or wine or beer permittee for a violation of any of
20the provisions of section 123.49, subject to subsection 3 of
21this section, is grounds for the suspension or revocation of
22the license or permit by the division or the local authority.
23However, if any liquor control retail alcohol licensee is
24convicted of any violation of section 123.49, subsection 2,
25paragraph “a”, “d”, or “e”, or any wine or beer permittee retail
26alcohol licensee, excluding a special class “B” or class “D”
27retail alcohol licensee, is convicted of a violation of section
28123.49, subsection 2, paragraph “a” or “e” “d”, the liquor
29control retail alcohol license or wine or beer permit shall be
30revoked and shall immediately be surrendered by the holder,
31and the bond, if any, of the license or permit holder shall be
32forfeited to the division. However, the division shall retain
33only that portion of the bond equal to the amount the division
34determines the license or permit holder owes the division.
354. In addition to any other penalties imposed under this
-48-1chapter, the division shall assess a civil penalty up to
2the amount of five thousand dollars upon a class “E” liquor
3control retail alcohol licensee when the class “E” liquor
4 retail alcohol license is revoked for a violation of section
5123.59. Failure to pay the civil penalty as required under
6this subsection shall result in forfeiture of the bond to the
7division. However, the division shall retain only that portion
8of the bond equal to the amount the division determines the
9license or permit holder owes the division.
105. If an employee of a liquor control retail alcohol
11 licensee or wine or beer permittee violates section 123.49,
12subsection 2, paragraph “h”, the licensee or permittee shall
13not be assessed a penalty under subsection 3, and the violation
14shall be deemed not to be a violation of section 123.49,
15subsection 2, paragraph “h”, for the purpose of determining
16the number of violations for which a penalty may be assessed
17pursuant to subsection 3, if the employee holds a valid
18certificate of completion of the alcohol compliance employee
19training program pursuant to section 123.50A at the time of the
20violation, and if the violation involves selling, giving, or
21otherwise supplying any alcoholic beverage to a person between
22the ages of eighteen and twenty years of age. A violation
23involving a person under the age of eighteen years of age
24shall not qualify for the bar against assessment of a penalty
25pursuant to subsection 3, for a violation of section 123.49,
26subsection 2, paragraph “h”. A licensee or permittee may assert
27only once in a four-year period the bar under this subsection
28against assessment of a penalty pursuant to subsection 3, for a
29violation of section 123.49, subsection 2, paragraph “h”, that
30takes place at the same place of business location.
31 Sec. 52. Section 123.50, subsection 3, unnumbered paragraph
321, Code 2022, is amended to read as follows:
33If any liquor control retail alcohol licensee, wine or
34beer permittee, or employee of a licensee or permittee is
35convicted or found in violation of section 123.49, subsection
-49-12, paragraph “h”, the administrator or local authority shall,
2in addition to criminal penalties fixed for violations by this
3section, assess a civil penalty as follows:
4 Sec. 53. Section 123.92, subsection 2, paragraphs a and c,
5Code 2022, are amended to read as follows:
6a. Every liquor control retail alcohol licensee, class “B”
7beer permittee, and class “C” native wine permittee, except
8a class “B”, special class “B”, or class “E” liquor control
9 retail alcohol licensee, shall furnish proof of financial
10responsibility by the existence of a liability insurance
11policy in an amount determined by the division. If an insurer
12provides dramshop liability insurance at a new location to
13a licensee or permittee who has a positive loss experience
14at other locations for which such insurance is provided by
15the insurer, and the insurer bases premium rates at the new
16location on the negative loss history of the previous licensee
17or permittee at that location, the insurer shall examine and
18consider adjusting the premium for the new location not less
19than thirty months after the insurance is issued, based on the
20loss experience of the licensee or permittee at that location
21during that thirty-month period of time.
22c. The purpose of dramshop liability insurance is to provide
23protection for members of the public who experience damages
24as a result of licensees or permittees serving patrons any
25alcoholic beverage to a point that reaches or exceeds the
26standard set forth in law for liability. Minimum coverage
27requirements for such insurance are not for the purpose of
28making the insurance affordable for all licensees or permittees
29 regardless of claims experience. A dramshop liability
30insurance policy obtained by a licensee or permittee shall meet
31the minimum insurance coverage requirements as determined by
32the division and is a mandatory condition for holding a license
33or permit.
34 Sec. 54. Section 123.92, subsection 3, paragraphs a and b,
35Code 2022, are amended to read as follows:
-50- 1a. Notwithstanding section 123.49, subsection 1, any
2person who is injured in person or property or means of
3support by an intoxicated person who is under legal age or
4resulting from the intoxication of a person who is under
5legal age, has a right of action for all damages actually
6sustained, severally or jointly, against a person who is
7not a licensee or permittee and who dispensed or gave any
8alcoholic beverage to the intoxicated underage person when the
9nonlicensee or nonpermittee who dispensed or gave the alcoholic
10beverage to the underage person knew or should have known the
11underage person was intoxicated, or who dispensed or gave any
12alcoholic beverage to the underage person to a point where the
13nonlicensee or nonpermittee knew or should have known that the
14underage person would become intoxicated.
15b. If the injury was caused by an intoxicated person who is
16under legal age, a person who is not a licensee or permittee
17 and who dispensed or gave the alcoholic beverage to the
18underage person may establish as an affirmative defense that
19the intoxication did not contribute to the injurious action of
20the underage person.
21 Sec. 55. Section 123.95, subsection 2, paragraphs a and c,
22Code 2022, are amended to read as follows:
23a. The holder of an annual class “B” liquor control license
24or an annual class “C” liquor control retail alcohol license
25may act as the agent of a private social host for the purpose
26of providing and serving alcoholic beverages as part of a food
27catering service for a private social gathering in a private
28place, provided the licensee has applied for and been granted a
29catering privilege by the division. The holder of an annual
30special class “C” liquor control retail alcohol license shall
31not act as the agent of a private social host for the purpose of
32providing and serving wine and beer as part of a food catering
33service for a private social gathering in a private place.
34An applicant for a class “B” or class “C” liquor control
35 retail alcohol license shall state on the application for the
-51-1license that the licensee intends to engage in catering food
2and alcoholic beverages for private social gatherings and the
3catering privilege shall be noted on the license.
4c. Section 123.92 does not apply to a liquor control retail
5alcohol licensee who acts in accordance with this section when
6the liquor control retail alcohol licensee is providing and
7serving food and alcoholic beverages as an agent of a private
8social host at a private social gathering in a private place
9which is not on the licensed premises.
10 Sec. 56. Section 123.122, subsection 1, Code 2022, is
11amended to read as follows:
121. A person shall not cause the manufacture, importation,
13or sale of beer in this state unless a certificate or permit as
14provided in this subchapter, or a liquor control retail alcohol
15 license as provided in subchapter I of this chapter, is first
16obtained which authorizes that manufacture, importation, or
17sale.
18 Sec. 57. Section 123.124, Code 2022, is amended to read as
19follows:
20123.124 Beer permits — classes.
21Permits for the manufacture and sale, or sale, of beer shall
22be divided into four classes, known as class “A”, and special
23class “A”, class “B”, or class “C” beer permits. A holder of
24a class “A” or special class “A” beer permit shall have the
25authority as provided in section 123.130. A holder of a class
26“B” beer permit shall have the authority as provided in section
27123.131, and a holder of a class “C” beer permit shall have the
28authority as provided in section 123.132.
29 Sec. 58. Section 123.125, Code 2022, is amended to read as
30follows:
31123.125 Issuance of beer permits.
32The administrator shall issue class “A”, and special class
33“A”, class “B”, and class “C” beer permits and may suspend or
34revoke permits for cause as provided in this chapter.
35 Sec. 59. Section 123.127, subsection 2, paragraph h, Code
-52-12022, is amended to read as follows:
2h. If the person is applying for a special class “A” beer
3permit, that the applicant holds or has applied for a class “C”
4liquor control or special class “C” retail alcohol license or
5class “B” beer permit.
6 Sec. 60. Section 123.130, subsection 1, paragraph a, Code
72022, is amended to read as follows:
8a. Any person holding a class “A” beer permit issued by
9the division shall be authorized to manufacture and sell, or
10sell at wholesale, beer for consumption off the premises, such
11sales within the state to be made only to persons holding a
12 subsisting class “A”, “B”, or “C” beer permits permit, both
13a class “C” native wine permit and a class “A” wine permit
14pursuant to section 123.178B, subsection 4, or liquor control
15 retail alcohol licenses, excluding a special class “B” retail
16native wine license, issued in accordance with the provisions
17of this chapter. However, a person holding a class “A” beer
18permit issued by the division who also holds a brewer’s notice
19issued by the alcohol and tobacco tax and trade bureau of the
20United States department of the treasury shall be authorized
21to sell, at wholesale, no more than thirty thousand barrels of
22beer on an annual basis for consumption off the premises to a
23licensee or permittee authorized under this chapter to sell
24beer at retail.
25 Sec. 61. Section 123.130, subsections 2 and 4, Code 2022,
26are amended to read as follows:
272. Pursuant to section 123.45, subsection 3, a native
28brewery may be granted not more than two class “B” beer permits
29as defined in section 123.124 for the purpose of selling
30beer at retail for consumption on or off the premises of the
31manufacturing facility class “C” retail alcohol licenses.
324. All special class “A” premises shall be located within
33the state. A person who holds a special class “A” beer permit
34for the same location at which the person holds a class “C”
35liquor control or special class “C” retail alcohol license or
-53-1class “B” beer permit for the purpose of operating as a brewpub
2may manufacture and sell beer to be consumed on the premises,
3may sell beer at retail at the manufacturing premises for
4consumption off the premises beer that is transferred at the
5time of sale to another container subject to the requirements
6of section 123.131, subsection 2, may sell beer to a class
7“A” beer permittee for resale purposes, and may sell beer to
8distributors outside of the state that are authorized by the
9laws of that jurisdiction to sell beer at wholesale. The
10permit issued to holders of a special class “A” beer permit
11shall clearly state on its face that the permit is limited.
12 Sec. 62. Section 123.135, subsection 4, Code 2022, is
13amended to read as follows:
144. It shall be unlawful for any holder of a certificate
15of compliance or the holder’s agent, or any class “A” beer
16permit holder or the beer permit holder’s agent, to grant to
17any retail beer permit alcohol license holder, directly or
18indirectly, any rebates, free goods, or quantity discounts on
19beer which are not uniformly offered to all retail permittees
20 alcohol licensees.
21 Sec. 63. Section 123.138, subsection 1, Code 2022, is
22amended to read as follows:
231. Each class “A” or special class “A” beer permittee
24shall keep proper records showing the amount of beer sold
25by the permittee, and these records shall be at all times
26open to inspection by the administrator and to other persons
27pursuant to section 123.30, subsection 1. Each class “B”
28beer permittee, class “C” beer permittee, or retail liquor
29control alcohol licensee as described in section 123.30 shall
30keep proper records showing each purchase of beer made by the
31permittee or licensee, and the date and the amount of each
32purchase and the name of the person from whom each purchase
33was made, which records shall be open to inspection pursuant
34to section 123.30, subsection 1, during normal business hours
35of the permittee or licensee.
-54-1 Sec. 64. Section 123.138, subsection 2, paragraph a, Code
22022, is amended to read as follows:
3a. Each class “B”, “C”, or special class “C” liquor control
4 retail alcohol licensee and class “B” or “C” beer permittee who
5sells beer for off-premises consumption shall affix to each
6keg of beer an identification sticker label provided by the
7administrator. The sticker label provided shall allow for its
8full removal when common external keg cleaning procedures are
9performed. For the purposes of this subsection, “keg” means
10all durable and disposable containers with a liquid capacity
11of five gallons or more. Each class “B”, “C”, or special class
12“C” liquor control retail alcohol licensee and class “B” or “C”
13beer permittee shall also keep a record of the identification
14sticker label number of each keg of beer sold by the licensee
15or permittee with the name and address of the purchaser and
16the number of the purchaser’s driver’s license, nonoperator’s
17identification card, or military identification card, if the
18military identification card contains a picture and signature.
19This information shall be retained by the licensee or permittee
20 for a minimum of ninety days. The records kept pursuant to
21this subsection shall be available for inspection by any law
22enforcement officer during normal business hours.
23 Sec. 65. Section 123.138, subsection 2, paragraph b, Code
242022, is amended to read as follows:
25b. (1) The division shall provide the keg identification
26stickers labels described in paragraph “a” and shall, prior to
27utilizing a sticker label, notify licensed brewers and licensed
28beer importers of the type of sticker label to be utilized.
29Each sticker label shall contain a number and the following
30statement:
31It is unlawful to sell, give, or otherwise supply any
32alcoholic beverage, wine, or beer to any person under legal
33age. Any person who defaces this sticker label shall be guilty
34of criminal mischief punishable pursuant to section 716.6 and
35shall cause the forfeiture of any deposit, if applicable.
-55- 1(2) The identification sticker label shall be placed on
2the keg at the time of retail sale. The licensee or permittee
3 shall purchase obtain the stickers labels referred to in this
4subsection from the division and shall remit to the division
5deposits forfeited pursuant to this lettered paragraph due to
6defacement. The cost of the stickers labels to licensees and
7permittees shall not exceed the division’s cost of producing
8and distributing the stickers labels. The moneys collected by
9the division relating to the sale of stickers and forfeited
10deposits labels shall be credited to the beer and liquor
11control fund.
12 Sec. 66. Section 123.138, subsection 2, paragraph d, Code
132022, is amended by striking the paragraph.
14 Sec. 67. Section 123.141, Code 2022, is amended to read as
15follows:
16123.141 Keeping liquor where beer is sold.
17No alcoholic liquor for beverage purposes shall be used,
18or kept for any purpose in the place of business of a special
19 class “B” beer permittees “C” retail alcohol licensee, or on
20the premises of such special class “B” beer permittees “C”
21retail alcohol licensee, at any time. A violation of any
22provision of this section shall be grounds for suspension or
23revocation of the beer permit pursuant to section 123.50,
24subsection 3. This section shall not apply in any manner or
25in any way to the premises of any hotel or motel for which a
26special class “B” beer permit “C” retail alcohol license has
27been issued, other than that part of such premises regularly
28used by the hotel or motel for the principal purpose of selling
29beer or food to the general public, to a premises for which
30both a class “B” beer permit and a class “A” native distilled
31spirits license have been issued, or to keep a pharmacy from
32having alcohol in stock for medicinal and compounding purposes.
33 Sec. 68. Section 123.142, subsection 1, Code 2022, is
34amended to read as follows:
351. It is unlawful for the holder of a class “B” or class “C”
-56-1beer permit retail alcohol license issued under this chapter
2to sell beer, except beer brewed on the premises covered by a
3special class “A” beer permit or beer purchased from a person
4holding a class “A” beer permit issued in accordance with this
5chapter, and on which the tax provided in section 123.136 has
6been paid. However, this section does not apply to class “D”
7liquor control retail alcohol licensees as provided in this
8chapter.
9 Sec. 69. Section 123.143, subsection 1, Code 2022, is
10amended by striking the subsection.
11 Sec. 70. Section 123.143, subsection 2, Code 2022, is
12amended to read as follows:
132. All permit fees collected by the division under this
14subchapter shall accrue to the beer and liquor control fund,
15except as otherwise provided.All permit fees and taxes
16collected by the division under this subchapter shall accrue to
17the state general fund, except as otherwise provided.
18 Sec. 71. 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. 72. 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
-57-1holder 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
-58-1number 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. 73. 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
-59-1the 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
-60-1auction 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.
-61- 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. 74. 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. 75. 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.
-62-1 Sec. 76. 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. 77. 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. 78. 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
34may sell native wine at retail for consumption on the premises
35of the manufacturing facility by applying for be granted a
-63-1class “C” nativewine permit retail alcohol license as provided
2 defined in section 123.178B 123.30. A manufacturer of native
3wine may be granted not more than two class “C” native wine
4permits retail alcohol licenses. A manufacturer of native wine
5may be issued a class “C” native wine permit retail alcohol
6license regardless of whether the manufacturer is also a
7manufacturer of beer pursuant to a class “A” beer permit or a
8manufacturer of native distilled spirits pursuant to a class
9“A” native distilled spirits 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. 79. 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
-64-1is to be manufactured, stored, warehoused, or sold.
2 Sec. 80. Section 123.177, subsection 3, Code 2022, is
3amended by striking the subsection.
4 Sec. 81. 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 class “B”, special class “B”, and
10class “E” retail alcohol licensees authorized to sell wine at
11retail.
12 Sec. 82. Section 123.181, subsection 1, Code 2022, is
13amended by striking the subsection.
14 Sec. 83. Section 123.181, subsection 2, Code 2022, is
15amended to read as follows:
162. A class “A” wine permittee shall not sell wine on
17credit to a retail alcohol licensee or permittee for a period
18exceeding thirty days from date of delivery.
19 Sec. 84. Section 123.187, subsection 2, paragraph a, Code
202022, is amended to read as follows:
21a. Only a wine manufacturer that holds a wine direct shipper
22permit issued pursuant to this section shall sell wine at
23retail for direct shipment to any person within this state.
24This section shall not prohibit an authorized retail licensee
25or permittee from delivering wine pursuant to section 123.46A.
26 Sec. 85. Section 123.187, subsection 2, paragraph d, Code
272022, is amended by striking the paragraph.
28 Sec. 86. Section 125.59, unnumbered paragraph 1, Code 2022,
29is amended to read as follows:
30The treasurer of state, on each July 1 for that fiscal
31year, shall transfer the estimated amounts to be received from
32section 123.36, subsection 8 and section 123.143, subsection 1
33for purposes of this section to the department.
34 Sec. 87. REPEAL. Sections 123.97, 123.123, 123.150,
35123.172, 123.173B, and 123.185, Code 2022, are repealed.
-65-1 Sec. 88. EFFECTIVE DATE. This division of this Act takes
2effect January 1, 2023.
3DIVISION IV
4CONFORMING CHANGES
5 Sec. 89. Section 7D.16, Code 2022, is amended to read as
6follows:
77D.16 Alcoholic beverages in state capitol or on complex
8grounds.
9Notwithstanding any contrary provision of law prohibiting
10the use and consumption of alcoholic beverages in a public
11place, the executive council may authorize, by resolution,
12the temporary use and consumption of alcoholic beverages,
13as defined in section 123.3, in the state capitol or on the
14state capitol complex grounds, as if the state capitol or
15state capitol complex grounds were a private place. The
16authorization by resolution shall be limited to the use and
17consumption of alcoholic beverages as an accompaniment to food
18at a single award ceremony, social event, or other occasion
19deemed appropriate by the executive council. The authorization
20shall require that the person providing the food and alcoholic
21beverages possess an appropriate liquor control retail alcohol
22 license in accordance with section 123.95. The secretary
23of the executive council shall inform the secretary of the
24legislative council and the director of the department of
25administrative services of the approval of any such resolution.
26 Sec. 90. Section 12.43, subsection 5, paragraph e, Code
272022, is amended to read as follows:
28e. Liquor, beer, and wine sales must not exceed twenty
29percent of annual sales for establishments holding a class
30“C” liquor retail alcohol license issued pursuant to section
31123.30.
32 Sec. 91. Section 99B.3, subsection 2, Code 2022, is amended
33to read as follows:
342. A person whose license is revoked under this section
35who is a person for whom a class “A”, class “B”, class “C”, or
-66-1class “D” liquor control retail alcohol license has been issued
2pursuant to chapter 123 shall have the person’s liquor control
3 retail alcohol license suspended for a period of fourteen days
4in the same manner as provided in section 123.50, subsection
53, paragraph “a”.
6 Sec. 92. Section 99B.3, subsection 3, Code 2022, is amended
7by striking the subsection.
8 Sec. 93. Section 99B.43, subsection 1, unnumbered paragraph
91, Code 2022, is amended to read as follows:
10Social gambling is lawful on the premises of an
11establishment for which a class “A”, class “B”, class “C”,
12special class “C”, or class “D” liquor control, class “E”, or
13class “F” retail alcohol license, or class “B” beer permit
14 has been issued pursuant to chapter 123 when, subject to the
15provisions of section 99B.42, all of the following requirements
16are met:
17 Sec. 94. Section 99B.43, subsection 1, paragraph a, Code
182022, is amended to read as follows:
19a. The liquor control retail alcohol licensee or beer
20permittee has submitted an application for a social gambling
21license and a license fee of one hundred fifty dollars to the
22department, and a license has been issued.
