Bill Text: IA HF2301 | 2021-2022 | 89th General Assembly | Introduced

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Bill Title: A bill for an act relating to alcoholic beverage control and matters under the purview of the alcoholic beverages division of the department of commerce and including effective date provisions.(Formerly HSB 602; See HF 2531.)

Spectrum: Committee Bill

Status: (Introduced - Dead) 2022-02-24 - Committee report approving bill, renumbered as HF 2531. [HF2301 Detail]

Download: Iowa-2021-HF2301-Introduced.html

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House File 2301 - Introduced
HOUSE FILE 2301
BY COMMITTEE ON COMMERCE
(SUCCESSOR TO HSB 602)
A BILL FOR
An Act relating to alcoholic beverage control and matters
under the purview of the alcoholic beverages division of
the department of commerce and including effective date
provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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DIVISION I
ALCOHOLIC BEVERAGE CONTROL
Section 1. Section 123.46A, subsection 3, paragraph f, Code
2022, is amended to read as follows:
f. Deliveries shall occur between 6:00 a.m. and 10:00 p.m.
Monday through Sunday on the same day the order for alcoholic
liquor, wine, beer, or mixed drinks or cocktails is removed
from the licensed premises .
Sec. 2. Section 123.50, subsection 1, Code 2022, is amended
to read as follows:
1. Any person who violates any of the provisions of section
123.49 , except section 123.49, subsection 2 , paragraph “h” ,
or who fails to affix upon sale, defaces, or fails to record
a keg identification sticker label or produce a record of keg
identification stickers labels pursuant to section 123.138 ,
shall be guilty of a simple misdemeanor. A person who violates
section 123.49, subsection 2 , paragraph “h” , commits a simple
misdemeanor punishable as a scheduled violation under section
805.8C, subsection 2 .
Sec. 3. Section 123.138, subsection 2, paragraphs a and b,
Code 2022, are amended to read as follows:
a. Each class “B”, “C”, or special class “C” liquor control
licensee and class “B” or “C” beer permittee who sells beer
for off-premises consumption shall affix to each keg of beer
an identification sticker label provided by the administrator.
The sticker label provided shall allow for its full removal
when common external keg cleaning procedures are performed.
For the purposes of this subsection , “keg” means all durable and
disposable containers with a liquid capacity of five gallons or
more. Each class “B”, “C”, or special class “C” liquor control
licensee and class “B” or “C” beer permittee shall also keep
a record of the identification sticker label number of each
keg of beer sold by the licensee or permittee with the name
and address of the purchaser and the number of the purchaser’s
driver’s license, nonoperator’s identification card, or
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military identification card, if the military identification
card contains a picture and signature. This information shall
be retained by the licensee or permittee for a minimum of
ninety days. The records kept pursuant to this subsection
shall be available for inspection by any law enforcement
officer during normal business hours.
b. (1) The division shall provide the keg identification
stickers labels described in paragraph “a” and shall, prior to
utilizing a sticker label , notify licensed brewers and licensed
beer importers of the type of sticker label to be utilized.
Each sticker label shall contain a number and the following
statement:
It is unlawful to sell, give, or otherwise supply any
alcoholic beverage, wine, or beer to any person under legal
age. Any person who defaces this sticker label shall be guilty
of criminal mischief punishable pursuant to section 716.6 and
shall cause the forfeiture of any deposit, if applicable .
(2) The identification sticker label shall be placed on
the keg at the time of retail sale. The licensee or permittee
shall purchase obtain the stickers labels referred to in this
subsection from the division and shall remit to the division
deposits forfeited pursuant to this lettered paragraph due to
defacement . The cost of the stickers labels to licensees and
permittees shall not exceed the division’s cost of producing
and distributing the stickers labels . The moneys collected by
the division relating to the sale of stickers and forfeited
deposits labels shall be credited to the beer and liquor
control fund.
Sec. 4. Section 123.138, subsection 2, paragraph d, Code
2022, is amended by striking the paragraph.
Sec. 5. Section 123.187, subsection 2, paragraph d, Code
2022, is amended by striking the paragraph.
DIVISION II
AUTOMATIC RENEWALS
Sec. 6. Section 123.34, subsection 1, Code 2022, is amended
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by striking the subsection.
Sec. 7. NEW SECTION . 123.35 Expiration of licenses,
permits, and certificates of compliance —— automatic renewals.
1. Except as otherwise provided by this chapter, all
licenses, permits, and certificates of compliance, unless
sooner suspended or revoked, expire one year from date of
issuance.
