Print
House Study Bill 108 - IntroducedA Bill ForAn Act 1relating to alcoholic beverage control and matters under
2the purview of the alcoholic beverages division of the
3department of commerce.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2ALCOHOLIC BEVERAGE CONTROL
3 Section 1. Section 123.3, subsection 25, Code 2017, is
4amended to read as follows:
525. “Licensed premises” or “premises” means all rooms,
6enclosures, contiguous areas, or places susceptible of precise
7description satisfactory to the administrator where alcoholic
8beverages, wine, or beer is sold or consumed under authority
9of a liquor control license, wine permit, or beer permit.
10A single licensed premises may consist of multiple rooms,
11enclosures, areas, or places if they are wholly within the
12confines of a single building or contiguous grounds, or areas
13or places susceptible of precise description satisfactory to
14the administrator.
15 Sec. 2. Section 123.3, Code 2017, is amended by adding the
16following new subsection:
17 NEW SUBSECTION. 30A. “Original container” means a vessel
18containing an alcoholic beverage that has been lawfully
19obtained, bears a label approved by the alcohol and tobacco
20tax and trade bureau of the United States department of the
21treasury, and has been securely capped, sealed, or corked at
22the location of manufacture.
23 Sec. 3. Section 123.22, Code 2017, is amended to read as
24follows:
25123.22 State monopoly.
261. The division has the exclusive right of importation
27into the state of all forms of alcoholic liquor, except as
28otherwise provided in this chapter, and a person shall not
29import alcoholic liquor, except that an individual of legal age
30may import and have in the individual’s possession an amount
31of alcoholic liquor not exceeding one liter or, in the case of
32alcoholic liquor personally obtained outside the United States,
33four liters for personal consumption only in a private home
34or other private accommodation. A distillery shall not sell
35alcoholic liquor within the state to any person but only to
-1-1the division, except as otherwise provided in this chapter.
2This section vests in the division exclusive control within the
3state as purchaser of all alcoholic liquor sold by distilleries
4within the state or imported, except beer and wine, and except
5as otherwise provided in this chapter. The division shall
6receive alcoholic liquor on a bailment system for resale by the
7division in the manner set forth in this chapter. The division
8shall act as the sole wholesaler of alcoholic liquor to class
9“E” liquor control licensees.
102. No person, acting individually or through another
11acting for the person shall directly or indirectly, or upon
12any pretense, or by any device, manufacture, sell, exchange,
13barter, dispense, give in consideration of the purchase of any
14property or of any services or in evasion of this chapter, or
15keep for sale, or have possession of any intoxicating liquor,
16except as provided in this chapter; or own, keep, or be in any
17way concerned, engaged, or employed in owning or keeping, any
18intoxicating liquor with intent to violate any provision of
19this chapter, or authorize or permit the same to be done; or
20manufacture, own, sell, or have possession of any manufactured
21or compounded article, mixture or substance, not in a liquid
22form, and containing alcohol which may be converted into a
23beverage by a process of pressing or straining the alcohol
24therefrom, or any instrument intended for use and capable of
25being used in the manufacture of intoxicating liquor; or own
26or have possession of any material used exclusively in the
27manufacture of intoxicating liquor; or use or have possession
28of any material with intent to use it in the manufacture of
29intoxicating liquors; however, alcohol may be manufactured
30for industrial and nonbeverage purposes by persons who have
31qualified for that purpose as provided by the laws of the
32United States and the laws of this state. Such alcohol, so
33manufactured, may be denatured, transported, used, possessed,
34sold, and bartered and dispensed, subject to the limitations,
35prohibitions and restrictions imposed by the laws of the United
-2-1States and this state. Any person may manufacture, sell, or
2transport ingredients and devices other than alcohol for the
3making of homemade wine or beer.
4 Sec. 4. Section 123.23, subsection 2, Code 2017, is amended
5to read as follows:
62. At the time of applying for a certificate of compliance,
7each applicant shall submit to the division electronically,
8or in a manner prescribed by the administrator, the name and
9address of its authorized agent for service of process which
10shall remain effective until changed for another, and a list
11of names and addresses of all representatives, employees, or
12attorneys whom the applicant has appointed in the state of Iowa
13to represent it for any purpose. The listing shall be amended
14from time to time by the certificate holder as necessary to
15keep the listing current with the division.
16 Sec. 5. Section 123.28, Code 2017, is amended to read as
17follows:
18123.28 Restrictions on transportation.
191. It is lawful to transport, carry, or convey alcoholic
20liquors from the place of purchase by the division to a state
21warehouse or depot established by the division or from one such
22place to another and, when so permitted by this chapter, it is
23lawful for the division, a common carrier, or other person to
24transport, carry, or convey alcoholic liquor sold from a state
25warehouse, depot, or point of purchase by the state to any
26place to which the liquor may be lawfully delivered under this
27chapter.
282. The division shall deliver alcoholic liquor purchased by
29class “E” liquor control licensees. Class “E” liquor control
30licensees may deliver alcoholic liquor purchased by class “A”,
31“B”, or “C” liquor control licensees, and class “A”, “B”, or
32“C” liquor control licensees may transport alcoholic liquor
33purchased from class “E” liquor control licensees.
343. A common carrier or other person shall not break or
35open or allow to be broken or opened a container or package
-3-1containing alcoholic liquor or use or drink or allow to be used
2or drunk any alcoholic liquor while it is being transported or
3conveyed, but this.
44. Thissection does not prohibit a private person from
5transporting individual bottles or containers of alcoholic
6liquor exempted pursuant to section 123.22 and individual
7bottles or containers bearing the identifying mark prescribed
8in section 123.26 which have been opened previous to the
9commencement of the transportation.
105. This section does not affect the right of a special
11permit or liquor control license holder to purchase, possess,
12or transport alcoholic liquors subject to this chapter.
13 Sec. 6. Section 123.30, subsection 1, paragraph c, Code
142017, is amended to read as follows:
15c. As a further condition for the issuance of a class “E”
16liquor control license, the applicant shall post a bond in
17a sum of not less than five thousand nor more than fifteen
18thousand dollars as determined on a sliding scale established
19by the division; however, a bond shall not be required if all
20purchases of alcoholic liquor from the division by the licensee
21are made by cash payment or by means that ensure that the
22division will receive full payment in advance of delivery of
23the alcoholic liquor.
24 Sec. 7. Section 123.31, subsections 6 and 7, Code 2017, are
25amended by striking the subsections.
26 Sec. 8. Section 123.32, subsection 6, paragraph b, Code
272017, is amended to read as follows:
28b. Upon receipt of an application having been approved by
29the local authority, the division shall make an investigation
30as the administrator deems necessary to determine that the
31applicant complies with all requirements for holding a license
32or permit, and may require the applicant to appear to be
33examined under oath to demonstrate that the applicant complies
34with all of the requirements to hold a license or permit. If
35the administrator requires the applicant to appear and to
-4-1testify under oath, a record shall be made of all testimony or
2evidence and the record shall become a part of the application.
3The administrator may appoint a member of the division or
4may request an administrative law judge of the department of
5inspections and appeals to receive the testimony under oath
6and evidence, and to issue a proposed decision to approve
7or disapprove the application for a license or permit. The
8administrator may affirm, reverse, or modify the proposed
9decision to approve or disapprove the application for the
10license or permit. If the application is approved by the
11administrator, the license or permit shall be issued. If the
12application is disapproved by the administrator, the applicant
13and the appropriate local authority shall be so notified by
14certified mail and the appropriate local authority shall be
15notified electronically, or in a manner prescribed by the
16administrator.
17 Sec. 9. Section 123.33, Code 2017, is amended to read as
18follows:
19123.33 Records.
20Every holder of a liquor control license shall keep a daily
21record, in printed or electronic format, of the gross receipts
22of the holder’s business or permit under this chapter shall
23maintain records, in printed and electronic format, which
24include income statements, balance sheets, purchase and sales
25invoices, purchase and sales ledgers, and any other records as
26the administrator may require. The records required and the
27premises of the licensee or permittee shall be accessible and
28open to inspection pursuant to section 123.30, subsection 1,
29during normal business hours of the licensee or permittee.
30 Sec. 10. Section 123.34, subsection 1, Code 2017, is amended
31to read as follows:
321. Liquor control licenses, wine permits, and beer permits,
33unless sooner suspended or revoked, expire one year from
34date of issuance. The administrator shall give sixty days’
35written notice of the expiration to each licensee or permittee.
-5-1However, the administrator may issue six-month or eight-month
2seasonal licenses, class “B” wine permits, or class “B” beer
3permits for a proportionate part of the license or permit fee
4or may issue fourteen-day liquor control licenses, native wine
5permits, or beer permits as provided in subsection 2. No
6refund shall be made for seasonal licenses or permits or for
7fourteen-day liquor control licenses, native wine permits, or
8beer permits. No seasonal license or permit shall be renewed
9except. However, after a period of two months the applicant
10may apply for a new seasonal license or permit for the same
11location.
12 Sec. 11. Section 123.49, subsection 2, paragraph b, Code
132017, is amended to read as follows:
14b. Sell or dispense any alcoholic beverage or beer on
15the premises covered by the license or permit, or permit its
16consumption thereon between the hours of 2:00 a.m.and 6:00
17a.m.on a weekday, and between the hours of 2:00 a.m.on Sunday
18and 6:00 a.m.on the following Monday, however, a holder of a
19liquor control license or retail wine or beer permit granted
20the privilege of selling alcoholic liquor, wine, or beer on
21Sunday may sell or dispense alcoholic liquor, wine, or beer
22between the hours of 8:00 a.m.on Sunday and 2:00 a.m.on the
23following Monday.
24 Sec. 12. Section 123.49, subsection 2, paragraph k, Code
252017, is amended by striking the paragraph.
26 Sec. 13. Section 123.51, subsection 1, Code 2017, is amended
27to read as follows:
281. No signs or other matter advertising any brand of
29alcoholic liquor, beer, or wine shall be erected or placed upon
30the outside of any premises occupied by a licensee or permittee
31authorized to sell alcoholic liquor, beer, or wine at retail.
32This subsection does not prohibit the use of signs However,
33signs or other advertising matter may be erected or placed
34inside the premises, inside a fence or similar enclosure which
35wholly or partially surrounds the licensed premises, or inside
-6-1a window facing outward from the premises.
2 Sec. 14. Section 123.175, Code 2017, is amended by striking
3the section and inserting in lieu thereof the following:
4123.175 Class “A” or retail wine permit application and
5issuance.
61. A person applying for a class “A” or retail wine permit
7shall submit an application electronically, or in a manner
8prescribed by the administrator, which shall set forth under
9oath the following:
10a. The name and place of residence of the applicant.
11b. The names and addresses of all persons or, in the case of
12a corporation, the officers, directors, and persons owning or
13controlling ten percent or more of the capital stock thereof,
14having a financial interest, by way of loan, ownership, or
15otherwise, in the business.
16c. The location of the premises where the applicant intends
17to operate.
18d. The name of the owner of the premises and if the owner of
19the premises is not the applicant, whether the applicant is the
20actual lessee of the premises.
21e. When required by the administrator, and in such form and
22containing such information as the administrator may require,
23a description of the premises where the applicant intends to
24use the permit, to include a sketch or drawing of the premises
25and, if applicable, the number of square feet of interior floor
26space which comprises the retail sales area of the premises.
27f. Whether any person specified in paragraph “b” has ever
28been convicted of any offense against the laws of the United
29States, or any state or territory thereof, or any political
30subdivision of any such state or territory.
31g. Any other information as required by the administrator.
322. The administrator shall issue a class “A” or retail wine
33permit to any applicant who establishes all of the following:
34a. That the applicant has submitted a completed application
35as required by subsection 1.
-7- 1b. That the applicant is a person of good moral character as
2provided in section 123.3, subsection 34.