23 Sec. 95. Section 99B.43, subsection 2, unnumbered paragraph
241, Code 2022, is amended to read as follows:
25A liquor control retail alcohol licensee or beer permittee
26 with a social gambling license issued pursuant to this section
27may conduct a sports betting pool if all of the requirements of
28this subsection are met.
29 Sec. 96. Section 99B.43, subsection 3, Code 2022, is amended
30to read as follows:
313. An establishment issued a social gambling license under
32this section that is required to obtain a new liquor retail
33alcohol license or permit under chapter 123 due to a change in
34ownership shall be required to obtain a new social gambling
35license under this section to conduct social gambling.
-67-1 Sec. 97. Section 99B.53, subsections 2, 3, 4, and 13, Code
22022, are amended to read as follows:
32. Except as provided in subsection 3, an electrical or
4mechanical amusement device requiring registration may be
5located on premises for which a class “A”, class “B”, class
6“C”, special class “C”, or class “D” liquor control, class “E”,
7or class “F” retail alcohol license has been issued pursuant
8to chapter 123.
93. a. An electrical or mechanical amusement device
10requiring registration may be located on premises for which a
11class “B” or class “C” beer permit “E” retail alcohol license
12 has been issued pursuant to chapter 123, but the department
13shall not initially register an electrical or mechanical
14amusement device to an owner or distributor for a location for
15which a class “B” or class “C” beer permit “E” retail alcohol
16license has been issued pursuant to chapter 123 on or after
17April 28, 2004.
18b. A distributor that owns an amusement device at a location
19for which only a class “B” or class “C” beer permit “E” retail
20alcohol license has been issued pursuant to chapter 123 shall
21not relocate an amusement device registered as provided in
22this section to a location other than a location for which a
23class “A”, class “B”, class “C”, special class “C”, or class
24“D” liquor, class “E”, or class “F” retail alcohol license has
25been issued and shall not transfer, assign, sell, or lease an
26amusement device registered as provided in this section to
27another person for which only a class “B” or class “C” beer
28permit “E” retail alcohol license has been issued pursuant to
29chapter 123 after April 28, 2004.
30c. If ownership of the location changes, the class “B”
31or class “C” beer permit “E” retail alcohol license does not
32lapse, and the device is not removed from the location, the
33device may remain at the location.
344. An electrical or mechanical amusement device required
35to be registered and at a location for which only a class “B”
-68-1or class “C” beer permit “E” retail alcohol license has been
2issued pursuant to chapter 123 shall include on the device
3a security mechanism which prevents the device from being
4operated by a person until action is taken by the owner or
5owner’s designee to allow the person to operate the device.
613. A person owning or leasing an electrical or mechanical
7amusement device required to be registered by this section
8shall not relocate and place into operation an amusement
9device in any location other than a location which has been
10issued an appropriate liquor control retail alcohol license in
11good standing and to which the device has been appropriately
12registered with the department.
13 Sec. 98. Section 99B.55, subsection 2, Code 2022, is amended
14to read as follows:
152. a. A person who commits an offense of awarding a cash
16prize of fifty dollars or less in violation of section 99B.52,
17subsection 3, pursuant to rules adopted by the department,
18shall be subject to a civil penalty in the amount of two
19hundred fifty dollars. Additional sanctions beyond the civil
20penalty prescribed by this paragraph, including but not limited
21to the suspension or revocation of any liquor control retail
22alcohol license issued pursuant to chapter 123 or registration
23issued pursuant to section 99B.53 or 99B.56, shall not be
24applicable.
25b. A person who commits, within two years, a second offense
26of awarding a cash prize of fifty dollars or less in violation
27of section 99B.52, subsection 3, or a person who commits an
28offense of awarding a cash prize of more than fifty dollars in
29violation of section 99B.52, subsection 3, pursuant to rules
30adopted by the department, shall be subject to revocation of
31the person’s registration and the following:
32(1) If the person whose registration is revoked under this
33paragraph “b” is a person for which a class “A”, class “B”,
34 class “C”, special class “C”, or class “D” liquor control,
35class “E”, or class “F” retail alcohol license has been
-69-1issued pursuant to chapter 123, the person’s liquor control
2 retail alcohol license shall be suspended for a period of
3fourteen days in the same manner as provided in section 123.50,
4subsection 3, paragraph “a”.
5(2) If the person whose registration is revoked under this
6paragraph “b” is a person for which only a class “B” or class
7“C” beer permit “E” retail alcohol license has been issued
8pursuant to chapter 123, the person’s class “B” or class “C”
9beer permit “E” retail alcohol license shall be suspended for
10a period of fourteen days in the same manner as provided in
11section 123.50, subsection 3, paragraph “a”.
12(3) If a person owning or employed by an establishment
13having a class “A”, class “B”, class “C”, special class “C”,
14or class “D” liquor control, class “E”, or class “F” retail
15alcohol license issued pursuant to chapter 123 commits an
16offense as provided in this paragraph “b”, the liquor control
17 retail alcohol license of the establishment shall be suspended
18for a period of fourteen days in the same manner as provided in
19section 123.50, subsection 3, paragraph “a”.
20(4) If a person owning or employed by an establishment
21having a class “B” or class “C” beer permit “E” retail alcohol
22license issued pursuant to chapter 123 commits an offense as
23provided in this paragraph “b”, the beer permit retail alcohol
24license of the establishment shall be suspended for a period of
25fourteen days in the same manner as provided in section 123.50,
26subsection 3, paragraph “a”.
27 Sec. 99. Section 137F.1, subsection 9, paragraph c, Code
282022, is amended to read as follows:
29c. A premises covered by a class “A” wine permit or a class
30“B” wine permit as provided in chapter 123.
31 Sec. 100. Section 331.303, subsection 4, Code 2022, is
32amended to read as follows:
334. Act upon applications for liquor control retail alcohol
34 licenses and retail beer permits in accordance with section
35123.32.
-70-1 Sec. 101. Section 455C.4, subsection 4, Code 2022, is
2amended to read as follows:
34. A class “E” liquor control retail alcohol licensee
4may refuse to accept and to pay the refund value on an empty
5alcoholic liquor container from a dealer or a redemption center
6or from a person acting on behalf of or who has received empty
7alcoholic liquor containers from a dealer or a redemption
8center.
9 Sec. 102. EFFECTIVE DATE. This division of this Act takes
10effect January 1, 2023.
11DIVISION V
12TRANSITION PROVISIONS
13 Sec. 103. TRANSITION PROVISIONS.
141. Any license or permit issued by the alcoholic beverages
15division of the department of commerce that is repealed,
16merged, or altered in this Act, and in effect on January
171, 2023, shall continue in full force and effect with the
18authority granted by that license or permit until expiration
19or renewal.
202. The alcoholic beverages division of the department of
21commerce shall be authorized to adopt alternative procedures
22for the issuance of any license or permit that is repealed,
23merged, or altered in this Act on January 1, 2023, that are
24issued on or after the effective date of this division of this
25Act but before January 1, 2023. The alternative procedures
26shall not be inconsistent with the provisions of this Act
27governing the issuance of licenses or permits on or after
28January 1, 2023.
29 Sec. 104. EFFECTIVE DATE. This division of this Act, being
30deemed of immediate importance, takes effect upon enactment.
31EXPLANATION
32The inclusion of this explanation does not constitute agreement with
33the explanation’s substance by the members of the general assembly.
34This bill relates to alcoholic beverage control. The bill is
35organized by divisions.
-71- 1DIVISION I — RETAIL ALCOHOL LICENSES. Code section 123.30,
2establishing liquor control licenses, is stricken and rewritten
3by the bill. The bill replaces liquor control licenses with
4retail alcohol licenses and modifies the classes within the
5new category of retail alcohol licenses. The current class
6“A” liquor control license and class “D” liquor control
7license are renamed a class “F” and a class “D” retail alcohol
8license, respectively. The current class “B” liquor control
9license that may be issued to a hotel or motel is eliminated.
10Instead, the bill establishes a new class “B” retail alcohol
11license and special class “B” retail alcohol license. The
12new class “B” retail alcohol license allows the holder to
13purchase wine from a class “A” wine permittee and beer from a
14class “A” beer permittee and to sell wine and beer in original
15unopened containers at retail to patrons for consumption off
16the licensed premises. The bill also allows a holder of the
17new class “B” retail alcohol license to sell wine and beer
18in limited quantities to class “C”, special class “C”, class
19“D”, and class “F” retail alcohol licensees for resale for
20consumption on the premises. This new license combines, in
21part, the authority granted under the current class “C” beer
22permit for beer and the class “B” wine permit for wine. The
23new special class “B” retail native wine license authorizes
24the holder to purchase wine from a native winery holding a
25class “A” wine permit and to sell native wine only at retail
26for consumption off the licensed premises. The authority
27under this new special class “B” retail alcohol license is
28similar to the authority granted a holder of a current class
29“B” native wine permit. The current class “C” and special
30class “C” liquor control licenses are renamed as class “C” and
31special class “C” retail alcohol licenses. The current special
32class “C” native distilled spirits liquor control license
33is repealed. Finally, the current class “E” liquor control
34license is renamed a class “E” retail alcohol license. In
35addition, the bill provides that a class “E” retail alcohol
-72-1licensee can purchase wine and beer from a class “A” wine or
2beer permittee, respectively. The bill specifically allows the
3class “E” licensee to sell wine and beer in unopened containers
4at retail, and to sell alcoholic liquor and high alcoholic
5content beer at wholesale. The bill also allows a holder
6of a class “E” retail alcohol license to sell wine and beer
7in limited quantities to class “C”, special class “C”, class
8“D”, and class “F” retail alcohol licensees for resale for
9consumption on the premises.
10Code section 123.31, providing for liquor control license
11applications, is stricken and rewritten by the bill. Existing
12application requirements for liquor control licenses are made
13applicable to retail alcohol licenses established by the bill.
14In addition, requirements for issuance of a current class “B”
15beer permit, class “C” beer permit, and retail wine permit
16are generally made applicable to issuance of a retail alcohol
17license.
18New Code section 123.31A establishes the authority granted
19a holder of a new class “B”, class “C”, special class “C”,
20and class “E” retail alcohol license. The authority granted
21a holder of these licenses as to both wine and beer is similar
22to the authority granted current holders of a class “B” beer
23permit, class “C” beer permit, and class “B” wine permit,
24to include sales of beer or wine in other than the original
25container. The new Code section provides that a holder of
26a new class “C” or special class “C” retail alcohol license
27cannot sell beer or wine to other retail alcohol license
28holders. The bill also provides, similarly to current Code
29section 123.181(1), that a holder of any retail alcohol permit
30shall not sell wine except wine purchased from a person holding
31a class “A” permit or native wine manufacturer.
32New Code section 123.31B establishes the authority granted a
33holder of a new special class “B” retail native wine license.
34The authority granted a holder of this new license is similar
35to the authority granted a holder of a current class “B” native
-73-1wine permit.
2With the authority granted retail alcohol licensees
3regarding beer, the current class “B” and class “C” beer
4permits are repealed. As a result, the division repeals, as
5to beer permits, Code section 123.138, providing for class
6“B” beer permit applications, Code section 123.129, providing
7for class “C” beer permit applications, Code section 123.131,
8concerning authority under a class “B” beer permit, Code
9section 123.132, concerning authority under a class “C” beer
10permit, and Code section 123.140, concerning separate locations
11for class “B” or class “C” beer permits. In addition, based
12on the authority granted the new retail licenses regarding
13wine, the current class “B” wine, class “B” native wine, and
14class “C” native wine permits are repealed. As a result, the
15division repeals, as to wine permits, Code section 123.178,
16concerning authority under a class “B” wine permit, Code
17section 123.178A, concerning authority under a class “B” native
18wine permit, and Code section 123.178B, concerning authority
19under a class “C” native wine permit.
20The division takes effect January 1, 2023.
21DIVISION II — ALCOHOLIC BEVERAGE CONTROL FEES. This
22division concerns fees for the new retail alcohol licenses as
23well as changes to fees for other licenses and permits in Code
24chapter 123.
25Code section 123.23, concerning the distiller’s certificate
26of compliance, is amended to increase the annual fee for the
27certificate from $50 to $200.
28Code section 123.36, concerning liquor control license
29fees, is stricken and rewritten and made applicable to the new
30retail alcohol licenses. The current fees for a class “A”
31liquor control licensee are made applicable to the new class
32“F” retail alcohol license. The current fees for a class
33“B” liquor control license are repealed. Instead, the bill
34establishes fees for the new class “B” retail alcohol license
35based on the population of the city where the premises is
-74-1located as well as the square footage of the licensed premises.
2The fee for the new special class “B” native wine license is
3$125, an increase from the fee for a current class “B” native
4wine permit of $25. The fees for the new class “C” and special
5class “C” retail alcohol license are modified from the current
6fees for class “C” liquor control licenses. The new fees
7increase the population thresholds for increased fees for both
8the new class “C” and special class “C” licenses and reduce the
9fees for the class “C” retail alcohol license by $50 over the
10current fees for a class “C” liquor control license. The new
11class “D” retail alcohol license fees remain the same as the
12fees for the current class “D” liquor control license. The
13bill establishes fees for the new class “E” retail alcohol
14license based on the population of the city where the premises
15is located as well as the square footage of the licensed
16premises. Current fees for the class “E” liquor control
17license are based only on the population of the city where
18the premises is located. Current provisions in Code section
19123.36 governing crediting of liquor control license fees to
20the beer and liquor control fund are made applicable to the new
21retail alcohol license fees, excluding the new special class
22“B” retail alcohol licenses. Current provisions imposing fee
23surcharges are also made applicable to the new retail alcohol
24license fees, excluding the new class “B” and special class “B”
25retail alcohol licenses.
26Code section 123.41, concerning the manufacturer’s license,
27is amended to decrease the annual fee for the license from $350
28to $300.
29Code section 123.43(3), concerning a class “A” native
30distilled spirits license, is amended to decrease the annual
31fee for the license from $500 to $300.
32Code section 123.134, concerning beer permit fees, is
33stricken and rewritten. The bill keeps the annual permit fee
34for a class “A” beer permit at $750, reduces the annual permit
35fee for a special class “A” beer permit from $750 to $300, and
-75-1provides that the annual fee for a class “A” beer permit for a
2native brewery is $300. Fees for class “B” and class “C” beer
3permits are repealed as those permits are repealed by the bill.
4Code section 123.135, concerning the brewer’s certificate
5of compliance, is amended to reduce the annual fee for the
6certificate from $500 to $200.
7Code section 123.179, concerning wine permit fees, is
8stricken and rewritten by the bill. The bill keeps the annual
9permit fee for a class “A” wine permit that is not issued
10to a native wine manufacturer at $750, increases the annual
11permit fee for a class “A” wine permit issued to a native wine
12manufacturer from $25 to $100, and provides that the annual fee
13for a charity beer, spirits, and wine special event license
14created in the bill is $100. Fees for class “B” wine permits
15and class “B” and class “C” native wine permits are stricken
16as those permits are repealed by the bill. The current fees
17for charity wine auctions and charity wine event permits are
18stricken as those permits are repealed by the bill and combined
19in the new charity beer, spirits, and wine special event
20license created by the bill.
21Code section 123.180, concerning the vintner’s certificate
22of compliance, is amended to increase the annual fee for the
23certificate from $150 to $200.
24The division takes effect January 1, 2023.
25DIVISION III — ALCOHOLIC BEVERAGE CONTROL. This division
26makes changes to Code chapter 123 relative to alcoholic
27beverage control, to include making conforming changes relative
28to the creation of the new retail alcohol licenses and the
29elimination of certain native distilled spirits, beer, and wine
30permits in the bill. The bill also eliminates the requirement
31to obtain a special privilege to sell alcoholic beverages on
32Sunday and provides that sales or other activities relating
33to alcoholic beverages on Sunday will be allowed to the same
34extent as they are allowed on any other day.
35Code section 123.3, definitions, is amended to reflect the
-76-1new retail alcohol licenses. The bill strikes definitions for
2“retail beer permit” and “retail wine permit” as those permits
3are repealed by the bill and creates a new “retail alcohol
4license” definition reflecting the classes of licenses included
5within this new license. The definition of “high alcoholic
6content beer” is also amended to provide that high alcoholic
7content beer may contain up to 19 percent of alcohol by volume
8instead of the current 15 percent.
9Code section 123.34, concerning seasonal licenses and
10permits, is amended. The bill amends the Code section to
11reflect the new retail alcohol licenses and allows seasonal
12and shortened licenses for new class “C”, special class
13“C”, class “D”, and class “F” retail alcohol licensees. The
14bill eliminates the six-month seasonal license or permit and
15provides that the fee for an eight-month seasonal license shall
16be 50 percent of the license fee for that class of license
17instead of a proportional share of that fee.
18New Code section 123.35 includes the provision from
19current Code section 123.34 providing for the expiration of
20licenses, permits, and certificates of compliance without
21the notification requirement. The new Code section further
22provides, notwithstanding any provision of Code chapter 123
23to the contrary, for the automatic renewal of a class “E”
24retail alcohol license, a distiller’s, vintner’s, or brewer’s
25certificate of compliance, and a wine direct shipper’s
26permit. The bill allows the renewal of the applicable license,
27certificate, or permit without approval by the administrator
28of the alcoholic beverages division or endorsement of any
29applicable local authority upon collection of the annual fee
30for that license, certificate, or permit by the alcoholic
31beverages division, provided certain conditions are met since
32the preceding license, certificate, or permit was issued. The
33bill provides that the license, certificate, or permit can be
34automatically renewed if, in the preceding year, the license,
35certificate, or permit has not been suspended or revoked,
-77-1a civil penalty has not been imposed, an administrative
2proceeding is not pending to suspend or revoke the license,
3certificate, or permit or to impose a civil penalty, all
4required payments to the division have been made, and the
5licensee, certificate holder, or permittee, and all persons
6associated with the licensee, certificate holder, or permittee
7as described in Code section 123.3(40)(e), have not been
8convicted of a violation of Code chapter 123. In addition, for
9renewal of a class “E” retail alcohol license, the licensed
10premises shall constitute a safe and proper place and building
11that complies with all applicable building-related regulations.
12Code section 123.43A, concerning native distilleries, is
13amended to reflect the new retail alcohol licenses in the bill.
14The bill also provides that a native distillery, regardless
15of the quantity of native distilled spirits the distillery
16produces, has the ability to sell not more than nine liters
17per person per day of native distilled spirits on the premises
18of the native distillery and to apply for not more than two
19class “C” retail alcohol licenses. Under current law, a native
20distillery that produces and manufactures more than 100,000
21proof gallons of native distilled spirits on an annual basis
22may sell no more than 1.5 liters per person per day and is
23not authorized to apply for a class “C” native distilled
24spirits liquor control license. A holder of a class “C” retail
25alcohol license under the bill is granted the authority to sell
26alcoholic liquor, wine, and beer while a holder of the current
27class “C” native distilled spirits liquor control licenses has
28the authority to only sell native distilled spirits and mixed
29drinks or cocktails.
30Code section 123.46A, concerning delivery of alcoholic
31beverages by retailers, is amended to reflect that the new
32retail alcohol licenses in the bill are licenses, not permits.
33The bill also provides that deliveries shall occur on the same
34day the order for delivery of alcoholic beverages is removed
35from the licensed premises of the retailer.
-78- 1Code sections 123.49 and 123.50, concerning prohibitions
2and criminal and civil penalties, are amended to reflect the
3new retail alcohol licenses created in the bill and the fact
4that the authority to sell at retail is granted only to retail
5alcohol licensees and not permittees.
6Code section 123.92, the dramshop Act, is amended to
7provide that every retail alcohol licensee, except a class
8“B”, special class “B”, or class “E” retail alcohol licensee,
9shall furnish proof of financial responsibility by the
10existence of a liability insurance policy. Under current law,
11every liquor control licensee, class “B” beer permittee, and
12class “C” native wine permittee, except a class “E” liquor
13control licensee, is required to furnish proof of financial
14responsibility.
15Code section 123.97, providing that most revenues arising
16under the operation of Code chapter 123 become part of the
17general fund of the state, is repealed as inconsistent with the
18provisions of current Code section 123.17.
19Code section 123.123, concerning the applicability of
20provisions relating to class “B” beer permits to liquor control
21licensees, is repealed as class “B” beer permits are repealed
22in the bill.