2. Notwithstanding section 123.31 and any other provision
of this chapter to the contrary, a class “E” liquor control
license shall automatically renew without the endorsement
of a local authority or approval by the administrator upon
collection of the annual fee by the division, provided all of
the following conditions are met since the preceding license
was issued:
a. The permittee has given written consent to the division
to have the permit automatically renewed as provided in this
section.
b. The license has not been suspended or revoked.
c. A civil penalty has not been imposed against the
licensee.
d. An administrative proceeding is not pending against the
licensee to suspend or revoke the license or to impose a civil
penalty under this chapter.
e. The licensee has not submitted payment for alcoholic
liquor to the division that was subsequently dishonored.
f. The licensee and all persons associated with the licensee
as described in section 123.3, subsection 40, paragraph “e” ,
have not been convicted of a violation of this chapter.
g. The licensed premises constitutes a safe and proper place
or building and conforms with all applicable federal, state,
and local laws, orders, ordinances, rules, resolutions, and
health and fire regulations.
3. Notwithstanding sections 123.23, 123.135, 123.180,
and any other provision of this chapter to the contrary, a
distiller’s, brewer’s, or vintner’s certificate of compliance
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shall automatically renew without approval by the administrator
upon collection of the annual fee by the division, provided
all of the following conditions are met since the preceding
certificate was issued:
a. The certificate holder has given written consent to
the division to have the certificate automatically renewed as
provided in this section.
b. The certificate has not been suspended or revoked.
c. A civil penalty has not been imposed against the
certificate holder.
d. An administrative proceeding is not pending against the
certificate holder to suspend or revoke the certificate or to
impose a civil penalty under this chapter.
e. The certificate holder and all persons associated
with the certificate holder as described in section 123.3,
subsection 40, paragraph “e” , have not been convicted of a
violation of this chapter.
4. Notwithstanding section 123.187 and any other provision
of this chapter to the contrary, a wine direct shipper’s permit
shall automatically renew without approval by the administrator
upon collection of the annual fee by the division, provided all
of the following conditions are met since the preceding permit
was issued:
a. The permittee has given written consent to the division
to have the permit automatically renewed as provided in this
section.
b. The permit has not been suspended or revoked.
c. A civil penalty has not been imposed against the
permittee.
d. An administrative proceeding is not pending against the
permittee to suspend or revoke the permit or to impose a civil
penalty under this chapter.
e. The permittee has filed all required reports and remitted
all wine gallonage tax owed pursuant to section 123.183.
f. The permittee and all persons associated with the
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permittee as described in section 123.3, subsection 40,
paragraph “e” , have not been convicted of a violation of this
chapter.
Sec. 8. EFFECTIVE DATE. This division of this Act takes
effect January 1, 2023.
DIVISION III
ALCOHOLIC BEVERAGE CONTROL REVENUES
Sec. 9. Section 123.17, subsection 5, Code 2022, is amended
to read as follows:
5. a. After any transfer provided for in subsection 3 is
made, the department of commerce shall transfer into a special
revenue account in the general fund of the state, a sum of
money at least equal to seven percent of the gross amount of
sales made by the division from the beer and liquor control
fund on a monthly basis but not less than nine million dollars
annually.
b. Of the amounts transferred, two million dollars, plus an
additional amount determined by the general assembly, shall be
appropriated to the Iowa department of public health for use
by the staff who administer the comprehensive substance abuse
program under chapter 125 for substance abuse treatment and
prevention programs.
c. In addition, of the amounts transferred, one million
dollars, plus an additional amount determined by the general
assembly, shall be appropriated to the Iowa department of
public health for distribution pursuant to section 125.59.
d. Any amounts received in excess of the amounts
appropriated to the Iowa department of public health for use
by the staff who administer the comprehensive substance abuse
program under chapter 125 pursuant to this subsection shall be
considered part of the general fund balance.
Sec. 10. Section 123.143, subsection 1, Code 2022, is
amended by striking the subsection.
Sec. 11. Section 123.143, subsection 2, Code 2022, is
amended to read as follows:
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2. All permit fees collected by the division under this
subchapter shall accrue to the beer and liquor control fund,
except as otherwise provided. All permit fees and taxes
collected by the division under this subchapter shall accrue to
the state general fund, except as otherwise provided.
Sec. 12. Section 123.143, Code 2022, is amended by adding
the following new subsection:
NEW SUBSECTION . 2A. All retail beer permit fees collected
by the division shall be credited to the beer and liquor
control fund. The division shall remit to the appropriate
local authority a sum of money equal to the total amount of the
fees collected for each retail beer permit covering premises
located within the local authority’s jurisdiction.