3c. That the applicant is a citizen of the state of Iowa
4or, if a corporation, that the applicant is authorized to do
5business in the state.
6d. That the premises where the applicant intends to use the
7permit conforms to all applicable laws, health regulations, and
8fire regulations, and constitutes a safe and proper place or
9building.
10e. That the applicant gives consent to a person, pursuant
11to section 123.30, subsection 1, to enter upon the premises
12without a warrant during the business hours of the applicant
13to inspect for violations of the provisions of this chapter or
14ordinances and regulations that local authorities may adopt.
15f. That the applicant has submitted, in the case of a class
16“A” wine permit, a bond in the amount of five thousand dollars
17in a manner prescribed by the administrator with good and
18sufficient sureties to be approved by the division conditioned
19upon compliance with this chapter.
20 Sec. 15. Section 123.178B, subsection 4, Code 2017, is
21amended to read as follows:
224. A person holding a class “C” native wine permit and a
23class “A” wine permit whose primary purpose is manufacturing
24native wine may purchase beer from a wholesaler holding a class
25“A” beer permit for sale at retail for consumption on or off
26the premises covered by the class “C” native wine permit.
27 Sec. 16. Section 123.180, subsection 2, Code 2017, is
28amended to read as follows:
292. At the time of applying for a vintner’s certificate of
30compliance, each applicant shall file with the division a list
31of all class “A” wine permittees with whom it intends to do
32business. The listing of class “A” wine permittees as filed
33with the division may shall be amended from time to time by the
34holder of the certificate of compliance as necessary to keep
35the listing current with the division.
-8-1 Sec. 17. Section 123.183, subsection 2, paragraph a, Code
22017, is amended to read as follows:
3a. Revenue collected from the wine gallonage tax on wine
4manufactured for sale and sold at wholesale in this state,
5and on wine subject to direct shipment as provided in section
6123.187 by a wine manufacturer licensed or permitted pursuant
7to laws regulating alcoholic beverages in this state, shall be
8deposited in the wine gallonage tax fund as created in this
9section.
10 Sec. 18. Section 123.187, subsection 2, paragraph c, Code
112017, is amended to read as follows:
12c. An application submitted pursuant to paragraph “a”
13shall also be accompanied by a bond in the amount of five
14thousand dollars in the form prescribed and furnished by the
15division with good and sufficient sureties to be approved by
16the division conditioned upon compliance with this chapter.
17However, a wine manufacturer that has submitted a bond pursuant
18to section 123.175, subsection 3 2, paragraph “f”, shall not be
19required to provide a bond as provided in this paragraph.
20DIVISION II
21BEER PERMITS
22 Sec. 19. Section 123.30, subsection 3, paragraph e,
23subparagraph (1), Code 2017, is amended to read as follows:
24(1) A class “E” liquor control license may be issued and
25shall authorize the holder to purchase alcoholic liquor from
26the division only and high alcoholic content beer from a class
27“AA” “A” beer permittee only and to sell the alcoholic liquor
28and high alcoholic content beer to patrons for consumption off
29the licensed premises and to other liquor control licensees.
30A holder of a class “E” liquor control license may hold other
31retail liquor control licenses or retail wine or beer permits,
32but the premises licensed under a class “E” liquor control
33license shall be separate from other licensed premises, though
34the separate premises may have a common entrance. However,
35the holder of a class “E” liquor control license may also hold
-9-1a class “B” wine or class “C” beer permit or both for the
2premises licensed under a class “E” liquor control license.
3 Sec. 20. Section 123.124, Code 2017, is amended by striking
4the section and inserting in lieu thereof the following:
5123.124 Beer permits — classes.
6Permits for the manufacture and sale, or sale, of beer shall
7be divided into four classes, known as class “A”, special
8class “A”, class “B”, or class “C” beer permits. A holder of
9a class “A” or special class “A” beer permit shall have the
10authority as provided in section 123.130. A holder of a class
11“B” beer permit shall have the authority as provided in section
12123.131, and a holder of a class “C” beer permit shall have the
13authority as provided in section 123.132.
14 Sec. 21. Section 123.125, Code 2017, is amended to read as
15follows:
16123.125 Issuance of beer permits.
17The administrator shall issue class “A”, special class “A”,
18class “AA”, special class “AA”, class “B”, and class “C” beer
19permits and may suspend or revoke permits for cause as provided
20in this chapter.
21 Sec. 22. Section 123.127, Code 2017, is amended by striking
22the section and inserting in lieu thereof the following:
23123.127 Class “A” and special class “A” beer permit
24application and issuance.
251. A person applying for a class “A” or special class “A”
26beer permit shall submit an application electronically, or in a
27manner prescribed by the administrator, which shall set forth
28under oath the following:
29a. The name and place of residence of the applicant.
30b. The names and addresses of all persons or, in the case of
31a corporation, the officers, directors, and persons owning or
32controlling ten percent or more of the capital stock thereof,
33having a financial interest, by way of loan, ownership, or
34otherwise, in the business.
35c. The location of the premises where the applicant intends
-10-1to operate.
2d. The name of the owner of the premises and if the owner of
3the premises is not the applicant, whether the applicant is the
4actual lessee of the premises.
5e. When required by the administrator, and in such form and
6containing such information as the administrator may require,
7a description of the premises where the applicant intends to
8use the permit, to include a sketch or drawing of the premises
9and, if applicable, the number of square feet of interior floor
10space which comprises the retail sales area of the premises.
11f. Whether any person specified in paragraph “b” has ever
12been convicted of any offense against the laws of the United
13States, or any state or territory thereof, or any political
14subdivision of any such state or territory.
15g. Any other information as required by the administrator.
162. The administrator shall issue a class “A” or special
17class “A” beer permit to any applicant who establishes all of
18the following:
19a. That the applicant has submitted a completed application
20as required by subsection 1.
21b. That the applicant is a person of good moral character as
22provided in section 123.3, subsection 34.
23c. That the applicant is a citizen of the state of Iowa
24or, if a corporation, that the applicant is authorized to do
25business in the state.
26d. That the premises where the applicant intends to use the
27permit conforms to all applicable laws, health regulations, and
28fire regulations, and constitutes a safe and proper place or
29building.
30e. That the applicant gives consent to a person, pursuant
31to section 123.30, subsection 1, to enter upon the premises
32without a warrant during the business hours of the applicant
33to inspect for violations of the provisions of this chapter or
34ordinances and regulations that local authorities may adopt.
35f. That the applicant has submitted a bond in the amount
-11-1of ten thousand dollars in a manner prescribed by the
2administrator with good and sufficient sureties to be approved
3by the division conditioned upon compliance with this chapter.
4g. If the person is applying for a special class “A” beer
5permit, that the applicant holds or has applied for a class “C”
6liquor control license or class “B” beer permit.
7 Sec. 23. Section 123.128, subsection 1, paragraph a, Code
82017, is amended to read as follows:
9a. All the information required of an applicant by section
10123.127, subsection 1, paragraph “a”.
11 Sec. 24. Section 123.128, subsection 2, Code 2017, is
12amended to read as follows:
132. Fulfills the requirements of section 123.127, subsection
141 2, paragraph paragraphs “b”, “c”, and “d”.
15 Sec. 25. Section 123.129, subsection 2, paragraphs a and b,
16Code 2017, are amended to read as follows:
17a. Submits an application electronically, or in a manner
18prescribed by the administrator, which shall state under
19oath all the information required of an applicant by section
20123.127, subsection 1, paragraph “a”.
21b. Establishes that the person is of good moral character as
22defined by this chapter Fulfills the requirements of section
23123.127, subsection 2, paragraphs “b”, “c”, and “d”.
24 Sec. 26. Section 123.129, subsection 2, paragraph d, Code
252017, is amended by striking the paragraph.
26 Sec. 27. Section 123.130, Code 2017, is amended to read as
27follows:
28123.130 Authority under class “A”, class “AA”, and special
29class “A”, and special class “AA” beer permits.
301. Any person holding a class “A” or class “AA” beer permit
31issued by the division shall be authorized to manufacture
32and sell, or sell at wholesale, beer for consumption off
33the premises, such sales within the state to be made only
34to persons holding subsisting class “A”, “B”, or “C” beer
35permits, or liquor control licenses issued in accordance with
-12-1the provisions of this chapter. A class “A”, class “AA”,
2 or special class “A”, or special class “AA” beer permit does
3not grant authority to manufacture wine as defined in section
4123.3, subsection 47.
52. All class “A” and class “AA” premises shall be located
6within the state. All beer received by the holder of a
7class “A” or class “AA” beer permit from the holder of a
8certificate of compliance before being resold must first come
9to rest on the licensed premises of the permit holder, must be
10inventoried, and is subject to the barrel tax when resold as
11provided in section 123.136. A class “A” or class “AA” beer
12permittee shall not store beer overnight except on premises
13licensed under a class “A” or class “AA” beer permit.
143. All special class “A” and special class “AA” premises
15shall be located within the state. A person who holds a
16special class “A” or special class “AA” beer permit for the
17same location at which the person holds a class “C” liquor
18control license or class “B” beer permit may manufacture
19and sell beer to be consumed on the premises, may sell at
20retail at the manufacturing premises for consumption off the
21premises beer that is transferred at the time of sale from
22the original container to another container that is no larger
23than seventy-two ounces, may sell beer to a class “A” or class
24“AA” beer permittee for resale purposes, and may sell beer to
25distributors outside of the state that are authorized by the
26laws of that jurisdiction to sell beer at wholesale.
27 Sec. 28. Section 123.131, Code 2017, is amended to read as
28follows:
29123.131 Authority under class “B” beer permit.
301. Subject to the provisions of this chapter, any person
31holding a class “B” beer permit shall be authorized to sell
32beer for consumption on or off the premises. Sales of beer
33for consumption off the premises made pursuant to this section
34shall be made in original containers except as provided in
35subsection 2. However, unless otherwise provided in this
-13-1chapter, no sale of beer shall be made for consumption on
2the premises unless the place where such service is made is
3equipped with tables and seats sufficient to accommodate not
4less than twenty-five persons at one time.
52. Subject to the rules of the division, sales of beer for
6consumption off the premises made pursuant to this section may
7be made in a container other than the original container only
8if all of the following requirements are met:
9a. The beer is transferred from the original container to
10the container to be sold on the licensed premises at the time
11of sale.
12b. The person transferring the beer from the original
13container to the container to be sold shall be eighteen years
14of age or more.
15c. The container to be sold shall be no larger than
16seventy-two ounces.
17d. The container to be sold shall be securely sealed by a
18method authorized by the division that is designed so that if
19the sealed container is reopened or the seal tampered with, it
20is visibly apparent that the seal on the container of beer has
21been tampered with or the sealed container has otherwise been
22reopened.
233. A container of beer other than the original container
24that is sold and sealed in compliance with the requirements of
25subsection 2 and the rules of the division shall not be deemed
26an open container subject to the requirements of sections
27321.284 and 321.284A if the sealed container is unopened and
28the seal has not been tampered with, and the contents of the
29container have not been partially removed.
304. A person holding a class “B” beer permit and a class “A”
31beer permit whose primary purpose is manufacturing beer may
32purchase wine from a wholesaler holding a class “A” wine permit
33for sale at retail for consumption on the premises covered by
34the class “B” beer permit.
35 Sec. 29. Section 123.134, subsection 1, Code 2017, is
-14-1amended to read as follows:
21. The annual permit fee for a class “A” or special class
3“A” beer permit is two seven hundred fifty dollars.
4 Sec. 30. Section 123.134, subsection 2, Code 2017, is
5amended by striking the subsection.