23Code section 123.130, concerning authority under class “A”
24beer permits, is amended to reflect the new retail alcohol
25licenses in the bill. The bill also provides that a native
26brewery may be granted not more than two class “C” retail
27alcohol licenses instead of two class “B” permits which permits
28are repealed by the bill.
29Code section 123.138, concerning keg identification
30stickers, is amended to reflect the new retail alcohol licenses
31and provides for a keg identification label instead of a
32sticker. In addition, the bill strikes provisions concerning
33the forfeiture and remittance of deposits relating to defacing
34the keg identification label.
35Code section 123.143, concerning distribution of funds, is
-79-1amended to strike the provision directing where retail beer
2permit fees shall be distributed. The bill repeals all retail
3beer permit fees and the distribution of funds from retail
4alcohol licenses is governed by Code section 123.36 as amended
5by the bill.
6Code section 123.172, concerning the applicability of
7provisions relating to class “B” wine permits to liquor control
8licensees, is repealed as class “B” wine permits are repealed
9in the bill.
10Code section 123.173, concerning classes of wine permits, is
11amended by striking provisions relating to class “B”, class “B”
12native wine, and class “C” native wine permits as those permits
13are repealed by the bill.
14Code section 123.173A, providing for a charity beer,
15spirits, and wine auction permit, and Code section 123.173B,
16providing for a charity beer, spirits, and wine event permit,
17are stricken and replaced with a combined charity beer,
18spirits, and wine special event license, allowing the license
19holder to conduct a charity auction, charity event, or a
20combined charity auction and charity event in a similar manner
21as is allowed under current law for the two separate permits.
22The bill only allows one charity auction, charity event, or
23combined charity auction and charity event to be conducted
24during the period of the license and limits a person to no more
25than two special event licenses in a calendar year.
26Code section 123.176, concerning native wines, is amended
27to reflect the new retail alcohol licenses in the bill. The
28bill also provides that a manufacturer of native wines may be
29granted not more than two class “C” retail alcohol licenses
30instead of two class “C” native wine permits which permits are
31repealed by the bill. A holder of a class “C” retail alcohol
32license under the bill is granted the authority to sell wine
33and beer.
34Code section 123.187, concerning the wine direct shipper
35permit, is amended to remove the requirement that an
-80-1application for the permit be accompanied by a bond if not
2otherwise required to submit a bond as a wine manufacturer.
3Code section 125.59 is amended to reflect that current
4provisions providing for transfer of certain revenues to the
5department of public health are stricken by the bill.
6The division takes effect January 1, 2023.
7DIVISION IV — CONFORMING CHANGES. This division makes
8conforming changes to Code chapters 7D, 12, and 99B, relative
9to the creation of the new retail alcohol licenses and the
10elimination of certain native distilled spirits, beer, and wine
11permits in the bill.
12Code section 137F.1, defining food establishments for
13purposes of licensure, is amended to provide that a food
14establishment does not include only a premises covered by a
15class “A” wine permit. Under current law, a food establishment
16also does not include a premises covered by a class “B” wine
17permit which is stricken by the bill.
18The division takes effect January 1, 2023.
19DIVISION V — TRANSITION PROVISIONS. This division provides
20that any license or permit issued by the alcoholic beverages
21division that is repealed, merged, or altered in the bill and
22in effect on January 1, 2023, shall continue in full force and
23effect with the authority granted by that license or permit
24until expiration or renewal. The division also authorizes the
25alcoholic beverages division to adopt alternative procedures
26for the issuance of any license or permit that is repealed,
27merged, or altered in the bill that are issued on or after the
28effective date of the division of the bill but before January
291, 2023. The alternative procedures shall not be inconsistent
30with the provisions of the bill governing the issuance of
31licenses or permits on or after January 1, 2023.
32The division takes effect upon enactment.
-81-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(c) The holder of a class “B” retail alcohol license may
7sell beer to class “C”, special class “C”, class “D”, and class
8“F” retail alcohol licensees for resale for consumption on
9the premises. Such beer sales shall be in quantities of not
10more than five cases of beer, high alcoholic content beer, and
11canned cocktails, but not more than one such sale shall be
12made to the same retail alcohol licensee in a twenty-four-hour
13period. A class “A” beer permittee shall be held harmless
14concerning any beer resold as authorized by this subparagraph
15division.
16(2) A special class “B” retail native wine license shall
17authorize the holder to purchase wine from a native winery
18holding a class “A” wine permit and to sell native wine only at
19retail for consumption off the licensed premises.
20b. Class “C”.
21(1) (a) A class “C” retail alcohol license may be issued to
22a commercial establishment but must be issued in the name of
23the individuals who actually own the entire business.
24(b) The holder of a class “C” retail alcohol license shall
25be authorized to purchase alcoholic beverages as follows:
26(i) Alcoholic liquors in original unopened containers from
27class “E” retail alcohol licensees only.
28(ii) Wine from class “A” wine permittees.
29(iii) Wine from class “B” retail alcohol licensees or class
30“E” retail alcohol licensees in quantities of less than one
31case of any wine brand in a twenty-four-hour period, but not
32more than one such purchase shall be made by the licensee in a
33twenty-four-hour period.
34(iv) Beer from class “A” beer permittees.
35(v) Beer from class “B” retail alcohol licensees or class
-3-1“E” retail alcohol licensees in quantities of not more than
2five cases of beer, high alcoholic content beer, and canned
3cocktails, but not more than one such purchase shall be made by
4the licensee in a twenty-four-hour period. A class “A” beer
5permittee shall be held harmless concerning any beer resold as
6authorized by this subparagraph subdivision.
7(c) The holder of a class “C” retail alcohol license
8shall be authorized to sell alcoholic beverages to patrons by
9the individual drink for consumption on the premises only.
10However, alcoholic liquor, wine, and beer in original unopened
11containers may also be sold for consumption off the premises.
12In addition, mixed drinks or cocktails may also be sold for
13consumption off the premises subject to the requirements of
14section 123.49, subsection 2, paragraph “d”.
15(d) The holder of a class “C” retail alcohol license may
16also hold a special class “A” beer permit for the premises
17licensed under a class “C” retail alcohol license for the
18purpose of operating a brewpub pursuant to this chapter.
19(2) (a) A special class “C” retail alcohol license may be
20issued to a commercial establishment.
21(b) The holder of a special class “C” retail alcohol license
22shall be authorized to purchase alcoholic beverages as follows:
23(i) Wine from class “A” wine permittees.
24(ii) Wine from class “B” retail alcohol licensees or class
25“E” retail alcohol licensees in quantities of less than one
26case of any wine brand in a twenty-four-hour period, but not
27more than one such purchase shall be made by the licensee in a
28twenty-four-hour period.
29(iii) Beer from class “A” beer permittees.
30(iv) Beer from class “B” retail alcohol licensees or class
31“E” retail alcohol licensees in quantities of not more than
32five cases of beer, high alcoholic content beer, and canned
33cocktails, but not more than one such purchase shall be made by
34the licensee in a twenty-four-hour period. A class “A” beer
35permittee shall be held harmless concerning any beer resold as
-4-1authorized by this subparagraph subdivision.
2(c) The holder of a special class “C” retail alcohol
3license shall be authorized to sell wine and beer to patrons
4by the individual drink for consumption on the premises only.
5However, wine and beer in original unopened containers may also
6be sold for consumption off the premises.
7(d) The license issued to holders of a special class “C”
8retail alcohol license shall clearly state on its face that the
9license is limited.
10c. Class “D”.
11(1) A class “D” retail alcohol license may be issued
12to a railway corporation, to an air common carrier, and to
13passenger-carrying boats or ships for hire with a capacity of
14twenty-five persons or more operating in inland or boundary
15waters, and shall authorize the holder to sell or furnish
16alcoholic beverages to passengers for consumption only on
17trains, watercraft as described in this section, or aircraft,
18respectively. Each license is valid throughout the state.
19Only one license is required for all trains, watercraft, or
20aircraft operated in the state by the licensee. However, if a
21watercraft is an excursion gambling boat licensed under chapter
2299F, the owner shall obtain a separate class “D” retail alcohol
23license for each excursion gambling boat operating in the
24waters of this state.
25(2) A class “D” retail alcohol licensee who operates a train
26or a watercraft intrastate only, or an excursion gambling boat
27licensed under chapter 99F, shall be authorized to purchase
28alcoholic beverages as follows:
29(a) Alcoholic liquors in original unopened containers from
30class “E” retail alcohol licensees only.
31(b) Wine from class “A” wine permittees.
32(c) Wine from class “B” retail alcohol licensees or class
33“E” retail alcohol licensees in quantities of less than one
34case of any wine brand in a twenty-four-hour period, but not
35more than one such purchase shall be made by the licensee in a
-5-1twenty-four-hour period.
2(d) Beer from class “A” beer permittees.
3(e) Beer from class “B” retail alcohol licensees or class
4“E” retail alcohol licensees in quantities of not more than
5five cases of beer, high alcoholic content beer, and canned
6cocktails, but not more than one such purchase shall be made by
7the licensee in a twenty-four-hour period. A class “A” beer
8permittee shall be held harmless concerning any beer resold as
9authorized by this subparagraph division.
10d. Class “E”.
11(1) A class “E” retail alcohol license may be issued and
12shall authorize the holder to purchase alcoholic liquor in
13original unopened containers from the division only, wine
14from a class “A” wine permittee only, and beer from a class
15“A” beer permittee only; to sell alcoholic liquor, wine, and
16beer in original unopened containers at retail to patrons for
17consumption off the licensed premises; and to sell alcoholic
18liquor and high alcoholic content beer at wholesale to other
19retail alcohol licensees, provided the holder has filed with
20the division a basic permit issued by the alcohol and tobacco
21tax and trade bureau of the United States department of the
22treasury.
23(2) A holder of a class “E” retail alcohol license may hold
24other retail alcohol licenses, but the premises licensed under
25a class “E” retail alcohol license shall be separate from other
26licensed premises, though the separate premises may have a
27common entrance.
28(3) The holder of a class “E” retail alcohol license may
29sell wine to class “C”, special class “C”, class “D”, and class
30“F” retail alcohol licensees for resale for consumption on
31the premises. Such wine sales shall be in quantities of less
32than one case of any wine brand but not more than one such
33sale shall be made to the same retail alcohol licensee in a
34twenty-four-hour period.
35(4) The holder of a class “E” retail alcohol license may
-6-1sell beer to class “C”, special class “C”, class “D”, and class
2“F” retail alcohol licensees for resale for consumption on
3the premises. Such beer sales shall be in quantities of not
4more than five cases of beer, high alcoholic content beer, and
5canned cocktails, but not more than one such sale shall be
6made to the same retail alcohol licensee in a twenty-four-hour
7period. A class “A” beer permittee shall be held harmless
8concerning any beer resold as authorized by this subparagraph.
9(5) The division may issue a class “E” retail alcohol
10license for premises covered by a retail alcohol license
11for on-premises consumption under any of the following
12circumstances:
13(a) If the premises are in a county having a population
14under nine thousand five hundred in which no other class “E”
15retail alcohol license has been issued by the division, and no
16other application for a class “E” retail alcohol license has
17been made within the previous twelve consecutive months.
18(b) If, notwithstanding any provision of this chapter to the
19contrary, the premises covered by a retail alcohol license is a
20grocery store that is at least five thousand square feet.
21e. Class “F”.
22(1) A class “F” retail alcohol license may be issued to a
23club and shall authorize the holder to sell alcoholic beverages
24to bona fide members and their guests by the individual drink
25for consumption on the premises only.
26(2) The holder of a class “F” retail alcohol license shall
27be authorized to purchase alcoholic beverages as follows:
28(a) Alcoholic liquors in original unopened containers from
29class “E” retail alcohol licensees only.
30(b) Wine from class “A” wine permittees.
31(c) Wine from class “B” retail alcohol licensees or class
32“E” retail alcohol licensees in quantities of less than one
33case of any wine brand in a twenty-four—hour period, but not
34more than one such purchase shall be made by the licensee in a
35twenty-four-hour period.
-7- 1(d) Beer from class “A” beer permittees.
2(e) Beer from class “B” retail alcohol licensees or class
3“E” retail alcohol licensees in quantities of not more than
4five cases of beer, high alcoholic content beer, and canned
5cocktails, but not more than one such purchase shall be made by
6the licensee in a twenty-four-hour period. A class “A” beer
7permittee shall be held harmless concerning any beer resold as
8authorized by this subparagraph division.
94. Notwithstanding any provision of this chapter to the
10contrary, a person holding a retail alcohol license to sell
11alcoholic beverages for consumption on the licensed premises
12may permit a customer to remove one unsealed bottle of wine
13for consumption off the premises if the customer has purchased
14and consumed a portion of the bottle of wine on the licensed
15premises. The licensee or the licensee’s agent shall securely
16reseal such bottle in a bag designed so that it is visibly
17apparent that the resealed bottle of wine has not been tampered
18with and provide a dated receipt for the resealed bottle of
19wine to the customer. A wine bottle resealed pursuant to the
20requirements of this subsection is subject to the requirements
21of sections 321.284 and 321.284A. A person holding a retail
22alcohol license to sell alcoholic beverages for consumption on
23the licensed premises may permit a customer to carry an open
24container of wine from the person’s licensed premises into
25another immediately adjacent licensed premises that is covered
26by a license or permit that authorizes the consumption of wine,
27a temporarily closed public right-of-way, or a private place.
28 Sec. 2. Section 123.31, Code 2022, is amended by striking
29the section and inserting in lieu thereof the following:
30123.31 Retail alcohol licenses — application.
311. A person applying for a retail alcohol license shall
32submit a completed application electronically, or in a manner
33prescribed by the administrator, which shall set forth under
34oath the following:
35a. The name and place of residence of the applicant.
-8- 1b. The names and addresses of all persons or, in the case of
2a corporation, limited liability company, or any other similar
3legal entity, the officers, directors, and persons owning or
4controlling ten percent or more of the capital stock thereof,
5having a financial interest, by way of loan, ownership, or
6otherwise, in the business.
7c. The location of the premises where the applicant intends
8to operate.
9d. The name of the owner of the premises and if the owner of
10the premises is not the applicant, whether the applicant is the
11actual lessee of the premises.
12e. When required by the administrator, and in such form and
13containing such information as the administrator may require,
14a description of the premises where the applicant intends to
15use the license, to include a sketch or drawing of the premises
16and, if applicable, the number of square feet of interior floor
17space which comprises the retail sales area of the premises.
18f. Whether any person specified in paragraph “b” has ever
19been convicted of any offense against the laws of the United
20States, or any state or territory thereof, or any political
21subdivision of any such state or territory.
22g. Any other information as required by the administrator.
232. The retail alcohol license shall only be issued to an
24applicant who establishes all of the following:
25a. That the applicant has submitted a completed application
26as required by subsection 1.
27b. That the applicant is a person of good moral character as
28provided in section 123.3, subsection 40.
29c. That the applicant is a citizen of the state of Iowa
30or, if a corporation, that the applicant is authorized to do
31business in the state.
32d. That the premises where the applicant intends to use the
33license conforms to all applicable laws, health regulations,
34and fire regulations, and constitutes a safe and proper place
35or building and that the applicant shall not have or maintain
-9-1any interior access to residential or sleeping quarters unless
2permission is granted by the administrator in the form of a
3living quarters permit.
4e. That the applicant gives consent to a person, pursuant
5to section 123.30, subsection 1, to enter upon the premises
6without a warrant during the business hours of the applicant
7to inspect for violations of the provisions of this chapter or
8ordinances and regulations that local authorities may adopt.
9 Sec. 3. NEW SECTION. 123.31A Authority under class “B”,
10class “C”, special class “C”, and class “E” retail alcohol
11license.
121. The holder of a class “B”, class “C”, special class “C”,
13or class “E” retail alcohol license shall be allowed to sell
14beer and wine to consumers at retail for consumption off the
15premises. The sales made pursuant to this section shall be
16made in original containers except as provided in subsection 3.
172. Every person holding a class “B”, class “C”, special
18class “C”, or class “E” retail alcohol license having more
19than one place of business where beer and wine is sold which
20places do not constitute a single premises within the meaning
21of section 123.3, subsection 29, shall be required to have a
22separate license for each separate place of business, except as
23otherwise provided by this chapter.
243. Subject to the rules of the division, sales made pursuant
25to this section may be made in a container other than the
26original container only if all of the following requirements
27are met:
28a. The beer or wine is transferred from the original
29container to the container to be sold on the licensed premises
30at the time of sale.
31b. The person transferring the beer or wine from the
32original container to the container to be sold shall be
33eighteen years of age or older.
34c. The container to be sold shall be no larger than
35seventy-two ounces.
-10- 1d. The container to be sold shall be securely sealed by
2a method authorized by the division that is designed so that
3if the sealed container is reopened or the seal tampered with,
4it is visibly apparent that the seal on the container of beer
5or wine has been tampered with or the sealed container has
6otherwise been reopened.
74. A container of beer or wine other than the original
8container that is sold and sealed in compliance with the
9requirements of subsection 3 and the division’s rules shall
10not be deemed an open container subject to the requirements
11of sections 321.284 and 321.284A if the sealed container is
12unopened and the seal has not been tampered with, and the
13contents of the container have not been partially removed.
145. a. The holder of a class “C” or special class “C” retail
15alcohol license, or the licensee’s agents or employees, shall
16not sell beer or wine to other retail alcohol license holders
17knowing or having reasonable cause to believe that the beer
18will be resold in another licensed establishment.
19b. A holder of any retail alcohol permit shall not sell wine
20except wine which is purchased from a person holding a class
21“A” wine permit and on which the tax imposed by section 123.183
22has been paid.
23 Sec. 4. NEW SECTION. 123.31B Authority under special class
24“B” retail native wine license.
251. A person holding a special class “B” retail native wine
26license may sell native wine only at retail for consumption off
27the premises. Native wine shall be sold for consumption off
28the premises in original containers.
292. A special class “B” retail native wine licensee having
30more than one place of business where wine is sold shall obtain
31a separate license for each place of business.
32 Sec. 5. REPEAL. Sections 123.128, 123.129, 123.131,
33123.132, 123.140, 123.178, 123.178A, and 123.178B, Code 2022,
34are repealed.
35 Sec. 6. EFFECTIVE DATE. This division of this Act takes
-11-1effect January 1, 2023.
2DIVISION II
3ALCOHOLIC BEVERAGE CONTROL FEES
4 Sec. 7. Section 123.23, subsection 1, Code 2022, is amended
5to read as follows:
61. Any manufacturer, distiller, or importer of alcoholic
7liquors shipping, selling, or having alcoholic liquors brought
8into this state for resale by the state shall, as a condition
9precedent to the privilege of so trafficking in alcoholic
10liquors in this state, annually make application for and hold
11a distiller’s certificate of compliance which shall be issued
12by the administrator for that purpose. No brand of alcoholic
13liquor shall be sold by the division in this state unless
14the manufacturer, distiller, importer, and all other persons
15participating in the distribution of that brand in this state
16have obtained a certificate. The certificate of compliance
17shall expire at the end of one year from the date of issuance
18and shall be renewed for a like period upon application to the
19administrator unless otherwise suspended or revoked for cause.
20Each completed application for a certificate of compliance
21or renewal shall be submitted electronically, or in a manner
22prescribed by the administrator, and shall be accompanied by
23a fee of fifty two hundred dollars payable to the division.
24However, this subsection need not apply to a manufacturer,
25distiller, or importer who ships or sells in this state no more
26than eleven gallons or its case equivalent during any fiscal
27year as a result of “special orders” which might be placed,
28as defined and allowed by divisional rules adopted under this
29chapter.
30 Sec. 8. Section 123.36, Code 2022, is amended by striking
31the section and inserting in lieu thereof the following:
32123.36 Retail alcohol license fees.
331. The following fees shall be paid to the division annually
34for retail alcohol licenses issued under section 123.30:
35a. Class “B” retail alcohol license fees shall be determined
-12-1as follows:
2(1) For premises located within the corporate limits of a
3city with a population of two thousand five hundred or less, a
4fee determined as follows:
5(a) For a premises with a square footage of one thousand
6five hundred or less, seventy-five dollars.
7(b) For a premises with a square footage of more than one
8thousand five hundred but not more than two thousand, one
9hundred fifty dollars.
10(c) For a premises with a square footage of more than two
11thousand but not more than five thousand, two hundred fifty
12dollars.
13(d) For a premises with a square footage over five thousand,
14three hundred fifty dollars.