Sec. 13. Section 125.59, unnumbered paragraph 1, Code 2022,
is amended to read as follows:
The treasurer of state, on each July 1 for that fiscal
year, shall transfer the estimated amounts to be received
from section 123.36, subsection 8 and section 123.143,
subsection 1 section 123.17, subsection 5, paragraph “c” , to the
department.
Sec. 14. REPEAL. Section 123.97, Code 2022, is repealed.
Sec. 15. EFFECTIVE DATE. This division of this Act takes
effect January 1, 2023.
DIVISION IV
CLASS “E” LIQUOR CONTROL LICENSES AND WINE PERMITS
Sec. 16. Section 123.30, subsection 3, paragraphs a and b,
Code 2022, are amended to read as follows:
a. Class “A”. A class “A” liquor control license may be
issued to a club and shall authorize the holder to purchase
alcoholic liquors in original unopened containers from class
“E” liquor control licensees only, wine from class “A” wine
permittees or class “B” wine permittees who also hold class
“E” liquor control licenses licensees only as provided in
sections 123.173 this subsection and section 123.177 , and to
sell alcoholic beverages to bona fide members and their guests
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by the individual drink for consumption on the premises only.
b. Class “B”. A class “B” liquor control license may be
issued to a hotel or motel and shall authorize the holder to
purchase alcoholic liquors in original unopened containers from
class “E” liquor control licensees only, wine from class “A”
wine permittees or class “B” wine permittees who also hold
class “E” liquor control licenses licensees only as provided in
sections 123.173 this subsection and section 123.177 , and to
sell alcoholic beverages to patrons by the individual drink for
consumption on the premises only. However, beer may also be
sold for consumption off the premises. Each license shall be
effective throughout the premises described in the application.
Sec. 17. Section 123.30, subsection 3, paragraph c,
subparagraphs (1) and (2), Code 2022, are amended to read as
follows:
(1) A class “C” liquor control license may be issued to
a commercial establishment but must be issued in the name of
the individuals who actually own the entire business and shall
authorize the holder to purchase alcoholic liquors in original
unopened containers from class “E” liquor control licensees
only, wine from class “A” wine permittees or class “B” wine
permittees who also hold class “E” liquor control licenses
licensees only as provided in sections 123.173 this subsection
and section 123.177 , and to sell alcoholic beverages to patrons
by the individual drink for consumption on the premises only.
However, alcoholic liquor, wine, and beer in original unopened
containers may also be sold for consumption off the premises.
In addition, mixed drinks or cocktails may also be sold for
consumption off the premises subject to the requirements of
section 123.49, subsection 2 , paragraph “d” . The holder of a
class “C” liquor control license may also hold a special class
“A” beer permit for the premises licensed under a class “C”
liquor control license for the purpose of operating a brewpub
pursuant to this chapter .
(2) A special class “C” liquor control license may be
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issued to a commercial establishment and shall authorize the
holder to purchase wine from class “A” wine permittees or class
“B” wine permittees who also hold class “E” liquor control
licenses licensees only as provided in sections 123.173 this
subsection and section 123.177 , and to sell wine and beer to
patrons by the individual drink for consumption on the premises
only. However, beer may also be sold for consumption off the
premises. The license issued to holders of a special class “C”
liquor control license shall clearly state on its face that the
license is limited.
Sec. 18. Section 123.30, subsection 3, paragraph d,
subparagraph (2), Code 2022, is amended to read as follows:
(2) A class “D” liquor control licensee who operates a train
or a watercraft intrastate only, or an excursion gambling boat
licensed under chapter 99F , shall purchase alcoholic liquor in
original unopened containers from a class “E” liquor control
licensee only, wine from a class “A” wine permittee or a class
“B” wine permittee who also holds a class “E” liquor control
license licensee only as provided in sections 123.173 this
subsection and section 123.177 , and beer from a class “A” beer
permittee only.
Sec. 19. Section 123.30, subsection 3, paragraph e,
subparagraph (1), Code 2022, is amended to read as follows:
(1) A class “E” liquor control license may be issued and
shall authorize the holder to purchase alcoholic liquor in
original unopened containers from the division only , wine
from a class “A” wine permittee only, and high alcoholic
content beer from a class “A” beer permittee only ; and to sell
the alcoholic liquor , wine, and beer in original unopened
containers and high alcoholic content beer at retail to
patrons for consumption off the licensed premises ; and to
sell alcoholic liquor and high alcoholic content beer at
wholesale to other liquor control licensees, provided the
holder has filed with the division a basic permit issued by the
alcohol and tobacco tax and trade bureau of the United States
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department of the treasury. A holder of a class “E” liquor
control license may hold other retail liquor control licenses
or retail wine or beer permits, but the premises licensed under
a class “E” liquor control license shall be separate from other
licensed premises, though the separate premises may have a
common entrance. However, the holder of a class “E” liquor
control license may also hold a class “B” wine or class “C”
beer permit or both for the premises licensed under a class “E”
liquor control license. A class “E” liquor control licensee
may sell wine to class “A”, class “B”, class “C”, special
class “C”, and class “D” liquor control licensees for resale
for consumption on the premises. Such wine sales shall be in
quantities of less than one case of any wine brand but not more
than one such sale shall be made to the same liquor control
licensee in a twenty-four-hour period.
