Bill Text: IA HF2540 | 2019-2020 | 88th General Assembly | Enrolled

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Bill Title: A bill for an act concerning alcoholic beverage control, establishing a charity beer, spirits, and wine event permit, providing for alcoholic beverages sales, and including effective date provisions. (Formerly HSB 683.) Effective date: 06/29/2020, 07/01/2020.

Spectrum: Committee Bill

Status: (Passed) 2020-06-29 - Signed by Governor. H.J. 791. [HF2540 Detail]

Download: Iowa-2019-HF2540-Enrolled.html

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House File 2540 - Enrolled
House File 2540
AN ACT
CONCERNING ALCOHOLIC BEVERAGE CONTROL, ESTABLISHING A CHARITY
BEER, SPIRITS, AND WINE EVENT PERMIT, PROVIDING FOR
ALCOHOLIC BEVERAGES SALES, AND INCLUDING EFFECTIVE DATE
PROVISIONS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
DIVISION I
CHARITY BEER, SPIRITS, AND WINE EVENT PERMIT
Section 1. Section 123.32, subsection 1, paragraph b, Code
2020, is amended by adding the following new subparagraph:
NEW SUBPARAGRAPH . (7A) A charity beer, spirits, and wine
event permit as provided in section 123.173B.
Sec. 2. NEW SECTION . 123.173B Charity beer, spirits, and
wine event permit.
1. For purposes of this section, “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.
2. Upon application to the division and receipt of a charity
beer, spirits, and wine event permit, an authorized nonprofit
entity may conduct an event at which the entity is authorized
to 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

House File 2540, p. 2
collects the cost of the beer, spirits, and wine served from
the event’s attendees and subject to the requirements of this
section.
3. An application for a charity beer, spirits, and wine
event permit shall include all of the following information:
a. The date and time when the charity beer, spirits, and
wine event is to be conducted and the location of the premises
in this state where the charity beer, spirits, and wine 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 the charity beer,
spirits, and wine event is to be conducted.
c. A certification that the objective of the charity beer,
spirits, and wine event is to raise funds solely to be used for
educational, religious, or charitable purposes and that the
entire proceeds from the charity beer, spirits, and wine event
are to be expended for any of the purposes described in section
423.3, subsection 78.
4. A charity beer, spirits, and wine event shall comply with
all of the following requirements:
a. The event is to be conducted on a premises covered by a
valid liquor control license or wine or beer permit issued by
the division.
b. The authorized nonprofit entity shall have a written
agreement with the liquor control licensee or wine or beer
permittee covering the premises where the 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 event.
c. The liquor control licensee or wine or beer permittee
covering the premises where the event is to be conducted shall
supply all alcoholic beverages served to the attendees of the
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 event is to be conducted are to
be served to the attendees of the event.
5. An authorized nonprofit entity shall be eligible to

House File 2540, p. 3
receive no more than two charity beer, spirits, and wine event
permits during a calendar year and each charity beer, spirits,
and wine event permit shall be valid for a period not to exceed
thirty-six consecutive hours.
6. Any violation of the requirements of this chapter or
the rules adopted pursuant to this chapter shall subject the
charity beer, spirits, and wine 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. 3. Section 123.179, Code 2020, is amended by adding the
following new subsection:
NEW SUBSECTION . 7. The fee for a charity beer, spirits, and
wine event permit is one hundred dollars.
DIVISION II
WINE SALES
Sec. 4. Section 123.178, subsection 1, Code 2020, is amended
to read as follows:
1. A person holding a class “B” wine permit may sell wine at
retail for consumption off the premises. Wine shall be sold
for consumption off the premises in original containers only
except as provided in subsection 4 .
Sec. 5. Section 123.178, Code 2020, is amended by adding the
following new subsections:
NEW SUBSECTION . 4. Subject to the rules of the division,
sales made pursuant to this section may be made in a container
other than the original container only if all of the following
requirements are met:
a. The wine is transferred from the original container to
the container to be sold on the licensed premises at the time
of sale or when sold by telephonic or other electronic means.
b. The person transferring the wine from the original
container to the container to be sold shall be eighteen years
of age or more.
c. The container to be sold shall be no larger than
seventy-two ounces.
d. The container to be sold shall be securely sealed by a