15(2) For premises located within the corporate limits of a
16city with a population of more than two thousand five hundred
17but less than fifteen thousand, a fee determined as follows:
18(a) For a premises with a square footage of one thousand
19five hundred or less, one hundred fifty dollars.
20(b) For a premises with a square footage of more than one
21thousand five hundred but not more than two thousand, two
22hundred fifty dollars.
23(c) For a premises with a square footage of more than two
24thousand but not more than five thousand, three hundred fifty
25dollars.
26(d) For a premises with a square footage over five thousand,
27five hundred dollars.
28(3) For premises located within the corporate limits of
29a city with a population of fifteen thousand or more, a fee
30determined as follows:
31(a) For a premises with a square footage of one thousand
32five hundred or less, two hundred fifty dollars.
33(b) For a premises with a square footage of more than one
34thousand five hundred but not more than two thousand, three
35hundred fifty dollars.
-13- 1(c) For a premises with a square footage of more than two
2thousand but not more than five thousand, five hundred dollars.
3(d) For a premises with a square footage over five thousand,
4seven hundred fifty dollars.
5(4) For premises located outside the corporate limits of
6any city, a fee equal to that charged to a premises with the
7same square footage in the incorporated city located nearest
8the premises to be licensed. If there is doubt as to which
9of two or more differing corporate limits is the nearest, the
10license fee which is the largest shall prevail. However, if
11the premises is located in an unincorporated town, for purposes
12of this paragraph, the unincorporated town shall be treated as
13if it is a city.
14b. Special class “B” retail native wine license fees shall
15be one hundred twenty-five dollars.
16c. Class “C” retail alcohol license fees shall be determined
17as follows:
18(1) Commercial establishments located within the corporate
19limits of cities of two thousand five hundred population or
20less, five hundred fifty dollars.
21(2) Commercial establishments located within the corporate
22limits of cities of over two thousand five hundred and less
23than fifteen thousand population, nine hundred dollars.
24(3) Commercial establishments located within the corporate
25limits of cities of fifteen thousand population and over, one
26thousand two hundred fifty dollars.
27(4) Commercial establishments located outside the corporate
28limits of any city, a fee equal to that charged in the
29incorporated city located nearest the premises to be licensed,
30and in case there is doubt as to which of two or more differing
31corporate limits is the nearest, the license fee which is the
32largest shall prevail. However, if a commercial establishment
33is located in an unincorporated town, for purposes of this
34paragraph, the unincorporated town shall be treated as if it
35is a city.
-14- 1d. Special class “C” retail alcohol license fees shall be
2determined as follows:
3(1) Commercial establishments located within the corporate
4limits of cities of two thousand five hundred population or
5less, one hundred fifty dollars.
6(2) Commercial establishments located within the corporate
7limits of cities of over two thousand five hundred and less
8than fifteen thousand population, three hundred dollars.
9(3) Commercial establishments located within the corporate
10limits of cities of fifteen thousand population and over, four
11hundred fifty dollars.
12(4) Commercial establishments located outside the corporate
13limits of any city, a fee equal to that charged in the
14incorporated city located nearest the premises to be licensed,
15and in case there is doubt as to which of two or more differing
16corporate limits is the nearest, the license fee which is the
17largest shall prevail. However, if a commercial establishment
18is located in an unincorporated town, for purposes of this
19paragraph, the unincorporated town shall be treated as if it
20is a city.
21e. Class “D” retail alcohol license fees shall be determined
22as follows:
23(1) For watercraft, one hundred fifty dollars.
24(2) For trains, five hundred dollars.
25(3) For air common carriers, each company shall pay five
26hundred dollars.
27f. Class “E” retail alcohol license fees shall be determined
28as follows:
29(1) For premises located within the corporate limits of a
30city with a population of two thousand five hundred or less, a
31fee determined as follows:
32(a) For a premises with a square footage of one thousand
33five hundred or less, seven hundred fifty dollars.
34(b) For a premises with a square footage of more than one
35thousand five hundred but not more than two thousand, one
-15-1thousand five hundred dollars.
2(c) For a premises with a square footage of more than two
3thousand but not more than five thousand, two thousand five
4hundred dollars.
5(d) For a premises with a square footage over five thousand,
6three thousand five hundred dollars.
7(2) For premises located within the corporate limits of a
8city with a population of more than two thousand five hundred
9but less than fifteen thousand, a fee determined as follows:
10(a) For a premises with a square footage of one thousand
11five hundred or less, one thousand five hundred dollars.
12(b) For a premises with a square footage of more than one
13thousand five hundred but not more than two thousand, two
14thousand five hundred dollars.
15(c) For a premises with a square footage of more than two
16thousand but not more than five thousand, three thousand five
17hundred dollars.
18(d) For a premises with a square footage over five thousand,
19five thousand dollars.
20(3) For premises located within the corporate limits of
21a city with a population of fifteen thousand or more, a fee
22determined as follows:
23(a) For a premises with a square footage of one thousand
24five hundred or less, two thousand five hundred dollars.
25(b) For a premises with a square footage of more than one
26thousand five hundred but not more than two thousand, three
27thousand five hundred dollars.
28(c) For a premises with a square footage of more than
29two thousand but not more than five thousand, five thousand
30dollars.
31(d) For a premises with a square footage over five thousand,
32seven thousand five hundred 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
-16-1the 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.
7g. Class “F” retail alcohol license fees shall be six
8hundred dollars, except that for class “F” licenses in cities
9of less than two thousand population, and for clubs of less
10than two hundred fifty members, the license fee shall be four
11hundred dollars; however, the fee shall be two hundred dollars
12for any club which is a post, branch, or chapter of a veterans
13organization chartered by the Congress of the United States, if
14the club does not sell or permit the consumption of alcoholic
15beverages on the premises more than one day in any week or
16more than a total of fifty-two days in a year, and if the
17application for a license states that the club does not and
18will not sell or permit the consumption of alcoholic beverages
19on the premises more than one day in any week or more than a
20total of fifty-two days in a year.
212. The division shall credit all fees to the beer and liquor
22control fund. The division shall remit to the appropriate
23local authority a sum equal to sixty-five percent of the fees
24collected for each class “B”, class “C”, or class “F” license
25except special class “C” licenses or class “E” licenses,
26covering premises located within the local authority’s
27jurisdiction. The division shall remit to the appropriate
28local authority a sum equal to seventy-five percent of the fees
29collected for each special class “C” license covering premises
30located within the local authority’s jurisdiction. Those fees
31collected for each class “E” retail alcohol license shall be
32credited to the beer and liquor control fund.
333. There is imposed a surcharge on the fee for each class
34“C”, special class “C”, or class “F” retail alcohol license
35equal to thirty percent of the scheduled license fee. The
-17-1surcharges collected under this subsection shall be deposited
2in the beer and liquor control fund, and notwithstanding
3subsection 2, no portion of the surcharges collected under this
4subsection shall be remitted to the local authority.
5 Sec. 9. Section 123.41, subsection 1, Code 2022, is amended
6to read as follows:
71. Each completed application to obtain or renew a
8manufacturer’s license shall be submitted to the division
9electronically, or in a manner prescribed by the administrator,
10and shall be accompanied by a fee of three hundred fifty
11 dollars payable to the division. The administrator may in
12accordance with this chapter grant and issue to a manufacturer
13a manufacturer’s license, valid for a one-year period after
14date of issuance, which shall allow the manufacture, storage,
15and wholesale disposition and sale of alcoholic liquors to the
16division and to customers outside of the state.
17 Sec. 10. Section 123.43, subsection 3, Code 2022, is amended
18to read as follows:
193. A class “A” native distilled spirits license for a native
20distillery shall be issued and renewed annually upon payment of
21a fee of five three hundred dollars.
22 Sec. 11. Section 123.134, Code 2022, is amended by striking
23the section and inserting in lieu thereof the following:
24123.134 Beer permit fees.
251. The annual permit fee for a class “A” beer permit is
26seven hundred fifty dollars.
272. The annual permit fee for a class “A” beer permit for a
28native brewery is three hundred dollars.
293. The annual permit fee for a special class “A” beer permit
30is three hundred dollars.
31 Sec. 12. Section 123.135, subsection 1, Code 2022, is
32amended to read as follows:
331. A manufacturer, brewer, bottler, importer, or vendor of
34beer, or any agent thereof, desiring to ship or sell beer, or
35have beer brought into this state for resale by a class “A”
-18-1beer permittee, shall first make application for and be issued
2a brewer’s certificate of compliance by the administrator for
3that purpose. The certificate of compliance expires at the
4end of one year from the date of issuance and shall be renewed
5for a like period upon application to the administrator unless
6otherwise revoked for cause. Each completed application for
7a certificate of compliance or renewal of a certificate shall
8be submitted electronically, or in a manner prescribed by the
9administrator, and shall be accompanied by a fee of five two
10 hundred dollars payable to the division. Each holder of a
11certificate of compliance shall furnish the information in a
12manner the administrator requires.
13 Sec. 13. Section 123.179, Code 2022, is amended by striking
14the section and inserting in lieu thereof the following:
15123.179 Wine permit and license fees.
161. The annual permit fee for a class “A” wine permit that
17is not issued to a native wine manufacturer is seven hundred
18fifty dollars.
192. The annual permit fee for a class “A” wine permit issued
20to a native wine manufacturer is one hundred dollars.
213. The fee for a charity beer, spirits, and wine special
22event license is one hundred dollars.
23 Sec. 14. Section 123.180, subsection 1, Code 2022, is
24amended to read as follows:
251. A manufacturer, vintner, bottler, importer, or vendor of
26wine, or an agent thereof, desiring to ship, sell, or have wine
27brought into this state for sale at wholesale by a class “A”
28permittee shall first make application for and shall be issued
29a vintner’s certificate of compliance by the administrator
30for that purpose. The vintner’s certificate of compliance
31shall expire at the end of one year from the date of issuance
32and shall be renewed for a like period upon application to
33the administrator unless otherwise revoked for cause. Each
34completed application for a vintner’s certificate of compliance
35or renewal of a certificate shall be submitted electronically,
-19-1or in a manner prescribed by the administrator, and shall be
2accompanied by a fee of one two hundred dollars payable to the
3division. Each holder of a vintner’s certificate of compliance
4shall furnish the information required by the administrator in
5the form the administrator requires. A vintner or wine bottler
6whose plant is located in Iowa and who otherwise holds a class
7“A” wine permit to sell wine at wholesale is exempt from the
8fee, but not the other terms and conditions. The holder of a
9vintner’s certificate of compliance may also hold a class “A”
10wine permit.
11 Sec. 15. EFFECTIVE DATE. This division of this Act takes
12effect January 1, 2023.
13DIVISION III
14ALCOHOLIC BEVERAGE CONTROL
15 Sec. 16. Section 123.3, subsections 9, 22, 29, and 30, Code
162022, are amended to read as follows:
179. “Brewpub” means a commercial establishment authorized to
18sell beer at retail for consumption on or off the premises that
19is operated by a person who holds a class “C” liquor control or
20special class “C” retail alcohol license or a class “B” beer
21permit and who also holds a special class “A” beer permit that
22authorizes the holder to manufacture and sell beer pursuant to
23this chapter.
2422. “High alcoholic content beer” means beer which contains
25more than six and twenty-five hundredths percent of alcohol by
26volume, but not more than fifteen nineteen percent of alcohol
27by volume, that is made by the fermentation of an infusion
28in potable water of barley, malt, and hops, with or without
29unmalted grains or decorticated and degerminated grains. Not
30more than one and five-tenths percent of the volume of a “high
31alcoholic content beer” may consist of alcohol derived from
32added flavors and other nonbeverage ingredients containing
33alcohol. The added flavors and other nonbeverage ingredients
34may not include added caffeine or other added stimulants
35including but not limited to guarana, ginseng, and taurine.
-20- 129. “Licensed premises” or “premises” means all rooms,
2enclosures, contiguous areas, or places susceptible of precise
3description satisfactory to the administrator where alcoholic
4beverages, wine, or beer is sold or consumed under authority of
5a liquor control retail alcohol license, wine permit, or beer
6permit. A single licensed premises may consist of multiple
7rooms, enclosures, areas, or places if they are wholly within
8the confines of a single building or contiguous grounds.
930. “Local authority” means the city council of any
10incorporated city in this state, or the county board of
11supervisors of any county in this state, which is empowered by
12this chapter to approve or deny applications for retail beer or
13wine permits and liquor control alcohol licenses; empowered to
14recommend that such permits or licenses be granted and issued
15by the division; and empowered to take other actions reserved
16to them by this chapter.
17 Sec. 17. Section 123.3, subsection 40, paragraph b, Code
182022, is amended to read as follows:
19b. The person is not prohibited by section 123.40 from
20obtaining a liquor control retail alcohol license or a wine or
21beer permit.
22 Sec. 18. Section 123.3, subsection 45, Code 2022, is amended
23by striking the subsection and inserting in lieu thereof the
24following:
2545. “Retail alcohol license” means a class “B”, class “C”,
26special class “C”, class “D”, class “E”, or class “F” retail
27alcohol license, or a special class “B” retail native wine
28license issued under this chapter.
29 Sec. 19. Section 123.3, subsection 46, Code 2022, is amended
30by striking the subsection.
31 Sec. 20. Section 123.9, subsections 5 and 7, Code 2022, are
32amended to read as follows:
335. To grant and issue beer permits, wine permits, liquor
34control retail alcohol licenses, and other licenses; and to
35suspend or revoke all such permits and licenses for cause under
-21-1this chapter.
27. To accept alcoholic liquors ordered delivered to the
3alcoholic beverages division pursuant to chapter 809A, and
4offer for sale and deliver the alcoholic liquors to class
5“E” liquor control retail alcohol licensees, unless the
6administrator determines that the alcoholic liquors may be
7adulterated or contaminated. If the administrator determines
8that the alcoholic liquors may be adulterated or contaminated,
9the administrator shall order their destruction.
10 Sec. 21. Section 123.10, subsections 3, 6, and 14, Code
112022, are amended to read as follows:
123. Regulating the purchase of alcoholic liquor generally
13and the furnishing of the liquor to class “E” liquor control
14 retail alcohol licensees under this chapter, and determining
15the classes, varieties, and brands of alcoholic liquors to be
16kept in state warehouses.
176. Providing for the issuance and electronic distribution
18of price lists which show the price to be paid by class “E”
19liquor control retail alcohol licensees for each brand,
20class, or variety of liquor kept for sale by the division,
21providing for the filing or posting of prices charged in sales
22between class “A” beer and class “A” wine permit holders and
23retailers, as provided in this chapter, and establishing or
24controlling the prices based on minimum standards of fill,
25quantity, or alcoholic content for each individual sale of
26alcoholic beverages as deemed necessary for retail or consumer
27protection. However, the division shall not regulate markups,
28prices, discounts, allowances, or other terms of sale at which
29alcoholic liquor may be purchased by the retail public or
30liquor control retail alcohol licensees from class “E” liquor
31control retail alcohol licensees or at which wine may be
32purchased and sold by class “A” and retail wine permittees, or
33change, nullify, or vary the terms of an agreement between a
34holder of a vintner certificate of compliance and a class “A”
35wine permittee.
-22- 114. Prescribing the uniform fee to be assessed against
2a class “B” beer permittee, class “C” native wine permittee,
3or liquor control retail alcohol licensee, except a class
4“B”, special class “B”, or class “E” liquor control retail
5alcohol licensee, to cover the administrative costs incurred
6by the division resulting from the failure of the licensee or
7permittee to maintain dramshop liability insurance coverage
8pursuant to section 123.92, subsection 2, paragraph “a”.
9 Sec. 22. Section 123.15, Code 2022, is amended to read as
10follows:
11123.15 Favors from licensee or permittee.
12A person responsible for the administration or enforcement
13of this chapter shall not accept or solicit donations,
14gratuities, political advertising, gifts, or other favors,
15directly or indirectly, from any liquor control retail alcohol
16 licensee, wine permittee, or beer permittee.
17 Sec. 23. Section 123.16, subsections 6 and 7, Code 2022, are
18amended to read as follows:
196. The number of liquor control retail alcohol licenses,
20wine permits, and beer permits issued, by class, the number in
21effect on the last day included in the report, and the number
22which have been suspended or revoked during the period covered
23by the report.
247. Amount of fees paid to the division from liquor control
25 retail alcohol licenses, wine permits, and beer permits, in
26gross, and the amount of liquor control retail alcohol license
27fees returned to local subdivisions of government as provided
28under this chapter.
29 Sec. 24. Section 123.22, subsection 1, Code 2022, is amended
30to read as follows:
311. The division has the exclusive right of importation
32into the state of all forms of alcoholic liquor, except as
33otherwise provided in this chapter, and a person shall not
34import alcoholic liquor, except that an individual of legal age
35may import and have in the individual’s possession an amount of
-23-1alcoholic liquor not exceeding nine liters per calendar month
2that the individual personally obtained outside the state.
3Alcoholic liquor imported by an individual pursuant to this
4subsection shall be for personal consumption only in a private
5home or other private accommodation. A distillery shall not
6sell alcoholic liquor within the state to any person but only
7to the division, except as otherwise provided in this chapter.
8This section vests in the division exclusive control within the
9state as purchaser of all alcoholic liquor sold by distilleries
10within the state or imported, except beer and wine, and except
11as otherwise provided in this chapter. The division shall
12receive alcoholic liquor on a bailment system for resale by the
13division in the manner set forth in this chapter. The division
14shall act as the sole wholesaler of alcoholic liquor to class
15“E” liquor control retail alcohol licensees.
16 Sec. 25. Section 123.24, Code 2022, is amended to read as
17follows:
18123.24 Alcoholic liquor sales by the division — dishonored
19payments — liquor prices.
201. The division shall sell alcoholic liquor at wholesale
21only. The division shall sell alcoholic liquor to class “E”
22liquor control retail alcohol licensees only. The division
23shall offer the same price on alcoholic liquor to all class “E”
24liquor control retail alcohol licensees without regard for the
25quantity of purchase or the distance for delivery.
262. The price of alcoholic liquor sold by the division shall
27consist of the following:
28a. The manufacturer’s price.
29b. A markup of up to fifty percent of the wholesale price
30paid by the division for the alcoholic liquor. The division
31may increase the markup on selected kinds of alcoholic liquor
32sold by the division if the average return to the division on
33all sales of alcoholic liquor does not exceed the wholesale
34price paid by the division and the fifty percent markup.
35c. A split case charge in an amount determined by the
-24-1division when alcoholic liquor is sold in quantities which
2require a case to be split.
3d. A bottle surcharge in an amount sufficient, when added
4to the amount not refunded to class “E” liquor control retail
5alcohol licensees pursuant to section 455C.2, to pay the costs
6incurred by the division for collecting and properly disposing
7of the liquor containers. The amount collected pursuant to
8this paragraph, in addition to any amounts not refunded to
9class “E” liquor control retail alcohol licensees pursuant
10to section 455C.2, shall be deposited in the beer and liquor
11control fund established under section 123.17.
123. a. The division may accept from a class “E” liquor
13control retail alcohol licensee electronic funds transferred
14by automated clearing house, wire transfer, or another method
15deemed acceptable by the administrator, in payment of alcoholic
16liquor. If a payment is subsequently dishonored, the division
17shall cause a notice of nonpayment and penalty to be served
18upon the class “E” liquor control retail alcohol licensee or
19upon any person in charge of the licensed premises. The notice
20shall state that if payment or satisfaction for the dishonored
21payment is not made within ten days of the service of notice,
22the licensee’s liquor control retail alcohol license may be
23suspended under section 123.39. The notice of nonpayment and
24penalty shall be in a form prescribed by the administrator, and
25shall be sent by certified mail.
26b. If upon notice and hearing under section 123.39 and
27pursuant to the provisions of chapter 17A concerning a
28contested case hearing, the administrator determines that the
29class “E” liquor control retail alcohol licensee failed to
30satisfy the obligation for which the payment was issued within
31ten days after the notice of nonpayment and penalty was served
32on the licensee as provided in paragraph “a” of this subsection,
33the administrator may suspend the licensee’s class “E” liquor
34control retail alcohol license for a period not to exceed ten
35days.
-25- 14. The administrator may refuse to sell alcoholic liquor
2to a class “E” liquor control retail alcohol licensee who
3tenders a payment which is subsequently dishonored until the
4outstanding obligation is satisfied.