Sec. 20. Section 123.36, subsection 9, Code 2022, is amended
by striking the subsection and inserting in lieu thereof the
following:
9. Class “E” liquor control license fees shall be determined
as follows:
a. For premises located within the corporate limits of a
city with a population of one thousand five hundred or less, a
sum determined as follows:
(1) For a premises with a square footage of one thousand
five hundred or less, seven hundred fifty dollars.
(2) For a premises with a square footage of more than one
thousand five hundred but not more than two thousand, one
thousand five hundred dollars.
(3) For a premises with a square footage of more than two
thousand but not more than five thousand, two thousand five
hundred dollars.
(4) For a premises with a square footage over five thousand,
three thousand five hundred dollars.
b. For premises located within the corporate limits of a
city with a population of more than one thousand five hundred
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but less than ten thousand, a sum determined as follows:
(1) For a premises with a square footage of one thousand
five hundred or less, one thousand five hundred dollars.
(2) For a premises with a square footage of more than one
thousand five hundred but not more than two thousand, two
thousand five hundred dollars.
(3) For a premises with a square footage of more than two
thousand but not more than five thousand, three thousand five
hundred dollars.
(4) For a premises with a square footage over five thousand,
five thousand dollars.
c. For premises located within the corporate limits
of a city with a population of ten thousand or more, a sum
determined as follows:
(1) For a premises with a square footage of one thousand
five hundred or less, two thousand five hundred dollars.
(2) For a premises with a square footage of more than one
thousand five hundred but not more than two thousand, three
thousand five hundred dollars.
(3) For a premises with a square footage of more than
two thousand but not more than five thousand, five thousand
dollars.
(4) For a premises with a square footage over five thousand,
seven thousand five hundred dollars.
d. For premises located outside the corporate limits of
any city, a sum equal to that charged to a premises with the
same square footage in the incorporated city located nearest
the premises to be licensed. If there is doubt as to which
of two or more differing corporate limits is the nearest, the
license fee which is the largest shall prevail. However, if
the premises is located in an unincorporated town, for purposes
of this paragraph, the unincorporated town shall be treated as
if it is a city.
Sec. 21. Section 123.173, subsections 2 and 3, Code 2022,
are amended to read as follows:
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2. A class “A” wine permit allows the holder to manufacture
and sell, or sell at wholesale, in this state, wine. The
holder of a class “A” wine permit may manufacture in this state
wine having an alcoholic content greater than seventeen percent
by weight or twenty-one and twenty-five hundredths percent of
alcohol by volume for shipment outside this state. All class
“A” premises shall be located within the state. A class “B” or
class “B” native wine permit allows the holder to sell wine at
retail for consumption off the premises. A class “B” or class
“B” native wine permittee who also holds a class “E” liquor
control license may sell wine to class “A”, class “B”, class
“C”, special class “C”, and class “D” liquor control licensees
for resale for consumption on the premises. Such wine sales
shall be in quantities of less than one case of any wine brand
but not more than one such sale shall be made to the same liquor
control licensee in a twenty-four-hour period. A class “B” or
class “B” native wine permittee shall not sell wine to other
class “B” or class “B” native wine permittees. A class “C”
native wine permit allows the holder to sell native wine for
consumption on or off the premises.
3. A class “A” wine permittee shall be required to deliver
wine to a retail wine permittee, and a retail wine permittee
shall be required to accept delivery of wine from a class
“A” wine permittee, only at the licensed premises of the
retail wine permittee. Except as specifically permitted by
the division upon good cause shown, delivery or transfer
of wine from an unlicensed premises to a licensed retail
wine permittee’s premises, or from one licensed retail
wine permittee’s premises to another licensed retail wine
permittee’s premises, even if there is common ownership of all
of the premises by one retail permittee, is prohibited. A
class “B” or class “B” native wine permittee who also holds
a class “E” liquor control license shall keep and maintain
records for each sale of wine to liquor control licensees
showing the name of the establishment to which wine was sold,
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the date of sale, and the brands and number of bottles sold to
the liquor control licensee.
Sec. 22. Section 123.173, subsection 4, Code 2022, is
amended by striking the subsection.
Sec. 23. EFFECTIVE DATE. This division of this Act takes
effect January 1, 2023.