6 Sec. 31. Section 123.135, Code 2017, is amended to read as
7follows:
8123.135 Certificate of compliance — civil penalty.
91. A manufacturer, brewer, bottler, importer, or vendor of
10beer, or any agent thereof, desiring to ship or sell beer, or
11have beer brought into this state for resale by a class “A”
12or class “AA” beer permittee, shall first make application
13for and be issued a brewer’s certificate of compliance by the
14administrator for that purpose. The certificate of compliance
15expires at the end of one year from the date of issuance
16and shall be renewed for a like period upon application to
17the administrator unless otherwise revoked for cause. Each
18application for a certificate of compliance or renewal of a
19certificate shall be submitted electronically, or in a manner
20prescribed by the administrator, and shall be accompanied
21by a fee of five hundred dollars payable to the division.
22Each holder of a certificate of compliance shall furnish the
23information in a manner the administrator requires.
242. At the time of applying for a certificate of compliance,
25each applicant shall file with the division a list of all class
26“A” and class “AA” beer permittees with whom it intends to do
27business and shall designate the geographic area in which its
28products are to be distributed by such permittee. The listing
29of class “A” and class “AA” beer permittees and geographic area
30as filed with the division may shall be amended from time to
31time by the holder of a certificate of compliance as necessary
32to keep the listing current with the division.
333. All class “A” and class “AA” beer permit holders shall
34sell only those brands of beer which are manufactured, brewed,
35bottled, shipped, or imported by a person holding a current
-15-1certificate of compliance. Any employee or agent working for
2or representing the holder of a certificate of compliance
3within this state shall submit electronically, or in a manner
4prescribed by the administrator, the employee’s or agent’s name
5and address with the division.
64. It shall be unlawful for any holder of a certificate of
7compliance or the holder’s agent, or any class “A” or class
8“AA” beer permit holder or the beer permit holder’s agent, to
9grant to any retail beer permit holder, directly or indirectly,
10any rebates, free goods, or quantity discounts on beer which
11are not uniformly offered to all retail permittees.
125. Notwithstanding any other penalties provided by this
13chapter, any holder of a certificate of compliance or any class
14“A” or class “AA” beer permit holder who violates this chapter
15or the rules adopted pursuant to this chapter is subject to a
16civil penalty not to exceed one thousand dollars or suspension
17of the holder’s certificate or permit for a period not to
18exceed one year, or both such civil penalty and suspension.
19Civil penalties imposed under this section shall be collected
20and retained by the division.
21 Sec. 32. Section 123.136, subsection 1, Code 2017, is
22amended to read as follows:
231. In addition to the annual permit fee to be paid by all
24class “A” and class “AA” beer permittees under this chapter
25there shall be levied and collected from the permittees on all
26beer manufactured for sale or sold in this state at wholesale
27and on all beer imported into this state for sale at wholesale
28and sold in this state at wholesale, and from special class “A”
29and special class “AA” beer permittees on all beer manufactured
30for consumption on the premises and on all beer sold at retail
31at the manufacturing premises for consumption off the premises
32pursuant to section 123.130, subsection 3, a tax of five and
33eighty-nine hundredths dollars for every barrel containing
34thirty-one gallons, and at a like rate for any other quantity
35or for the fractional part of a barrel. However, no tax shall
-16-1be levied or collected on beer shipped outside this state by a
2class “A” or class “AA” beer permittee or sold by one class “A”
3or class “AA” beer permittee to another class “A” or class “AA”
4 beer permittee.
5 Sec. 33. Section 123.137, subsection 1, Code 2017, is
6amended to read as follows:
71. A person holding a class “A”, class “AA”, or special
8class “A”, or special class “AA” beer permit shall, on or
9before the tenth day of each calendar month commencing on the
10tenth day of the calendar month following the month in which
11the person is issued a beer permit, make a report under oath
12to the division electronically, or in a manner prescribed by
13the administrator, showing the exact number of barrels of
14beer, or fractional parts of barrels, sold by the beer permit
15holder during the preceding calendar month. The report shall
16also state information the administrator requires, and beer
17permit holders shall at the time of filing a report pay to the
18division the amount of tax due at the rate fixed in section
19123.136.
20 Sec. 34. Section 123.138, subsection 1, Code 2017, is
21amended to read as follows:
221. Each class “A”, class “AA”, or special class “A”, or
23special class “AA” beer permittee shall keep proper records
24showing the amount of beer sold by the permittee, and these
25records shall be at all times open to inspection by the
26administrator and to other persons pursuant to section 123.30,
27subsection 1. Each class “B” beer permittee, class “C” beer
28permittee, or retail liquor control licensee shall keep proper
29records showing each purchase of beer made by the permittee
30or licensee, and the date and the amount of each purchase and
31the name of the person from whom each purchase was made, which
32records shall be open to inspection pursuant to section 123.30,
33subsection 1, during normal business hours of the permittee or
34licensee.
35 Sec. 35. Section 123.139, Code 2017, is amended to read as
-17-1follows:
2123.139 Separate locations — class “A”, class “AA”, or
3 special class “A”, or special class “AA” beer permit.
4A class “A”, class “AA”, or special class “A”, or special
5class “AA” beer permittee having more than one place of
6business is required to have a separate beer permit for each
7separate place of business maintained by the permittee where
8beer is stored, warehoused, or sold.
9 Sec. 36. Section 123.142, Code 2017, is amended to read as
10follows:
11123.142 Unlawful sale and importation.
121. It is unlawful for the holder of a class “B” or class
13“C” beer permit issued under this chapter to sell beer, except
14beer brewed on the premises covered by a special class “A”
15or special class “AA” beer permit or beer purchased from a
16person holding a class “A” or class “AA” beer permit issued in
17accordance with this chapter, and on which the tax provided in
18section 123.136 has been paid. However, this section does not
19apply to class “D” liquor control licensees as provided in this
20chapter.
212. It shall be unlawful for any person not holding a class
22“A” or class “AA” beer permit to import beer into this state
23for the purpose of sale or resale.
24 Sec. 37. Section 123.143, subsection 3, Code 2017, is
25amended to read as follows:
263. Barrel tax revenues collected on beer manufactured in
27this state from a class “A” or class “AA” beer permittee which
28owns and operates a brewery located in Iowa shall be credited
29to the barrel tax fund hereby created in the office of the
30treasurer of state. Moneys deposited in the barrel tax fund
31shall not revert to the general fund of the state without a
32specific appropriation by the general assembly. Moneys in the
33barrel tax fund are appropriated to the economic development
34authority for purposes of section 15E.117.
35 Sec. 38. Section 123.144, subsection 1, Code 2017, is
-18-1amended to read as follows:
21. No person shall bottle beer within the state of Iowa,
3except class “A”, and special class “A”, class “AA”, and
4special class “AA” beer permittees who have complete equipment
5for bottling beer and who have received the approval of the
6local board of health as to sanitation. It shall be the duty of
7local boards of health to inspect the premises and equipment of
8class “A”, and special class “A”, class “AA”, and special class
9“AA” beer permittees who desire to bottle beer.
10DIVISION III
11NATIVE DISTILLED SPIRITS
12 Sec. 39. Section 123.3, subsections 28 and 29, Code 2017,
13are amended to read as follows:
1428. “Micro-distilled “Native distilled spirits” means
15distilled spirits fermented, distilled, or, for a period of
16two years, barrel matured on the licensed premises of the
17micro-distillery native distillery where fermented, distilled,
18or matured. “Micro-distilled spirits” “Native distilled spirits”
19 also includes blended or mixed spirits comprised solely of
20spirits fermented, distilled, or, for a period of two years,
21barrel matured at a micro-distillery native distillery.
2229. “Micro-distillery” “Native distillery” means a
23business with an operational operating still which, combining
24all production facilities of the business, produces and
25manufactures less than fifty thousand proof gallons of native
26 distilled spirits on an annual basis.
27 Sec. 40. Section 123.30, subsection 3, paragraph c, Code
282017, is amended by adding the following new subparagraph:
29 NEW SUBPARAGRAPH. (3) A class “C” native distilled spirits
30license may be issued to a native distillery but shall be
31issued in the name of the individuals who actually own the
32business. The license shall authorize the holder to sell
33native distilled spirits manufactured on the premises of the
34native distillery to patrons by the individual drink for
35consumption on the premises. All native distilled spirits sold
-19-1by a native distillery for on-premises consumption shall be
2purchased from a class “E” liquor control licensee.
3 Sec. 41. Section 123.32, subsection 1, Code 2017, is amended
4to read as follows:
51. Filing of application. An application for a class “A”,
6class “B”, class “C”, or class “E” liquor control license, for
7a class “A” micro-distilled spirits permit, for a retail beer
8permit as provided in sections 123.128 and 123.129, or for a
9class “B”, class “B” native, or class “C” native retail wine
10permit as provided in section 123.178, 123.178A, or 123.178B,
11accompanied by the necessary fee and bond, if required, shall
12be filed with the appropriate city council if the premises for
13which the license or permit is sought are located within the
14corporate limits of a city, or with the board of supervisors
15if the premises for which the license or permit is sought are
16located outside the corporate limits of a city. An application
17for a class “D” liquor control license and for a class “A”
18beer or class “A” wine permit, accompanied by the necessary
19fee and bond, if required, shall be submitted to the division
20electronically, or in a manner prescribed by the administrator,
21which shall proceed in the same manner as in the case of an
22application approved by local authorities.
23 Sec. 42. Section 123.36, Code 2017, is amended by adding the
24following new subsection:
25 NEW SUBSECTION. 3A. Class “C” native distilled spirits
26license, the sum of one thousand dollars.
27 Sec. 43. Section 123.36, subsection 5, Code 2017, is amended
28to read as follows:
295. Any club, hotel, motel, native distillery, or commercial
30establishment holding a liquor control license, subject to
31section 123.49, subsection 2, paragraph “b”, may apply for and
32receive permission to sell and dispense alcoholic liquor and
33wine to patrons on Sunday for consumption on the premises only,
34and beer for consumption on or off the premises between the
35hours of 8:00 a.m.on Sunday and 2:00 a.m.on the following
-20-1Monday. A class “D” liquor control licensee may apply for and
2receive permission to sell and dispense alcoholic beverages to
3patrons for consumption on the premises only between the hours
4of 8:00 a.m.on Sunday and 2:00 a.m.on the following Monday.
5For the privilege of selling beer, wine, and alcoholic liquor
6on the premises on Sunday the liquor control license fee of the
7applicant shall be increased by twenty percent of the regular
8fee prescribed for the license pursuant to this section, and
9the privilege shall be noted on the liquor control license.
10 Sec. 44. Section 123.43A, Code 2017, is amended to read as
11follows:
12123.43A Micro-distilled spirits — permit Native
13distilleries.
141. Subject to rules of the division, a micro-distillery
15 native distillery holding a class “A” micro-distilled spirits
16permit pursuant to this section manufacturer’s license
17issued pursuant to section 123.41 may sell or offer for sale
18micro-distilled native distilled spirits. As provided in this
19section, sales of native distilled spirits manufactured on the
20premises may be made at retail for off-premises consumption
21when sold on the premises of the micro-distillery native
22distillery that manufactures micro-distilled the native
23distilled spirits. All sales shall be made through the state’s
24wholesale distribution system.
252. A micro-distillery native distillery shall not sell
26more than one and one-half nine liters per person per day,
27of micro-distilled native distilled spirits on the premises
28of the micro-distillery native distillery. In addition, a
29micro-distillery A native distillery shall not directly ship
30micro-distilled native distilled spirits for sale at retail.
31The micro-distillery native distillery shall maintain records
32of individual purchases of micro-distilled native distilled
33 spirits at the micro-distillery native distillery for three
34years.