5 Sec. 26. Section 123.26, Code 2022, is amended to read as
6follows:
7123.26 Restrictions on sales — seals — labeling.
8Alcoholic liquor shall not be sold by a class “E” liquor
9control retail alcohol licensee except in a sealed container
10with identifying markers as prescribed by the administrator
11and affixed in the manner prescribed by the administrator, and
12no such container shall be opened upon the premises of a state
13warehouse. The division shall cooperate with the department
14of natural resources so that only one identifying marker or
15mark is needed to satisfy the requirements of this section and
16section 455C.5, subsection 1. Possession of alcoholic liquors
17which do not carry the prescribed identifying markers is a
18violation of this chapter except as provided in section 123.22.
19 Sec. 27. Section 123.28, subsections 2 and 5, Code 2022, are
20amended to read as follows:
212. The division shall deliver alcoholic liquor purchased by
22class “E” liquor control retail alcohol licensees. Class “E”
23liquor control retail alcohol licensees may deliver alcoholic
24liquor purchased by class “A”, class “B”, class “C”, class “C”
25native distilled spirits, or class “D” liquor control, or class
26“F” retail alcohol licensees, and class “A”, class “B”, class
27“C”, class “C” native distilled spirits, or class “D” liquor
28control, or class “F” retail alcohol licensees may transport
29alcoholic liquor purchased from class “E” liquor control retail
30alcohol licensees.
315. This section does not affect the right of a liquor
32control retail alcohol license holder to purchase, possess, or
33transport alcoholic liquors subject to this chapter.
34 Sec. 28. Section 123.32, Code 2022, is amended to read as
35follows:
-26- 1123.32 Action by local authorities and division on
2applications for liquor control retail alcohol licenses, native
3distilled spirits licenses, and wine and beer permits.
41. Filing of application.
5a. A completed application for a class “A”, class “B”, class
6“C”, special class “C”, class “C” native distilled spirits, or
7class “E” liquor control retail alcohol license as provided
8in section 123.31, for a retail beer permit as provided in
9sections 123.128 and 123.129, or for a class “B”, class “B”
10native, or class “C” native retail wine permit as provided in
11section 123.175 except a class “D” retail alcohol license,
12shall be filed with the appropriate city council if the
13premises for which the license or permit is sought are located
14within the corporate limits of a city, or with the board of
15supervisors if the premises for which the license or permit is
16sought are located outside the corporate limits of a city.
17b. A completed application for a class “D” liquor
18control retail alcohol license and for any of the following
19certificates, licenses, or permits shall be submitted to the
20division electronically, or in a manner prescribed by the
21administrator, which shall proceed in the same manner as in the
22case of an application approved by local authorities:
23(1) A certificate of compliance as provided in sections
24123.23, 123.135, and 123.180.
25(2) A class “D” liquor control retail alcohol license as
26provided in section 123.31.
27(3) A manufacturer’s license as provided in section 123.41.
28(4) A broker’s permit as provided in section 123.42.
29(5) A class “A” native distilled spirits license as provided
30in section 123.43.
31(6) A class “A” or special class “A” beer permit as provided
32in section 123.127.
33(7) A charity beer, spirits, and wine auction permit special
34event license as provided in section 123.173A.
35(8) A charity beer, spirits, and wine event permit as
-27-1provided in section 123.173B.
2(9) (8) A class “A” wine permit as provided in section
3123.175.
4(10) (9) A wine direct shipper’s permit as provided in
5section 123.187.
6(11) (10) A wine carrier permit as provided in section
7123.188.
82. Action by local authorities. The local authority shall
9either approve or disapprove the issuance of a liquor control
10 retail alcohol license, a retail wine permit, or a retail
11beer permit, shall endorse its approval or disapproval on
12the application, and shall forward the application with the
13necessary fee and bond, if required, to the division. There
14is no limit upon the number of liquor control retail alcohol
15 licenses, retail wine permits, or retail beer permits which may
16be approved for issuance by local authorities.
173. Licensed premises for local events. A local authority
18may define, by motion of the local authority, licensed premises
19which shall be used by holders of liquor control retail alcohol
20 licenses, beer permits, and wine permits at festivals, fairs,
21or celebrations which are sponsored or authorized by the local
22authority. The licensed premises defined by motion of the
23local authority shall be used by the holders of five-day or
24fourteen-day class “A”, class “B”, class “C”, special class
25“C”, or class “D” liquor control, or class “F” retail alcohol
26 licenses, or five-day or fourteen-day class “B” or class “C”
27native wine permits, or class “B” beer permits only.
284. Security employee training. A local authority, as a
29condition of obtaining and holding a license or permit for
30on-premises consumption, may require a designated security
31employee as defined in section 123.3 to be trained and
32certified in security methods. The training shall include but
33is not limited to de-escalation techniques, anger management
34techniques, civil rights or unfair practices awareness as
35provided in section 216.7, recognition of fake or altered
-28-1identification, information on laws applicable to the serving
2of alcohol at a licensed premises, use of force and techniques
3for safely removing patrons, and instruction on the proper
4physical restraint methods used against a person who has become
5combative.
65. Occupancy rates. A local authority located in a county
7with a population that exceeds three hundred thousand persons,
8as a condition of obtaining and holding a license or permit
9 for on-premises consumption, shall require the applicant, or
10 licensee, or permittee to provide, and update if necessary, the
11occupancy rate of the licensed premises.
126. Action by administrator.
13a. Upon receipt of an application having been disapproved
14by the local authority, the administrator shall notify the
15applicant that the applicant may appeal the disapproval of
16the application to the administrator. The applicant shall
17be notified by certified mail or personal service, and the
18application, the fee, and any bond shall be returned to the
19applicant.
20b. Upon receipt of an application having been approved by
21the local authority, the division shall make an investigation
22as the administrator deems necessary to determine that
23the applicant complies with all requirements for holding a
24license or permit, and may require the applicant to appear
25to be examined under oath to demonstrate that the applicant
26complies with all of the requirements to hold a license
27or permit. If the administrator requires the applicant to
28appear and to testify under oath, a record shall be made of
29all testimony or evidence and the record shall become a part
30of the application. The administrator may appoint a member
31of the division or may request an administrative law judge
32of the department of inspections and appeals to receive the
33testimony under oath and evidence, and to issue a proposed
34decision to approve or disapprove the application for a license
35or permit. The administrator may affirm, reverse, or modify
-29-1the proposed decision to approve or disapprove the application
2for the license or permit. If the application is approved
3by the administrator, the license or permit shall be issued.
4If the application is disapproved by the administrator, the
5applicant shall be so notified by certified mail or personal
6service and the appropriate local authority shall be notified
7electronically, or in a manner prescribed by the administrator.
87. Appeal to administrator. An applicant for a liquor
9control retail alcohol license, wine permit, or beer permit may
10appeal from the local authority’s disapproval of an application
11for a license or permit to the administrator. In the appeal
12the applicant shall be allowed the opportunity to demonstrate
13in an evidentiary hearing conducted pursuant to chapter 17A
14that the applicant complies with all of the requirements for
15holding the license or permit. The administrator may appoint
16a member of the division or may request an administrative law
17judge from the department of inspections and appeals to conduct
18the evidentiary hearing and to render a proposed decision to
19approve or disapprove the issuance of the license or permit.
20The administrator may affirm, reverse, or modify the proposed
21decision. If the administrator determines that the applicant
22complies with all of the requirements for holding a license
23or permit, the administrator shall order the issuance of the
24license or permit. If the administrator determines that the
25applicant does not comply with the requirements for holding
26a license or permit, the administrator shall disapprove the
27issuance of the license or permit.
288. Judicial review. The applicant or the local authority
29may seek judicial review of the action of the administrator
30in accordance with the terms of the Iowa administrative
31procedure Act, chapter 17A. Notwithstanding the terms of the
32Iowa administrative procedure Act, chapter 17A, petitions
33for judicial review may be filed in the district court of
34the county where the premises covered by the application are
35situated.
-30- 19. Suspension by local authority. A liquor control retail
2alcohol licensee or a wine or beer permittee whose license
3or permit has been suspended or revoked or a civil penalty
4imposed by a local authority for a violation of this chapter
5or suspended by a local authority for violation of a local
6ordinance may appeal the suspension, revocation, or civil
7penalty to the administrator. The administrator may appoint
8a member of the division or may request an administrative law
9judge from the department of inspections and appeals to hear
10the appeal which shall be conducted in accordance with chapter
1117A and to issue a proposed decision. The administrator may
12review the proposed decision upon the motion of a party to the
13appeal or upon the administrator’s own motion in accordance
14with chapter 17A. Upon review of the proposed decision, the
15administrator may affirm, reverse, or modify the proposed
16decision. A liquor control retail alcohol licensee, wine or
17beer permittee, or a local authority aggrieved by a decision
18of the administrator may seek judicial review of the decision
19pursuant to chapter 17A.
20 Sec. 29. Section 123.34, Code 2022, is amended to read as
21follows:
22123.34 Expiration of licenses, permits, and certificates
23of compliance — seasonal Seasonal, fourteen-day, and five-day
24licenses and permits — fees.
251. All licenses, permits, and certificates of compliance,
26unless sooner suspended or revoked, expire one year from date
27of issuance. The administrator shall notify a license, permit,
28or certificate holder electronically, or in a manner prescribed
29by the administrator, sixty days prior to the expiration of
30each license, permit, or certificate.
312. 1. a. The administrator may issue six-month or
32 eight-month seasonal class “A”, class “B”, class “C”, special
33class “C”, and class “D” liquor control and class “F” retail
34alcohol licenses, class “B” wine permits, class “B” or class
35“C” native wine permits, or class “B” beer permits.
-31- 1b. The fee for a six-month or an eight-month seasonal
2license or permit issued pursuant to this subsection shall be
3for a proportionate part fifty percent of the license or permit
4 fee for that class of license or permit. However, the fee for
5a seasonal class “B” native wine permit shall be the permit fee
6provided in section 123.179, subsection 4, and the fee for a
7seasonal class “C” native wine permit shall be the permit fee
8provided in section 123.179, subsection 5.
93. 2. a. The administrator may issue fourteen-day class
10“A”, class “B”, class “C”, special class “C”, and class “D”
11liquor control and class “F” retail alcohol licenses, and
12fourteen-day class “B” beer permits, class “B” native wine
13permits, and class “C” native wine permits.
14b. A fourteen-day retail alcohol license or permit, if
15granted, is valid for fourteen consecutive days, but the holder
16shall not sell on the two Sundays in the fourteen-day period
17unless the holder qualifies for and obtains the privilege to
18sell on Sundays contained in section 123.36, subsection 6, and
19section 123.134, subsection 4.
20c. (1) The fee for a fourteen-day liquor control retail
21alcohol license or beer permit is one quarter of the annual fee
22for that class of liquor control retail alcohol license or beer
23permit. The fee for the privilege to sell on the two Sundays in
24the fourteen-day period is twenty percent of the price of the
25fourteen-day liquor control license or beer permit.
26(2) The fee for a fourteen-day class “B” native wine permit
27shall be the permit fee provided in section 123.179, subsection
284, and the fee for a fourteen-day class “C” native wine permit
29is the permit fee provided in section 123.179, subsection 5.
304. 3. a. The administrator may issue five-day class “A”,
31class “B”, class “C”, special class “C”, and class “D” liquor
32control, and class “F” retail alcohol licenses, and five-day
33class “B” beer permits, class “B” native wine permits, and
34class “C” native wine permits.
35b. A five-day retail alcohol license or permit is valid for
-32-1five consecutive days, but the holder shall not sell alcoholic
2beverages on Sunday in the five-day period unless the holder
3qualifies for and obtains the privilege to sell on Sunday
4pursuant to section 123.36, subsection 6, and section 123.134,
5subsection 4.
6c. (1) The fee for the five-day liquor control retail
7alcohol license or beer permit is one-eighth of the annual fee
8for that class of license or permit. The fee for the privilege
9to sell on a Sunday in the five-day period is ten percent of the
10price of the five-day liquor control license or beer permit.
11(2) The fee for a five-day class “B” native wine permit
12shall be the permit fee provided in section 123.179, subsection
134, and the fee for a five-day class “C” native wine permit is
14the permit fee provided in section 123.179, subsection 5.
155. 4. A refund of fees paid shall not be made for seasonal
16licenses or permits, or for fourteen-day or five-day liquor
17control retail alcohol licenses, native wine permits, or beer
18permits. In addition, a seasonal, fourteen-day, or five-day
19license or permit shall not be renewed.
20 Sec. 30. NEW SECTION. 123.35 Expiration of licenses,
21permits, and certificates of compliance — automatic renewals.
221. Except as otherwise provided by this chapter, all
23licenses, permits, and certificates of compliance, unless
24sooner suspended or revoked, expire one year from date of
25issuance.
262. Notwithstanding section 123.31 and any other provision
27of this chapter to the contrary, a class “E” retail alcohol
28license shall automatically renew without the endorsement
29of a local authority or approval by the administrator upon
30collection of the annual fee by the division, provided all of
31the following conditions are met since the preceding license
32was issued:
33a. The licensee has given written consent to the division
34to have the license automatically renewed as provided in this
35section.
-33- 1b. The license has not been suspended or revoked.
2c. A civil penalty has not been imposed against the
3licensee.
4d. An administrative proceeding is not pending against the
5licensee to suspend or revoke the license or to impose a civil
6penalty under this chapter.
7e. The licensee has not submitted payment for alcoholic
8liquor to the division that was subsequently dishonored.
9f. The licensee and all persons associated with the licensee
10as described in section 123.3, subsection 40, paragraph “e”,
11have not been convicted of a violation of this chapter.
12g. The licensed premises constitutes a safe and proper place
13or building and conforms with all applicable federal, state,
14and local laws, orders, ordinances, rules, resolutions, and
15health and fire regulations.
16h. A local authority has not notified the division, in
17a manner established by the division and made available to
18local authorities, that automatic renewal should not occur and
19that further review of the licensee by the division and the
20applicable local authority is warranted.
213. Notwithstanding sections 123.23, 123.135, 123.180,
22and any other provision of this chapter to the contrary, a
23distiller’s, brewer’s, or vintner’s certificate of compliance
24shall automatically renew without approval by the administrator
25upon collection of the annual fee by the division, provided
26all of the following conditions are met since the preceding
27certificate was issued:
28a. The certificate holder has given written consent to
29the division to have the certificate automatically renewed as
30provided in this section.
31b. The certificate has not been suspended or revoked.
32c. A civil penalty has not been imposed against the
33certificate holder.
34d. An administrative proceeding is not pending against the
35certificate holder to suspend or revoke the certificate or to
-34-1impose a civil penalty under this chapter.
2e. The certificate holder and all persons associated
3with the certificate holder as described in section 123.3,
4subsection 40, paragraph “e”, have not been convicted of a
5violation of this chapter.
64. Notwithstanding section 123.187 and any other provision
7of this chapter to the contrary, a wine direct shipper’s permit
8shall automatically renew without approval by the administrator
9upon collection of the annual fee by the division, provided all
10of the following conditions are met since the preceding permit
11was issued:
12a. The permittee has given written consent to the division
13to have the permit automatically renewed as provided in this
14section.
15b. The permit has not been suspended or revoked.
16c. A civil penalty has not been imposed against the
17permittee.
18d. An administrative proceeding is not pending against the
19permittee to suspend or revoke the permit or to impose a civil
20penalty under this chapter.
21e. The permittee has filed all required reports and remitted
22all wine gallonage tax owed pursuant to section 123.183.
23f. The permittee and all persons associated with the
24permittee as described in section 123.3, subsection 40,
25paragraph “e”, have not been convicted of a violation of this
26chapter.
27 Sec. 31. Section 123.38, subsection 1, Code 2022, is amended
28to read as follows:
291. A liquor control retail alcohol license, wine permit,
30or beer permit is a personal privilege and is revocable for
31cause. It is not property nor is it subject to attachment
32and execution nor alienable nor assignable, and it shall
33cease upon the death of the permittee or licensee. However,
34the administrator of the division may in the administrator’s
35discretion allow the executor or administrator of the estate of
-35-1a permittee or licensee to operate the business of the decedent
2for a reasonable time not to exceed the expiration date of the
3permit or license. Every permit or license shall be issued in
4the name of the applicant and no person holding a permit or
5license shall allow any other person to use it.
6 Sec. 32. Section 123.38, subsection 2, paragraph a,
7subparagraph (4), Code 2022, is amended to read as follows:
8(4) No refund shall be made for any liquor control retail
9alcohol license, wine permit, or beer permit surrendered more
10than nine months after issuance.
11 Sec. 33. Section 123.39, subsection 1, paragraph a, Code
122022, is amended to read as follows:
13a. (1) The administrator or the local authority may suspend
14a class “A”, class “B”, special class “B” native wine, class
15“C”, special class “C”, class “C” native distilled spirits, or
16 class “E” liquor control, or class “F” retail alcohol license,
17 or retail wine or beer permit charity beer, spirits, and wine
18special event license for a period not to exceed one year,
19revoke the license or permit, or impose a civil penalty not to
20exceed one thousand dollars per violation.
21(2) The administrator may suspend a certificate of
22compliance, a class “D” liquor control retail alcohol license,
23a manufacturer’s license, a broker’s permit, a class “A” native
24distilled spirits license, a class “A” or special class “A”
25beer permit, a charity beer, spirits, and wine auction permit,
26 a class “A” wine permit, a wine direct shipper’s permit, or a
27wine carrier permit for a period not to exceed one year, revoke
28the license, permit, or certificate, or impose a civil penalty
29not to exceed one thousand dollars per violation.
30 Sec. 34. Section 123.39, subsection 1, paragraph b,
31subparagraph (3), Code 2022, is amended to read as follows:
32(3) Any change in the ownership or interest in the business
33operated under a liquor control retail alcohol license, or any
34wine or beer permit, which change was not previously reported
35in a manner prescribed by the administrator within thirty days
-36-1of the change and subsequently approved by the local authority,
2when applicable, and the division.
3 Sec. 35. Section 123.39, subsections 2 and 3, Code 2022, are
4amended to read as follows:
52. Local authorities may suspend any liquor control retail
6alcohol license or retail wine or beer permit for a violation
7of any ordinance or regulation adopted by the local authority.
8Local authorities may adopt ordinances or regulations for the
9location of the premises of liquor control retail alcohol
10 licensed and retail wine or beer permitted establishments
11and local authorities may adopt ordinances, not in conflict
12with this chapter and that do not diminish the hours during
13which alcoholic beverages may be sold or consumed at retail,
14governing any other activities or matters which may affect the
15retail sale and consumption of alcoholic beverages and the
16health, welfare and morals of the community involved.
173. When a liquor control retail alcohol license or retail
18wine or beer permit is suspended after a hearing as a result
19of violations of this chapter by the licensee, permittee
20 or the licensee’s or permittee’s agents or employees, the
21premises which were licensed by the license or permit shall
22not be relicensed for a new applicant until the suspension
23has terminated or time of suspension has elapsed, or ninety
24days have elapsed since the commencement of the suspension,
25whichever occurs first. However, this section does not
26prohibit the premises from being relicensed to a new applicant
27before the suspension has terminated or before the time of
28suspension has elapsed or before ninety days have elapsed from
29the commencement of the suspension, if the premises prior to
30the time of the suspension had been purchased under contract,
31and the vendor under that contract had exercised the person’s
32rights under chapter 656 and sold the property to a different
33person who is not related to the previous licensee or permittee
34by marriage or within the third degree of consanguinity or
35affinity and if the previous licensee or permittee does not
-37-1have a financial interest in the business of the new applicant.
2 Sec. 36. Section 123.40, Code 2022, is amended to read as
3follows:
4123.40 Effect of revocation.
5Any liquor control retail alcohol licensee, wine permittee,
6or beer permittee whose license or permit is revoked under this
7chapter shall not thereafter be permitted to hold a liquor
8control retail alcohol license, wine permit, or beer permit in
9the state of Iowa for a period of two years from the date of
10revocation. A spouse or business associate holding ten percent
11or more of the capital stock or ownership interest in the
12business of a person whose license or permit has been revoked
13shall not be issued a liquor control retail alcohol license,
14wine permit, or beer permit, and no liquor control retail
15alcohol license, wine permit, or beer permit shall be issued
16which covers any business in which such person has a financial
17interest for a period of two years from the date of revocation.
18If a license or permit is revoked, the premises which had been
19covered by the license or permit shall not be relicensed for
20one year.