DIVISION V
SPECIAL LICENSES AND PERMITS
Sec. 24. Section 123.32, subsection 1, paragraph b,
subparagraph (7), Code 2022, is amended to read as follows:
(7) A charity beer, spirits, and wine auction special event
permit as provided in section 123.173A .
Sec. 25. Section 123.32, subsection 1, paragraph b,
subparagraph (8), Code 2022, is amended by striking the
subparagraph.
Sec. 26. Section 123.34, subsection 2, Code 2022, is amended
to read as follows:
2. a. The administrator may issue six-month or eight-month
seasonal class “A”, class “B”, class “C”, special class “C”,
and class “D” liquor control licenses, class “B” wine permits,
class “B” or class “C” native wine permits, or class “B” beer
permits.
b. The fee for a six-month or an eight-month seasonal
license or permit issued pursuant to this subsection shall be
for a proportionate part fifty percent of the license or permit
fee for that class of license or permit. However, the fee for
a seasonal class “B” native wine permit shall be the permit fee
provided in section 123.179, subsection 4 , and the fee for a
seasonal class “C” native wine permit shall be the permit fee
provided in section 123.179, subsection 5 .
Sec. 27. Section 123.39, subsection 1, paragraph a,
subparagraph (2), Code 2022, is amended to read as follows:
(2) The administrator may suspend a certificate
of compliance, a class “D” liquor control license, a
manufacturer’s license, a broker’s permit, a class “A” native
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distilled spirits license, a class “A” or special class “A”
beer permit, a charity beer, spirits, and wine auction special
event permit, a class “A” wine permit, a wine direct shipper’s
permit, or a wine carrier permit for a period not to exceed one
year, revoke the license, permit, or certificate, or impose a
civil penalty not to exceed one thousand dollars per violation.
Sec. 28. Section 123.173A, Code 2022, is amended by striking
the section and inserting in lieu thereof the following:
123.173A Charity beer, spirits, and wine special event
permit.
1. For purposes of this section:
a. “Authorized nonprofit entity” includes a nonprofit
entity which has a principal office in the state, a nonprofit
corporation organized under chapter 504, or a foreign
corporation as defined in section 504.141, whose income is
exempt from federal taxation under section 501(c) of the
Internal Revenue Code.
b. “Charity auction” means an auction conducted by an
authorized nonprofit entity which includes beer, spirits, and
wine.
c. “Charity event” means an event at which an authorized
nonprofit entity may serve the event’s attendees beer,
spirits, and wine for consumption on the premises of the event,
regardless of whether the entity charges an admission fee to
the event or otherwise collects the cost of the beer, spirits,
and wine served from the event’s attendees.
d. “Charity special event” means a charity auction, charity
event, or a combined charity auction and charity event.
2. Upon application to the division and receipt of a charity
beer, spirits, and wine special event permit, an authorized
nonprofit entity may conduct a charity special event subject to
the requirements of this section.
3. A charity auction conducted by a charity beer, spirits,
and wine special event permittee shall comply with the
following requirements:
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a. The authorized nonprofit entity conducting the charity
auction shall obtain the beer, spirits, and wine to be
auctioned at the charity auction from an Iowa retail beer
permittee, an Iowa retail liquor control licensee, or an Iowa
retail wine permittee, or may receive donations of beer,
spirits, or wine to be auctioned at the charity auction from
persons who purchased the donated beer, spirits, or wine from
an Iowa retail beer permittee, an Iowa retail liquor control
licensee, an Iowa class “A” native distilled spirits licensee,
or an Iowa retail wine permittee and who present a receipt
documenting the purchase at the time the beer, spirits, or wine
is donated. The authorized nonprofit entity conducting the
charity auction shall retain a copy of the receipt for a period
of one year from the date of the charity beer, spirits, and
wine auction.
b. The beer, spirits, and wine sold at the charity auction
shall be in original containers for consumption off of the
premises where the charity auction is conducted. No other
alcoholic beverage may be sold by the charity beer, spirits,
and wine special event permittee at the charity auction. A
purchaser of beer, spirits, or wine at a charity auction shall
not take possession of the beer, spirits, or wine until the
person is leaving the event. A purchaser of beer, spirits,
or wine at a charity auction shall not open the container or
consume or permit the consumption of the beer, spirits, or
wine purchased on the premises where the charity auction is
conducted. A purchaser of beer, spirits, or wine at a charity
auction shall not resell the beer, spirits, or wine.
c. A liquor control licensee, beer permittee, class “A”
native distilled spirits licensee, or wine permittee shall not
purchase beer, spirits, or wine at a charity auction. The
charity auction may be conducted on a premises for which a
class “B” liquor control license or class “C” liquor control
license has been issued, provided that the liquor control
licensee does not participate in the charity auction, supply
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beer, spirits, or wine to be auctioned at the charity auction,
or receive any of the proceeds of the charity auction.