353. A micro-distillery native distillery shall not sell
-21-1micro-distilled native distilled spirits other than as
2permitted in this chapter and shall not allow micro-distilled
3 native distilled spirits sold for consumption off the premises
4 to be consumed upon the premises of the micro-distillery native
5distillery. However, as a part of a micro-distillery native
6distillery tour, micro-distilled native distilled spirits may
7be tasted pursuant to the rules of the division on the premises
8where fermented, distilled, or matured, when no charge is made
9for the tasting.
104. A class “A” micro-distilled spirits permit for a
11micro-distillery shall be issued and renewed annually upon
12payment of a fee of five hundred dollars.
135. The sale of micro-distilled native distilled spirits to
14the division for wholesale disposition and sale by the division
15shall be subject to the requirements of this chapter regarding
16such disposition and sale.
176. 5. The division shall issue no more than three permits
18under this section manufacturer’s licenses to a person
19 native distillery. In addition, a micro-distillery native
20distillery issued a permit manufacturer’s license under this
21 section 123.41 shall file with the division, on or before the
22fifteenth day of each calendar month, all documents filed by
23the micro-distillery native distillery with the alcohol and
24tobacco tax and trade bureau of the United States department of
25the treasury, including all production, storage, and processing
26reports.
277. Micro-distilled spirits purchased at a micro-distillery
28shall not be consumed on any property owned, operated, or
29controlled by a micro-distillery.
306. Notwithstanding any provision of this chapter to
31the contrary or the fact that a person is the holder of a
32manufacturer’s license, a native distillery may sell those
33native distilled spirits manufactured on the premises of the
34native distillery for consumption on the premises by applying
35for a class “C” native distilled spirits license as provided
-22-1in section 123.30. A native distillery may be granted not
2more than one class “C” native distilled spirits license.
3All native distilled spirits sold by a native distillery for
4on-premises consumption shall be purchased from a class “E”
5liquor control licensee.
6 Sec. 45. Section 123.173A, subsections 4 and 7, Code 2017,
7are amended to read as follows:
84. The authorized nonprofit entity conducting the charity
9beer, spirits, and wine auction shall obtain the beer, spirits,
10and wine to be auctioned at the charity beer, spirits, and wine
11auction from an Iowa retail beer permittee, an Iowa retail
12liquor control licensee, or an Iowa retail wine permittee, or
13may receive donations of beer, spirits, or wine to be auctioned
14at the charity beer, spirits, and wine auction from persons
15who purchased the donated beer, spirits, or wine from an Iowa
16retail beer permittee, an Iowa retail liquor control licensee,
17an Iowa micro-distilled spirits permittee native distillery,
18or an Iowa retail wine permittee and who present a receipt
19documenting the purchase at the time the beer, spirits, or wine
20is donated. The authorized nonprofit entity conducting the
21charity beer, spirits, and wine auction shall retain a copy
22of the receipt for a period of one year from the date of the
23charity beer, spirits, and wine auction.
247. A liquor control licensee, beer permittee,
25micro-distilled spirits permittee native distillery, or wine
26permittee shall not purchase beer, spirits, or wine at a
27charity beer, spirits, and wine auction. The charity beer,
28spirits, and wine auction may be conducted on a premises for
29which a class “B” liquor control license or class “C” liquor
30control license has been issued, provided that the liquor
31control licensee does not participate in the charity beer,
32spirits, and wine auction, supply beer, spirits, or wine to be
33auctioned at the charity beer, spirits, and wine auction, or
34receive any of the proceeds of the charity beer, spirits, and
35wine auction.
-23-1EXPLANATION
2The inclusion of this explanation does not constitute agreement with
3the explanation’s substance by the members of the general assembly.
4This bill concerns alcoholic beverage control and matters
5under the purview of the alcoholic beverages division of the
6department of commerce.
7DIVISION I — ALCOHOLIC BEVERAGE CONTROL. Code section
8123.3, providing definitions, is amended. The bill adds a
9definition for “original container”, which means a vessel
10containing an alcoholic beverage that bears a federally
11approved label and is appropriately sealed at the location
12of manufacture. In addition, the definition of “licensed
13premises” is amended to include noncontiguous areas or places
14susceptible of a precise description.
15Code section 123.22 is amended to allow individuals to
16manufacture, sell, or transport ingredients and devices used to
17make homemade beer. Current law allows this for homemade wine.
18Code section 123.23, concerning a distiller’s certificate of
19compliance, is amended to delete a reference that a listing of
20authorized agents of the certificate holder be amended “from
21time to time”. The bill does not eliminate the requirement
22that the listing be amended as necessary.
23Code section 123.28, concerning restrictions on
24transportation, is amended by dividing the section into
25numbered subsections.
26Code section 123.30, concerning liquor control licenses,
27is amended by removing cash payment as a type of payment
28for purchasing alcoholic liquor from the alcoholic beverages
29division. The bill retains language in current law that
30requires payment by other means that ensure the division
31receives full payment in advance of delivery of alcoholic
32liquor.
33Code section 123.31, concerning application contents for
34a liquor control license, is amended by striking provisions
35requiring the applicant to set forth whether the applicant
-24-1possesses a federal gambling stamp and whether, if required,
2all designated security employees have received security
3employee training and certification as required by Code section
4123.32.
5Code section 123.32 is amended to provide that if an
6application for a liquor control license or other permit is
7disapproved by the administrator of the alcoholic beverages
8division, the appropriate local authority shall be notified
9electronically, or in a manner prescribed by the administrator,
10instead of by certified mail. The applicant is still required
11to be notified of the disapproval by certified mail.
12Code section 123.33, concerning records required to be
13maintained by a licensee or permittee, is amended to describe
14the types of records to be maintained, which shall include
15income statements, balance sheets, and purchase and sale
16invoices and ledgers.
17Code section 123.34, concerning seasonal licenses, is
18amended to provide that an applicant may apply for a new
19seasonal permit or license at the same location after two
20months.
21Code section 123.49 is amended to consolidate the rules
22governing Sunday sales of alcoholic liquor, wine, or beer
23within subsection 2, paragraph “b”, of that section.
24Code section 123.51, concerning allowable signs and branded
25advertising of a licensee authorized to sell liquor, wine,
26or beer at retail, is amended to provide that signs or other
27advertising matter may be erected inside the premises and
28inside a window facing outward from the premises.
29Code section 123.175, concerning class “A” or retail
30wine permit applications, is stricken and rewritten by the
31bill. The bill provides specifically for the contents of
32the application to be submitted to the administrator of the
33alcoholic beverages division and what the applicant must
34establish before the administrator issues a permit. In
35addition to requirements currently provided in Code section
-25-1123.175, the bill provides that an applicant that is a
2corporation shall list all officers and persons with a certain
3financial interest in the corporation in the application. The
4bill also requires an applicant to state in the application
5whether certain persons required to be listed in the
6application have been convicted of any offense and, if required
7by the administrator of the division, to include in the
8application a sketch or drawing of the premises. Code section
9123.187 is amended to reflect the rewritten Code section.
10Code section 123.178B, concerning class “C” native wine
11permits, is amended to specify that a permittee authorized to
12purchase beer for sale at retail may sell it for consumption
13on or off the premises covered by the class “C” native wine
14permit.
15Code section 123.180, concerning a vintner’s certificate of
16compliance, is amended to provide that the listing of class “A”
17wine permittees the applicant intends to do business with that
18is filed with the alcoholic beverages division shall be amended
19as necessary to keep the listing current.
20Code section 123.183 is amended to provide that the
21gallonage tax on wine is collected when the wine is sold at
22wholesale.
23DIVISION II — BEER PERMITS. This division eliminates
24class “AA” and special class “AA” beer permits and makes other
25changes relative to beer permits.
26Code section 123.124, concerning beer permit classes, is
27rewritten to reflect the elimination of class “AA” and special
28class “AA” beer permits. The Code section is also amended to
29refer to the Code sections that describe the authority for each
30beer permit class.
31Code section 123.127, concerning class “A” or class “AA”
32and special class “A” or special class “AA” beer permits, is
33stricken and rewritten by the bill. The bill eliminates the
34class “AA” and special class “AA” beer permits and provides
35specifically for the contents of the application to be
-26-1submitted to the administrator of the alcoholic beverages
2division and what the applicant must establish before the
3administrator issues a permit. The bill also increases from
4$5,000 to $10,000 the amount of the bond an applicant must
5submit to the administrator.
6In addition to requirements currently provided in Code
7section 123.127, the bill provides that an applicant that is a
8corporation shall list all officers and persons with a certain
9financial interest in the corporation in the application. The
10bill also requires an applicant to state in the application
11whether certain persons required to be listed in the
12application have been convicted of any offense and, if required
13by the administrator of the division, to include in the
14application a sketch or drawing of the premises. Code sections
15123.128 and 123.129, concerning class “B” and class “C” beer
16permits, are amended to reflect the rewritten Code section.
17Code section 123.130, is amended to eliminate class “AA”
18and special class “AA” beer permits and provides that certain
19special class “A” beer permittees may sell at retail at the
20manufacturing premises for consumption off the premises beer
21that is transferred at the time of sale from the original
22container to another container that is no larger than 72
23ounces.
24Code section 123.131, concerning authority under a class “B”
25beer permit, is amended to allow a class “B” beer permittee
26whose primary purpose is manufacturing beer that also holds
27a class “A” beer permit to purchase wine from a wholesaler
28for sale at retail or consumption on the premises covered by
29the class “B” beer permit. In addition, the Code section
30is amended to provide that sales of beer for consumption
31off the premises may be made in a container other than the
32original container that is no larger than 72 ounces under
33certain circumstances and shall be deemed an open container for
34purposes of Code sections 321.284 and 321.284A.
35Code section 123.134, concerning beer permit fees, is
-27-1amended to increase the annual fee for a class “A” or special
2class “A” beer permit from $250 to $750.
3Code section 123.135, concerning a certificate of compliance
4concerning beer, is amended to provide that the listing of
5class “A” permittees and geographic area as filed with the
6alcoholic beverages division shall be amended as necessary to
7keep the listing current.
8Code section 123.136, concerning the barrel tax on beer,
9is amended to provide that the tax applies to all beer
10sold at retail by a special class “A” beer permittee at the
11manufacturing premises for consumption off the premises.
12DIVISION III — NATIVE DISTILLED SPIRITS. Code section
13123.3, providing definitions, is amended to change the terms
14“micro-distilled spirits” and “micro-distillery” to “native
15distilled spirits” and “native distillery”. In addition, the
16bill eliminates the requirement that a native distillery has to
17produce and manufacture less than 50 proof gallons of distilled
18spirits annually. Corresponding changes in Code chapter 123
19are made to reflect the changed definitions.
20Code section 123.30, concerning liquor control licenses,
21is amended to provide for the issuance of a class “C” native
22distilled spirits license which authorizes the holder to sell
23native distilled spirits manufactured on the premises for
24consumption on the premises.
25Code section 123.32, concerning applications for certain
26licenses, is amended to eliminate the application for a class
27“A” micro-distilled spirits permit.
28Code section 123.36, concerning liquor fees, is amended to
29provide that the annual fee for a class “C” native distilled
30spirits license is $1,000. The Code section is also amended to
31allow a native distillery the ability to make certain sales of
32alcoholic liquor, wine, and beer on Sundays in the same manner
33as a club, hotel, motel, or other commercial establishment.
34Code section 123.43A, concerning micro-distilled spirits, is
35amended to reflect the change of the term to native distilled
-28-1spirits and the elimination of the class “A” micro-distilled
2spirits permit. The Code section requires the native
3distillery to obtain a manufacturer’s license and limits
4the number of manufacturer’s licenses to three for a native
5distillery. The Code section is also amended to allow for
6sales of nine, instead of one and one-half, liters of native
7distilled spirits per person per day. The Code section also
8allows a native distillery to sell native distilled spirits
9manufactured on the premises for consumption on the premises by
10applying for a class “C” native distilled spirits license. A
11native distillery may be granted not more than one class “C”
12native distilled spirits license.