House File 2540, p. 4
method authorized by the division that is designed so that if
the sealed container is reopened or the seal tampered with, it
is visibly apparent that the seal on the container of wine has
been tampered with or the sealed container has otherwise been
reopened.
NEW SUBSECTION . 5. A container of wine other than the
original container that is sold and sealed in compliance
with the requirements of subsection 4 and the rules of the
division shall not be deemed an open container subject to the
requirements of sections 321.284 and 321.284A if the sealed
container is unopened and the seal has not been tampered with,
and the contents of the container have not been partially
removed.
Sec. 6. Section 123.178A, subsection 1, Code 2020, is
amended to read as follows:
1. A person holding a class “B” native wine permit may sell
native wine only at retail for consumption off the premises.
Native wine shall be sold for consumption off the premises in
original containers only except as provided in subsection 4 .
Sec. 7. Section 123.178A, Code 2020, is amended by adding
the following new subsections:
NEW SUBSECTION . 4. Subject to the rules of the division,
sales made pursuant to this section may be made in a container
other than the original container only if all of the following
requirements are met:
a. The wine is transferred from the original container to
the container to be sold on the licensed premises at the time
of sale or when sold by telephonic or other electronic means.
b. The person transferring the wine from the original
container to the container to be sold shall be eighteen years
of age or more.
c. The container to be sold shall be no larger than
seventy-two ounces.
d. The container to be sold shall be securely sealed by a
method authorized by the division that is designed so that if
the sealed container is reopened or the seal tampered with, it
is visibly apparent that the seal on the container of wine has
been tampered with or the sealed container has otherwise been
reopened.

House File 2540, p. 5
NEW SUBSECTION . 5. A container of wine other than the
original container that is sold and sealed in compliance
with the requirements of subsection 4 and the rules of the
division shall not be deemed an open container subject to the
requirements of sections 321.284 and 321.284A if the sealed
container is unopened and the seal has not been tampered with,
and the contents of the container have not been partially
removed.
Sec. 8. Section 123.178B, subsection 1, Code 2020, is
amended to read as follows:
1. A person holding a class “C” native wine permit may
sell native wine only at retail for consumption on or off the
premises. Sales of wine for consumption off the premises made
pursuant to this section shall be made in original containers
except as provided in subsection 5.
Sec. 9. Section 123.178B, Code 2020, is amended by adding
the following new subsections:
NEW SUBSECTION . 5. Subject to the rules of the division,
sales made pursuant to this section may be made in a container
other than the original container only if all of the following
requirements are met:
a. The wine is transferred from the original container to
the container to be sold on the licensed premises at the time
of sale or when sold by telephonic or other electronic means.
b. The person transferring the wine from the original
container to the container to be sold shall be eighteen years
of age or more.
c. The container to be sold shall be no larger than
seventy-two ounces.
d. The container to be sold shall be securely sealed by a
method authorized by the division that is designed so that if
the sealed container is reopened or the seal tampered with, it
is visibly apparent that the seal on the container of wine has
been tampered with or the sealed container has otherwise been
reopened.
NEW SUBSECTION . 6. A container of wine other than the
original container that is sold and sealed in compliance
with the requirements of subsection 5 and the rules of the
division shall not be deemed an open container subject to the