4. A charity event conducted by a charity beer, spirits, and
wine special event permittee shall comply with the following
requirements:
a. The charity event shall be conducted on a premises
covered by a valid liquor control license or retail wine or
beer permit issued by the division.
b. The authorized nonprofit entity conducting a charity
event shall have a written agreement with the liquor control
licensee or wine or beer permittee covering the premises where
the charity event is to be conducted specifying that that
licensee or permittee shall act as the agent of the authorized
nonprofit entity for the purpose of providing and serving
alcoholic beverages to the attendees of the charity event.
c. The liquor control licensee or wine or beer permittee
covering the premises where the charity event is to be
conducted shall supply all alcoholic beverages served to the
attendees of the charity event.
d. Only those types of alcoholic beverages as are authorized
to be sold by the liquor control license or wine or beer
permit covering the premises where the charity event is to be
conducted are to be served to the attendees of the charity
event.
5. An application for a charity beer, spirits, and wine
special event permit to conduct a charity special event shall
include all of the following information:
a. The date and time when the charity special event is to be
conducted and the location of the premises in this state where
the charity special event is to be physically conducted.
b. The liquor control license or wine or beer permit number
issued by the division for the premises where a charity event
is to be conducted, if applicable.
c. A certification that the objective of the charity special
event is to raise funds solely to be used for educational,
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religious, or charitable purposes and that the entire proceeds
from the charity special event are to be expended for any of
the purposes described in section 423.3, subsection 78.
6. An authorized nonprofit entity shall be eligible to
receive no more than two charity beer, spirits, and wine
special event permits during a calendar year and each charity
beer, spirits, and wine special event permit shall be valid for
a period not to exceed thirty-six consecutive hours.
7. Any violation of the requirements of this chapter or
the rules adopted pursuant to this chapter shall subject
the charity beer, spirits, and wine special event permit
holder to the general penalties provided in this chapter and
shall constitute grounds for imposition of a civil penalty,
suspension of the permit, or revocation of the permit after
notice and opportunity for a hearing pursuant to section 123.39
and chapter 17A.
Sec. 29. Section 123.179, subsection 6, Code 2022, is
amended to read as follows:
6. The fee for a charity beer, spirits, and wine auction
special event permit is one hundred dollars.
Sec. 30. Section 123.179, subsection 7, Code 2022, is
amended by striking the subsection.
Sec. 31. REPEAL. Section 123.173B, Code 2022, is repealed.
Sec. 32. EFFECTIVE DATE. This division of this Act takes
effect January 1, 2023.
DIVISION VI
SUNDAY SALES
Sec. 33. Section 123.34, subsections 3 and 4, Code 2022, are
amended to read as follows:
3. a. The administrator may issue fourteen-day class “A”,
class “B”, class “C”, special class “C”, and class “D” liquor
control licenses, and fourteen-day class “B” beer permits,
class “B” native wine permits, and class “C” native wine
permits.
b. A fourteen-day license or permit, if granted, is valid
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for fourteen consecutive days , but the holder shall not sell on
the two Sundays in the fourteen-day period unless the holder
qualifies for and obtains the privilege to sell on Sundays
contained in section 123.36, subsection 6 , and section 123.134,
subsection 4 .
c. (1) The fee for a fourteen-day liquor control license
or beer permit is one quarter of the annual fee for that class
of liquor control license or beer permit. The fee for the
privilege to sell on the two Sundays in the fourteen-day period
is twenty percent of the price of the fourteen-day liquor
control license or beer permit.
(2) The fee for a fourteen-day class “B” native wine permit
shall be the permit fee provided in section 123.179, subsection
4 , and the fee for a fourteen-day class “C” native wine permit
is the permit fee provided in section 123.179, subsection 5 .
4. a. The administrator may issue five-day class “A”, class
“B”, class “C”, special class “C”, and class “D” liquor control
licenses, and five-day class “B” beer permits, class “B” native
wine permits, and class “C” native wine permits.
b. A five-day license or permit is valid for five
consecutive days , but the holder shall not sell alcoholic
beverages on Sunday in the five-day period unless the holder
qualifies for and obtains the privilege to sell on Sunday
pursuant to section 123.36, subsection 6, and section 123.134,
subsection 4 .
c. (1) The fee for the five-day liquor control license
or beer permit is one-eighth of the annual fee for that class
of license or permit. The fee for the privilege to sell on a
Sunday in the five-day period is ten percent of the price of
the five-day liquor control license or beer permit.