21 Sec. 37. Section 123.43A, subsection 2, Code 2022, is
22amended to read as follows:
232. A native distillery shall not sell more than one and
24one-half nine liters per person per day, of native distilled
25spirits on the premises of the native distillery. However, a
26native distillery which, combining all production facilities
27of the business, produces and manufactures not more than one
28hundred thousand proof gallons of native distilled spirits on
29an annual basis, may sell not more than nine liters per person
30per day, of native distilled spirits. In addition, a native
31distillery shall not directly ship native distilled spirits for
32sale at retail. The native distillery shall maintain records
33of individual purchases of native distilled spirits at the
34native distillery for three years.
35 Sec. 38. Section 123.43A, subsection 6, Code 2022, is
-38-1amended to read as follows:
26. Notwithstanding any provision of this chapter to the
3contrary or the fact that a person is the holder of a class “A”
4native distilled spirits license, a native distillery which,
5combining all production facilities of the business, produces
6and manufactures not more than one hundred thousand proof
7gallons of native distilled spirits on an annual basis may sell
8those native distilled spirits manufactured on the premises
9of the native distillery for consumption on the premises by
10applying for be granted a class “C” native distilled spirits
11liquor control retail alcohol license as provided defined in
12section 123.30. A native distillery may be granted not more
13than two class “C” native distilled spirits liquor control
14 retail alcohol licenses. All native distilled spirits sold
15by a native distillery for on-premises consumption and mixed
16drinks or cocktails sold for consumption off the premises
17shall be purchased from a class “E” liquor control licensee.
18 A manufacturer of native distilled spirits may be issued a
19class “C” native distilled spirits liquor control retail
20alcohol license regardless of whether the manufacturer is also
21a manufacturer of beer pursuant to a class “A” beer permit or
22a manufacturer of native wine pursuant to a class “A” wine
23permit.
24 Sec. 39. Section 123.45, subsection 1, paragraph d, Code
252022, is amended to read as follows:
26d. Hold a retail liquor control alcohol license or retail
27wine or beer permit, unless the licensee or permittee holding a
28retail liquor control alcohol license or retail wine or beer
29permit does not purchase or sell the alcoholic beverages of
30the person engaged in the business of manufacturing, bottling,
31or wholesaling alcoholic beverages. However, a person engaged
32in the business of manufacturing wine that is not native wine
33may purchase and sell the person’s wine under the authority
34of a special class “C” liquor control retail alcohol license
35and a class “B” wine permit retail alcohol license provided
-39-1the licensed premises is the principal office, as defined in
2section 490.140, of the person.
3 Sec. 40. Section 123.45, subsection 3, Code 2022, is amended
4to read as follows:
53. A person engaged in the wholesaling of beer or wine
6may sell only disposable glassware, which is constructed of
7paper, paper laminated, or plastic materials and designed
8primarily for personal consumption on a one-time usage
9basis, to retailers for use within the premises of licensed
10establishments, for an amount which is greater than or equal
11to an amount which represents the greater of either the amount
12paid for the disposable glassware by the supplier or the amount
13paid for the disposable glassware by the wholesaler. Also, a
14person engaged in the business of manufacturing beer may sell
15beer at retail for consumption on or off the premises of the
16manufacturing facility and, notwithstanding any other provision
17of this chapter or the fact that a person is the holder of a
18class “A” beer permit, a native brewery may be granted not more
19than two class “B” beer permits “C” retail alcohol licenses as
20defined in section 123.124 for that purpose 123.30 regardless
21of whether that person is also a manufacturer of native
22distilled spirits pursuant to a class “A” native distilled
23spirits license or a manufacturer of native wine pursuant to a
24class “A” wine permit.
25 Sec. 41. Section 123.46, subsection 2, Code 2022, is amended
26to read as follows:
272. A person shall not use or consume alcoholic liquor, wine,
28or beer upon the public streets or highways. A person shall
29not use or consume alcoholic liquor in any public place except
30premises covered by a liquor control retail alcohol license.
31A person shall not possess or consume alcoholic liquors,
32wine, or beer on public school property or while attending a
33public or private school-related function. A person shall not
34be intoxicated in a public place. A person violating this
35subsection is guilty of a simple misdemeanor.
-40-1 Sec. 42. Section 123.46A, Code 2022, is amended to read as
2follows:
3123.46A Delivery of alcoholic beverages by retailers.
41. Licensees and permittees authorized to sell alcoholic
5liquor, wine, or beer in original unopened containers for
6consumption off the licensed premises may deliver alcoholic
7liquor, wine, or beer to a home, another licensed premises if
8there is identical ownership of the premises by the licensee
9or permittee, or other designated location in this state.
10Deliveries shall be limited to alcoholic beverages authorized
11by the licensee’s or permittee’s license or permit. Orders
12delivered to another licensed premises shall contain only
13those alcoholic beverages authorized for sale by the liquor
14control retail alcohol license or retail wine or beer permit
15 covering the premises to which the alcoholic beverages will
16be delivered. Orders delivered to another licensed premises
17shall be fulfilled using the alcoholic beverages inventory
18owned by the licensee or permittee who will receive the order
19for delivery. If the recipient refuses or fails to pick up
20the delivery, or is ineligible to receive the delivery, the
21alcoholic beverages shall be returned to the licensee or
22permittee who fulfilled the order.
232. Licensees and permittees authorized to sell wine, beer,
24or mixed drinks or cocktails for consumption off the licensed
25premises in a container other than the original container may
26deliver the wine, beer, or mixed drinks or cocktails to a
27home or other designated location in this state only if the
28container other than the original container has been sold and
29securely sealed in compliance with this chapter or the rules
30of the division. Deliveries shall be limited to alcoholic
31beverages authorized by the licensee’s or permittee’s license
32or permit.
333. All deliveries of alcoholic liquor, wine, beer, or
34mixed drinks or cocktails shall be subject to the following
35requirements and restrictions:
-41- 1a. Payment for the alcoholic liquor, wine, beer, or mixed
2drinks or cocktails shall be received by the licensee or
3permittee at the time of order.
4b. Orders for deliveries may be taken by the licensee or
5permittee between the hours of 2:00 a.m.and 6:00 a.m.
6on a day other than Sunday, and orders for deliveries may
7be taken between the hours of 2:00 a.m.and 6:00 a.m.on a
8Sunday provided the licensee or permittee has been granted
9the privilege of selling alcoholic liquor, wine, beer, or
10mixed drinks or cocktails on Sunday on any day of the week,
11notwithstanding any provision of section 123.49, subsection 2,
12paragraph “b”, to the contrary.
13c. Alcoholic liquor, wine, beer, or mixed drinks or
14cocktails delivered to a person shall be for personal use and
15not for resale.
16d. Deliveries shall only be made to persons in this state
17who are twenty-one years of age or older.
18e. Deliveries shall not be made to a person who is
19intoxicated or is simulating intoxication.
20f. Deliveries shall occur between 6:00 a.m.and 10:00 p.m.
21Monday throughSunday on the same day the order for alcoholic
22liquor, wine, beer, or mixed drinks or cocktails is removed
23from the licensed premises.
24g. Delivery of alcoholic liquor, wine, beer, or mixed drinks
25or cocktails shall be made by the licensee or permittee, the
26licensee’s or permittee’s employee, or a third party, provided
27the licensee or permittee has entered into a written agreement
28with the third party that authorizes the third party to act
29as an agent of the licensee or permittee for the purpose of
30delivering alcoholic liquor, wine, beer, or mixed drinks or
31cocktails. Each licensee or permittee shall submit to the
32division electronically, or in a manner prescribed by the
33administrator, a list of names and addresses of all third
34parties it has authorized to act as its agent for the purpose
35of delivering alcoholic liquor, wine, beer, or mixed drinks
-42-1or cocktails. The licensee or permittee shall provide the
2division with amendments to the list as necessary to ensure the
3division possesses an accurate, current list.
4h. Delivery personnel shall be twenty-one years of age or
5older.
6i. Valid proof of the recipient’s identity and age shall
7be obtained at the time of delivery, and the signature of a
8person twenty-one years of age or older shall be obtained as a
9condition of delivery.
10j. Licensees and permittees shall maintain records
11of deliveries which include the quantity delivered, the
12recipient’s name and address, and the signature of the
13recipient of the alcoholic liquor, wine, beer, or mixed drinks
14or cocktails. The records shall be maintained on the licensed
15premises for a period of three years.
164. A violation of this section or any other provision
17of this chapter shall subject the licensee or permittee to
18the penalty provisions of section 123.39. If the licensee
19or permittee, an employee of the licensee or permittee, or
20a person delivering alcoholic liquor, wine, beer, or mixed
21drinks or cocktails for a third party acting on behalf of the
22licensee or permittee pursuant to a written agreement violates
23this section, the licensee or permittee shall not be assessed
24a penalty under section 123.39 if the licensee or permittee
25 establishes all of the following:
26a. The violation was committed off of the licensee’s
27or permittee’s premises after the liquor, wine, beer, or
28mixed drinks or cocktails was removed from the licensee’s or
29permittee’s premises in fulfillment of a delivery order.
30b. (1) If the person who committed the violation is an
31employee of the licensee or permittee, that no other violation
32of this section was committed by any employee of the licensee
33or permittee within the two-year period immediately preceding
34the date of violation.
35(2) If the person who committed the violation is a person
-43-1delivering for a third party acting on behalf of the licensee
2or permittee, that no other violation of this section was
3committed by any person delivering for the same third party
4while the third party was acting on behalf of the licensee or
5permittee within the two-year period immediately preceding the
6date of violation.
75. Nothing in this section shall impact the direct shipment
8of wine as regulated by section 123.187.
9 Sec. 43. Section 123.47, subsection 3, Code 2022, is amended
10to read as follows:
113. A person or persons under legal age shall not purchase
12or attempt to purchase, consume, or individually or jointly
13have alcoholic beverages in their possession or control; except
14in the case of any alcoholic beverage given or dispensed to
15a person under legal age within a private home and with the
16knowledge, presence, and consent of the parent or guardian, for
17beverage or medicinal purposes or as administered to the person
18by either a physician or dentist for medicinal purposes and
19except to the extent that a person under legal age may handle
20alcoholic beverages during the regular course of the person’s
21employment by a liquor control retail alcohol licensee, or wine
22or beer permittee under this chapter.
23 Sec. 44. Section 123.48, subsections 1 and 3, Code 2022, are
24amended to read as follows:
251. If a liquor control retail alcohol licensee or wine or
26beer permittee or an employee of the licensee or permittee
27 has a reasonable belief based on factual evidence that a
28driver’s license as defined in section 321.1, subsection
2920A, or nonoperator’s identification card issued pursuant to
30section 321.190 offered by a person who wishes to purchase
31an alcoholic beverage at the licensed premises is altered
32or falsified or belongs to another person, the licensee,
33permittee, or employee may retain the driver’s license or
34nonoperator’s identification card. Within twenty-four hours,
35the license or card shall be delivered to the appropriate
-44-1city or county law enforcement agency of the jurisdiction in
2which the licensed premises is located. When the license or
3card is delivered to the appropriate law enforcement agency,
4the licensee shall file a written report of the circumstances
5under which the license or card was retained. The local law
6enforcement agency may investigate whether a violation of
7section 321.216, 321.216A, or 321.216B has occurred. If an
8investigation is not initiated or a probable cause is not
9established by the local law enforcement agency, the driver’s
10license or nonoperator’s identification card shall be delivered
11to the person to whom it was issued. The local law enforcement
12agency may forward the license or card with the report to the
13department of transportation for investigation, in which case,
14the department may investigate whether a violation of section
15321.216, 321.216A, or 321.216B has occurred. The department of
16transportation shall return the license or card to the person
17to whom it was issued if an investigation is not initiated or a
18probable cause is not established.
193. A liquor control retail alcohol licensee or wine or
20beer permittee or an employee of the licensee or permittee
21 is not subject to criminal prosecution for, or to civil
22liability for damages alleged to have resulted from, the
23retention and delivery of a driver’s license or a nonoperator’s
24identification card which is taken pursuant to subsections
251 and 2. This section shall not be construed to relieve a
26licensee, permittee, or employee of the licensee or permittee
27 from civil liability for damages resulting from the use of
28unreasonable force in obtaining the altered or falsified
29driver’s license or nonoperator’s identification card or the
30driver’s license or nonoperator’s identification card believed
31to belong to another person.
32 Sec. 45. Section 123.49, subsection 2, unnumbered paragraph
331, Code 2022, is amended to read as follows:
34A person holding a liquor control retail alcohol license or
35retail wine or beer permit under this chapter, and the person’s
-45-1agents or employees, shall not do any of the following:
2 Sec. 46. Section 123.49, subsection 2, paragraph b, Code
32022, is amended to read as follows:
4b. Sell or dispense any alcoholic beverage on the premises
5covered by the license or permit, or permit its consumption
6thereon between the hours of 2:00 a.m.and 6:00 a.m.on a
7weekday, and between the hours of 2:00 a.m.on Sunday and 6:00
8a.m.on the following Monday, however, a holder of a liquor
9control license or retail wine or beer permit granted the
10privilege of selling alcoholic liquor, wine, or beer on Sunday
11may sell or dispense alcoholic liquor, wine, or beer between
12the hours of 6:00 a.m.on Sunday and 2:00 a.m.on the following
13Monday any day of the week.
14 Sec. 47. Section 123.49, subsection 2, paragraph d,
15subparagraphs (1) and (3), Code 2022, are amended to read as
16follows:
17(1) Keep on premises covered by a liquor control retail
18alcohol license any alcoholic liquor in any container except
19the original package purchased from the division, and except
20mixed drinks or cocktails mixed on the premises for immediate
21consumption on the licensed premises or as otherwise provided
22by this paragraph “d”. This prohibition does not apply to
23holders of a class “D” liquor control retail alcohol license
24or to alcoholic liquor delivered in accordance with section
25123.46A.
26(3) Mixed drinks or cocktails mixed on premises covered by
27a class “C” liquor control retail alcohol license or a class
28“C” native distilled spirits liquor control retail alcohol
29 license for consumption off the licensed premises may be
30sold if the mixed drink or cocktail is immediately filled in
31a sealed container and is promptly taken from the licensed
32premises prior to consumption of the mixed drink or cocktail.
33A mixed drink or cocktail that is sold in a sealed container in
34compliance with the requirements of this subparagraph and rules
35adopted by the division shall not be deemed an open container
-46-1subject to the requirements of sections 321.284 and 321.284A
2if the sealed container is unopened and the seal has not been
3tampered with, and the contents of the container have not been
4partially removed.
5 Sec. 48. Section 123.49, subsection 2, paragraphs g and j,
6Code 2022, are amended to read as follows:
7g. Allow any person other than the licensee, permittee,
8 or employees of the licensee or permittee, to use or keep
9on the licensed premises any alcoholic liquor in any bottle
10or other container which is designed for the transporting of
11such beverages, except as permitted in section 123.95. This
12paragraph does not apply to the lodging quarters of a class
13“B” liquor control licensee or wine or beer permittee hotel
14or motel holding a retail alcohol license, or to holders of a
15class “D” liquor control retail alcohol license.
16j. Knowingly permit or engage in any criminal activity
17on the premises covered by the license or permit. However,
18the absence of security personnel on the licensed premises
19is insufficient, without additional evidence, to prove that
20criminal activity occurring on the licensed premises was
21knowingly permitted in violation of this paragraph “j”. For
22purposes of this paragraph “j”, “premises” includes parking lots
23and areas adjacent to the premises of a liquor control retail
24alcohol licensee or wine or beer permittee authorized to sell
25alcoholic beverages for consumption on the licensed premises
26and used by patrons of the liquor control retail alcohol
27 licensee or wine or beer permittee.
28 Sec. 49. Section 123.49, subsection 3, Code 2022, is amended
29to read as follows:
303. A person under legal age shall not misrepresent the
31person’s age for the purpose of purchasing or attempting
32to purchase any alcoholic beverage from any liquor control
33 retail alcohol licensee or wine or beer permittee. If any
34person under legal age misrepresents the person’s age, and
35the licensee or permittee establishes that the licensee or
-47-1permittee made reasonable inquiry to determine whether the
2prospective purchaser was over legal age, the licensee or
3permittee is not guilty of selling alcoholic beverages to a
4person under legal age.
5 Sec. 50. Section 123.49, subsection 4, Code 2022, is amended
6by striking the subsection.
7 Sec. 51. Section 123.50, subsections 1, 2, 4, and 5, Code
82022, are amended to read as follows:
91. Any person who violates any of the provisions of section
10123.49, except section 123.49, subsection 2, paragraph “h”,
11or who fails to affix upon sale, defaces, or fails to record
12a keg identification sticker label or produce a record of keg
13identification stickers labels pursuant to section 123.138,
14shall be guilty of a simple misdemeanor. A person who violates
15section 123.49, subsection 2, paragraph “h”, commits a simple
16misdemeanor punishable as a scheduled violation under section
17805.8C, subsection 2.
182. The conviction of any liquor control retail alcohol
19 licensee or wine or beer permittee for a violation of any of
20the provisions of section 123.49, subject to subsection 3 of
21this section, is grounds for the suspension or revocation of
22the license or permit by the division or the local authority.
23However, if any liquor control retail alcohol licensee is
24convicted of any violation of section 123.49, subsection 2,
25paragraph “a”, “d”, or “e”, or any wine or beer permittee retail
26alcohol licensee, excluding a special class “B” or class “D”
27retail alcohol licensee, is convicted of a violation of section
28123.49, subsection 2, paragraph “a” or “e” “d”, the liquor
29control retail alcohol license or wine or beer permit shall be
30revoked and shall immediately be surrendered by the holder,
31and the bond, if any, of the license or permit holder shall be
32forfeited to the division. However, the division shall retain
33only that portion of the bond equal to the amount the division
34determines the license or permit holder owes the division.
354. In addition to any other penalties imposed under this
-48-1chapter, the division shall assess a civil penalty up to
2the amount of five thousand dollars upon a class “E” liquor
3control retail alcohol licensee when the class “E” liquor
4 retail alcohol license is revoked for a violation of section
5123.59. Failure to pay the civil penalty as required under
6this subsection shall result in forfeiture of the bond to the
7division. However, the division shall retain only that portion
8of the bond equal to the amount the division determines the
9license or permit holder owes the division.
105. If an employee of a liquor control retail alcohol
11 licensee or wine or beer permittee violates section 123.49,
12subsection 2, paragraph “h”, the licensee or permittee shall
13not be assessed a penalty under subsection 3, and the violation
14shall be deemed not to be a violation of section 123.49,
15subsection 2, paragraph “h”, for the purpose of determining
16the number of violations for which a penalty may be assessed
17pursuant to subsection 3, if the employee holds a valid
18certificate of completion of the alcohol compliance employee
19training program pursuant to section 123.50A at the time of the
20violation, and if the violation involves selling, giving, or
21otherwise supplying any alcoholic beverage to a person between
22the ages of eighteen and twenty years of age. A violation
23involving a person under the age of eighteen years of age
24shall not qualify for the bar against assessment of a penalty
25pursuant to subsection 3, for a violation of section 123.49,
26subsection 2, paragraph “h”. A licensee or permittee may assert
27only once in a four-year period the bar under this subsection
28against assessment of a penalty pursuant to subsection 3, for a
29violation of section 123.49, subsection 2, paragraph “h”, that
30takes place at the same place of business location.
31 Sec. 52. Section 123.50, subsection 3, unnumbered paragraph
321, Code 2022, is amended to read as follows:
33If any liquor control retail alcohol licensee, wine or
34beer permittee, or employee of a licensee or permittee is
35convicted or found in violation of section 123.49, subsection
-49-12, paragraph “h”, the administrator or local authority shall,
2in addition to criminal penalties fixed for violations by this
3section, assess a civil penalty as follows:
4 Sec. 53. Section 123.92, subsection 2, paragraphs a and c,
5Code 2022, are amended to read as follows:
6a. Every liquor control retail alcohol licensee, class “B”
7beer permittee, and class “C” native wine permittee, except
8a class “B”, special class “B”, or class “E” liquor control
9 retail alcohol licensee, shall furnish proof of financial
10responsibility by the existence of a liability insurance
11policy in an amount determined by the division. If an insurer
12provides dramshop liability insurance at a new location to
13a licensee or permittee who has a positive loss experience
14at other locations for which such insurance is provided by
15the insurer, and the insurer bases premium rates at the new
16location on the negative loss history of the previous licensee
17or permittee at that location, the insurer shall examine and
18consider adjusting the premium for the new location not less
19than thirty months after the insurance is issued, based on the
20loss experience of the licensee or permittee at that location
21during that thirty-month period of time.