House File 2540, p. 6
requirements of sections 321.284 and 321.284A if the sealed
container is unopened and the seal has not been tampered with,
and the contents of the container have not been partially
removed.
DIVISION III
ALCOHOLIC BEVERAGES SALES
Sec. 10. Section 123.30, subsection 3, paragraph c,
subparagraph (1), Code 2020, is 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 only as provided in sections 123.173 and 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 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 .
Sec. 11. Section 123.30, subsection 3, paragraph c,
subparagraph (3), Code 2020, is amended to read as follows:
(3) A class “C” native distilled spirits liquor control
license may be issued to a native distillery but shall be
issued in the name of the individuals who actually own the
business and shall only be issued to a native distillery which,
combining all production facilities of the business, produces
and manufactures not more than one hundred thousand proof
gallons of distilled spirits on an annual basis. The license
shall authorize the holder to sell native distilled spirits
manufactured on the premises of the native distillery to
patrons by the individual drink for consumption on the premises
and mixed drinks or cocktails for consumption off the premises

House File 2540, p. 7
subject to the requirements of section 123.49, subsection 2,
paragraph “d” . All native distilled spirits sold by a native
distillery for on-premises consumption and mixed drinks or
cocktails sold for consumption off the premises shall be
purchased from a class “E” liquor control licensee in original
unopened containers.
Sec. 12. Section 123.43A, subsection 6, Code 2020, is
amended to read as follows:
6. Notwithstanding any provision of this chapter to the
contrary or the fact that a person is the holder of a class
“A” native distilled spirits license, a native distillery
which, combining all production facilities of the business,
produces and manufactures not more than one hundred thousand
proof gallons of native distilled spirits on an annual basis
may sell those native distilled spirits manufactured on the
premises of the native distillery for consumption on the
premises by applying for a class “C” native distilled spirits
liquor control license as provided in section 123.30 . A
native distillery may be granted not more than one class “C”
native distilled spirits liquor control license. All native
distilled spirits sold by a native distillery for on-premises
consumption and mixed drinks or cocktails sold for consumption
off the premises shall be purchased from a class “E” liquor
control licensee. A manufacturer of native distilled spirits
may be issued a class “C” native distilled spirits liquor
control license regardless of whether the manufacturer is also
a manufacturer of beer pursuant to a class “A” beer permit or
a manufacturer of native wine pursuant to a class “A” wine
permit.
Sec. 13. Section 123.49, subsection 2, paragraph d, Code
2020, is amended by adding the following new subparagraph:
NEW SUBPARAGRAPH . (3) Mixed drinks or cocktails mixed on
premises covered by a class “C” liquor control license or a
class “C” native distilled spirits liquor control license for
consumption off the licensed premises may be sold if the mixed
drink or cocktail is immediately sealed with a lid or other
method of securing the product and is promptly taken from the
licensed premises prior to consumption of the mixed drink or
cocktail. A mixed drink or cocktail that is sold and sealed

House File 2540, p. 8
in compliance with the requirements of this subparagraph shall
not be deemed an open container subject to the requirements
of sections 321.284 and 321.284A if the sealed container is
unopened and the seal has not been tampered with, and the
contents of the container have not been partially removed.
Sec. 14. Section 123.131, subsection 2, paragraph a, Code
2020, is amended to read as follows:
a. The beer is transferred from the original container to
the container to be sold on the licensed premises at the time
of sale or when sold by telephonic or other electronic means .
Sec. 15. EMERGENCY RULES. The alcoholic beverages division
of the department of commerce may adopt emergency rules under
section 17A.4, subsection 3, and section 17A.5, subsection 2,
paragraph “b”, to implement the provisions of this division
of this Act and the rules shall be effective immediately upon
filing unless a later date is specified in the rules. Any
rules adopted in accordance with this section shall also be
published as a notice of intended action as provided in section
17A.4.
Sec. 16. EFFECTIVE DATE. This division of this Act, being
deemed of immediate importance, takes effect upon enactment.
______________________________ ______________________________
PAT GRASSLEY CHARLES SCHNEIDER
Speaker of the House President of the Senate
I hereby certify that this bill originated in the House and
is known as House File 2540, Eighty-eighth General Assembly.
______________________________
MEGHAN NELSON
Chief Clerk of the House
Approved _______________, 2020 ______________________________
KIM REYNOLDS
Governor