(2) The fee for a five-day class “B” native wine permit
shall be the permit fee provided in section 123.179, subsection
4 , and the fee for a five-day class “C” native wine permit is
the permit fee provided in section 123.179, subsection 5 .
Sec. 34. Section 123.36, subsection 6, Code 2022, is amended
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by striking the subsection.
Sec. 35. Section 123.36, subsection 8, Code 2022, is amended
to read as follows:
8. The division shall credit all fees to the beer and liquor
control fund. The division shall remit to the appropriate
local authority, a sum equal to sixty-five percent of the fees
collected for each class “A”, class “B”, or class “C” license
except special class “C” licenses or class “E” licenses,
covering premises located within the local authority’s
jurisdiction. The division shall remit to the appropriate
local authority a sum equal to seventy-five percent of the fees
collected for each special class “C” license covering premises
located within the local authority’s jurisdiction. Those fees
collected for the privilege authorized under subsection 6 and
those fees collected for each class “E” liquor control license
shall be credited to the beer and liquor control fund.
Sec. 36. Section 123.46A, subsection 3, paragraph b, Code
2022, is amended to read as follows:
b. Orders for deliveries may be taken by the licensee or
permittee between the hours of 2:00 a.m. and 6:00 a.m.
on a day other than Sunday, and orders for deliveries may
be taken between the hours of 2:00 a.m. and 6:00 a.m. on a
Sunday provided the licensee or permittee has been granted
the privilege of selling alcoholic liquor, wine, beer, or
mixed drinks or cocktails on Sunday on any day of the week ,
notwithstanding any provision of section 123.49, subsection 2 ,
paragraph “b” , to the contrary.
Sec. 37. Section 123.49, subsection 2, paragraph b, Code
2022, is amended to read as follows:
b. Sell or dispense any alcoholic beverage on the premises
covered by the license or permit, or permit its consumption
thereon between the hours of 2:00 a.m. and 6:00 a.m. on a
weekday, and between the hours of 2:00 a.m. on Sunday and 6:00
a.m. on the following Monday, however, a holder of a liquor
control license or retail wine or beer permit granted the
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privilege of selling alcoholic liquor, wine, or beer on Sunday
may sell or dispense alcoholic liquor, wine, or beer between
the hours of 6:00 a.m. on Sunday and 2:00 a.m. on the following
Monday any day of the week .
Sec. 38. Section 123.49, subsection 4, Code 2022, is amended
by striking the subsection.
Sec. 39. Section 123.134, subsection 4, Code 2022, is
amended by striking the subsection.
Sec. 40. REPEAL. Section 123.150, Code 2022, is repealed.
Sec. 41. EFFECTIVE DATE. This division of this Act takes
effect January 1, 2023.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
This bill relates to alcoholic beverage control and matters
under the purview of the alcoholic beverages division.
Division I of the bill relates to keg identification
stickers, deliveries of alcoholic beverages, and the wine
direct shipper permit.
Code section 123.46A, concerning delivery of alcoholic
beverages by retailers, is amended to provide that deliveries
shall occur on the same day the order for delivery of alcoholic
beverages is removed from the licensed premises of the
retailer.
Code section 123.138, concerning keg identification
stickers, is amended to provide for a keg identification label
instead of a sticker. In addition, the bill strikes provisions
concerning the forfeiture and remittance of deposits relating
to defacing the keg identification label.
Code section 123.187, concerning the wine direct shipper
permit, is amended to remove the requirement that an
application for the permit be accompanied by a bond if not
otherwise required to submit a bond as a wine manufacturer.
Division II of the bill relates to the renewal of certain
licenses, permits, and certificates of compliance.
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Code section 123.34, subsection 1, providing generally
for the expiration of licenses, permits, and certificates of
compliance one year from the date of issuance, and including a
notification requirement by the administrator of the alcoholic
beverage division prior to expiration, is stricken.
New Code section 123.35 includes the provision from
current Code section 123.34 providing for the expiration of
licenses, permits, and certificates of compliance without
the notification requirement. The new Code section further
provides, notwithstanding any provision of Code chapter 123
to the contrary, for the automatic renewal of a class “E”
liquor control license, a distiller’s, vintner’s, or brewer’s
certificate of compliance, and a wine direct shipper’s
permit. The bill allows the renewal of the applicable license,
certificate, or permit without approval by the administrator
of the alcoholic beverages division or endorsement of any
applicable local authority upon collection of the annual fee
for that license, certificate, or permit by the alcoholic
beverages division, provided certain conditions are met since
the preceding license, certificate, or permit was issued. The
bill provides that the license, certificate, or permit can be
automatically renewed if, in the preceding year, the license,
certificate, or permit has not been suspended or revoked,
a civil penalty has not been imposed, an administrative
proceeding is not pending to suspend or revoke the license,
certificate, or permit or to impose a civil penalty, all
required payments to the division have been made, and the
licensee, certificate holder, or permittee, and all persons
associated with the licensee, certificate holder, or permittee
as described in Code section 123.3, subsection 40, paragraph
“e”, have not been convicted of a violation of Code chapter
123. In addition, for renewal of a class “E” liquor control
license, the licensed premises shall constitute a safe and
proper place and building that complies with all applicable
building-related regulations.