-29-ec/nh
2the purview of the alcoholic beverages division of the
3department of commerce.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2ALCOHOLIC BEVERAGE CONTROL
3 Section 1. Section 123.3, subsection 25, Code 2017, is
4amended to read as follows:
525. “Licensed premises” or “premises” means all rooms,
6enclosures, contiguous areas, or places susceptible of precise
7description satisfactory to the administrator where alcoholic
8beverages, wine, or beer is sold or consumed under authority
9of a liquor control license, wine permit, or beer permit.
10A single licensed premises may consist of multiple rooms,
11enclosures, areas, or places if they are wholly within the
12confines of a single building or contiguous grounds, or areas
13or places susceptible of precise description satisfactory to
14the administrator.
15 Sec. 2. Section 123.3, Code 2017, is amended by adding the
16following new subsection:
17 NEW SUBSECTION. 30A. “Original container” means a vessel
18containing an alcoholic beverage that has been lawfully
19obtained, bears a label approved by the alcohol and tobacco
20tax and trade bureau of the United States department of the
21treasury, and has been securely capped, sealed, or corked at
22the location of manufacture.
23 Sec. 3. Section 123.22, Code 2017, is amended to read as
24follows:
25123.22 State monopoly.
261. The division has the exclusive right of importation
27into the state of all forms of alcoholic liquor, except as
28otherwise provided in this chapter, and a person shall not
29import alcoholic liquor, except that an individual of legal age
30may import and have in the individual’s possession an amount
31of alcoholic liquor not exceeding one liter or, in the case of
32alcoholic liquor personally obtained outside the United States,
33four liters for personal consumption only in a private home
34or other private accommodation. A distillery shall not sell
35alcoholic liquor within the state to any person but only to
-1-1the division, except as otherwise provided in this chapter.
2This section vests in the division exclusive control within the
3state as purchaser of all alcoholic liquor sold by distilleries
4within the state or imported, except beer and wine, and except
5as otherwise provided in this chapter. The division shall
6receive alcoholic liquor on a bailment system for resale by the
7division in the manner set forth in this chapter. The division
8shall act as the sole wholesaler of alcoholic liquor to class
9“E” liquor control licensees.
102. No person, acting individually or through another
11acting for the person shall directly or indirectly, or upon
12any pretense, or by any device, manufacture, sell, exchange,
13barter, dispense, give in consideration of the purchase of any
14property or of any services or in evasion of this chapter, or
15keep for sale, or have possession of any intoxicating liquor,
16except as provided in this chapter; or own, keep, or be in any
17way concerned, engaged, or employed in owning or keeping, any
18intoxicating liquor with intent to violate any provision of
19this chapter, or authorize or permit the same to be done; or
20manufacture, own, sell, or have possession of any manufactured
21or compounded article, mixture or substance, not in a liquid
22form, and containing alcohol which may be converted into a
23beverage by a process of pressing or straining the alcohol
24therefrom, or any instrument intended for use and capable of
25being used in the manufacture of intoxicating liquor; or own
26or have possession of any material used exclusively in the
27manufacture of intoxicating liquor; or use or have possession
28of any material with intent to use it in the manufacture of
29intoxicating liquors; however, alcohol may be manufactured
30for industrial and nonbeverage purposes by persons who have
31qualified for that purpose as provided by the laws of the
32United States and the laws of this state. Such alcohol, so
33manufactured, may be denatured, transported, used, possessed,
34sold, and bartered and dispensed, subject to the limitations,
35prohibitions and restrictions imposed by the laws of the United
-2-1States and this state. Any person may manufacture, sell, or
2transport ingredients and devices other than alcohol for the
3making of homemade wine or beer.
4 Sec. 4. Section 123.23, subsection 2, Code 2017, is amended
5to read as follows:
62. At the time of applying for a certificate of compliance,
7each applicant shall submit to the division electronically,
8or in a manner prescribed by the administrator, the name and
9address of its authorized agent for service of process which
10shall remain effective until changed for another, and a list
11of names and addresses of all representatives, employees, or
12attorneys whom the applicant has appointed in the state of Iowa
13to represent it for any purpose. The listing shall be amended
14from time to time by the certificate holder as necessary to
15keep the listing current with the division.
16 Sec. 5. Section 123.28, Code 2017, is amended to read as
17follows:
18123.28 Restrictions on transportation.
191. It is lawful to transport, carry, or convey alcoholic
20liquors from the place of purchase by the division to a state
21warehouse or depot established by the division or from one such
22place to another and, when so permitted by this chapter, it is
23lawful for the division, a common carrier, or other person to
24transport, carry, or convey alcoholic liquor sold from a state
25warehouse, depot, or point of purchase by the state to any
26place to which the liquor may be lawfully delivered under this
27chapter.
282. The division shall deliver alcoholic liquor purchased by
29class “E” liquor control licensees. Class “E” liquor control
30licensees may deliver alcoholic liquor purchased by class “A”,
31“B”, or “C” liquor control licensees, and class “A”, “B”, or
32“C” liquor control licensees may transport alcoholic liquor
33purchased from class “E” liquor control licensees.
343. A common carrier or other person shall not break or
35open or allow to be broken or opened a container or package
-3-1containing alcoholic liquor or use or drink or allow to be used
2or drunk any alcoholic liquor while it is being transported or
3conveyed, but this.
44. Thissection does not prohibit a private person from
5transporting individual bottles or containers of alcoholic
6liquor exempted pursuant to section 123.22 and individual
7bottles or containers bearing the identifying mark prescribed
8in section 123.26 which have been opened previous to the
9commencement of the transportation.
105. This section does not affect the right of a special
11permit or liquor control license holder to purchase, possess,
12or transport alcoholic liquors subject to this chapter.
13 Sec. 6. Section 123.30, subsection 1, paragraph c, Code
142017, is amended to read as follows:
15c. As a further condition for the issuance of a class “E”
16liquor control license, the applicant shall post a bond in
17a sum of not less than five thousand nor more than fifteen
18thousand dollars as determined on a sliding scale established
19by the division; however, a bond shall not be required if all
20purchases of alcoholic liquor from the division by the licensee
21are made by cash payment or by means that ensure that the
22division will receive full payment in advance of delivery of
23the alcoholic liquor.
24 Sec. 7. Section 123.31, subsections 6 and 7, Code 2017, are
25amended by striking the subsections.
26 Sec. 8. Section 123.32, subsection 6, paragraph b, Code
272017, is amended to read as follows:
28b. Upon receipt of an application having been approved by
29the local authority, the division shall make an investigation
30as the administrator deems necessary to determine that the
31applicant complies with all requirements for holding a license
32or permit, and may require the applicant to appear to be
33examined under oath to demonstrate that the applicant complies
34with all of the requirements to hold a license or permit. If
35the administrator requires the applicant to appear and to
-4-1testify under oath, a record shall be made of all testimony or
2evidence and the record shall become a part of the application.
3The administrator may appoint a member of the division or
4may request an administrative law judge of the department of
5inspections and appeals to receive the testimony under oath
6and evidence, and to issue a proposed decision to approve
7or disapprove the application for a license or permit. The
8administrator may affirm, reverse, or modify the proposed
9decision to approve or disapprove the application for the
10license or permit. If the application is approved by the
11administrator, the license or permit shall be issued. If the
12application is disapproved by the administrator, the applicant
13and the appropriate local authority shall be so notified by
14certified mail and the appropriate local authority shall be
15notified electronically, or in a manner prescribed by the
16administrator.
17 Sec. 9. Section 123.33, Code 2017, is amended to read as
18follows:
19123.33 Records.
20Every holder of a liquor control license shall keep a daily
21record, in printed or electronic format, of the gross receipts
22of the holder’s business or permit under this chapter shall
23maintain records, in printed and electronic format, which
24include income statements, balance sheets, purchase and sales
25invoices, purchase and sales ledgers, and any other records as
26the administrator may require. The records required and the
27premises of the licensee or permittee shall be accessible and
28open to inspection pursuant to section 123.30, subsection 1,
29during normal business hours of the licensee or permittee.
30 Sec. 10. Section 123.34, subsection 1, Code 2017, is amended
31to read as follows:
321. Liquor control licenses, wine permits, and beer permits,
33unless sooner suspended or revoked, expire one year from
34date of issuance. The administrator shall give sixty days’
35written notice of the expiration to each licensee or permittee.
-5-1However, the administrator may issue six-month or eight-month
2seasonal licenses, class “B” wine permits, or class “B” beer
3permits for a proportionate part of the license or permit fee
4or may issue fourteen-day liquor control licenses, native wine
5permits, or beer permits as provided in subsection 2. No
6refund shall be made for seasonal licenses or permits or for
7fourteen-day liquor control licenses, native wine permits, or
8beer permits. No seasonal license or permit shall be renewed
9except. However, after a period of two months the applicant
10may apply for a new seasonal license or permit for the same
11location.
12 Sec. 11. Section 123.49, subsection 2, paragraph b, Code
132017, is amended to read as follows:
14b. Sell or dispense any alcoholic beverage or beer on
15the premises covered by the license or permit, or permit its
16consumption thereon between the hours of 2:00 a.m.and 6:00
17a.m.on a weekday, and between the hours of 2:00 a.m.on Sunday
18and 6:00 a.m.on the following Monday, however, a holder of a
19liquor control license or retail wine or beer permit granted
20the privilege of selling alcoholic liquor, wine, or beer on
21Sunday may sell or dispense alcoholic liquor, wine, or beer
22between the hours of 8:00 a.m.on Sunday and 2:00 a.m.on the
23following Monday.
24 Sec. 12. Section 123.49, subsection 2, paragraph k, Code
252017, is amended by striking the paragraph.
26 Sec. 13. Section 123.51, subsection 1, Code 2017, is amended
27to read as follows:
281. No signs or other matter advertising any brand of
29alcoholic liquor, beer, or wine shall be erected or placed upon
30the outside of any premises occupied by a licensee or permittee
31authorized to sell alcoholic liquor, beer, or wine at retail.
32This subsection does not prohibit the use of signs However,
33signs or other advertising matter may be erected or placed
34inside the premises, inside a fence or similar enclosure which
35wholly or partially surrounds the licensed premises, or inside
-6-1a window facing outward from the premises.
2 Sec. 14. Section 123.175, Code 2017, is amended by striking
3the section and inserting in lieu thereof the following:
4123.175 Class “A” or retail wine permit application and
5issuance.
61. A person applying for a class “A” or retail wine permit
7shall submit an application electronically, or in a manner
8prescribed by the administrator, which shall set forth under
9oath the following:
10a. The name and place of residence of the applicant.
11b. The names and addresses of all persons or, in the case of
12a corporation, the officers, directors, and persons owning or
13controlling ten percent or more of the capital stock thereof,
14having a financial interest, by way of loan, ownership, or
15otherwise, in the business.
16c. The location of the premises where the applicant intends
17to operate.
18d. The name of the owner of the premises and if the owner of
19the premises is not the applicant, whether the applicant is the
20actual lessee of the premises.
21e. When required by the administrator, and in such form and
22containing such information as the administrator may require,
23a description of the premises where the applicant intends to
24use the permit, to include a sketch or drawing of the premises
25and, if applicable, the number of square feet of interior floor
26space which comprises the retail sales area of the premises.
27f. Whether any person specified in paragraph “b” has ever
28been convicted of any offense against the laws of the United
29States, or any state or territory thereof, or any political
30subdivision of any such state or territory.
31g. Any other information as required by the administrator.
322. The administrator shall issue a class “A” or retail wine
33permit to any applicant who establishes all of the following:
34a. That the applicant has submitted a completed application
35as required by subsection 1.
-7- 1b. That the applicant is a person of good moral character as
2provided in section 123.3, subsection 34.