22c. The purpose of dramshop liability insurance is to provide
23protection for members of the public who experience damages
24as a result of licensees or permittees serving patrons any
25alcoholic beverage to a point that reaches or exceeds the
26standard set forth in law for liability. Minimum coverage
27requirements for such insurance are not for the purpose of
28making the insurance affordable for all licensees or permittees
29 regardless of claims experience. A dramshop liability
30insurance policy obtained by a licensee or permittee shall meet
31the minimum insurance coverage requirements as determined by
32the division and is a mandatory condition for holding a license
33or permit.
34 Sec. 54. Section 123.92, subsection 3, paragraphs a and b,
35Code 2022, are amended to read as follows:
-50- 1a. Notwithstanding section 123.49, subsection 1, any
2person who is injured in person or property or means of
3support by an intoxicated person who is under legal age or
4resulting from the intoxication of a person who is under
5legal age, has a right of action for all damages actually
6sustained, severally or jointly, against a person who is
7not a licensee or permittee and who dispensed or gave any
8alcoholic beverage to the intoxicated underage person when the
9nonlicensee or nonpermittee who dispensed or gave the alcoholic
10beverage to the underage person knew or should have known the
11underage person was intoxicated, or who dispensed or gave any
12alcoholic beverage to the underage person to a point where the
13nonlicensee or nonpermittee knew or should have known that the
14underage person would become intoxicated.
15b. If the injury was caused by an intoxicated person who is
16under legal age, a person who is not a licensee or permittee
17 and who dispensed or gave the alcoholic beverage to the
18underage person may establish as an affirmative defense that
19the intoxication did not contribute to the injurious action of
20the underage person.
21 Sec. 55. Section 123.95, subsection 2, paragraphs a and c,
22Code 2022, are amended to read as follows:
23a. The holder of an annual class “B” liquor control license
24or an annual class “C” liquor control retail alcohol license
25may act as the agent of a private social host for the purpose
26of providing and serving alcoholic beverages as part of a food
27catering service for a private social gathering in a private
28place, provided the licensee has applied for and been granted a
29catering privilege by the division. The holder of an annual
30special class “C” liquor control retail alcohol license shall
31not act as the agent of a private social host for the purpose of
32providing and serving wine and beer as part of a food catering
33service for a private social gathering in a private place.
34An applicant for a class “B” or class “C” liquor control
35 retail alcohol license shall state on the application for the
-51-1license that the licensee intends to engage in catering food
2and alcoholic beverages for private social gatherings and the
3catering privilege shall be noted on the license.
4c. Section 123.92 does not apply to a liquor control retail
5alcohol licensee who acts in accordance with this section when
6the liquor control retail alcohol licensee is providing and
7serving food and alcoholic beverages as an agent of a private
8social host at a private social gathering in a private place
9which is not on the licensed premises.
10 Sec. 56. Section 123.122, subsection 1, Code 2022, is
11amended to read as follows:
121. A person shall not cause the manufacture, importation,
13or sale of beer in this state unless a certificate or permit as
14provided in this subchapter, or a liquor control retail alcohol
15 license as provided in subchapter I of this chapter, is first
16obtained which authorizes that manufacture, importation, or
17sale.
18 Sec. 57. Section 123.124, Code 2022, is amended to read as
19follows:
20123.124 Beer permits — classes.
21Permits for the manufacture and sale, or sale, of beer shall
22be divided into four classes, known as class “A”, and special
23class “A”, class “B”, or class “C” beer permits. A holder of
24a class “A” or special class “A” beer permit shall have the
25authority as provided in section 123.130. A holder of a class
26“B” beer permit shall have the authority as provided in section
27123.131, and a holder of a class “C” beer permit shall have the
28authority as provided in section 123.132.
29 Sec. 58. Section 123.125, Code 2022, is amended to read as
30follows:
31123.125 Issuance of beer permits.
32The administrator shall issue class “A”, and special class
33“A”, class “B”, and class “C” beer permits and may suspend or
34revoke permits for cause as provided in this chapter.
35 Sec. 59. Section 123.127, subsection 2, paragraph h, Code
-52-12022, is amended to read as follows:
2h. If the person is applying for a special class “A” beer
3permit, that the applicant holds or has applied for a class “C”
4liquor control or special class “C” retail alcohol license or
5class “B” beer permit.
6 Sec. 60. Section 123.130, subsection 1, paragraph a, Code
72022, is amended to read as follows:
8a. Any person holding a class “A” beer permit issued by
9the division shall be authorized to manufacture and sell, or
10sell at wholesale, beer for consumption off the premises, such
11sales within the state to be made only to persons holding a
12 subsisting class “A”, “B”, or “C” beer permits permit, both
13a class “C” native wine permit and a class “A” wine permit
14pursuant to section 123.178B, subsection 4, or liquor control
15 retail alcohol licenses, excluding a special class “B” retail
16native wine license, issued in accordance with the provisions
17of this chapter. However, a person holding a class “A” beer
18permit issued by the division who also holds a brewer’s notice
19issued by the alcohol and tobacco tax and trade bureau of the
20United States department of the treasury shall be authorized
21to sell, at wholesale, no more than thirty thousand barrels of
22beer on an annual basis for consumption off the premises to a
23licensee or permittee authorized under this chapter to sell
24beer at retail.
25 Sec. 61. Section 123.130, subsections 2 and 4, Code 2022,
26are amended to read as follows:
272. Pursuant to section 123.45, subsection 3, a native
28brewery may be granted not more than two class “B” beer permits
29as defined in section 123.124 for the purpose of selling
30beer at retail for consumption on or off the premises of the
31manufacturing facility class “C” retail alcohol licenses.
324. All special class “A” premises shall be located within
33the state. A person who holds a special class “A” beer permit
34for the same location at which the person holds a class “C”
35liquor control or special class “C” retail alcohol license or
-53-1class “B” beer permit for the purpose of operating as a brewpub
2may manufacture and sell beer to be consumed on the premises,
3may sell beer at retail at the manufacturing premises for
4consumption off the premises beer that is transferred at the
5time of sale to another container subject to the requirements
6of section 123.131, subsection 2, may sell beer to a class
7“A” beer permittee for resale purposes, and may sell beer to
8distributors outside of the state that are authorized by the
9laws of that jurisdiction to sell beer at wholesale. The
10permit issued to holders of a special class “A” beer permit
11shall clearly state on its face that the permit is limited.
12 Sec. 62. Section 123.135, subsection 4, Code 2022, is
13amended to read as follows:
144. It shall be unlawful for any holder of a certificate
15of compliance or the holder’s agent, or any class “A” beer
16permit holder or the beer permit holder’s agent, to grant to
17any retail beer permit alcohol license holder, directly or
18indirectly, any rebates, free goods, or quantity discounts on
19beer which are not uniformly offered to all retail permittees
20 alcohol licensees.
21 Sec. 63. Section 123.138, subsection 1, Code 2022, is
22amended to read as follows:
231. Each class “A” or special class “A” beer permittee
24shall keep proper records showing the amount of beer sold
25by the permittee, and these records shall be at all times
26open to inspection by the administrator and to other persons
27pursuant to section 123.30, subsection 1. Each class “B”
28beer permittee, class “C” beer permittee, or retail liquor
29control alcohol licensee as described in section 123.30 shall
30keep proper records showing each purchase of beer made by the
31permittee or licensee, and the date and the amount of each
32purchase and the name of the person from whom each purchase
33was made, which records shall be open to inspection pursuant
34to section 123.30, subsection 1, during normal business hours
35of the permittee or licensee.
-54-1 Sec. 64. Section 123.138, subsection 2, paragraph a, Code
22022, is amended to read as follows:
3a. Each class “B”, “C”, or special class “C” liquor control
4 retail alcohol licensee and class “B” or “C” beer permittee who
5sells beer for off-premises consumption shall affix to each
6keg of beer an identification sticker label provided by the
7administrator. The sticker label provided shall allow for its
8full removal when common external keg cleaning procedures are
9performed. For the purposes of this subsection, “keg” means
10all durable and disposable containers with a liquid capacity
11of five gallons or more. Each class “B”, “C”, or special class
12“C” liquor control retail alcohol licensee and class “B” or “C”
13beer permittee shall also keep a record of the identification
14sticker label number of each keg of beer sold by the licensee
15or permittee with the name and address of the purchaser and
16the number of the purchaser’s driver’s license, nonoperator’s
17identification card, or military identification card, if the
18military identification card contains a picture and signature.
19This information shall be retained by the licensee or permittee
20 for a minimum of ninety days. The records kept pursuant to
21this subsection shall be available for inspection by any law
22enforcement officer during normal business hours.
23 Sec. 65. Section 123.138, subsection 2, paragraph b, Code
242022, is amended to read as follows:
25b. (1) The division shall provide the keg identification
26stickers labels described in paragraph “a” and shall, prior to
27utilizing a sticker label, notify licensed brewers and licensed
28beer importers of the type of sticker label to be utilized.
29Each sticker label shall contain a number and the following
30statement:
31It is unlawful to sell, give, or otherwise supply any
32alcoholic beverage, wine, or beer to any person under legal
33age. Any person who defaces this sticker label shall be guilty
34of criminal mischief punishable pursuant to section 716.6 and
35shall cause the forfeiture of any deposit, if applicable.
-55- 1(2) The identification sticker label shall be placed on
2the keg at the time of retail sale. The licensee or permittee
3 shall purchase obtain the stickers labels referred to in this
4subsection from the division and shall remit to the division
5deposits forfeited pursuant to this lettered paragraph due to
6defacement. The cost of the stickers labels to licensees and
7permittees shall not exceed the division’s cost of producing
8and distributing the stickers labels. The moneys collected by
9the division relating to the sale of stickers and forfeited
10deposits labels shall be credited to the beer and liquor
11control fund.
12 Sec. 66. Section 123.138, subsection 2, paragraph d, Code
132022, is amended by striking the paragraph.
14 Sec. 67. Section 123.141, Code 2022, is amended to read as
15follows:
16123.141 Keeping liquor where beer is sold.
17No alcoholic liquor for beverage purposes shall be used,
18or kept for any purpose in the place of business of a special
19 class “B” beer permittees “C” retail alcohol licensee, or on
20the premises of such special class “B” beer permittees “C”
21retail alcohol licensee, at any time. A violation of any
22provision of this section shall be grounds for suspension or
23revocation of the beer permit pursuant to section 123.50,
24subsection 3. This section shall not apply in any manner or
25in any way to the premises of any hotel or motel for which a
26special class “B” beer permit “C” retail alcohol license has
27been issued, other than that part of such premises regularly
28used by the hotel or motel for the principal purpose of selling
29beer or food to the general public, to a premises for which
30both a class “B” beer permit and a class “A” native distilled
31spirits license have been issued, or to keep a pharmacy from
32having alcohol in stock for medicinal and compounding purposes.
33 Sec. 68. Section 123.142, subsection 1, Code 2022, is
34amended to read as follows:
351. It is unlawful for the holder of a class “B” or class “C”
-56-1beer permit retail alcohol license issued under this chapter
2to sell beer, except beer brewed on the premises covered by a
3special class “A” beer permit or beer purchased from a person
4holding a class “A” beer permit issued in accordance with this
5chapter, and on which the tax provided in section 123.136 has
6been paid. However, this section does not apply to class “D”
7liquor control retail alcohol licensees as provided in this
8chapter.
9 Sec. 69. Section 123.143, subsection 1, Code 2022, is
10amended by striking the subsection.
11 Sec. 70. Section 123.143, subsection 2, Code 2022, is
12amended to read as follows:
132. All permit fees collected by the division under this
14subchapter shall accrue to the beer and liquor control fund,
15except as otherwise provided.All permit fees and taxes
16collected by the division under this subchapter shall accrue to
17the state general fund, except as otherwise provided.
18 Sec. 71. 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. 72. 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
-57-1holder 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
-58-1number 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. 73. 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
-59-1the 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
-60-1auction 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.
-61- 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. 74. 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. 75. 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.
-62-1 Sec. 76. 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. 77. 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. 78. 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
34may sell native wine at retail for consumption on the premises
35of the manufacturing facility by applying for be granted a
-63-1class “C” nativewine permit retail alcohol license as provided
2 defined in section 123.178B 123.30. A manufacturer of native
3wine may be granted not more than two class “C” native wine
4permits retail alcohol licenses. A manufacturer of native wine
5may be issued a class “C” native wine permit retail alcohol
6license regardless of whether the manufacturer is also a
7manufacturer of beer pursuant to a class “A” beer permit or a
8manufacturer of native distilled spirits pursuant to a class
9“A” native distilled spirits 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. 79. 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
-64-1is to be manufactured, stored, warehoused, or sold.
2 Sec. 80. Section 123.177, subsection 3, Code 2022, is
3amended by striking the subsection.
4 Sec. 81. 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 class “B”, special class “B”, and
10class “E” retail alcohol licensees authorized to sell wine at
11retail.
12 Sec. 82. Section 123.181, subsection 1, Code 2022, is
13amended by striking the subsection.
14 Sec. 83. Section 123.181, subsection 2, Code 2022, is
15amended to read as follows:
162. A class “A” wine permittee shall not sell wine on
17credit to a retail alcohol licensee or permittee for a period
18exceeding thirty days from date of delivery.
19 Sec. 84. Section 123.187, subsection 2, paragraph a, Code
202022, is amended to read as follows:
21a. Only a wine manufacturer that holds a wine direct shipper
22permit issued pursuant to this section shall sell wine at
23retail for direct shipment to any person within this state.
24This section shall not prohibit an authorized retail licensee
25or permittee from delivering wine pursuant to section 123.46A.
26 Sec. 85. Section 123.187, subsection 2, paragraph d, Code
272022, is amended by striking the paragraph.
28 Sec. 86. Section 125.59, unnumbered paragraph 1, Code 2022,
29is amended to read as follows:
30The treasurer of state, on each July 1 for that fiscal
31year, shall transfer the estimated amounts to be received from
32section 123.36, subsection 8 and section 123.143, subsection 1
33for purposes of this section to the department.
34 Sec. 87. REPEAL. Sections 123.97, 123.123, 123.150,
35123.172, 123.173B, and 123.185, Code 2022, are repealed.
-65-1 Sec. 88. EFFECTIVE DATE. This division of this Act takes
2effect January 1, 2023.
3DIVISION IV
4CONFORMING CHANGES
5 Sec. 89. Section 7D.16, Code 2022, is amended to read as
6follows:
77D.16 Alcoholic beverages in state capitol or on complex
8grounds.
9Notwithstanding any contrary provision of law prohibiting
10the use and consumption of alcoholic beverages in a public
11place, the executive council may authorize, by resolution,
12the temporary use and consumption of alcoholic beverages,
13as defined in section 123.3, in the state capitol or on the
14state capitol complex grounds, as if the state capitol or
15state capitol complex grounds were a private place. The
16authorization by resolution shall be limited to the use and
17consumption of alcoholic beverages as an accompaniment to food
18at a single award ceremony, social event, or other occasion
19deemed appropriate by the executive council. The authorization
20shall require that the person providing the food and alcoholic
21beverages possess an appropriate liquor control retail alcohol
22 license in accordance with section 123.95. The secretary
23of the executive council shall inform the secretary of the
24legislative council and the director of the department of
25administrative services of the approval of any such resolution.
26 Sec. 90. Section 12.43, subsection 5, paragraph e, Code
272022, is amended to read as follows:
28e. Liquor, beer, and wine sales must not exceed twenty
29percent of annual sales for establishments holding a class
30“C” liquor retail alcohol license issued pursuant to section
31123.30.
32 Sec. 91. Section 99B.3, subsection 2, Code 2022, is amended
33to read as follows:
342. A person whose license is revoked under this section
35who is a person for whom a class “A”, class “B”, class “C”, or
-66-1class “D” liquor control retail alcohol license has been issued
2pursuant to chapter 123 shall have the person’s liquor control
3 retail alcohol license suspended for a period of fourteen days
4in the same manner as provided in section 123.50, subsection
53, paragraph “a”.
6 Sec. 92. Section 99B.3, subsection 3, Code 2022, is amended
7by striking the subsection.
8 Sec. 93. Section 99B.43, subsection 1, unnumbered paragraph
91, Code 2022, is amended to read as follows:
10Social gambling is lawful on the premises of an
11establishment for which a class “A”, class “B”, class “C”,
12special class “C”, or class “D” liquor control, class “E”, or
13class “F” retail alcohol license, or class “B” beer permit
14 has been issued pursuant to chapter 123 when, subject to the
15provisions of section 99B.42, all of the following requirements
16are met:
17 Sec. 94. Section 99B.43, subsection 1, paragraph a, Code
182022, is amended to read as follows:
19a. The liquor control retail alcohol licensee or beer
20permittee has submitted an application for a social gambling
21license and a license fee of one hundred fifty dollars to the
22department, and a license has been issued.
23 Sec. 95. Section 99B.43, subsection 2, unnumbered paragraph
241, Code 2022, is amended to read as follows:
25A liquor control retail alcohol licensee or beer permittee
26 with a social gambling license issued pursuant to this section
27may conduct a sports betting pool if all of the requirements of
28this subsection are met.
29 Sec. 96. Section 99B.43, subsection 3, Code 2022, is amended
30to read as follows:
313. An establishment issued a social gambling license under
32this section that is required to obtain a new liquor retail
33alcohol license or permit under chapter 123 due to a change in
34ownership shall be required to obtain a new social gambling
35license under this section to conduct social gambling.
-67-1 Sec. 97. Section 99B.53, subsections 2, 3, 4, and 13, Code
22022, are amended to read as follows:
32. Except as provided in subsection 3, an electrical or
4mechanical amusement device requiring registration may be
5located on premises for which a class “A”, class “B”, class
6“C”, special class “C”, or class “D” liquor control, class “E”,
7or class “F” retail alcohol license has been issued pursuant
8to chapter 123.
93. a. An electrical or mechanical amusement device
10requiring registration may be located on premises for which a
11class “B” or class “C” beer permit “E” retail alcohol license
12 has been issued pursuant to chapter 123, but the department
13shall not initially register an electrical or mechanical
14amusement device to an owner or distributor for a location for
15which a class “B” or class “C” beer permit “E” retail alcohol
16license has been issued pursuant to chapter 123 on or after
17April 28, 2004.
18b. A distributor that owns an amusement device at a location
19for which only a class “B” or class “C” beer permit “E” retail
20alcohol license has been issued pursuant to chapter 123 shall
21not relocate an amusement device registered as provided in
22this section to a location other than a location for which a
23class “A”, class “B”, class “C”, special class “C”, or class
24“D” liquor, class “E”, or class “F” retail alcohol license has
25been issued and shall not transfer, assign, sell, or lease an
26amusement device registered as provided in this section to
27another person for which only a class “B” or class “C” beer
28permit “E” retail alcohol license has been issued pursuant to
29chapter 123 after April 28, 2004.
30c. If ownership of the location changes, the class “B”
31or class “C” beer permit “E” retail alcohol license does not
32lapse, and the device is not removed from the location, the
33device may remain at the location.
344. An electrical or mechanical amusement device required
35to be registered and at a location for which only a class “B”
-68-1or class “C” beer permit “E” retail alcohol license has been
2issued pursuant to chapter 123 shall include on the device
3a security mechanism which prevents the device from being
4operated by a person until action is taken by the owner or
5owner’s designee to allow the person to operate the device.
613. A person owning or leasing an electrical or mechanical
7amusement device required to be registered by this section
8shall not relocate and place into operation an amusement
9device in any location other than a location which has been
10issued an appropriate liquor control retail alcohol license in
11good standing and to which the device has been appropriately
12registered with the department.
13 Sec. 98. Section 99B.55, subsection 2, Code 2022, is amended
14to read as follows:
152. a. A person who commits an offense of awarding a cash
16prize of fifty dollars or less in violation of section 99B.52,
17subsection 3, pursuant to rules adopted by the department,
18shall be subject to a civil penalty in the amount of two
19hundred fifty dollars. Additional sanctions beyond the civil
20penalty prescribed by this paragraph, including but not limited
21to the suspension or revocation of any liquor control retail
22alcohol license issued pursuant to chapter 123 or registration
23issued pursuant to section 99B.53 or 99B.56, shall not be
24applicable.