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This division of the bill takes effect January 1, 2023.
Division III of the bill relates to the distribution of
certain alcoholic beverage control revenues.
Code section 123.17, concerning transfers from the beer
and liquor control fund, is amended. The bill provides that
of the moneys transferred to a special revenue account in the
general fund of the state from the beer and liquor control
fund, $1 million, plus any additional amount as determined by
the general assembly, shall be appropriated to the department
of public health to be distributed as provided in Code section
125.59 as grants to counties, persons, or nonprofit entities
for substance abuse and prevention programs. Code section
125.59 is amended to reflect that only this new appropriation
shall be transferred to the department of public health for the
purposes of Code section 125.59.
Code section 123.143, concerning distribution of certain
beer permit fees, is amended. The bill provides that all
beer-related permit fees collected by the alcoholic beverages
division shall accrue to the beer and liquor control fund
except as otherwise provided. The bill also provides that
of the retail beer permit fees collected by the alcoholic
beverages division, the division shall remit to the applicable
local authority a sum of money equal to the retail beer permit
fees collected by the division covering premises covered by the
local authority’s jurisdiction. The bill further eliminates
the requirement that retail beer permit fees collected by the
local authority be transferred as provided in Code section
125.59.
Code section 123.97, providing that most revenues arising
under the operation of Code chapter 123 become part of the
general fund of the state, is repealed as inconsistent with the
provisions of current Code section 123.17.
This division of the bill takes effect January 1, 2023.
Division IV of the bill relates to class “E” liquor control
licenses.
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Code section 123.30, concerning liquor control licenses, is
amended. The bill provides that a class “E” liquor control
licensee can purchase wine and beer from a class “A” wine
or beer permittee only, respectively. The bill specifically
allows the class “E” licensee to sell wine and beer in unopened
containers at retail, and to sell alcoholic liquor and high
alcoholic content beer at wholesale. The bill strikes a
provision allowing the holder of a class “E” liquor control
license to also hold a class “B” wine or class “C” beer permit
for the premises licensed under the class “E” license.
The bill allows a class “E” liquor control licensee to
sell wine to a class “A”, class “B”, class “C”, special class
“C”, and class “D” liquor control licensee for resale for
consumption on the premises in limited quantities as specified
by the bill.
Code section 123.36, concerning class “E” liquor control
license fees, is amended. The bill establishes license fees
based on the population of the city where the premises is
located as well as the square footage of the licensed premises.
Current law bases the fees only on the population of the city
where the premises is located.
Code section 123.173, concerning wine permits, is amended to
strike provisions granting the authority, and requiring certain
reports, relating to a class “E” liquor control licensee that
also holds a class “B” wine permit or class “B” native wine
permit to sell wine in limited quantities.
This division of the bill takes effect January 1, 2023.
Division V of the bill relates to certain special licenses
and permits.
Code section 123.34, concerning seasonal licenses and
permits, is amended. The bill eliminates the six-month
seasonal license or permit and provides that the fee for an
eight-month seasonal license or permit shall be 50 percent of
the license or permit fee for that class of license or permit
instead of a proportional share of that fee.
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Code section 123.173A, providing for a charity beer,
spirits, and wine auction permit, and Code section 123.173B,
providing for a charity beer, spirits, and wine event permit,
are stricken and replaced with a combined charity beer,
spirits, and wine special event permit, allowing the permit
holder to conduct a charity auction, charity event, or a
combined charity auction and charity event in a similar manner
as is allowed under current law for the two separate permits.
The bill only allows one charity auction, charity event, or
combined charity auction and charity event, to be conducted
during the period of the permit and limits a person to no more
than two special event permits in a calendar year.
This division of the bill takes effect January 1, 2023.
Division VI of the bill concerns Sunday sales of alcoholic
beverages. The bill eliminates the requirement to obtain a
special privilege to sell alcoholic beverages on Sunday and
provides that sales or other activities relating to alcoholic
beverages on Sunday will be allowed to the same extent as they
are allowed on any other day.
This division of the bill takes effect January 1, 2023.
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