3c. That the applicant is a citizen of the state of Iowa
4or, if a corporation, that the applicant is authorized to do
5business in the state.
6d. That the premises where the applicant intends to use the
7permit conforms to all applicable laws, health regulations, and
8fire regulations, and constitutes a safe and proper place or
9building.
10e. That the applicant gives consent to a person, pursuant
11to section 123.30, subsection 1, to enter upon the premises
12without a warrant during the business hours of the applicant
13to inspect for violations of the provisions of this chapter or
14ordinances and regulations that local authorities may adopt.
15f. That the applicant has submitted, in the case of a class
16“A” wine permit, a bond in the amount of five thousand dollars
17in a manner prescribed by the administrator with good and
18sufficient sureties to be approved by the division conditioned
19upon compliance with this chapter.
20 Sec. 15. Section 123.178B, subsection 4, Code 2017, is
21amended to read as follows:
224. A person holding a class “C” native wine permit and a
23class “A” wine permit whose primary purpose is manufacturing
24native wine may purchase beer from a wholesaler holding a class
25“A” beer permit for sale at retail for consumption on or off
26the premises covered by the class “C” native wine permit.
27 Sec. 16. Section 123.180, subsection 2, Code 2017, is
28amended to read as follows:
292. At the time of applying for a vintner’s certificate of
30compliance, each applicant shall file with the division a list
31of all class “A” wine permittees with whom it intends to do
32business. The listing of class “A” wine permittees as filed
33with the division may shall be amended from time to time by the
34holder of the certificate of compliance as necessary to keep
35the listing current with the division.
-8-1 Sec. 17. Section 123.183, subsection 2, paragraph a, Code
22017, is amended to read as follows:
3a. Revenue collected from the wine gallonage tax on wine
4manufactured for sale and sold at wholesale in this state,
5and on wine subject to direct shipment as provided in section
6123.187 by a wine manufacturer licensed or permitted pursuant
7to laws regulating alcoholic beverages in this state, shall be
8deposited in the wine gallonage tax fund as created in this
9section.
10 Sec. 18. Section 123.187, subsection 2, paragraph c, Code
112017, is amended to read as follows:
12c. An application submitted pursuant to paragraph “a”
13shall also be accompanied by a bond in the amount of five
14thousand dollars in the form prescribed and furnished by the
15division with good and sufficient sureties to be approved by
16the division conditioned upon compliance with this chapter.
17However, a wine manufacturer that has submitted a bond pursuant
18to section 123.175, subsection 3 2, paragraph “f”, shall not be
19required to provide a bond as provided in this paragraph.
20DIVISION II
21BEER PERMITS
22 Sec. 19. Section 123.30, subsection 3, paragraph e,
23subparagraph (1), Code 2017, is amended to read as follows:
24(1) A class “E” liquor control license may be issued and
25shall authorize the holder to purchase alcoholic liquor from
26the division only and high alcoholic content beer from a class
27“AA” “A” beer permittee only and to sell the alcoholic liquor
28and high alcoholic content beer to patrons for consumption off
29the licensed premises and to other liquor control licensees.
30A holder of a class “E” liquor control license may hold other
31retail liquor control licenses or retail wine or beer permits,
32but the premises licensed under a class “E” liquor control
33license shall be separate from other licensed premises, though
34the separate premises may have a common entrance. However,
35the holder of a class “E” liquor control license may also hold
-9-1a class “B” wine or class “C” beer permit or both for the
2premises licensed under a class “E” liquor control license.
3 Sec. 20. Section 123.124, Code 2017, is amended by striking
4the section and inserting in lieu thereof the following:
5123.124 Beer permits — classes.
6Permits for the manufacture and sale, or sale, of beer shall
7be divided into four classes, known as class “A”, special
8class “A”, class “B”, or class “C” beer permits. A holder of
9a class “A” or special class “A” beer permit shall have the
10authority as provided in section 123.130. A holder of a class
11“B” beer permit shall have the authority as provided in section
12123.131, and a holder of a class “C” beer permit shall have the
13authority as provided in section 123.132.
14 Sec. 21. Section 123.125, Code 2017, is amended to read as
15follows:
16123.125 Issuance of beer permits.
17The administrator shall issue class “A”, special class “A”,
18class “AA”, special class “AA”, class “B”, and class “C” beer
19permits and may suspend or revoke permits for cause as provided
20in this chapter.
21 Sec. 22. Section 123.127, Code 2017, is amended by striking
22the section and inserting in lieu thereof the following:
23123.127 Class “A” and special class “A” beer permit
24application and issuance.
251. A person applying for a class “A” or special class “A”
26beer permit shall submit an application electronically, or in a
27manner prescribed by the administrator, which shall set forth
28under oath the following:
29a. The name and place of residence of the applicant.
30b. The names and addresses of all persons or, in the case of
31a corporation, the officers, directors, and persons owning or
32controlling ten percent or more of the capital stock thereof,
33having a financial interest, by way of loan, ownership, or
34otherwise, in the business.
35c. The location of the premises where the applicant intends
-10-1to operate.
2d. The name of the owner of the premises and if the owner of
3the premises is not the applicant, whether the applicant is the
4actual lessee of the premises.
5e. When required by the administrator, and in such form and
6containing such information as the administrator may require,
7a description of the premises where the applicant intends to
8use the permit, to include a sketch or drawing of the premises
9and, if applicable, the number of square feet of interior floor
10space which comprises the retail sales area of the premises.
11f. Whether any person specified in paragraph “b” has ever
12been convicted of any offense against the laws of the United
13States, or any state or territory thereof, or any political
14subdivision of any such state or territory.
15g. Any other information as required by the administrator.
162. The administrator shall issue a class “A” or special
17class “A” beer permit to any applicant who establishes all of
18the following:
19a. That the applicant has submitted a completed application
20as required by subsection 1.
21b. That the applicant is a person of good moral character as
22provided in section 123.3, subsection 34.
23c. That the applicant is a citizen of the state of Iowa
24or, if a corporation, that the applicant is authorized to do
25business in the state.
26d. That the premises where the applicant intends to use the
27permit conforms to all applicable laws, health regulations, and
28fire regulations, and constitutes a safe and proper place or
29building.
30e. That the applicant gives consent to a person, pursuant
31to section 123.30, subsection 1, to enter upon the premises
32without a warrant during the business hours of the applicant
33to inspect for violations of the provisions of this chapter or
34ordinances and regulations that local authorities may adopt.
35f. That the applicant has submitted a bond in the amount
-11-1of ten thousand dollars in a manner prescribed by the
2administrator with good and sufficient sureties to be approved
3by the division conditioned upon compliance with this chapter.
4g. If the person is applying for a special class “A” beer
5permit, that the applicant holds or has applied for a class “C”
6liquor control license or class “B” beer permit.
7 Sec. 23. Section 123.128, subsection 1, paragraph a, Code
82017, is amended to read as follows:
9a. All the information required of an applicant by section
10123.127, subsection 1, paragraph “a”.
11 Sec. 24. Section 123.128, subsection 2, Code 2017, is
12amended to read as follows:
132. Fulfills the requirements of section 123.127, subsection
141 2, paragraph paragraphs “b”, “c”, and “d”.
15 Sec. 25. Section 123.129, subsection 2, paragraphs a and b,
16Code 2017, are amended to read as follows:
17a. Submits an application electronically, or in a manner
18prescribed by the administrator, which shall state under
19oath all the information required of an applicant by section
20123.127, subsection 1, paragraph “a”.
21b. Establishes that the person is of good moral character as
22defined by this chapter Fulfills the requirements of section
23123.127, subsection 2, paragraphs “b”, “c”, and “d”.
24 Sec. 26. Section 123.129, subsection 2, paragraph d, Code
252017, is amended by striking the paragraph.
26 Sec. 27. Section 123.130, Code 2017, is amended to read as
27follows:
28123.130 Authority under class “A”, class “AA”, and special
29class “A”, and special class “AA” beer permits.
301. Any person holding a class “A” or class “AA” beer permit
31issued by the division shall be authorized to manufacture
32and sell, or sell at wholesale, beer for consumption off
33the premises, such sales within the state to be made only
34to persons holding subsisting class “A”, “B”, or “C” beer
35permits, or liquor control licenses issued in accordance with
-12-1the provisions of this chapter. A class “A”, class “AA”,
2 or special class “A”, or special class “AA” beer permit does
3not grant authority to manufacture wine as defined in section
4123.3, subsection 47.
52. All class “A” and class “AA” premises shall be located
6within the state. All beer received by the holder of a
7class “A” or class “AA” beer permit from the holder of a
8certificate of compliance before being resold must first come
9to rest on the licensed premises of the permit holder, must be
10inventoried, and is subject to the barrel tax when resold as
11provided in section 123.136. A class “A” or class “AA” beer
12permittee shall not store beer overnight except on premises
13licensed under a class “A” or class “AA” beer permit.
143. All special class “A” and special class “AA” premises
15shall be located within the state. A person who holds a
16special class “A” or special class “AA” beer permit for the
17same location at which the person holds a class “C” liquor
18control license or class “B” beer permit may manufacture
19and sell beer to be consumed on the premises, may sell at
20retail at the manufacturing premises for consumption off the
21premises beer that is transferred at the time of sale from
22the original container to another container that is no larger
23than seventy-two ounces, may sell beer to a class “A” or class
24“AA” beer permittee for resale purposes, and may sell beer to
25distributors outside of the state that are authorized by the
26laws of that jurisdiction to sell beer at wholesale.
27 Sec. 28. Section 123.131, Code 2017, is amended to read as
28follows:
29123.131 Authority under class “B” beer permit.
301. Subject to the provisions of this chapter, any person
31holding a class “B” beer permit shall be authorized to sell
32beer for consumption on or off the premises. Sales of beer
33for consumption off the premises made pursuant to this section
34shall be made in original containers except as provided in
35subsection 2. However, unless otherwise provided in this
-13-1chapter, no sale of beer shall be made for consumption on
2the premises unless the place where such service is made is
3equipped with tables and seats sufficient to accommodate not
4less than twenty-five persons at one time.
52. Subject to the rules of the division, sales of beer for
6consumption off the premises made pursuant to this section may
7be made in a container other than the original container only
8if all of the following requirements are met:
9a. The beer is transferred from the original container to
10the container to be sold on the licensed premises at the time
11of sale.
12b. The person transferring the beer from the original
13container to the container to be sold shall be eighteen years
14of age or more.
15c. The container to be sold shall be no larger than
16seventy-two ounces.
17d. The container to be sold shall be securely sealed by a
18method authorized by the division that is designed so that if
19the sealed container is reopened or the seal tampered with, it
20is visibly apparent that the seal on the container of beer has
21been tampered with or the sealed container has otherwise been
22reopened.
233. A container of beer other than the original container
24that is sold and sealed in compliance with the requirements of
25subsection 2 and the rules of the division shall not be deemed
26an open container subject to the requirements of sections
27321.284 and 321.284A if the sealed container is unopened and
28the seal has not been tampered with, and the contents of the
29container have not been partially removed.
304. A person holding a class “B” beer permit and a class “A”
31beer permit whose primary purpose is manufacturing beer may
32purchase wine from a wholesaler holding a class “A” wine permit
33for sale at retail for consumption on the premises covered by
34the class “B” beer permit.
35 Sec. 29. Section 123.134, subsection 1, Code 2017, is
-14-1amended to read as follows:
21. The annual permit fee for a class “A” or special class
3“A” beer permit is two seven hundred fifty dollars.
4 Sec. 30. Section 123.134, subsection 2, Code 2017, is
5amended by striking the subsection.