25b. A person who commits, within two years, a second offense
26of awarding a cash prize of fifty dollars or less in violation
27of section 99B.52, subsection 3, or a person who commits an
28offense of awarding a cash prize of more than fifty dollars in
29violation of section 99B.52, subsection 3, pursuant to rules
30adopted by the department, shall be subject to revocation of
31the person’s registration and the following:
32(1) If the person whose registration is revoked under this
33paragraph “b” is a person for which a class “A”, class “B”,
34 class “C”, special class “C”, or class “D” liquor control,
35class “E”, or class “F” retail alcohol license has been
-69-1issued pursuant to chapter 123, the person’s liquor control
2 retail alcohol license shall be suspended for a period of
3fourteen days in the same manner as provided in section 123.50,
4subsection 3, paragraph “a”.
5(2) If the person whose registration is revoked under this
6paragraph “b” is a person for which only a class “B” or class
7“C” beer permit “E” retail alcohol license has been issued
8pursuant to chapter 123, the person’s class “B” or class “C”
9beer permit “E” retail alcohol license shall be suspended for
10a period of fourteen days in the same manner as provided in
11section 123.50, subsection 3, paragraph “a”.
12(3) If a person owning or employed by an establishment
13having a class “A”, class “B”, class “C”, special class “C”,
14or class “D” liquor control, class “E”, or class “F” retail
15alcohol license issued pursuant to chapter 123 commits an
16offense as provided in this paragraph “b”, the liquor control
17 retail alcohol license of the establishment shall be suspended
18for a period of fourteen days in the same manner as provided in
19section 123.50, subsection 3, paragraph “a”.
20(4) If a person owning or employed by an establishment
21having a class “B” or class “C” beer permit “E” retail alcohol
22license issued pursuant to chapter 123 commits an offense as
23provided in this paragraph “b”, the beer permit retail alcohol
24license of the establishment shall be suspended for a period of
25fourteen days in the same manner as provided in section 123.50,
26subsection 3, paragraph “a”.
27 Sec. 99. Section 137F.1, subsection 9, paragraph c, Code
282022, is amended to read as follows:
29c. A premises covered by a class “A” wine permit or a class
30“B” wine permit as provided in chapter 123.
31 Sec. 100. Section 331.303, subsection 4, Code 2022, is
32amended to read as follows:
334. Act upon applications for liquor control retail alcohol
34 licenses and retail beer permits in accordance with section
35123.32.
-70-1 Sec. 101. Section 455C.4, subsection 4, Code 2022, is
2amended to read as follows:
34. A class “E” liquor control retail alcohol licensee
4may refuse to accept and to pay the refund value on an empty
5alcoholic liquor container from a dealer or a redemption center
6or from a person acting on behalf of or who has received empty
7alcoholic liquor containers from a dealer or a redemption
8center.
9 Sec. 102. EFFECTIVE DATE. This division of this Act takes
10effect January 1, 2023.
11DIVISION V
12TRANSITION PROVISIONS
13 Sec. 103. TRANSITION PROVISIONS.
141. Any license or permit issued by the alcoholic beverages
15division of the department of commerce that is repealed,
16merged, or altered in this Act, and in effect on January
171, 2023, shall continue in full force and effect with the
18authority granted by that license or permit until expiration
19or renewal.
202. The alcoholic beverages division of the department of
21commerce shall be authorized to adopt alternative procedures
22for the issuance of any license or permit that is repealed,
23merged, or altered in this Act on January 1, 2023, that are
24issued on or after the effective date of this division of this
25Act but before January 1, 2023. The alternative procedures
26shall not be inconsistent with the provisions of this Act
27governing the issuance of licenses or permits on or after
28January 1, 2023.
29 Sec. 104. EFFECTIVE DATE. This division of this Act, being
30deemed of immediate importance, takes effect upon enactment.
31EXPLANATION
32The inclusion of this explanation does not constitute agreement with
33the explanation’s substance by the members of the general assembly.
34This bill relates to alcoholic beverage control. The bill is
35organized by divisions.
-71- 1DIVISION I — RETAIL ALCOHOL LICENSES. Code section 123.30,
2establishing liquor control licenses, is stricken and rewritten
3by the bill. The bill replaces liquor control licenses with
4retail alcohol licenses and modifies the classes within the
5new category of retail alcohol licenses. The current class
6“A” liquor control license and class “D” liquor control
7license are renamed a class “F” and a class “D” retail alcohol
8license, respectively. The current class “B” liquor control
9license that may be issued to a hotel or motel is eliminated.
10Instead, the bill establishes a new class “B” retail alcohol
11license and special class “B” retail alcohol license. The
12new class “B” retail alcohol license allows the holder to
13purchase wine from a class “A” wine permittee and beer from a
14class “A” beer permittee and to sell wine and beer in original
15unopened containers at retail to patrons for consumption off
16the licensed premises. The bill also allows a holder of the
17new class “B” retail alcohol license to sell wine and beer
18in limited quantities to class “C”, special class “C”, class
19“D”, and class “F” retail alcohol licensees for resale for
20consumption on the premises. This new license combines, in
21part, the authority granted under the current class “C” beer
22permit for beer and the class “B” wine permit for wine. The
23new special class “B” retail native wine license authorizes
24the holder to purchase wine from a native winery holding a
25class “A” wine permit and to sell native wine only at retail
26for consumption off the licensed premises. The authority
27under this new special class “B” retail alcohol license is
28similar to the authority granted a holder of a current class
29“B” native wine permit. The current class “C” and special
30class “C” liquor control licenses are renamed as class “C” and
31special class “C” retail alcohol licenses. The current special
32class “C” native distilled spirits liquor control license
33is repealed. Finally, the current class “E” liquor control
34license is renamed a class “E” retail alcohol license. In
35addition, the bill provides that a class “E” retail alcohol
-72-1licensee can purchase wine and beer from a class “A” wine or
2beer permittee, respectively. The bill specifically allows the
3class “E” licensee to sell wine and beer in unopened containers
4at retail, and to sell alcoholic liquor and high alcoholic
5content beer at wholesale. The bill also allows a holder
6of a class “E” retail alcohol license to sell wine and beer
7in limited quantities to class “C”, special class “C”, class
8“D”, and class “F” retail alcohol licensees for resale for
9consumption on the premises.
10Code section 123.31, providing for liquor control license
11applications, is stricken and rewritten by the bill. Existing
12application requirements for liquor control licenses are made
13applicable to retail alcohol licenses established by the bill.
14In addition, requirements for issuance of a current class “B”
15beer permit, class “C” beer permit, and retail wine permit
16are generally made applicable to issuance of a retail alcohol
17license.
18New Code section 123.31A establishes the authority granted
19a holder of a new class “B”, class “C”, special class “C”,
20and class “E” retail alcohol license. The authority granted
21a holder of these licenses as to both wine and beer is similar
22to the authority granted current holders of a class “B” beer
23permit, class “C” beer permit, and class “B” wine permit,
24to include sales of beer or wine in other than the original
25container. The new Code section provides that a holder of
26a new class “C” or special class “C” retail alcohol license
27cannot sell beer or wine to other retail alcohol license
28holders. The bill also provides, similarly to current Code
29section 123.181(1), that a holder of any retail alcohol permit
30shall not sell wine except wine purchased from a person holding
31a class “A” permit or native wine manufacturer.
32New Code section 123.31B establishes the authority granted a
33holder of a new special class “B” retail native wine license.
34The authority granted a holder of this new license is similar
35to the authority granted a holder of a current class “B” native
-73-1wine permit.
2With the authority granted retail alcohol licensees
3regarding beer, the current class “B” and class “C” beer
4permits are repealed. As a result, the division repeals, as
5to beer permits, Code section 123.138, providing for class
6“B” beer permit applications, Code section 123.129, providing
7for class “C” beer permit applications, Code section 123.131,
8concerning authority under a class “B” beer permit, Code
9section 123.132, concerning authority under a class “C” beer
10permit, and Code section 123.140, concerning separate locations
11for class “B” or class “C” beer permits. In addition, based
12on the authority granted the new retail licenses regarding
13wine, the current class “B” wine, class “B” native wine, and
14class “C” native wine permits are repealed. As a result, the
15division repeals, as to wine permits, Code section 123.178,
16concerning authority under a class “B” wine permit, Code
17section 123.178A, concerning authority under a class “B” native
18wine permit, and Code section 123.178B, concerning authority
19under a class “C” native wine permit.
20The division takes effect January 1, 2023.
21DIVISION II — ALCOHOLIC BEVERAGE CONTROL FEES. This
22division concerns fees for the new retail alcohol licenses as
23well as changes to fees for other licenses and permits in Code
24chapter 123.
25Code section 123.23, concerning the distiller’s certificate
26of compliance, is amended to increase the annual fee for the
27certificate from $50 to $200.
28Code section 123.36, concerning liquor control license
29fees, is stricken and rewritten and made applicable to the new
30retail alcohol licenses. The current fees for a class “A”
31liquor control licensee are made applicable to the new class
32“F” retail alcohol license. The current fees for a class
33“B” liquor control license are repealed. Instead, the bill
34establishes fees for the new class “B” retail alcohol license
35based on the population of the city where the premises is
-74-1located as well as the square footage of the licensed premises.
2The fee for the new special class “B” native wine license is
3$125, an increase from the fee for a current class “B” native
4wine permit of $25. The fees for the new class “C” and special
5class “C” retail alcohol license are modified from the current
6fees for class “C” liquor control licenses. The new fees
7increase the population thresholds for increased fees for both
8the new class “C” and special class “C” licenses and reduce the
9fees for the class “C” retail alcohol license by $50 over the
10current fees for a class “C” liquor control license. The new
11class “D” retail alcohol license fees remain the same as the
12fees for the current class “D” liquor control license. The
13bill establishes fees for the new class “E” retail alcohol
14license based on the population of the city where the premises
15is located as well as the square footage of the licensed
16premises. Current fees for the class “E” liquor control
17license are based only on the population of the city where
18the premises is located. Current provisions in Code section
19123.36 governing crediting of liquor control license fees to
20the beer and liquor control fund are made applicable to the new
21retail alcohol license fees, excluding the new special class
22“B” retail alcohol licenses. Current provisions imposing fee
23surcharges are also made applicable to the new retail alcohol
24license fees, excluding the new class “B” and special class “B”
25retail alcohol licenses.
26Code section 123.41, concerning the manufacturer’s license,
27is amended to decrease the annual fee for the license from $350
28to $300.
29Code section 123.43(3), concerning a class “A” native
30distilled spirits license, is amended to decrease the annual
31fee for the license from $500 to $300.
32Code section 123.134, concerning beer permit fees, is
33stricken and rewritten. The bill keeps the annual permit fee
34for a class “A” beer permit at $750, reduces the annual permit
35fee for a special class “A” beer permit from $750 to $300, and
-75-1provides that the annual fee for a class “A” beer permit for a
2native brewery is $300. Fees for class “B” and class “C” beer
3permits are repealed as those permits are repealed by the bill.
4Code section 123.135, concerning the brewer’s certificate
5of compliance, is amended to reduce the annual fee for the
6certificate from $500 to $200.
7Code section 123.179, concerning wine permit fees, is
8stricken and rewritten by the bill. The bill keeps the annual
9permit fee for a class “A” wine permit that is not issued
10to a native wine manufacturer at $750, increases the annual
11permit fee for a class “A” wine permit issued to a native wine
12manufacturer from $25 to $100, and provides that the annual fee
13for a charity beer, spirits, and wine special event license
14created in the bill is $100. Fees for class “B” wine permits
15and class “B” and class “C” native wine permits are stricken
16as those permits are repealed by the bill. The current fees
17for charity wine auctions and charity wine event permits are
18stricken as those permits are repealed by the bill and combined
19in the new charity beer, spirits, and wine special event
20license created by the bill.
21Code section 123.180, concerning the vintner’s certificate
22of compliance, is amended to increase the annual fee for the
23certificate from $150 to $200.
24The division takes effect January 1, 2023.
25DIVISION III — ALCOHOLIC BEVERAGE CONTROL. This division
26makes changes to Code chapter 123 relative to alcoholic
27beverage control, to include making conforming changes relative
28to the creation of the new retail alcohol licenses and the
29elimination of certain native distilled spirits, beer, and wine
30permits in the bill. The bill also eliminates the requirement
31to obtain a special privilege to sell alcoholic beverages on
32Sunday and provides that sales or other activities relating
33to alcoholic beverages on Sunday will be allowed to the same
34extent as they are allowed on any other day.
35Code section 123.3, definitions, is amended to reflect the
-76-1new retail alcohol licenses. The bill strikes definitions for
2“retail beer permit” and “retail wine permit” as those permits
3are repealed by the bill and creates a new “retail alcohol
4license” definition reflecting the classes of licenses included
5within this new license. The definition of “high alcoholic
6content beer” is also amended to provide that high alcoholic
7content beer may contain up to 19 percent of alcohol by volume
8instead of the current 15 percent.
9Code section 123.34, concerning seasonal licenses and
10permits, is amended. The bill amends the Code section to
11reflect the new retail alcohol licenses and allows seasonal
12and shortened licenses for new class “C”, special class
13“C”, class “D”, and class “F” retail alcohol licensees. The
14bill eliminates the six-month seasonal license or permit and
15provides that the fee for an eight-month seasonal license shall
16be 50 percent of the license fee for that class of license
17instead of a proportional share of that fee.
18New Code section 123.35 includes the provision from
19current Code section 123.34 providing for the expiration of
20licenses, permits, and certificates of compliance without
21the notification requirement. The new Code section further
22provides, notwithstanding any provision of Code chapter 123
23to the contrary, for the automatic renewal of a class “E”
24retail alcohol license, a distiller’s, vintner’s, or brewer’s
25certificate of compliance, and a wine direct shipper’s
26permit. The bill allows the renewal of the applicable license,
27certificate, or permit without approval by the administrator
28of the alcoholic beverages division or endorsement of any
29applicable local authority upon collection of the annual fee
30for that license, certificate, or permit by the alcoholic
31beverages division, provided certain conditions are met since
32the preceding license, certificate, or permit was issued. The
33bill provides that the license, certificate, or permit can be
34automatically renewed if, in the preceding year, the license,
35certificate, or permit has not been suspended or revoked,
-77-1a civil penalty has not been imposed, an administrative
2proceeding is not pending to suspend or revoke the license,
3certificate, or permit or to impose a civil penalty, all
4required payments to the division have been made, and the
5licensee, certificate holder, or permittee, and all persons
6associated with the licensee, certificate holder, or permittee
7as described in Code section 123.3(40)(e), have not been
8convicted of a violation of Code chapter 123. In addition, for
9renewal of a class “E” retail alcohol license, the licensed
10premises shall constitute a safe and proper place and building
11that complies with all applicable building-related regulations.
12Code section 123.43A, concerning native distilleries, is
13amended to reflect the new retail alcohol licenses in the bill.
14The bill also provides that a native distillery, regardless
15of the quantity of native distilled spirits the distillery
16produces, has the ability to sell not more than nine liters
17per person per day of native distilled spirits on the premises
18of the native distillery and to apply for not more than two
19class “C” retail alcohol licenses. Under current law, a native
20distillery that produces and manufactures more than 100,000
21proof gallons of native distilled spirits on an annual basis
22may sell no more than 1.5 liters per person per day and is
23not authorized to apply for a class “C” native distilled
24spirits liquor control license. A holder of a class “C” retail
25alcohol license under the bill is granted the authority to sell
26alcoholic liquor, wine, and beer while a holder of the current
27class “C” native distilled spirits liquor control licenses has
28the authority to only sell native distilled spirits and mixed
29drinks or cocktails.
30Code section 123.46A, concerning delivery of alcoholic
31beverages by retailers, is amended to reflect that the new
32retail alcohol licenses in the bill are licenses, not permits.
33The bill also provides that deliveries shall occur on the same
34day the order for delivery of alcoholic beverages is removed
35from the licensed premises of the retailer.
-78- 1Code sections 123.49 and 123.50, concerning prohibitions
2and criminal and civil penalties, are amended to reflect the
3new retail alcohol licenses created in the bill and the fact
4that the authority to sell at retail is granted only to retail
5alcohol licensees and not permittees.
6Code section 123.92, the dramshop Act, is amended to
7provide that every retail alcohol licensee, except a class
8“B”, special class “B”, or class “E” retail alcohol licensee,
9shall furnish proof of financial responsibility by the
10existence of a liability insurance policy. Under current law,
11every liquor control licensee, class “B” beer permittee, and
12class “C” native wine permittee, except a class “E” liquor
13control licensee, is required to furnish proof of financial
14responsibility.
15Code section 123.97, providing that most revenues arising
16under the operation of Code chapter 123 become part of the
17general fund of the state, is repealed as inconsistent with the
18provisions of current Code section 123.17.
19Code section 123.123, concerning the applicability of
20provisions relating to class “B” beer permits to liquor control
21licensees, is repealed as class “B” beer permits are repealed
22in the bill.
23Code section 123.130, concerning authority under class “A”
24beer permits, is amended to reflect the new retail alcohol
25licenses in the bill. The bill also provides that a native
26brewery may be granted not more than two class “C” retail
27alcohol licenses instead of two class “B” permits which permits
28are repealed by the bill.
29Code section 123.138, concerning keg identification
30stickers, is amended to reflect the new retail alcohol licenses
31and provides for a keg identification label instead of a
32sticker. In addition, the bill strikes provisions concerning
33the forfeiture and remittance of deposits relating to defacing
34the keg identification label.
35Code section 123.143, concerning distribution of funds, is
-79-1amended to strike the provision directing where retail beer
2permit fees shall be distributed. The bill repeals all retail
3beer permit fees and the distribution of funds from retail
4alcohol licenses is governed by Code section 123.36 as amended
5by the bill.
6Code section 123.172, concerning the applicability of
7provisions relating to class “B” wine permits to liquor control
8licensees, is repealed as class “B” wine permits are repealed
9in the bill.
10Code section 123.173, concerning classes of wine permits, is
11amended by striking provisions relating to class “B”, class “B”
12native wine, and class “C” native wine permits as those permits
13are repealed by the bill.
14Code section 123.173A, providing for a charity beer,
15spirits, and wine auction permit, and Code section 123.173B,
16providing for a charity beer, spirits, and wine event permit,
17are stricken and replaced with a combined charity beer,
18spirits, and wine special event license, allowing the license
19holder to conduct a charity auction, charity event, or a
20combined charity auction and charity event in a similar manner
21as is allowed under current law for the two separate permits.
22The bill only allows one charity auction, charity event, or
23combined charity auction and charity event to be conducted
24during the period of the license and limits a person to no more
25than two special event licenses in a calendar year.
26Code section 123.176, concerning native wines, is amended
27to reflect the new retail alcohol licenses in the bill. The
28bill also provides that a manufacturer of native wines may be
29granted not more than two class “C” retail alcohol licenses
30instead of two class “C” native wine permits which permits are
31repealed by the bill. A holder of a class “C” retail alcohol
32license under the bill is granted the authority to sell wine
33and beer.
34Code section 123.187, concerning the wine direct shipper
35permit, is amended to remove the requirement that an
-80-1application for the permit be accompanied by a bond if not
2otherwise required to submit a bond as a wine manufacturer.
3Code section 125.59 is amended to reflect that current
4provisions providing for transfer of certain revenues to the
5department of public health are stricken by the bill.
6The division takes effect January 1, 2023.
7DIVISION IV — CONFORMING CHANGES. This division makes
8conforming changes to Code chapters 7D, 12, and 99B, relative
9to the creation of the new retail alcohol licenses and the
10elimination of certain native distilled spirits, beer, and wine
11permits in the bill.
12Code section 137F.1, defining food establishments for
13purposes of licensure, is amended to provide that a food
14establishment does not include only a premises covered by a
15class “A” wine permit. Under current law, a food establishment
16also does not include a premises covered by a class “B” wine
17permit which is stricken by the bill.
18The division takes effect January 1, 2023.
19DIVISION V — TRANSITION PROVISIONS. This division provides
20that any license or permit issued by the alcoholic beverages
21division that is repealed, merged, or altered in the bill and
22in effect on January 1, 2023, shall continue in full force and
23effect with the authority granted by that license or permit
24until expiration or renewal. The division also authorizes the
25alcoholic beverages division to adopt alternative procedures
26for the issuance of any license or permit that is repealed,
27merged, or altered in the bill that are issued on or after the
28effective date of the division of the bill but before January
291, 2023. The alternative procedures shall not be inconsistent
30with the provisions of the bill governing the issuance of
31licenses or permits on or after January 1, 2023.
32The division takes effect upon enactment.
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