6 Sec. 31. Section 123.135, Code 2017, is amended to read as
7follows:
8123.135 Certificate of compliance — civil penalty.
91. A manufacturer, brewer, bottler, importer, or vendor of
10beer, or any agent thereof, desiring to ship or sell beer, or
11have beer brought into this state for resale by a class “A”
12or class “AA” beer permittee, shall first make application
13for and be issued a brewer’s certificate of compliance by the
14administrator for that purpose. The certificate of compliance
15expires at the end of one year from the date of issuance
16and shall be renewed for a like period upon application to
17the administrator unless otherwise revoked for cause. Each
18application for a certificate of compliance or renewal of a
19certificate shall be submitted electronically, or in a manner
20prescribed by the administrator, and shall be accompanied
21by a fee of five hundred dollars payable to the division.
22Each holder of a certificate of compliance shall furnish the
23information in a manner the administrator requires.
242. At the time of applying for a certificate of compliance,
25each applicant shall file with the division a list of all class
26“A” and class “AA” beer permittees with whom it intends to do
27business and shall designate the geographic area in which its
28products are to be distributed by such permittee. The listing
29of class “A” and class “AA” beer permittees and geographic area
30as filed with the division may shall be amended from time to
31time by the holder of a certificate of compliance as necessary
32to keep the listing current with the division.
333. All class “A” and class “AA” beer permit holders shall
34sell only those brands of beer which are manufactured, brewed,
35bottled, shipped, or imported by a person holding a current
-15-1certificate of compliance. Any employee or agent working for
2or representing the holder of a certificate of compliance
3within this state shall submit electronically, or in a manner
4prescribed by the administrator, the employee’s or agent’s name
5and address with the division.
64. It shall be unlawful for any holder of a certificate of
7compliance or the holder’s agent, or any class “A” or class
8“AA” beer permit holder or the beer permit holder’s agent, to
9grant to any retail beer permit holder, directly or indirectly,
10any rebates, free goods, or quantity discounts on beer which
11are not uniformly offered to all retail permittees.
125. Notwithstanding any other penalties provided by this
13chapter, any holder of a certificate of compliance or any class
14“A” or class “AA” beer permit holder who violates this chapter
15or the rules adopted pursuant to this chapter is subject to a
16civil penalty not to exceed one thousand dollars or suspension
17of the holder’s certificate or permit for a period not to
18exceed one year, or both such civil penalty and suspension.
19Civil penalties imposed under this section shall be collected
20and retained by the division.
21 Sec. 32. Section 123.136, subsection 1, Code 2017, is
22amended to read as follows:
231. In addition to the annual permit fee to be paid by all
24class “A” and class “AA” beer permittees under this chapter
25there shall be levied and collected from the permittees on all
26beer manufactured for sale or sold in this state at wholesale
27and on all beer imported into this state for sale at wholesale
28and sold in this state at wholesale, and from special class “A”
29and special class “AA” beer permittees on all beer manufactured
30for consumption on the premises and on all beer sold at retail
31at the manufacturing premises for consumption off the premises
32pursuant to section 123.130, subsection 3, a tax of five and
33eighty-nine hundredths dollars for every barrel containing
34thirty-one gallons, and at a like rate for any other quantity
35or for the fractional part of a barrel. However, no tax shall
-16-1be levied or collected on beer shipped outside this state by a
2class “A” or class “AA” beer permittee or sold by one class “A”
3or class “AA” beer permittee to another class “A” or class “AA”
4 beer permittee.
5 Sec. 33. Section 123.137, subsection 1, Code 2017, is
6amended to read as follows:
71. A person holding a class “A”, class “AA”, or special
8class “A”, or special class “AA” beer permit shall, on or
9before the tenth day of each calendar month commencing on the
10tenth day of the calendar month following the month in which
11the person is issued a beer permit, make a report under oath
12to the division electronically, or in a manner prescribed by
13the administrator, showing the exact number of barrels of
14beer, or fractional parts of barrels, sold by the beer permit
15holder during the preceding calendar month. The report shall
16also state information the administrator requires, and beer
17permit holders shall at the time of filing a report pay to the
18division the amount of tax due at the rate fixed in section
19123.136.
20 Sec. 34. Section 123.138, subsection 1, Code 2017, is
21amended to read as follows:
221. Each class “A”, class “AA”, or special class “A”, or
23special class “AA” beer permittee shall keep proper records
24showing the amount of beer sold by the permittee, and these
25records shall be at all times open to inspection by the
26administrator and to other persons pursuant to section 123.30,
27subsection 1. Each class “B” beer permittee, class “C” beer
28permittee, or retail liquor control licensee shall keep proper
29records showing each purchase of beer made by the permittee
30or licensee, and the date and the amount of each purchase and
31the name of the person from whom each purchase was made, which
32records shall be open to inspection pursuant to section 123.30,
33subsection 1, during normal business hours of the permittee or
34licensee.
35 Sec. 35. Section 123.139, Code 2017, is amended to read as
-17-1follows:
2123.139 Separate locations — class “A”, class “AA”, or
3 special class “A”, or special class “AA” beer permit.
4A class “A”, class “AA”, or special class “A”, or special
5class “AA” beer permittee having more than one place of
6business is required to have a separate beer permit for each
7separate place of business maintained by the permittee where
8beer is stored, warehoused, or sold.
9 Sec. 36. Section 123.142, Code 2017, is amended to read as
10follows:
11123.142 Unlawful sale and importation.
121. It is unlawful for the holder of a class “B” or class
13“C” beer permit issued under this chapter to sell beer, except
14beer brewed on the premises covered by a special class “A”
15or special class “AA” beer permit or beer purchased from a
16person holding a class “A” or class “AA” beer permit issued in
17accordance with this chapter, and on which the tax provided in
18section 123.136 has been paid. However, this section does not
19apply to class “D” liquor control licensees as provided in this
20chapter.
212. It shall be unlawful for any person not holding a class
22“A” or class “AA” beer permit to import beer into this state
23for the purpose of sale or resale.
24 Sec. 37. Section 123.143, subsection 3, Code 2017, is
25amended to read as follows:
263. Barrel tax revenues collected on beer manufactured in
27this state from a class “A” or class “AA” beer permittee which
28owns and operates a brewery located in Iowa shall be credited
29to the barrel tax fund hereby created in the office of the
30treasurer of state. Moneys deposited in the barrel tax fund
31shall not revert to the general fund of the state without a
32specific appropriation by the general assembly. Moneys in the
33barrel tax fund are appropriated to the economic development
34authority for purposes of section 15E.117.
35 Sec. 38. Section 123.144, subsection 1, Code 2017, is
-18-1amended to read as follows:
21. No person shall bottle beer within the state of Iowa,
3except class “A”, and special class “A”, class “AA”, and
4special class “AA” beer permittees who have complete equipment
5for bottling beer and who have received the approval of the
6local board of health as to sanitation. It shall be the duty of
7local boards of health to inspect the premises and equipment of
8class “A”, and special class “A”, class “AA”, and special class
9“AA” beer permittees who desire to bottle beer.
10DIVISION III
11NATIVE DISTILLED SPIRITS
12 Sec. 39. Section 123.3, subsections 28 and 29, Code 2017,
13are amended to read as follows:
1428. “Micro-distilled “Native distilled spirits” means
15distilled spirits fermented, distilled, or, for a period of
16two years, barrel matured on the licensed premises of the
17micro-distillery native distillery where fermented, distilled,
18or matured. “Micro-distilled spirits” “Native distilled spirits”
19 also includes blended or mixed spirits comprised solely of
20spirits fermented, distilled, or, for a period of two years,
21barrel matured at a micro-distillery native distillery.
2229. “Micro-distillery” “Native distillery” means a
23business with an operational operating still which, combining
24all production facilities of the business, produces and
25manufactures less than fifty thousand proof gallons of native
26 distilled spirits on an annual basis.
27 Sec. 40. Section 123.30, subsection 3, paragraph c, Code
282017, is amended by adding the following new subparagraph:
29 NEW SUBPARAGRAPH. (3) A class “C” native distilled spirits
30license may be issued to a native distillery but shall be
31issued in the name of the individuals who actually own the
32business. The license shall authorize the holder to sell
33native distilled spirits manufactured on the premises of the
34native distillery to patrons by the individual drink for
35consumption on the premises. All native distilled spirits sold
-19-1by a native distillery for on-premises consumption shall be
2purchased from a class “E” liquor control licensee.
3 Sec. 41. Section 123.32, subsection 1, Code 2017, is amended
4to read as follows:
51. Filing of application. An application for a class “A”,
6class “B”, class “C”, or class “E” liquor control license, for
7a class “A” micro-distilled spirits permit, for a retail beer
8permit as provided in sections 123.128 and 123.129, or for a
9class “B”, class “B” native, or class “C” native retail wine
10permit as provided in section 123.178, 123.178A, or 123.178B,
11accompanied by the necessary fee and bond, if required, shall
12be filed with the appropriate city council if the premises for
13which the license or permit is sought are located within the
14corporate limits of a city, or with the board of supervisors
15if the premises for which the license or permit is sought are
16located outside the corporate limits of a city. An application
17for a class “D” liquor control license and for a class “A”
18beer or class “A” wine permit, accompanied by the necessary
19fee and bond, if required, shall be submitted to the division
20electronically, or in a manner prescribed by the administrator,
21which shall proceed in the same manner as in the case of an
22application approved by local authorities.
23 Sec. 42. Section 123.36, Code 2017, is amended by adding the
24following new subsection:
25 NEW SUBSECTION. 3A. Class “C” native distilled spirits
26license, the sum of one thousand dollars.
27 Sec. 43. Section 123.36, subsection 5, Code 2017, is amended
28to read as follows:
295. Any club, hotel, motel, native distillery, or commercial
30establishment holding a liquor control license, subject to
31section 123.49, subsection 2, paragraph “b”, may apply for and
32receive permission to sell and dispense alcoholic liquor and
33wine to patrons on Sunday for consumption on the premises only,
34and beer for consumption on or off the premises between the
35hours of 8:00 a.m.on Sunday and 2:00 a.m.on the following
-20-1Monday. A class “D” liquor control licensee may apply for and
2receive permission to sell and dispense alcoholic beverages to
3patrons for consumption on the premises only between the hours
4of 8:00 a.m.on Sunday and 2:00 a.m.on the following Monday.
5For the privilege of selling beer, wine, and alcoholic liquor
6on the premises on Sunday the liquor control license fee of the
7applicant shall be increased by twenty percent of the regular
8fee prescribed for the license pursuant to this section, and
9the privilege shall be noted on the liquor control license.
10 Sec. 44. Section 123.43A, Code 2017, is amended to read as
11follows:
12123.43A Micro-distilled spirits — permit Native
13distilleries.
141. Subject to rules of the division, a micro-distillery
15 native distillery holding a class “A” micro-distilled spirits
16permit pursuant to this section manufacturer’s license
17issued pursuant to section 123.41 may sell or offer for sale
18micro-distilled native distilled spirits. As provided in this
19section, sales of native distilled spirits manufactured on the
20premises may be made at retail for off-premises consumption
21when sold on the premises of the micro-distillery native
22distillery that manufactures micro-distilled the native
23distilled spirits. All sales shall be made through the state’s
24wholesale distribution system.
252. A micro-distillery native distillery shall not sell
26more than one and one-half nine liters per person per day,
27of micro-distilled native distilled spirits on the premises
28of the micro-distillery native distillery. In addition, a
29micro-distillery A native distillery shall not directly ship
30micro-distilled native distilled spirits for sale at retail.
31The micro-distillery native distillery shall maintain records
32of individual purchases of micro-distilled native distilled
33 spirits at the micro-distillery native distillery for three
34years.
353. A micro-distillery native distillery shall not sell
-21-1micro-distilled native distilled spirits other than as
2permitted in this chapter and shall not allow micro-distilled
3 native distilled spirits sold for consumption off the premises
4 to be consumed upon the premises of the micro-distillery native
5distillery. However, as a part of a micro-distillery native
6distillery tour, micro-distilled native distilled spirits may
7be tasted pursuant to the rules of the division on the premises
8where fermented, distilled, or matured, when no charge is made
9for the tasting.
104. A class “A” micro-distilled spirits permit for a
11micro-distillery shall be issued and renewed annually upon
12payment of a fee of five hundred dollars.
135. The sale of micro-distilled native distilled spirits to
14the division for wholesale disposition and sale by the division
15shall be subject to the requirements of this chapter regarding
16such disposition and sale.
176. 5. The division shall issue no more than three permits
18under this section manufacturer’s licenses to a person
19 native distillery. In addition, a micro-distillery native
20distillery issued a permit manufacturer’s license under this
21 section 123.41 shall file with the division, on or before the
22fifteenth day of each calendar month, all documents filed by
23the micro-distillery native distillery with the alcohol and
24tobacco tax and trade bureau of the United States department of
25the treasury, including all production, storage, and processing
26reports.
277. Micro-distilled spirits purchased at a micro-distillery
28shall not be consumed on any property owned, operated, or
29controlled by a micro-distillery.
306. Notwithstanding any provision of this chapter to
31the contrary or the fact that a person is the holder of a
32manufacturer’s license, a native distillery may sell those
33native distilled spirits manufactured on the premises of the
34native distillery for consumption on the premises by applying
35for a class “C” native distilled spirits license as provided
-22-1in section 123.30. A native distillery may be granted not
2more than one class “C” native distilled spirits license.
3All native distilled spirits sold by a native distillery for
4on-premises consumption shall be purchased from a class “E”
5liquor control licensee.
6 Sec. 45. Section 123.173A, subsections 4 and 7, Code 2017,
7are amended to read as follows:
84. The authorized nonprofit entity conducting the charity
9beer, spirits, and wine auction shall obtain the beer, spirits,
10and wine to be auctioned at the charity beer, spirits, and wine
11auction from an Iowa retail beer permittee, an Iowa retail
12liquor control licensee, or an Iowa retail wine permittee, or
13may receive donations of beer, spirits, or wine to be auctioned
14at the charity beer, spirits, and wine auction from persons
15who purchased the donated beer, spirits, or wine from an Iowa
16retail beer permittee, an Iowa retail liquor control licensee,
17an Iowa micro-distilled spirits permittee native distillery,
18or an Iowa retail wine permittee and who present a receipt
19documenting the purchase at the time the beer, spirits, or wine
20is donated. The authorized nonprofit entity conducting the
21charity beer, spirits, and wine auction shall retain a copy
22of the receipt for a period of one year from the date of the
23charity beer, spirits, and wine auction.
247. A liquor control licensee, beer permittee,
25micro-distilled spirits permittee native distillery, or wine
26permittee shall not purchase beer, spirits, or wine at a
27charity beer, spirits, and wine auction. The charity beer,
28spirits, and wine auction may be conducted on a premises for
29which a class “B” liquor control license or class “C” liquor
30control license has been issued, provided that the liquor
31control licensee does not participate in the charity beer,
32spirits, and wine auction, supply beer, spirits, or wine to be
33auctioned at the charity beer, spirits, and wine auction, or
34receive any of the proceeds of the charity beer, spirits, and
35wine auction.
-23-1EXPLANATION
2The inclusion of this explanation does not constitute agreement with
3the explanation’s substance by the members of the general assembly.
4This bill concerns alcoholic beverage control and matters
5under the purview of the alcoholic beverages division of the
6department of commerce.
7DIVISION I — ALCOHOLIC BEVERAGE CONTROL. Code section
8123.3, providing definitions, is amended. The bill adds a
9definition for “original container”, which means a vessel
10containing an alcoholic beverage that bears a federally
11approved label and is appropriately sealed at the location
12of manufacture. In addition, the definition of “licensed
13premises” is amended to include noncontiguous areas or places
14susceptible of a precise description.
15Code section 123.22 is amended to allow individuals to
16manufacture, sell, or transport ingredients and devices used to
17make homemade beer. Current law allows this for homemade wine.
18Code section 123.23, concerning a distiller’s certificate of
19compliance, is amended to delete a reference that a listing of
20authorized agents of the certificate holder be amended “from
21time to time”. The bill does not eliminate the requirement
22that the listing be amended as necessary.
23Code section 123.28, concerning restrictions on
24transportation, is amended by dividing the section into
25numbered subsections.
26Code section 123.30, concerning liquor control licenses,
27is amended by removing cash payment as a type of payment
28for purchasing alcoholic liquor from the alcoholic beverages
29division. The bill retains language in current law that
30requires payment by other means that ensure the division
31receives full payment in advance of delivery of alcoholic
32liquor.
33Code section 123.31, concerning application contents for
34a liquor control license, is amended by striking provisions
35requiring the applicant to set forth whether the applicant
-24-1possesses a federal gambling stamp and whether, if required,
2all designated security employees have received security
3employee training and certification as required by Code section
4123.32.
5Code section 123.32 is amended to provide that if an
6application for a liquor control license or other permit is
7disapproved by the administrator of the alcoholic beverages
8division, the appropriate local authority shall be notified
9electronically, or in a manner prescribed by the administrator,
10instead of by certified mail. The applicant is still required
11to be notified of the disapproval by certified mail.
12Code section 123.33, concerning records required to be
13maintained by a licensee or permittee, is amended to describe
14the types of records to be maintained, which shall include
15income statements, balance sheets, and purchase and sale
16invoices and ledgers.
17Code section 123.34, concerning seasonal licenses, is
18amended to provide that an applicant may apply for a new
19seasonal permit or license at the same location after two
20months.
21Code section 123.49 is amended to consolidate the rules
22governing Sunday sales of alcoholic liquor, wine, or beer
23within subsection 2, paragraph “b”, of that section.
24Code section 123.51, concerning allowable signs and branded
25advertising of a licensee authorized to sell liquor, wine,
26or beer at retail, is amended to provide that signs or other
27advertising matter may be erected inside the premises and
28inside a window facing outward from the premises.
29Code section 123.175, concerning class “A” or retail
30wine permit applications, is stricken and rewritten by the
31bill. The bill provides specifically for the contents of
32the application to be submitted to the administrator of the
33alcoholic beverages division and what the applicant must
34establish before the administrator issues a permit. In
35addition to requirements currently provided in Code section
-25-1123.175, the bill provides that an applicant that is a
2corporation shall list all officers and persons with a certain
3financial interest in the corporation in the application. The
4bill also requires an applicant to state in the application
5whether certain persons required to be listed in the
6application have been convicted of any offense and, if required
7by the administrator of the division, to include in the
8application a sketch or drawing of the premises. Code section
9123.187 is amended to reflect the rewritten Code section.
10Code section 123.178B, concerning class “C” native wine
11permits, is amended to specify that a permittee authorized to
12purchase beer for sale at retail may sell it for consumption
13on or off the premises covered by the class “C” native wine
14permit.
15Code section 123.180, concerning a vintner’s certificate of
16compliance, is amended to provide that the listing of class “A”
17wine permittees the applicant intends to do business with that
18is filed with the alcoholic beverages division shall be amended
19as necessary to keep the listing current.
20Code section 123.183 is amended to provide that the
21gallonage tax on wine is collected when the wine is sold at
22wholesale.
23DIVISION II — BEER PERMITS. This division eliminates
24class “AA” and special class “AA” beer permits and makes other
25changes relative to beer permits.
26Code section 123.124, concerning beer permit classes, is
27rewritten to reflect the elimination of class “AA” and special
28class “AA” beer permits. The Code section is also amended to
29refer to the Code sections that describe the authority for each
30beer permit class.
31Code section 123.127, concerning class “A” or class “AA”
32and special class “A” or special class “AA” beer permits, is
33stricken and rewritten by the bill. The bill eliminates the
34class “AA” and special class “AA” beer permits and provides
35specifically for the contents of the application to be
-26-1submitted to the administrator of the alcoholic beverages
2division and what the applicant must establish before the
3administrator issues a permit. The bill also increases from
4$5,000 to $10,000 the amount of the bond an applicant must
5submit to the administrator.
6In addition to requirements currently provided in Code
7section 123.127, the bill provides that an applicant that is a
8corporation shall list all officers and persons with a certain
9financial interest in the corporation in the application. The
10bill also requires an applicant to state in the application
11whether certain persons required to be listed in the
12application have been convicted of any offense and, if required
13by the administrator of the division, to include in the
14application a sketch or drawing of the premises. Code sections
15123.128 and 123.129, concerning class “B” and class “C” beer
16permits, are amended to reflect the rewritten Code section.
17Code section 123.130, is amended to eliminate class “AA”
18and special class “AA” beer permits and provides that certain
19special class “A” beer permittees may sell at retail at the
20manufacturing premises for consumption off the premises beer
21that is transferred at the time of sale from the original
22container to another container that is no larger than 72
23ounces.
24Code section 123.131, concerning authority under a class “B”
25beer permit, is amended to allow a class “B” beer permittee
26whose primary purpose is manufacturing beer that also holds
27a class “A” beer permit to purchase wine from a wholesaler
28for sale at retail or consumption on the premises covered by
29the class “B” beer permit. In addition, the Code section
30is amended to provide that sales of beer for consumption
31off the premises may be made in a container other than the
32original container that is no larger than 72 ounces under
33certain circumstances and shall be deemed an open container for
34purposes of Code sections 321.284 and 321.284A.
35Code section 123.134, concerning beer permit fees, is
-27-1amended to increase the annual fee for a class “A” or special
2class “A” beer permit from $250 to $750.
3Code section 123.135, concerning a certificate of compliance
4concerning beer, is amended to provide that the listing of
5class “A” permittees and geographic area as filed with the
6alcoholic beverages division shall be amended as necessary to
7keep the listing current.
8Code section 123.136, concerning the barrel tax on beer,
9is amended to provide that the tax applies to all beer
10sold at retail by a special class “A” beer permittee at the
11manufacturing premises for consumption off the premises.
12DIVISION III — NATIVE DISTILLED SPIRITS. Code section
13123.3, providing definitions, is amended to change the terms
14“micro-distilled spirits” and “micro-distillery” to “native
15distilled spirits” and “native distillery”. In addition, the
16bill eliminates the requirement that a native distillery has to
17produce and manufacture less than 50 proof gallons of distilled
18spirits annually. Corresponding changes in Code chapter 123
19are made to reflect the changed definitions.
20Code section 123.30, concerning liquor control licenses,
21is amended to provide for the issuance of a class “C” native
22distilled spirits license which authorizes the holder to sell
23native distilled spirits manufactured on the premises for
24consumption on the premises.
25Code section 123.32, concerning applications for certain
26licenses, is amended to eliminate the application for a class
27“A” micro-distilled spirits permit.
28Code section 123.36, concerning liquor fees, is amended to
29provide that the annual fee for a class “C” native distilled
30spirits license is $1,000. The Code section is also amended to
31allow a native distillery the ability to make certain sales of
32alcoholic liquor, wine, and beer on Sundays in the same manner
33as a club, hotel, motel, or other commercial establishment.
34Code section 123.43A, concerning micro-distilled spirits, is
35amended to reflect the change of the term to native distilled
-28-1spirits and the elimination of the class “A” micro-distilled
2spirits permit. The Code section requires the native
3distillery to obtain a manufacturer’s license and limits
4the number of manufacturer’s licenses to three for a native
5distillery. The Code section is also amended to allow for
6sales of nine, instead of one and one-half, liters of native
7distilled spirits per person per day. The Code section also
8allows a native distillery to sell native distilled spirits
9manufactured on the premises for consumption on the premises by
10applying for a class “C” native distilled spirits license. A
11native distillery may be granted not more than one class “C”
12native distilled spirits license.
-29-ec/nh